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A Guide to Private Equity Fund of Funds Managers by keo12848

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A Guide to Private Equity Fund of Funds Managers document sample

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									          List quarterly survey fund managers in NZ which             List quarterly survey fund managers in NZ with which
               give you funds to manage - see list below                     you place funds to manage - see list below
      All qtly funds except their Kiwisaver              $m0.0       All qtly funds except their Kiwisaver          $m0.0




      Kiwisaver only from qtly survey funds                          Kiwisaver only with qtly survey funds




      Qtly survey total equals row AA14.1                        0.0 Qtly survey total equals row A13                     0.0
                                                             Panel B
      All other NZ funds which give you funds to manage.                 All other NZ funds with which you place funds.
      NOTE: These will appear in A12 total but not in AA14.1             NOTE: Do not include these funds in A12 or A13




      Kiwisaver from other funds                                     Kiwisaver with other funds


      Panel B total                                                0 Panel B total                                          0
ly survey respondents for Panel A. Any other manager's funds go in Panel B
     ABN AMRO Craigs                                  Grosvenor Investments Ltd
     AMP Capital Investors                            ING (NZ) Limited
     Alliance Bernstein NZ Ltd                        Inland Revenue
     Assure (was BNZ Investment Management Limited)   Mercer
     Arcus Investment Management                      National Bank Funds Management/Private Banking
     AXA New Zealand                                  National Provident Fund
     ASB Bank Limited                                 NZ Asset Management
     Sovereign Funds Management                       NZ Funds Management Limited
     Brook Asset Management                           Platinum Asset Management
     BT Funds Management (NZ) Limited                 Public Trust
     Dominion Funds Ltd                               Russell Investment Group
     Fisher Funds Management Ltd                      New Zealand Guardian Trust Funds Management Limited/Tyndall
     Forsyth Barr                                     Tower Asset Management Limited
     Gareth Morgan Investments Ltd                    Tower Managed Funds Limited
     Government Superannuation Fund
          RESERVE BANK MANAGED FUNDS SURVEY: Final                                                                                                                                    Portfolio Summary - All Funds




                                                             Column number          1               2                    3                 4                   5                          6                         7




                                                                                                Registered Superannuation
                                                                                                                                                                                                             Memo item
                                                                                                                                      Unit Trusts         Other funds                TOTAL                  Total of FUM
                                 31-Mar-08                     $m             Life products     Kiwisaver         All other super
                                                                                                                                        & GIFs             managed                                          (col6) in PIEs
A. New Zealand investments managed by you
A1 Cash and deposits (no short-term securities)                                                             0.0                                                                                    0.0
A2 Interest-bearing securities - time to run to maturity
A2.5 Central Govt - Short-term                                                                                                                                                                     0.0
A2.6 Central Govt - Long-term                                                                                                                                                                      0.0
A2.7 All Other non-Govt securities - Short-term, (exclude mortgage-backed)                                                                                                                         0.0
A2.8 All Other non-Govt securities - long-term (exclude mortgage-backed)                                                                                                                           0.0
A2.9 Total interest bearing securities                                                    0.0               0.0                 0.0                 0.0                 0.0                        0.0                   0.0
A2.10 Total cash and interest-bearing securities                                          0.0               0.0                 0.0                 0.0                 0.0                        0.0                   0.0
A3 Loans and placements (include mortgage-backed securities)                                                                                                                                       0.0
A4 Equities and units in trusts (exclude units in property trusts, A5)                                                                                                                             0.0
A5 Units in property trusts (ensure NAV only, no gearing)                                                                                                                                          0.0
A6 Property (non-unitised) and other fixed assets                                                                                                                                                  0.0
A7 All other New Zealand investments                                                                                                                                                               0.0
A8 Total NZ funds managed by you
                                                                                          0.0               0.0                 0.0                 0.0                 0.0                        0.0                   0.0
(A1 to A7)
Overseas investments
A9.1 Own funds placed with overseas managers                                                                                                                                                       0.0
A9.2 Own funds invested overseas and managed directly by you                                                                                                                                       0.0
A10.1 Funds from other NZ managers, placed with overseas managers                                                                                                                                  0.0
A10.2 Funds from other NZ managers invested overseas, managed directly by
                                                                                                                                                                                                   0.0
you
A11 Total overseas investments
                                                                                          0.0               0.0                 0.0                 0.0                 0.0                        0.0                   0.0
(A9.1 to A10.2)
A12 Total funds managed by you
                                                                                          0.0               0.0                 0.0                 0.0                 0.0                        0.0                   0.0
(A8 and A11)
A13 Your own (customers') funds placed with another quarterly NZ fund
manager to invest on your behalf (= RHS contacts page Panel A total).                                                                                                                              0.0
AA. Memo items:
Wholesale funds categories in A12
AA14.1 All funds included in A8 and A11 that are managed on behalf of other
                                                                                                                                                                                                   0.0
quarterly survey managers (= LHS Panel A contacts survey total).
AA14.2 'Own group' wholesale in A12                                                                                                                                                                0.0
AA14.3 Wholesale funds from other sources, including Panel B funds, in A12                                                                                                                         0.0
AA14.4 Total wholesale funds                                                              0.0               0.0                 0.0                 0.0                 0.0                        0.0                   0.0
AA15 Retail funds (A12 less AA14.4)                                                       0.0               0.0                 0.0                 0.0                 0.0                        0.0                   0.0
Source of own customer funds (ie, all collected initially by you:
A12 plus A13 less AA14.1 ) by sector
AA16 Household, incl family trusts                                                        0.0               0.0                 0.0                 0.0                 0.0                        0.0
AA17 Charitable trusts                                                                                                                                                                             0.0
AA18 All other sources clearly not household                                                                                                                                                       0.0
AA19 Total (AA16 to AA18)                                                                 0.0               0.0                 0.0                 0.0                 0.0                        0.0
AA20 Funds managed for master trusts (own/others)                                                                                                                                                  0.0
AA21 Funds managed for wrap accounts (own/others)                                                                                                                                                  0.0
AA31 Non-residents' funds included in A19                                                                                                                                                          0.0


                                                                                                   Page 2                                                          3b845ff1-cced-4d8e-93fa-87834796af60.xls 12/1/2010
Funds flow / Sectoral analysis
       flow is MANAGED FUNDS SURVEY: Final
(FundsRESERVE BANKall funds, not just funds managed.)                                                                          Funds flow sectoral analysis of fixed interest


                                                                              Registered Superannuation
                                                                                              Employment-       Unit trusts and         Other Funds
B. Funds flow                                                 Life products    Kiwisaver                                                                                 Total
                                                                                                related               GIFs               Managed
                                                   $m
B1 Gross Inflows for the Quarter
B2 Gross Outflows for the Quarter
B3 Net Funds Inflow                                     0.0                                                                                                                      0.0




For funds managed:                                                                           B7 Breakdown:

Analysis of loans and securities held by sector:                                             Household claims analysis:
                                                   $m                                                                                                                      $m
B4 Non-finance business/corporate                                                            B7.1 Non-mortgage direct personal loans
B5 Banks                                                                                     B7.2 Residential mortgage loans directly held
                                                                                             B7.3 Residential mortgage-backed bonds or similar
B6 Other financial enterprises
                                                                                             paper, listed below by issuer
B7 Households                                                                                Issuer name
B8 Central Government                                                                        Issuer name
B9 Local Authorities                                                                         Issuer name
B10 Other New Zealand                                                                        Issuer name
B11 New Zealand sub-total                               0.0                                  Issuer name
B12 Non Residents                                                                            Total B7.3                                                                          0.0
B13 Total fixed interest assets
                                                                                             B7.4 Non-mortgage backed paper (eg, credit card)
(B11 and B12)                                           0.0
                                                                                             B7 Total household claims                                                           0.0




                                                                                                                      3b845ff1-cced-4d8e-93fa-87834796af60.xls12/1/2010
                         COMPLETION INSTRUCTIONS

      RESERVE BANK QUARTERLY MANAGED FUNDS SURVEY

Sections A and B of this survey are required under the provisions of the Reserve Bank of
New Zealand Act (1989). The survey was designed in consultation with the funds
management industry.

HOW TO COMPLETE THIS RETURN

ORGANISING PRINCIPLES

1.   The survey aims to collect data on funds according to the nature of the vehicle or
     product originally receiving the funds from the client.

     Please allocate funds under management (FUM) using the following sorting process:
     (i) Kiwisaver;
     (ii) All other registered superannuation. Note: do not include superannuation FUM in
     the unit trust column because that is the legal vehicle it is managed in. Instead, allocate
     it as superannuation because that is the purpose of the FUM;
     (iii) Life insurance;
     (iv) Group Investment Funds and Unit Trusts: funds collected at retail or wholesale
     not for superannuation or life insurance purposes.
     (v) Other funds managed. Include all other FUM not already classified above;
     (vi) The „PIE‟ (portfolio investment entity) column is a memo item. Please enter the
     total value of FUM, included in columns (i) to (v) that are managed in PIEs.

2.   Retail funds both collected and managed by you should be shown in the column under
     which the client invested. If you are a wholesaler for any funds (having received them
     from another fund manager or wrap or mastertrust), you must find out, if not evident,
     what vehicle/product originally took the investments, and keep them in the same
     product column.

     Note that row AA14.1, funds included in Total Funds Managed (A12), that are
     managed on behalf of other New Zealand quarterly survey fund managers, requires you
     to show values in relevant columns for funds received from other fund managers, while
     the contacts page requires you to name the fund mangers providing you funds, and
     total amounts. These two totals should be equal and help us avoid double counts.

     If you have provided your clients‟ funds to another fund to invest on your behalf, please
     note that row A13 (your customers‟ funds placed with another New Zealand quarterly
     survey fund manager) requires you to show by product (ie, column) the values you have
     placed with another fund manager to invest, while the contacts page requires you to
     show the fund managers that have received funds from you, and how much. As with
     AA14.1, this helps us avoid double counts.

3.   Definition of ‘managing funds’. To ensure we don‟t count the same funds under
     management twice (because funds routinely interchange FUM for specialist
     management expertise and other reasons), we apply a special definition of „manage‟.
     Funds are being managed by you - they are your FUM - if you are initiating and
     settling the investment transaction for the securities, deposit or other assets, or if
     you are giving them directly to an offshore manager. (You are settling if you instruct a trustee
     or custodian to do this for you, at your initiative.) Only include in rows totaling to A12 (“total
     funds managed by you”) funds that you manage on this definition. Your additional clients‟ FUM
     provided to another NZ-based fund manager to manage on your behalf are shown in row A13.

      There are four qualifications/explanations for this definition of ‘manage’.

     (1) Do not include any funds from the New Zealand Superannuation Fund
     (‘Cullen Fund’) anywhere in the return.

     (2) Do not include any funds you give to small [Panel B funds on the contacts page] in
     A13 and do not include them in A12 – you do not „initiate and settle‟ those funds.
     Include in A12 the same as any ordinary „wholesale investments‟, any funds you
     receive from small „Panel B‟ funds. Do not include these investments in AA14.1, which
     are solely for funds you manage on behalf of other fund managers in our quarterly
     survey.

     (3) In row A5 you are asked to report „units in property trusts‟. Report only the value
     of units in property trusts that represent FUM of your clients. Your fund may manage a
     large property trust, but the balance of the units in it not held on behalf of your clients
     will be reported by other funds or surveyed by the RBNZ via the NZX.
      (1) Do not include any funds from the New Zealand Superannuation Fund
      (‘Cullen Fund’) anywhere in the return.

      (2) Do not include any funds you give to small [Panel B funds on the contacts page] in
      A13 and do not include them in A12 – you do not „initiate and settle‟ those funds.
      Include in A12 the same as any ordinary „wholesale investments‟, any funds you
      receive from small „Panel B‟ funds. Do not include these investments in AA14.1, which
      are solely for funds you manage on behalf of other fund managers in our quarterly
      survey.

      (3) In row A5 you are asked to report „units in property trusts‟. Report only the value
      of units in property trusts that represent FUM of your clients. Your fund may manage a
      large property trust, but the balance of the units in it not held on behalf of your clients
      will be reported by other funds or surveyed by the RBNZ via the NZX.

      (4) For the flow of funds table in Part B (second tab), the net flow of funds figures
      should relate to all your clients‟ funds, not just those „under management‟. We suggest
      you use the same tracking system that generates the figures provided to commercial
      firms that collect industry data for aggregation and resale.
       Overseas investments
       If your fund has given funds to a New Zealand-based manager to invest overseas, this manager
       will report them to us under 3 above – you should not include them in your survey.
       If you „place‟ your funds with an overseas manager , (place does not mean settle the individual transactions), report them in A9.1.
       If you manage overseas investments, report them in A9.2. Please separate overseas investment that you do on your own clients‟
       account (A9) from those where you are investing overseas on behalf of another New Zealand fund manager (A10).

       Memo items
       All data cells labeled „AA‟ are „memo‟ items – that is, they are already included in items A1 to A13.

       AA14 and AA15. These rows deliver a wholesale and retail fund distinction – retail funds are the residual in AA15 after
       wholesale funds are categorized in AA14.
       AA16 to AA19. The total of rows AA16 to AA18 is AA19. This total is all your own clients‟ funds – that is, those you collected
       yourself, not just those you „manage‟.
       For wholesale funds, AA19 is likely to be less than AA12. AA19 is A12 (all funds you manage) plus A13 (your clients‟ funds
       given to other fund managers), less AA14.1 – which is the funds you have received wholesale from other fund managers and are in the A12 tot
       The household (including family trust) sector (AA16) is the only source of funds for life and super funds. Master trusts and wrap accounts c
       pool money from individual investors to be invested as a lump sum with a fund manager. The original source of the funds will often be from
       householders (sometimes acting through a financial advisor). In this case please classify the investment as household. If the funds are known
       to emanate from non-household sources (e.g. charities, businesses or energy trusts), please classify these investments in AA17 and AA18 accor
       Charitable funds (AA17) are sometimes collected and managed in unit trusts. Most often they are provided under direct mandate and therefo
       be returned in „other funds managed‟.
       All other sources clearly not household (AA18) can include, for example, funds managed on behalf of energy trusts, fixed interest business f
       commercial organizations etc. We have designed the return to encourage funds to identify charitable and other non-personal FUM.
       Row AA16, household sector FUM, is set up as a residual in columns 4 and 5 as a result.
       AA20 and AA21. Master trusts and wrap accounts. These memo items are of interest to the industry and the Bank will publish them once t
       of the data can be tested. The definitions for these items are covered in the section „Row definitions‟.
       AA31 Non residents’ funds. This is a memo item and will represent the portion of „own funds‟ (AA19) that is provided by non-residents.
       The data source for this is often the non-resident withholding tax (NRWT) flag against funds held.

       Please feel free to contact the people at the Reserve Bank listed on the contacts page if you want to determine how best to complete
       any category for your fund.


 QUARTERLY COMPLETION PROCESS REQUIREMENTS

 TIMELINESS

 1. The survey is due 25 working days from the end of the reference quarter
    This completion period was agreed with the funds management industry. The Bank
    publishes a forward release calendar showing the MFS being released towards the end of
    the month in which it receives completed returns. The Bank sends reminders to
    respondents specifying the calendar date on which the return is due.

 2. If for any reason you foresee difficulty in meeting the deadline, please contact us by
    telephone to discuss.
    If we haven‟t received your return by the due date, and have had no prior contact from
    you, we will contact you. Ongoing lack of communication about the late provision of your
    return will require us to discuss this with the nominated senior executive, to find out why,
    and help you obtain the resources to complete it on time. We record the date of receipt of
    surveys and bring problems to the attention of nominated senior executives.

ACCURACY

3.     Consistency checking
       We will compare the current survey with the survey provided last quarter as part of
       consistency checks. Please save the previous quarter‟s report, including any changes
       that have been made as a result of discussions about that quarter. Feel free to contact
          telephone to discuss.
          If we haven‟t received your return by the due date, and have had no prior contact from
          you, we will contact you. Ongoing lack of communication about the late provision of your
          return will require us to discuss this with the nominated senior executive, to find out why,
          and help you obtain the resources to complete it on time. We record the date of receipt of
          surveys and bring problems to the attention of nominated senior executives.

ACCURACY

3.          Consistency checking
            We will compare the current survey with the survey provided last quarter as part of
            consistency checks. Please save the previous quarter‟s report, including any changes
            that have been made as a result of discussions about that quarter. Feel free to contact
            us to obtain a new copy if you have any concerns.

            Apart from valuation changes and net inflow data shown in Part B, it is likely there
            will only be large changes to data if management mandates have changed, with large
            new clients acquired or lost. This kind of change implies an offsetting change in
            another respondent – if you are aware of any such change having occurred when
            filling in the survey, please advise as this will help us reconcile our figures.

            We welcome revisions to past data if they reflect a change that improves accuracy; for
            example, uncovering an undetected error last time, or finding that categorisation of
            some products has been changed by line managers, and it would now be more
            appropriate to change the category.

CONTACTS PAGE

4. The contacts page requires the names of the „primary contact‟ and more senior executives
   in the reporting unit, to assist the Bank in communicating with funds. Please ensure these
   names and contact details are kept up to date.

         The contacts page has two „panels‟, A and B, in which funds are required to list the names
         of other fund managers from which they receive funds to manage, and to which they give
         their clients‟ funds to manage. These details help us to prevent double-counting.

         Panel A relates to the fund managers whose names appear on the contacts page, and who
         participate in the quarterly survey.

         Panel B relates to fund managers who don‟t participate in the quarterly survey.

         In both cases Kiwisaver funds are identified separately.


     Part A – Total investments
 Column definitions
     1           Life products           All FUM collected that include a life insurance element
     2           Superannuation:         All FUM in registered Kiwisaver schemes (including
                 Kiwisaver               „bolt-ons‟ and „non-conforming‟ schemes).
     3           Superannuation: all     All FUM collected in a registered superannuation scheme
                 other                   other than Kiwisaver.
     4           Unit trusts, GIFs       All FUM collected and managed under the Unit Trusts
                                         Act, and through GIFs.
     5           Other funds             All FUM to which the column 1-4 definitions do not apply.
                 managed                 Funds will often have independent mandates for private and
                                         a variety of other funds (eg charitable) to report here. This
                                         column provides for recording of funds of any scale
                                         managed outside the registered superannuation and the
                                         legislative and tax regime-based definitions of the other
                                         columns.
     6           TOTAL                   Total of all FUM in columns 1 to 5.
     7           PIEs                    This column is a memo item for all FUM in columns 1 to 5
                                         that are invested via portfolio investment entities (PIEs),
                                         and will be less than or equal to the total in column 6.

 Row definitions
     A1            Cash and deposits    Include only bank deposits, not the „cash‟ definition used in
                                        HiPort or other fund management software. Deposits are
                                        funds „placed on deposit‟ with a financial institution and do
                                        not include certificates of deposit or other short-term paper
                                        assets, which should be in row A2.7 (and are usually under
                                        „cash‟ in HiPort). A deposit is a „capital stable‟ asset,
                                        whereas the value of CDs and other securities varies over
                                        time before maturity date.
                                        Fund borrowing (eg, an overdraft) should be netted against
                                        deposits.
A1      Cash and deposits     Include only bank deposits, not the „cash‟ definition used in
                              HiPort or other fund management software. Deposits are
                              funds „placed on deposit‟ with a financial institution and do
                              not include certificates of deposit or other short-term paper
                              assets, which should be in row A2.7 (and are usually under
                              „cash‟ in HiPort). A deposit is a „capital stable‟ asset,
                              whereas the value of CDs and other securities varies over
                              time before maturity date.
                              Fund borrowing (eg, an overdraft) should be netted against
                              deposits.

A2      Interest bearing      This row is simply a heading. Completion occurs in the sub-
        securities            groups. These are financial securities bearing interest, and
                              are usually termed bonds, government bonds or local
                              authority stock or „bills‟, promissory notes, medium-term
                              notes (MTNs), transferrable, registered, negotiable
                              certificates of deposit (TCDs, RCDs NCDs), and so forth. As
                              short-term securities they are often referred to as „discount
                              securities‟. We are asking you to distinguish between
                              government bonds (A2.5, A2.6) and between all other
                              securities, A2.7 and A2.8 (include LA securities here).


                              TIME TO RUN TO MATURITY (A2.5 TO A2.8)
                              The meaning here is ‘how much time remains before this
                              security matures and is repaid’. Managed fund reporting
                              systems usually list all securities like this, enabling funds to
                              report the ideal „under/over one year‟ split. This concept
                              means that a bond (originally issued for a period longer than a
                              year) that is going to mature within the next year is short-term
                              by definition if it matures within a year. All securities that
                              will mature one year or longer from report date are „long
                              term‟ on this definition.

A3      Loans and             Funds may have as assets, loans secured on commercial
        placements.           mortgage. Some also have residential mortgage loans held
                              directly. [If you have, however, bought a security „backed‟
                              by a mortgage or loan (ABS) this should be recorded under
                              A2.] A placement is a technical term for a wholesale loan,
                              usually made for a short term, but not technically as a deposit
                              or with an evidential security.
A4      Equities and units    Funds under management, invested in equities, or units in
        in trusts, excl A5,   (equity or bond) trusts (but not property trusts), or other
        units in property     managed fund units not managed by other fund managers
        trusts                should be entered here.
A5      Units in property     Enter the value of units in property trusts or property shares
        trusts.               (eg, ING, GMT) where the value of the unit or share is based
                              almost entirely on a property portfolio and these units are
                              only on behalf of clients investing with you – not the total
                              value of a fund your organization may manage. Net value
                              (excluding any gearing) is required.

A6      Property and          Direct investment in property and any other fixed asset as part
        other fixed assets.   of the funds managed (but not fixed assets of your
                              business).

A7      Other New             Any other assets not included above that are attributable to
        Zealand               FUM should be included here.
        investments
A8      Total New             Total of rows A1 to A7.
        Zealand
        investments
        managed by you
A9.1    Own funds placed      Funds collected directly by your fund and invested directly
        with overseas         with overseas managers, who themselves decide on and settle
        managers              transactions. This is the most common form of overseas
                              investment for New Zealand managers. Funds that are a
                              subsidiary of an overseas fund, whose parent manages these
                              funds, should include them here.

A9.2    Own funds             Funds overseas where the definition of „manage‟ is the same
        invested overseas     as for New Zealand investments – where you initiate (perhaps
        and managed           through a broker) and settle transactions.
        directly by you
A10.1   Funds from other      Same definition as for 9.1, but for „wholesale‟ funds you
        New Zealand           place on behalf of another New Zealand fund. This row is
        managers, placed      here to ensure we count funds collected by a New Zealand
        with overseas         manager but that are neither „managed‟ by them nor picked
          with overseas        with overseas managers, who themselves decide on and settle
          managers             transactions. This is the most common form of overseas
                               investment for New Zealand managers. Funds that are a
                               subsidiary of an overseas fund, whose parent manages these
                               funds, should include them here.

A9.2      Own funds            Funds overseas where the definition of „manage‟ is the same
          invested overseas    as for New Zealand investments – where you initiate (perhaps
          and managed          through a broker) and settle transactions.
          directly by you
A10.1     Funds from other     Same definition as for 9.1, but for „wholesale‟ funds you
          New Zealand          place on behalf of another New Zealand fund. This row is
          managers, placed     here to ensure we count funds collected by a New Zealand
          with overseas        manager but that are neither „managed‟ by them nor picked
          managers             up in A9.1 or A9.2, in which case they would not otherwise
                               be reported.

A10.2     Funds from other     This is the same definition as for A9.2, where you manage
          New Zealand          the funds.
          managers
          invested overseas
          and managed
          directly by you
A11       Total overseas       Total of rows A9 and A10.
          investments
A12       Total funds          Total of rows A8 and A11.
          reported
A13       Your customers‟      If your fund has given a mandate to another New Zealand-
          funds placed with    based fund or several such funds to manage a proportion of
          another New          your clients‟ funds, this item plus A12, less any funds in
          Zealand-based        AA14.1 from other fund managers, represents what the
          fund manager to      survey defines as „own customer‟ funds. What is required
          invest on your       here is the value of your client funds you don‟t manage, but
          behalf, not          give to another NZ fund, shown by vehicle/product category.
          included above       The total (column 6) for these funds must equal the total
                               shown in panel A (RHS) on the contacts tab.



Memo items

WHOLESALE FUNDS
AA14.1 All funds included      This is the counterpart of A13. In each column the amounts
       in A8 (NZ) and          received from other fund managers, according to the client
       A11 (overseas)          source (ie, Kiwisaver, other super, life etc) that are included
       that are managed        in your A12 total “funds managed by you” should be entered.
       on behalf of other      The total (column 6) must match the total from panel A
       qtly survey fund        (LHS) on the contacts tab.
       managers

AA14.2    „Own group‟          While not relevant to all managers, some returns are compiled
          wholesale in A12     by fund management groups that have internal allocations
                               within them that result in the definition „wholesale‟ being
                               applied to bulked fund amounts originally sourced at retail
                               within the group – for example, the asset management
                               division of a life group.

AA14.3    Wholesale funds      The most common use of this industry „wholesale‟ term is
          from other sources   probably for superannuation fund management, and for most
          in the A12 total.    of the funds managed under column 5.

AA14.4    Total wholesale      Total of AA14.1, 14.2, 14.3.
          funds
AA15      Retail funds         A12 less AA14.4.



Sources of own funds: AA16 to AA19
This section records fund totals that you collect directly, that is your own funds directly
managed and those given to another manager to manage. It excludes funds given to you to
manage by another fund manager because your information system is expected only to know
the origin, or source, of the funds you collect and treat as your own customers‟ funds).

AA16      Household,           All superannuation and life insurance funds are classified
          including family     here. The definition seeks to sum funds collected directly
          trusts               from persons (households) and legal vehicles like family
                               trusts that in effect are directly in the personal sector, so it is
                               likely that most funds in all columns will be „household‟.
                               This is the default row for source. A formula in the
                               worksheet makes household sector funds under management
 Sources of own funds: AA16 to AA19
 This section records fund totals that you collect directly, that is your own funds directly
 managed and those given to another manager to manage. It excludes funds given to you to
 manage by another fund manager because your information system is expected only to know
 the origin, or source, of the funds you collect and treat as your own customers‟ funds).

 AA16       Household,             All superannuation and life insurance funds are classified
            including family       here. The definition seeks to sum funds collected directly
            trusts                 from persons (households) and legal vehicles like family
                                   trusts that in effect are directly in the personal sector, so it is
                                   likely that most funds in all columns will be „household‟.
                                   This is the default row for source. A formula in the
                                   worksheet makes household sector funds under management
                                   the residual after AA17 and AA18 values are entered.

 AA17       Charitable trusts      There are significant funds managed under mandate from
                                   trusts that are „charitable‟ in terms of the Income Tax Act.
                                   These are most often in column 5 (Other managed funds).
                                   This would include funds managed on behalf of Trust Bank
                                   charitable trusts and all other charities. With the advent of the
                                   PIE regime, the „zero‟ tax flag previously used to identify
                                   charitable funds may now be misleading and respondents are
                                   asked to track charities by a reliable system.


Hedging
Where there are hedging values (either positive or negative), please net them against the row
category being hedged. Don‟t show the hedge position under „other‟ or in cash. The amount
of the hedge should be the same as shown in the SNZ section of this survey for hedges
(although the Bank figures will not reveal this).


          PART B – FUNDS FLOW, SECTORAL ANALYSIS

FUNDS FLOW

Please complete this section of the survey using the same methodology as you do for
industry specialists that compile funds flow data for commercial purposes.

The funds flow table measures net cash flows into and out of products on the same
classification as Part A. In reviewing returns, the Bank uses these figures to check the quality
of data provided in Part A. Total FUM are affected by currency and equity revaluations over a
quarter, as well as by net inflows.


SECTORAL ANALYSIS OF FIXED INTEREST ASSETS (B4 TO B13)
This section of the return allocates loans, cash and fixed interest securities to sectors of the
economy. Note that the totals here must correspond to totals in Part A – if there are
discrepancies, the spreadsheet will produce a warning to that effect.

 B4     Non-finance             Includes securities, such as subordinated debt, bonds, medium-
        business/corporate      term notes, promissory notes and commercial paper. This sector
                                is intended to represent all private sector issuers except financial
                                institutions and households. Include bonds/securities issued by
                                State Owned Enterprises (SOE) here.

 B5     Banks                   Includes cash and securities issued by banks domiciled in New
                                Zealand. Often these assets are short-term funding for the
                                banks, such as negotiable certificates of deposit (NCD), but can
                                also include longer-term securities such as subordinated debt.
 B6     Other financial         Includes any other firms you consider a financial institution.
        institutions.           Housing New Zealand Corporation is not defined as a financial
                                institution for this survey; it belongs in B4.

 B7     Households              Includes loans to households. They may include residential
                                mortgage loans and „policy loans‟ (includes in A3 above).
                                Mortgage-backed securities should be included here,
                                notwithstanding that they are classified under A2 in Part A. Any
                                securities held backed by receivables of any kind from personal
                                (household) sources should be included here.


HOUSEHOLDS (B7)
This section is designed to help with economy-wide assessment of household borrowing.
Some funds lend directly as mortgagors with the residential mortgage loans „backing‟ unit
trust fixed interest products, for example. Others purchase RMBS. The Bank needs to avoid
double-counting household borrowing (some funds have their residential loans reported
monthly by associates) and also to capture as much household borrowing as possible (hence it
                             mortgage loans and „policy loans‟ (includes in A3 above).
                             Mortgage-backed securities should be included here,
                             notwithstanding that they are classified under A2 in Part A. Any
                             securities held backed by receivables of any kind from personal
                             (household) sources should be included here.


HOUSEHOLDS (B7)
This section is designed to help with economy-wide assessment of household borrowing.
Some funds lend directly as mortgagors with the residential mortgage loans „backing‟ unit
trust fixed interest products, for example. Others purchase RMBS. The Bank needs to avoid
double-counting household borrowing (some funds have their residential loans reported
monthly by associates) and also to capture as much household borrowing as possible (hence it
is necessary to pick up the securitised parcels). This section supports these objectives.

 B7.1    Non-mortgage direct       Includes policy loans and small unsecured loans – any
         personal loans            direct lending not secured by residential mortgage that is
                                   lending to persons. It is called „direct‟ to distinguish it
                                   from something like securitised credit card paper (B7.4).

 B7.2    Residential mortgage      Directly means not as mortgage-backed securities, but
         loans directly held       where the fund has title to individual mortgages as
                                   security.

 B7.3    Residential mortgage-     Includes securitised loans and other legal forms that are
         backed bonds or           similar in function. The name of the issuer and amount
         similar                   must be reported to prevent double-counting with other
                                   Bank surveys.

 B7.4    Non-residential           Includes commercial, credit card and other consumer loan
         mortgage-backed paper     receivables that are packaged, securitised and available for
                                   purchase by funds.

 B8      Central government.       Includes government stock, or bonds, and shorter-term
                                   Treasury bills.

 B9      Local authority stock     Includes all stock issued by local and territorial authorities.
 B10     Other                     Includes all fixed interest securities not classified above.

 B11     New Zealand sub-total     Total of A2.10 and A3.

 B12     Non-resident securities   Total non-resident fixed interest securities and loans.

                                   Note – this should be the same as the total for overseas
                                   fixed interest, money market placements and loans
                                   reported to Statistics NZ in this survey.
nsactions), report them in A9.1.
t you do on your own clients‟




 esidual in AA15 after

 s – that is, those you collected

 lus A13 (your clients‟ funds
  other fund managers and are in the A12 total.
per funds. Master trusts and wrap accounts can be used to
 nal source of the funds will often be from
ment as household. If the funds are known
these investments in AA17 and AA18 accordingly.
e provided under direct mandate and therefore should

 alf of energy trusts, fixed interest business for
 e and other non-personal FUM.

ustry and the Bank will publish them once the quality

AA19) that is provided by non-residents.


 ant to determine how best to complete
Quarterly Managed Funds Survey: Statistics New Zealand Section (Part C)

The purpose of Part C of the Quarterly Managed Funds Survey is to collect data on the overseas allocation of assets.
The data will be used by Statistics New Zealand primarily in the compilation of balance of payments and
international investment position statements, but also for other purposes relating to the production of
official statistics for example, the national accounts.


Compulsory requirement
The Minster of Statistics has approved the taking of this survey. The return of this
questionnaire duly filled in and signed is a compulsory requirement under the Statistics Act 1975.


Confidentiality of information supplied
Only people authorised by the Statistics Act 1975 are allowed to see your individual information, and they must use it
only for statistical purposes.
Your information will be combined with similar information to prepare summary statistics.




Please keep a record of the time it takes you to complete this questionnaire. You are asked to
record this at the end of the questionnaire.
Include:
The time spent reading the instructions, working on the questions and obtaining information
The time spent by all employees in collecting and providing this information.
Questionnaire Guide: Quarterly Managed Funds Survey Part C – Statistics New Zealand

This Guide has four parts:
Section 1: Questionnaire Overview
Section 2: General Instructions
Section 3: Guide Notes, referenced from the tables.
Appendix: Valuation of a Financial Derivative Contract

Section 1. Questionnaire Overview
1. Introduction
The purpose of this Part C of the Managed Funds Survey is to measure investments that you manage directly abroad,
or that you place abroad with an overseas fund manager. Do not report here those investments that you place with
another New Zealand fund manager. Refer to the RBNZ Completion Instructions; Organising Principles , note 3
Overseas Investments
The investments abroad reported to this survey by fund managers comprise a significant portion of New Zealand's
investment abroad, and contribute directly to the preparation of New Zealand's financial accounts with the rest of the
world, including:
• The International Investment Position, New Zealand's international balance sheet.
• Balance of Payments - Financial account, which measures New Zealand's transactions in international financial
assets and liabilities.
• Balance of Payments - Current account, which measures the income earned from those investments abroad
(dividends and interest).

These key macroeconomic indicators are published each quarter, and are available free on the Statistics New Zealand
website, www.stats.govt.nz; look under 'Balance of Payments'. These international financial account statistics are
used by private and public sector analysts and researchers, as well as international credit rating agencies and others to
measure the performance of the New Zealand economy.


2. New Zealand Investment abroad.
New Zealand's investment abroad comprises financial claims over non-residents.
• shares in companies that are incorporated outside of New Zealand
• unit trusts registered abroad
• debt securities issued by non resident issuers
• lending to overseas residents.


3. Tables C1 to C8
The information collected in this Part C of the questionnaire, tables C1 to C9, is about funds invested by you abroad (i.e. New
Zealand's international assets). Funds invested by you abroad comprises both funds managed directly by you abroad, and
funds placed by you with an overseas manager. Refer to the RBNZ Completion Instructions; Organising Principles , note 3
Overseas Investments .


The information asked for includes the value of your investments:
• by main countries
• by instrument type classification i.e. shares, and the various classes of debt instrument
• by income earned from the investments (dividends and interest), and
• for completeness, we also ask for investments in New Zealand.


The total of funds invested overseas reported in this Section C (i.e. the sum of funds reported in the various instrument types)
should equal the figure reported in the RBNZ section (row = A.11-Total overseas investments , column = Total ).

The data needed to complete this survey comprises:
• the values of your investments abroad at the start and end of the quarter
• the factors that change the value of the investments during the quarter
• the income earned from the investments (dividends and interest)


The factors that change the value of the investments during the quarter are:
• transactions (e.g. purchase and sale of shares and debt securities)
• valuation changes arising from exchange rate effects, market price effects (e.g. share price rises and falls); and
• other changes (e.g. write offs).



4. Kiwisaver
This survey requests that funds under your management that originate from Kiwisaver accounts be separately identified and
reported. This to enable identification of Kiwisaver funds for monitoring and analysis of the impact kiwisaver originated funds
have on New Zealand‟s international assets. (For further discussion refer 'General instructions, Kiwisaver‟).


5. Shares listed on the NZSX which are issued by non-resident companies
Please report your holdings of these as these in Table C1 (Equity Securities) as investments abroad: (For further discussion
refer 'General instructions, shares listed by non-resident companies that are listed on the New Zealand Stock Exchange
(NZSX).



6. Kauri bonds.
Kauri bonds are debt securities issued in New Zealand by non-resident issuers. Please treat your holdings of these in Table C2
(Fixed Interest Securities) as funds invested abroad when reporting to this survey. (For further discussion refer 'General instructions,
Kauri bonds‟).
Section: 2     General Instructions
Valuation                         The value of the assets at the beginning and at the end of the quarter should be recorded at
                                  their market values in sections C1 to C7.
                                  Any financial instruments that are hedged by the use of derivatives (such as swaps and
                                  forward rate agreements) should be recorded according to the terms of the original contract
                                  and without regard to the hedge. The market value of the hedge is to be reported separately
                                  in section C7 (i.e. the „in‟ or „out of the money‟ position of the hedge contract).

Conversion of Foreign Currency    Currency conversion at the beginning and the end of the quarter.
into NZ$
                                  Any beginning and end of quarter amounts that are denominated in foreign currency need to
                                  be converted into New Zealand dollars. This should be done using the mid-rate of exchange
                                  applicable on the reference dates (i.e. at the beginning and / or at end of the quarter).


                                  Currency conversion for transactions during the quarter.
                                  Foreign currency transactions need to be converted into New Zealand dollars using
                                  the mid-rate of exchange applicable at the time of the transaction.
Reporting of Net Transactions
Reporting of Net Transactions     If your organisation cannot readily provide this data, as defined in Note 10,Note 10, then
                                  If your organisation cannot readily provide transactions data, as defined in then please
data                              please provide your best estimate with a brief explanation in the comments section at the
                                  bottom of the table.

Distinction between Fixed Interest Fixed interest securities (e.g. bonds and notes) are generally issued with an original
Securities and Money Market        contractual maturity of more than one year, while money market instruments (e.g.
Instrument
                                  commercial paper) are issued with an original maturity of one year or less.
                                  If you are unable to determine the original contractual maturity of securities, make the
                                  distinction based on the name of the security e.g. if an instrument is a bond or note it should
                                  be recorded under fixed interest securities in section C2.

Kauri bonds.
                                  Kauri bonds are debt securities issued in the New Zealand domestic market by non-resident
                                  issuers. Holdings of Kauris by New Zealand residents represent claims of residents over
                                  non-resident issuers. This is New Zealand investment abroad.

                                  Your holdings of Kauri bonds should be reported in Table C2 Fixed Interest Securities.
                                  Issuers of Kauri bonds include:
                                  Bank of America
                                  Citigroup Inc
                                  European Investment Bank
                                  HBOS Treasury Services PLC Sydney Branch
                                  International Finance Corporation
                                  Landwirtschaftliche Rentenbank
                                  Merrill Lynch
                                  Morgan Stanley
                                  Nordic Investment Bank
                                  Queensland Treasury Corporation
                                  World Bank
                                  Kommunalbanken AS Norway
                                  BNG (Bank Nederlandse Germeenten)

Shares issued by non-resident
companies and listed on the New
Zealand Stock Exchange (NZSX)     Shares issued by non-resident companies and listed on the New Zealand Stock Exchange
                                  (NZSX).

                                  Your holdings of these shares, and the dividends earned from them, should be reported in
                                  Table C1 Investments in Equity Securities.

                                  Shares issued by non-resident companies and held by New Zealand residents comprise
                                  claims of the resident holder over the non-resident issuer. These claims represent New
                                  Zealand investment abroad (assets).

                                  An overseas company is defined in the Companies Act 1993 (section 2(1)) as "a body
                                  corporate that is incorporated outside New Zealand".

                                  Examples of non-resident companies with shares listed on the NZSX include:
                                  Guinness Peat Group (GPG) Plc
                                  NZ Investment Trust Plc
                                  JP Morgan Overseas Investment Trust Plc
                                  Foreign and Colonial Euro Trust Plc
                                  Caledonia Investments Plc
                                  Henderson TR Pacific Investment Trust Plc
                                  Foreign and Colonial Investment Trust Plc
                                  JP Morgan Fleming Japanese Investment Trust Plc
                                  The Bankers Investment Trust Plc
                                  Templeton Emerging Markets Plc

Kiwisaver
                                  Reporting Kiwisaver originated funds under management abroad.
                                  In each table C1, C2, C3, C4, C5, C6, C7
                                  Line 1.1 Total overseas is total funds you have invested overseas; kiwisaver plus non
                                  kiwisaver. This should be the same as A11 „Total overseas investments managed by you‟
                                  in part A of this questionnaire.
                                  Line 1.2 Kiwisaver portion of 1.1 is the portion of total investments abroad in 1.1 that
                                  originate from kiwisaver accounts.
                                  Line 1.3 New Zealand is total funds invested in New Zealand (kiwisaver plus non
                                  kiwisaver). This should be the same as A8 „Total NZ investments managed by you‟ in part
                                  A of this questionnaire.
                                  Line 1.4 Kiwisaver portion of 1.3 is the kiwisaver originated portion of your total New
                                  Zealand investments in line 1.3.
                                   Line 1.5 Total New Zealand and overseas is your total funds managed; the sum of line 1.1
                                  and line 1.3. This should be the same as A12 „Total funds Reported in part A‟ of this
                                  questionnaire.
                                  Line 1.6 Kiwisaver portion of 1.5 is the kiwisaver originated portion of your total
                                  investments in line 1.5.
Section 3: Guide Notes             Notes 1-14
Note 1                             Equity (includes ordinary and participating preference shares, stocks, and shares/units in
                                   mutual funds, investment trusts, property trusts and unit trusts) acknowledges claims to the
                                   residual value and income of an enterprise after the claims of all other creditors have been
                                   met.
Investments in Equity Securities   As investment in unit trusts denotes an ownership interest in the unit trust/mutual fund,
(ref: Section C1)                  investments in all unit trusts (regardless of the instrument types in which the trusts invest)
                                   are to be reported in Section C1 Investment in Equities.
                                   See further discussion in Note 8, Country of Debtor.
Note 2                             Fixed interest securities (e.g. bonds, debentures, non-participating preference shares,
Investments in Fixed Interest      floating rate notes, negotiable certificates of deposits) with original maturity periods greater
Securities                         than one year and giving the holder unconditional rights to fixed money income or
(ref: Section C2)
                                   contractually determined variable money income are to be to be reported in Section C2.


Note 3                             Money market instruments (e.g. treasury bills, commercial paper and bankers' acceptances,
                                   short-term certificates of deposit, and short-term notes issued under a note issuance facility)
                                   are:
Investments in Money Market                            issued for less than or equal to one year
Instruments (refer: Section C3)                        usually traded at a discount (depending on the interest rate and time
                                                      remaining to maturity) in organised markets and give the holder the
                                                      unconditional right to receive a pre-determined amount on a specified
Note 4                                                date.
                                   Cash consists of notes and coins in circulation. Deposits comprise both transferable and
                                   other deposits. Other deposits encompass collateral placed for trading in financial
                                   derivatives. Transferable deposits consist of deposits that are exchangeable on demand at
                                   par without restriction.
Investments in Cash and Deposits
(ref: Section C4)

Note 5                             Loans include the direct lending of funds from a creditor (lender) to a debtor (borrower)
                                   where the lender receives a non-negotiable document or instrument.
Investments in Loans and           Included are loans to finance trade, other loans and advances (including mortgages),
Placements                         financial leases and repurchase agreements where the enterprise acquiring the securities
(ref: Section C5)                  does not become their registered holder.
Note 6                             Other assets comprise all other types of assets (excluding financial derivatives).
Investments in Other Assets        This section should cover exceptional cases and should contain responses on when the
(ref: Section C6)                  investments do not fall into the categories discussed in notes 1 to 5.
                                   When completing this section please describe the assets in the comments section at the
                                   bottom of the table.
Note 7                             Derivatives are financial instruments with values derived from underlying commodities or
                                   financial instruments. Examples include: options, interest rate swaps, cross currency interest
                                   rate swaps, other derivative contracts such as futures, forward rate agreements etc.

Investments in Financial           Financial derivatives involve future delivery, receipt or exchange of financial items such as
Derivatives                        cash or another derivative instrument, or future exchange of real assets for financial items
(ref: Section C7)                  where the contract may be tradable and have market value.

                                   Country of residence of the counter-party.
                                   Report only the financial derivatives contracted with non-resident counter-parties. Do not
                                   report financial derivatives contracted with a New Zealand resident such as a New Zealand
                                   bank.

                                   Measuring market values of financial derivatives.
                                   Values recorded for financial derivatives Table C7 should be the end of period mark to
                                   market values of your unsettled derivative contracts i.e. your in the money positions
                                   (unrealised claims on derivative counter parties) and your out of the money positions (i.e.
                                   your unrealised liabilities to derivative counterparties).

                                   Do not include fees paid to financial intermediaries to establish or trade in them. Such
                                   fees are classified as financial services in the current account.
                                   Margin payments made between two entities as security against future obligations are
                                   recorded in the currency and deposit category (table C4).
                                   Revaluing unsettled contracts.

                                   The mark to market basis involves revaluing all unsettled contracts to the current market
                                   value and recognising the unrealised gains or losses in the results for the period.

                                                          Derivative contracts with a positive mark to market values at the
                                                      closing position at the end of a reporting period represent unrealised
                                                      gains or claim on the counter-party . Report in the derivatives in a net
                                                      asset position column in table C7.
                                                       Derivative contracts with negative mark to market values at the
                                                      closing position at the end of the reporting period represent unrealised
                                                      losses or a liability to the counter-party . Report in the derivatives in a
                                                      net liabilities position column in Table C7.

                                   The derivation of a derivation net asset or net liability position is illustrated in the simplified
                                   example in the Appendix.
Note 8                              The country of residence of the debtor refers to the country of the issuer of the securities in
                                    which the funds are invested. Below are illustrated three cases of funds:
Country of Residence of the                            investment directly in overseas securities for example, Australian
Debtor                                                equities: record the investment in section C1 Investment in equity
                                                      securities against Australia, the country of residence of the debtor
                                                      (column 1 in the table).
                                                       investment in a unit trust or mutual fund or investment trust:
                                                      record the country of residence of the debtor as the country where the unit
                                                      trust is registered e.g.if you purchased units in an Australian unit trust
                                                      (which invests in UK bonds) the country of residence of the debtor should
                                                      be reported as Australia. If an investment is made in a United Kingdom
                                                      unit trust, then the country of debtor is the United Kingdom. This should
                                                      be reported when completing section C1 Investment in equity securities.

                                                          managed on your behalf by overseas fund managers: record the
                                                      type of securities in which the funds were invested and the country of
                                                      residence of the debtor is the country where the securities are registered.
                                                      For example, if the funds were invested in US bonds by the overseas fund
                                                      manager, please report the investment in Section C2 Investment in fixed
                                                      interest securities, and the country of residence of the debtor as USA.
                                    Other Overseas Countries
                                    Aggregate values lower than $10m, otherwise report the data for the individual countries.

Note 9                              For the market value of assets held by your enterprise at the beginning of the quarter, the
                                    assets are to be reported based on the original contracts and without regard to derivatives.


Value of Assets at the Beginning of Investment values are to be reported in NZ$. When dealing with foreign currency amounts
the Quarter                         you will need to convert the values into NZ$. See the general instructions covering
                                    Conversion of Foreign Currency into NZ$.
                                    The value at the end of the preceding quarter should equal the value at the beginning of the
                                    current quarter.
Note 10                             Report any increases or withdrawals of investment in the assets during the quarter. Include
                                    net purchase or sale of securities, interest capitalised to the security, and reinvested
                                    dividends and distributions.
Net Transactions                    Increases should include purchase of shares, bonds, new units in unit trusts or re-investment
                                    of income etc. Withdrawals include the sale of shares, bonds etc. Note that purchases and
                                    sales are to be reported at their market prices. Any increase or decrease in asset values not
                                    arising from transactions should be recorded as exchange rate, price or other changes as
                                    appropriate.

                                    Earnings from equity securities that are not formally distributed should be recorded as an
                                    increase in assets in “net transactions”.

                                    If the purchase and sale prices for individual transactions are difficult to obtain then use an
                                    average price during the quarter to estimate the net transactions.
Note 11                             Exchange Rate Change refers to the impact on the value of assets caused by changes in the
                                    exchange rate of the New Zealand dollar against other currencies in which the assets are
                                    denominated.
Exchange Rate and Price Changes Price Changes include both realised and unrealised gains and/or losses that arise from
                                    interest rate movements, share price movements (listed companies) or the impact of retained
                                    earnings or other re-valuations that occurred during the quarter.
Note 12                             Other changes are increases and decreases in the value of assets that arise from causes other
                                    than exchange rate or market price effects. Other changes includes write offs.
Other Changes
Note 13                             The market value of assets held by your enterprise at the end of the quarter, is the resulting
                                    position after the value of assets held at the beginning of the quarter are affected by
Value of Assets at the End of the   movements resulting from transactions, exchange rate and price changes.
Quarter
Note 14                             Income includes all formal distributions received on/from your investments (i.e cash , bonus
                                    shares, and interest accrued on tradable debt securities).
Gross Income during the Quarter Earnings from equity securities that are not formally distributed are not to be recorded as
                                    income. They should be recorded as an increase in assets in “net transactions”.

                                    Dividends and Distributions (including stock dividends) represent the distribution of
                                    earnings.
                                    Reinvested dividends and distributions are to be reported as both gross income in the
                                    quarter and as net transactions.

                                    Report dividend income in the period in which the ex-dividend date falls.
                                    Include : distributions from investments in other fund manager‟s products, formal
                                    distributions which are reinvested, dividends ex but not paid.
                                    Do not include : dividends that have been declared but have not gone ex, earnings that have
                                    not been formally distributed, capital gains or losses arising from your organisation‟s
                                    disposal of securities.
                                    Do not include capital gains or losses arising from the disposal of securities.
                                    Interest Income is interest earned during the reporting period. For tradable debt securities
                                    interest earned for a particular period should be calculated by applying the prevailing
                                    interest rate to the average market value of the security.
                                    Discounts and premiums on securities in lieu of interest and change in the value of a
                                    security‟s issue price arising from index linked securities should be included as interest
                                    income.
                                    Other Income includes income generated from other sources such as rental income.




                Euro/NZ$1                                     Spot Rate                   3 Month Forward Rate
                1 January                                       1.10
                31 March                                        1.05                                1.04
                30 June                                         1.02




                              The expected value of payment to be made on 30 June by NZ Bank is
                                              Euro110m/1.04 = NZ$105,769,231



                The interest rate used to discount future cash flows should be the same as the rate of interest
                currently available for similar assets and liabilities with similar risk.
                              In this example we have used an interest rate of 14 percent per annum.
                                                   PV = NZ$100m/(1+.14/4)^1
Appendix: Valuation of a financial derivative contract

Example of a Foreign Exchange Swap
On 5 January 200X, a New Zealand entity enters into a currency swap contract with a foreign bank. The contract specifies that
The underlying rates throughout the life of the contract are as follows:

                Euro/NZ$1                                     Spot Rate                   3 Month Forward Rate
                1 January                                       1.10
                31 March                                        1.05                                 1.04
                30 June                                         1.02




Completing Table 7 of the Quarterly Managed Funds Survey (QMFS).
(response for the quarter ending 31March 200X.)

Step 1: Calculate the market value of the contract as at 31 March 200X, using the 3-month forward rate to determine
The asset for NZ Bank is NZ$100m (this is what the NZ Bank will be receiving at the future date specified). The liability for

Step 2: Using the quoted 3-month forward rate on Euro /NZ$, calculate the expected value of Euro 110m in New Zealand

                             The expected value of payment to be made on 30 June by NZ Bank is
                                             Euro110m/1.04 = NZ$105,769,231


The present value of the NZ$100m which the NZ Bank will receive on 30 June can be calculated by discounting at an
               The interest rate used to discount future cash flows should be the same as the rate of interest
               currently available for similar assets and liabilities with similar risk.
                            In this example we have used an interest rate of 14 percent per annum.
                                                   PV = NZ$100m/(1+.14/4)^1
                                                     PV = NZ$96,618,357

Step 3: Determine whether the instrument is in a net asset or net liability position for the NZ Bank as at 31 March 200X.
             In this example, as at 31 March the net amount outstanding, (i.e payables less receivables) is:
             NZ$105,769,231 – NZ$96,618,357 = NZ$9,150,874.
               As payables are greater than receivables this instrument in a net liability position and needs to
               be recorded in the „Derivatives in a net liability position‟ column in Table C7.



Example of a Foreign Exchange Contract
On 15 Jan 200X, company A covers its foreign exchange risk by entering into a 90 day forward foreign exchange contract
Step 1: Calculate the market value of the contract as at 31 March 200X.
Revalue the unsettled contracts to the current market value (prevailing exchange rate at the end of the quarter).
               Assuming that the prevailing exchange rate is NZD1 = AUD0.93 and the forward contract
               rate is NZD1 = AUD0.92 at end of reporting period 31 March then the contracted value is
               NZ$108,695,652 and the mark to market value of the contract as at 31 March will be
               NZ$107,526,882.

Step2: Determine the net closing position of the contract by calculating the difference between the contracted value and
            The difference between the contracted value and the market value in this example is
            NZ$1,168,770, as (NZ$108,695,652 - NZ$107,526,882).

Step 3: Determine whether the instrument is in a net asset or net liability position
               In this example, the amount receivable is greater than the amount payable and therefore this
               instrument is in a net asset position and needs to be recorded in the „Derivatives in a net asset
               position‟ column of Table C7.


Reporting of the net position of the derivatives in section C7.
In section C7 report the net asset position (or unrealised gain) or net liability position (unrealised loss). Reporting of the
             C7      Investments in financial derivatives
                       Country of residence                   Derivatives in a net     Derivatives in a net liability
                       of the counter-party                     asset position                   position
                                                                ($NZ million)                ($NZ million)
                                                                 (refer note 7)               (refer note 7)
                       USA
                       Australia                                      1.17
                       United Kingdom
                       Japan
                       Canada
                       Other, please specify(1)
                          Italy                                                                     9.15

                       Other Overseas countries
                       Total Overseas                                 1.17                          9.15
                       New Zealand


                       Grand Total                                    1.17                          9.15
C1 Investments in equity securities, by country
l Click on '?' button for extra information on what to include as an equity security (Guide Notes 1 & 8)
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                           Include l Ordinary shares l mutual funds l all investments via unit trusts (see Guide Notes 1 & 8) l Participating preference shares
                                                                                                                                                                               Gross income in this
                                                                                           Value of investment ($NZ million)                                                      quarter ($NZ
                                                                                                                                                                                     million)

                                                                                     Changes due to
 Country of residence of the debtor
                                      Value of assets at the                          fluctuations in                                                 Value of assets at the       Dividends and
                                       beginning of quarter    Net transactions      exchange rates         Price Changes         Other changes           end of quarter            distributions
         (refer Guide Note 8)          (refer Guide Note 9) (refer Guide Note 10) (refer Guide Note 11) (refer Guide Note 11) (refer Guide Note 12)   (refer Guide Note 13)    (refer Guide Note 14)
                                                 A                     B                     C                     D                    E                A + B + C+ D+ E
USA
Australia
United Kingdom
Japan
Canada
Other main countries, please
specify:




Other countries (1)
C1.1 Total Overseas                                     0.0                     0.0                    0.0                     0.0             0.0                       0.0                     0.0
C1.2 Kiwisaver portion of C1.1

C1.3 New Zealand
C1.4 Kiwisaver portion of C1.3

C1.5 Total New Zealand
and overseas                                            0.0                     0.0                    0.0                     0.0             0.0                       0.0                     0.0
C1.6 Kiwisaver portion of C1.5                           0.0                    0.0                        0.0                 0.0              0.0                      0.0                     0.0


Comments




Note
(1) For country amounts less than NZD$10 million, please aggregate as "other countries".
C2 Investments in fixed interest securities, by country
l Click on '?' button for extra information on what to include as an equity security (note 2)
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sheets


                                                                                                                                                                                           Gross income in this
                                                                                                Value of investment ($NZ million)                                                             quarter ($NZ
                                                                                                                                                                                                 million)

                                                                                            Changes due to
 Country of residence of the debtor
                                      Value of assets at the                                 fluctuations in                                                      Value of assets at the
                                       beginning of quarter       Net transactions          exchange rates           Price Changes            Other changes           end of quarter          Interest income
         (refer Guide Note 8)          (refer Guide Note 9)    (refer Guide Note 10)     (refer Guide Note 11)   (refer Guide Note 11)    (refer Guide Note 12)   (refer Guide Note 13)    (refer Guide Note 14)
                                                A                         B                         C                       D                       E                A + B + C+ D+ E
USA
Australia
United Kingdom
Japan
Canada
Other main countries, please
specify:




Other countries (1)
C2.1 Total Overseas
C2.2 Kiwisaver portion of C2.1

C2.3 New Zealand
C2.4 Kiwisaver portion of C2.3

C2.5 Total New Zealand
and overseas                                            0.0                       0.0                     0.0                       0.0                     0.0                     0.0                     0.0
C2.6 Kiwisaver portion of C2.5                          0.0                       0.0                     0.0                       0.0                     0.0                     0.0                     0.0

Comments




Note
(1) For country amounts less than NZD$10 million, please aggregate as "other countries".
C3 Investments in money market instruments (those with original contractual maturity of one year or less)
l Click on '?' button for extra information on what to include as money market instruments (note 3)
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                                                                                                                                                                                       Gross income in this
                                                                                           Value of investment ($NZ million)                                                              quarter ($NZ
                                                                                                                                                                                             million)

                                                                                         Changes due to
Country of residence of the debtor
                                     Value of assets at the                               fluctuations in                                                     Value of assets at the
                                      beginning of quarter       Net transactions        exchange rates           Price Changes           Other changes           end of quarter          Interest income
        (refer Guide Note 8)          (refer Guide Note 9)    (refer Guide Note 10)   (refer Guide Note 11)   (refer Guide Note 11)   (refer Guide Note 12)   (refer Guide Note 13)    (refer Guide Note 14)
                                                A                        B                       C                       D                      E                A + B + C+ D+ E
USA
Australia
United Kingdom
Japan
Canada
Other main countries, please
specify:




Other countries (1)
C3.1 Total Overseas
C3.2 Kiwisaver portion of C3.1


C3.3 New Zealand
C3.4 Kiwisaver portion of C3.3

C3.5 Total New Zealand
and overseas                                           0.0                     0.0                     0.0                     0.0                     0.0                      0.0                     0.0
C3.6 Kiwisaver portion of C3.5                         0.0                     0.0                     0.0                     0.0                     0.0                      0.0                     0.0

Comments




Note
(1) For country amounts less than NZD$10 million, please aggregate as "other countries".
C4 Investments in cash and deposits, by country
l Click on '?' button for extra information on what to include as cash and deposits (note 4)
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                                                                                                                                                                                      Gross income in this
                                                                                           Value of investment ($NZ million)                                                             quarter ($NZ
                                                                                                                                                                                            million)

                                                                                        Changes due to
Country of residence of the debtor
                                     Value of assets at the                              fluctuations in                                                     Value of assets at the
                                      beginning of quarter    Net transactions          exchange rates           Price Changes           Other changes           end of quarter          Interest income
        (refer Guide Note 8)          (refer Guide Note 9) (refer Guide Note 10)     (refer Guide Note 11)   (refer Guide Note 11)   (refer Guide Note 12)   (refer Guide Note 13)    (refer Guide Note 14)
                                               A                      B                         C                       D                      E                A + B + C+ D+ E
USA
Australia
United Kingdom
Japan
Canada
Other main countries, please
specify:




Other countries (1)
C4.1 Total Overseas
C4.2 Kiwisaver portion of C4.1


C4.3 New Zealand
C4.4 Kiwisaver portion of C4.3

C4.5 Total New Zealand
and overseas                                         0.0                      0.0                     0.0                      0.0                    0.0                      0.0                     0.0
C4.6 Kiwisaver portion of C4.5                       0.0                      0.0                     0.0                      0.0                    0.0                      0.0                     0.0

Comments




Note
(1) For country amounts less than NZD$10 million, please aggregate as "other countries".
C5 Investments in loans and placements, by country
l Click on '?' button for extra information on what to include as loans and placements (note 5)
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                                                                                                                                                                                      Gross income in this
                                                                                           Value of investment ($NZ million)                                                             quarter ($NZ
                                                                                                                                                                                            million)

                                                                                       Changes due to
Country of residence of the debtor
                                     Value of assets at the                             fluctuations in                                                      Value of assets at the
                                      beginning of quarter    Net transactions         exchange rates           Price Changes            Other changes           end of quarter          Interest income
        (refer Guide Note 8)          (refer Guide Note 9) (refer Guide Note 10)    (refer Guide Note 11)   (refer Guide Note 11)    (refer Guide Note 12)   (refer Guide Note 13)    (refer Guide Note 14)
                                               A                      B                        C                       D                       E                A + B + C+ D+ E
USA
Australia
United Kingdom
Japan
Canada
Other main countries, please
specify:




Other countries (1)
C5.1 Total Overseas
C5.2 Kiwisaver portion of C5.1


C5.3 New Zealand
C5.4 Kiwisaver portion of C5.3

C5.5 Total New Zealand
and overseas                                         0.0                     0.0                      0.0                      0.0                    0.0                      0.0                     0.0
C5.6 Kiwisaver portion of C5.5                       0.0                     0.0                      0.0                      0.0                    0.0                      0.0                     0.0

Comments




Note
(1) For country amounts less than NZD$10 million, please aggregate as "other countries".
C6 Investments in other assets, by country
l Click on '?' button for extra information on what to include other assets (note 6)
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                                                                                                                                                                                        Gross income in this
                                                                                            Value of investment ($NZ million)                                                              quarter ($NZ
                                                                                                                                                                                              million)

                                                                                          Changes due to
Country of residence of the debtor
                                     Value of assets at the                                fluctuations in                                                     Value of assets at the
                                      beginning of quarter    Net transactions            exchange rates           Price Changes           Other changes           end of quarter          Interest income
        (refer Guide Note 8)          (refer Guide Note 9) (refer Guide Note 10)       (refer Guide Note 11)   (refer Guide Note 11)   (refer Guide Note 12)   (refer Guide Note 13)    (refer Guide Note 14)
                                               A                      B                           C                       D                      E                A + B + C+ D+ E
USA
Australia
United Kingdom
Japan
Canada
Other main countries, please
specify:




Other countries (1)
C6.1 Total Overseas
C6.2 Kiwisaver portion of C6.1


C6.3 New Zealand
C6.4 Kiwisaver portion of C6.3

C6.5 Total New Zealand
and overseas                                          0.0                      0.0                      0.0                     0.0                     0.0                      0.0                     0.0
C6.6 Kiwisaver portion of C6.5                        0.0                      0.0                      0.0                     0.0                     0.0                      0.0                     0.0

Comments




Note
(1) For country amounts less than NZD$10 million, please aggregate as "other countries".
   C7 Investments in financial derivatives, by country
    l Click on '?' button for extra information on what to include as financial derivatives (note 7)
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                                           Derivatives in a net    Derivatives in a net
   Country of residence of                   asset position         liability position
   the counter-party                          ($NZ million)           ($NZ million)
            (refer Guide Note 8)             (refer note 7)           (refer note 7)
   USA
   Australia
   United Kingdom
   Japan
   Canada
   Other main countries, please
   specify:




   Other countries (1)
   C7.1 Total Overseas
   C7.2 Kiwisaver portion of C7.1

   C7.3 New Zealand
   C7.4 Kiwisaver portion of C7.3

   C7.5 Total New Zealand
   and overseas                                             0.0                      0.0
   C7.6 Kiwisaver portion of C7.5                           0.0                      0.0

   Note
   (1) For country amounts less than NZD$10 million, please aggregate as "other countries".

   Do not report the face values of the financial derivative contracts.

   Report the net asset position (or unrealised gain) or net liability position (unrealised loss).
   Please refer to the Appendix in the SNZ guidelines for simplified examples illustrating
   the calculation of the net position of the derivative.
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C8 Currency profile of assets held overseas
      l For each type of security listed in this table, that is held by your enterprise, show the foreign currency amounts of the
      closing market value in each currency at the end of the quarter.
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                                                          The New Zealand value (in millions) of the closing stock of assets held in the following currencies

                                                                                                                                               Please
                      Type of security                                                                                                         specify
                                                      NZD         USD        AUD         JPY         GBP        EURO         CAD      SGD     currency   Other

      Fixed interest securities (such as bonds
      debentures, notes etc)
      Money market instruments (such as treasury
      bills, commercial paper etc)
      Cash and deposits
      Loans and placements
      Other assets
      Financial Derivative Contracts which is due
      to be repaid in:
                                       Net asset
                                      Net liability
      Total                                              0.0         0.0         0.0        0.0         0.0         0.0         0.0     0.0       0.0            0.0
      Kiwisaver portion of the Total

      Note
      (1) For country amounts less than NZD$10 million, please aggregate as "other countries".
C9 About how long did it take you to fill in Part C of this questionnaire?
Count
l time spent reading the instructions and notes, working on the questions and getting
  the information; and
l time spent by all employees in collecting and providing this information.

                                    Hours        Minutes




Managed Fund survey Dec07 quarter
Ref #3233939 v1.0

								
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