2022 AVBOB Integrated Annual Report - FINANCIALS

109109 FINANCIAL STATEMENTS Continued 109 AVBOB MUTUAL ASSURANCE SOCIETY AND ITS SUBSIDIARIES NOTES TO THE SUMMARISED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022 (continued) 5. Management of insurance and financial risk (continued) 5.2 Capital management (continued) Core aspects of the mandate given to the asset managers: • • • • • • No scrip lending is allowed. Board guideline 2022 2021 % % R 000 % R 000 70 71 18 558 074 71 16 952 010 Property for own use and investment property 2 579 466 2 529 889 Equity risk assets Investments and financial assets Listed shares 41 10 743 293 41 9 791 778 Unlisted shares 4 999 349 5 1 093 712 Foreign investments 18 4 565 150 17 4 032 277 Other assets 6 1 670 816 6 1 504 354 Liquid assets 30 29 7 697 731 29 6 901 754 Cash and cash equivalents* 9 2 257 067 10 2 406 692 Securities and bonds* 20 5 290 595 19 4 399 290 Unlisted securities 0 150 069 0 95 772 Total applicable assets 100 100 26 255 805 100 23 853 764 Linked financial assets at amortised cost 8 527 828 4 245 964 Total assets 34 783 633 28 099 728 The Board and the HAF are comfortable that the asset distribution as at 30 June 2022 is in line with our risk appetite. Restated The total asset distribution of the Society must be managed in accordance with the guidelines set by the PA. The following table compares the assets of the Society with the asset distribution guidelines: A target allocation of 30% of the total applicable assets are to be invested in local liquid assets with approximately 70% of the total applicable assets to be invested in equity risk assets. Investments in the Financial Sector Code (FSC) portfolio are restricted to those that should be recognised in terms of the Financial Sector Code. All unlisted investments require written approval. In the other portfolios, investments in equities and securities must be listed on a recognised exchange and listed securities must meet minimum credit rating criteria. Derivative instruments are only allowed for efficient portfolio management and hedging purposes. The effective exposure for all derivative positions is limited to 10% of the fair value of the investment portfolio. Effective exposure to any over-the-counter counterparty is limited to 7.5% of the investment portfolio. * Refer to note 22 of the notes to the summarised financial statements regarding the restatement of the 2021 xcomparatives.