Page 49 - UKZN Foundation AR 2024

UNIVERSITY OF KWAZULU-NATAL FOUNDATION TRUST Trust Deed number: IT 589/2003
NOTES TO THE FINANCIAL STATEMENTS (continued)
for the year ended 31December 2024
14. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (Continued)
Financial instruments by category
The accounting policies for financial instruments have been applied to the line items below:
31 December 2024
Financial assets
Fair value through profit or loss (FVPL) - investments
Cash and cash equivalents
Financial liabilities
Accrued liabilities
UKZN current account
Specific donations to be transferred
31 December 2023
Fair value through profit or loss (FVPL) - investments
Cash and cash equivalents
Financial liabilities
Accrued liabilities
UKZN current account
Specific donations to be transferred
Market risk
The risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: price risk, currency risk and interest rate risk. The Foundation’s exposure to market risk relates primarily to its financial assets held at fair value through profit or loss. These financial assets are invested in terms of a considered strategy adopted by the Board of Trustees. The strategy takes into account the risk profile of the individual endowed funds and allocates investment to appropriate asset classes. The portfolio is then allocated to a selected portfolio manager who operates under a defined mandate. The risk is managed by the portfolio manager.
Price risk
The following table demonstrates the sensitivity of the Foundation’s Investments that are subject to price risk to a reasonable possible change in market values, with all other variables held constant.
Price risk changes:
The effect of a 5% increase in price risk
The effect of a 5% decrease in price risk
2024
R
2023
R
5 488 568
5 630 081
Amortised cost
Note
3 4
3 4
Amortised cost
FVPL
317 645 100 5 633 581
Amortised cost
181 420
FVPL
Amortised cost
220 177 13 017 965 974 760
293 787 906 978 260
15 882 255 (15 882 255)
12 847 784 (12 847 784)
UKZN FOUNDATION ANNUAL REPORT 2024 47