CG malls europe - Commerz Real

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Commerz Real Estate Master FCP – SIF
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT DECEMBER 31, 2009
3.1. Financial risk factors (continued)
Such risks are subject to a quarterly or more frequent review. The Group has policies in place to ensure that rental contracts
are made with customers with an appropriate credit history. Cash balances are held only with financial institutions
with a Moody’s credit rating of A or better. The Group has policies that limit the amount of credit exposure to any
financial institution. Limits on the level of credit risk by category and territory are approved quarterly by the Board of
Directors. The utilisations of credit limits are regularly monitored.
The Group’s maximum exposure to credit risk by class of financial asset is as follows:
(c) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through an adequate
amount of committed credit facilities and the ability to close out market positions. The Fund’s main investment
goal is to create a portfolio which guarantees stable cash flows through geographic and investment product diversification.
The Group’s liquidity positions are monitored on a daily basis by management and are reviewed by the Board of Directors.
A summary table with maturity of financial assets and liabilities is presented below. This is used by key management
personnel to manage liquidity risks and is derived from managerial reports at company level. Undiscounted cash
flows in respect of balances due within 12 months generally equal their carrying amounts in the statement of financial
position as the impact of discounting is not significant.