3912 reportcomplete final web:layout 1

Currency allocation:
Olympic Foundation investments can be made in every
convertible currency. Nevertheless, the following ranges
should be maintained and respected:
35–45% of the total of investments in USD
35–45% of the total of investments in EUR
10–20% of the total of investments in CHF
Custodian banks:
The Olympic Foundation assets should be held in several
banks for diversification purposes. None of them should
have more than 70% of the global portfolio.
e) Olympic Solidarity Portfolio
Types of investments permitted include US dollardenominated
money market instruments, notes and bonds
issued by supranational entities as well as G-10 countries,
including their governments and corporations, whereby the
following limits apply:
Ratings: corporate obligations shall have a rating of “A”
or above; the applicable limit for single “A” is 20% of the
market value of the portfolio.
The duration of the fixed-income portfolio shall not exceed
five years, and the 90-day value-at-risk must remain below
6% of the market value at inception of the funding
allocation.
Total exposure to any one corporate issuer should not
exceed 6% of the market value of the total portfolio at
inception of the funding allocation.
f) Top Programme and OBS Portfolios
These two portfolios only consist of money market
investments and focus on managing liquidity.
g) Benchmarks
Each category of investment allocated to the IOC portfolios
have a benchmark index identified. These will be used to
compare the actual total return of the components of the
International Olympic Committee, the Olympic Foundation,
the Top programme and the OBS portfolio with a
corresponding passive index.
h) Reporting
Reports on the investment portfolios must be presented
to the IOC Finance Commission on a semi-annual basis
and quarterly to the Finance Management Committee.
In addition, a dashboard report is issued every month and
sent to the management. This report assesses the full
compliance of investments with risk policies. Any deviation
is underlined and the follow-up and the final decision are
taken by management.
The monthly dashboard is distributed to the Finance
Management Committee which is composed of the
following members: IOC President, Chairman of the Finance
Commission, General Director, Chief Financial Officer and
the Treasurer.
As at 31 December 2008 and 2007, the dashboard did not
reveal any significant discrepancy with risk management
policies.
i) Policy Exceptions
Policy exceptions may be approved in the event that
unusual market conditions require immediate action, and it
is not feasible to convene the Finance Commission. In the
case of any proposed actions that could result in exceeding
a policy limit, approval must be obtained from at least two
members of the Finance Management Committee, one of
whom must be either the IOC President or the Chairman
of the Finance Commission, before proceeding. At the
following Finance Management Committee meeting, the
transaction(s) must be presented for ratification.
4.
CASH AND CASH EQUIVALENTS
2008 2007
USD 000 USD 000
Cash at bank and in hand 94 697 10 269
Bank deposits
in US Dollars 138 933 186 920
in Euros 34 206 19 630
in Swiss Francs 8 048 5 151
in Canadian Dollars – 6 372
in Great Britain Pounds 4 823 2 699
in Australian Dollars 21 287 272
Total cash and cash equivalents 301 994 231 313
All bank deposits are made through Swiss banks. At
31 December 2008 and 2007, respectively, the weighted
average interest rate was respectively 0.65% and 4.93% for
USD deposits, 4.29% and 4.42% for Euro deposits, 1.37%
and 2.43% for Swiss Franc deposits, 3.92% and 6.30% for
Great Britain Pounds, and 3.82% and 7.24% for Australian
Dollars.
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