These investments are valued at fair value where the capital gain is credited to the Income Statement and a capital loss is debited to the Income Statement. This investment is principal guaranteed. The value shown in the monthly investment report is based on the redeemable Net Asset Value (NAV). The NAV is the total current market value of all securities plus interest or dividends received to date. This is the price or value of the investment at the time of preparing the report. Although the investments are principal guaranteed, reports are based on the NAV even when it falls below the par value. The principal is guaranteed by the investment issuer monitoring the net asset value and selling the investments if the NAV falls below the level where a risk free investment will return the principal at the maturity date. Thus the worst case scenario, provided that the issuer remains solvent, for these investments is that overall return will be returns received to date plus return of principal at maturity date and no further interest payments for the remaining period. The Emu investments basket of underlying instruments has now reached a trigger as the NAV of these instruments have reached the point where the value plus future revenue stream from a no risk investment will enable principal value to be returned at maturity date. If the investment returns the principal value before maturity, Council will receive surplus funds as a dividend (interest).
These investments are valued at fair value where the capital gain is credited to the Income Statement and a capital loss is debited to the Income Statement. This investment is principal guaranteed. The value shown in the monthly investment report is based on the redeemable Net Asset Value (NAV). The NAV is the total current market value of all securities plus interest or dividends received to date. This is the price or value of the investment at the time of preparing the report. Although the investments are principal guaranteed, reports are based on the NAV even when it falls below the par value. The principal is guaranteed by the investment issuer monitoring the net asset value and selling the investments if the NAV falls below the level where a risk free investment will return the principal at the maturity date. Thus the worst case scenario, provided that the issuer remains solvent, for these investments is that overall return will be returns received to date plus return of principal at maturity date and no further interest payments for the remaining period. The Emu investments basket of underlying instruments has now reached a trigger as the NAV of these instruments have reached the point where the value plus future revenue stream from a no risk investment will enable principal value to be returned at maturity date. If the investment returns the principal value before maturity, Council will receive surplus funds as a dividend (interest).
CM_07122015_AGN_AT.docx