apr-11.pdf (2.07 MB) - Crown Ownership Monitoring Unit

Earthquake CommissionCHAIR » Michael WintringhamBOARD » Keith Taylor,Russell Black, Denise Bovaird,Trevor Burt, Peter Hughes,Giselle McLachlan, Gordon SmithCHIEF EXECUTIVE » Ian SimpsonActivitiesEQC is responsible formanagement of the NDF, which isintended to help meet the coststo EQC of a major earthquake,or other natural catastrophecovered by the Commission, withinNew Zealand. EQC has a Crownguarantee which is expected tobe called upon in 2014 as EQCsettles claims relating to the recentCanterbury earthquakes.Financial performance measures$m 2007 2008 2009 2010 2011 5 YearFunds Under Management (FUM)Opening FUM 5,437 5,463 5,591 5,617 5,980 5,437+/- Investment returns 40 182 68 380 408 1,078+/- Tax+/- Cash inflow/(outflow) (14) (54) (41) (18) (1,251) (1,378)Closing FUM 5,463 5,591 5,617 5,980 5,137 5,137Returns & Risk% paReturn* 0.7% 3.3% 1.2% 6.8% 7.3% 3.8%Objective** 2.8% 10.0% 10.8% 9.2% 7.8% 8.1%Passive benchmark 1.1% 3.2% 1.3% 6.8% 7.5% 3.9%Fund risk (volatility***) 3.5%Passive benchmark risk 3.7%Notes:* After investment management fees. EQC is not subject to tax** New Zealand Government Stock + 1% pa*** Annualised standard deviation of quarterly returns. Indicative of expected variability of the return in any one yearAsset allocation – past five years% FUM■ New Zealand Equities ■ New Zealand Bonds ■ CashReturn indexReturn index (based at 100 in 2004/05 Q4)— EQC — ANZ NZ Govt Stock Index — MSCI World Equity (hedged to NZD)page | 54