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5 Investment Income
2015
2014
NZ$’000
NZ$’000
Net Increase in Investments
36,836
16,334
Net Increase / (Decrease) in Derivative Financial Instruments
(2,653)
11,808
Dividends
1,530
2,497
Interest
1,399
1,685
37,112
32,324
6 Trust Funds
2015
2014
Base Capital Value
NZ$’000
NZ$’000
Balance at the Beginning of the Year
277,572
271,671
Transfer from Comprehensive Income
1,347
5,901
Balance at the End of the Year
278,919
277,572
Base capital value is adjusted on a quarterly compounding basis for inflation and regional
population growth.
2015
2014
Investment Fluctuation Reserve
NZ$’000
NZ$’000
Balance at the Beginning of the Year
29,486
13,837
Transfer from Comprehensive Income
23,188
15,649
Balance at the End of the Year
52,674
29,486
THE WAIKATO COMMUNITY TRUST INCORPORATED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 31 March 2015
The Trustees have adopted an investment strategy with a targeted long term annual rate
of return of 6.4% (2014: 6.6%) of the Trust portfolio value. Recognising that actual returns
are likely to fluctuate from year to year, the Trust retains the variation from the target in
an Investment Fluctuation Reserve, so that in years when investment returns are less than
the target, sufficient funds are available to meet expenditure and make donations. If the
Trust fund falls below the value that needs to be maintained for the benefit of current and
future generations the levels of expenditure and donations are reviewed by the Trust.
7 Donations Payable
2015
2014
NZ$’000
NZ$’000
Donations Payable
1,600
1,605
1,600
1,605
Donations payable are discretionary donations where there are no significant conditions
attached or where the significant conditions attached to the donations have been met
at balance date.
T RUST WA I K ATO
ANNUA L R E POR T
2 0 1 5
2 1