This is potentially the most important part of our business, protecting and growing our reserve portfolio.
The liquid reserves found in the portfolio are made up of both cash, investments and securities that can readily be converted to cash in a relatively short period of time.
The reserve must be kept above a set minimum level to provide an asset protection fund, and will increase over time. This can be drawn on in urgent circumstances to assist in restoring uninsured assets in case of a catastrophic event affecting one of ECT's subsidiary companies.
The minimum level for asset protection set by the trustees is $15 million which will increase over time.
Objectives
- To have the gross income increase at a minimum of 5% per annum.
- To have a minimum of $15 million reserved to cover uninsurable losses that may occur through the trust's subsidiary companies - and to also increase this allocation by 5% per annum.
- To hold liquid reserves available for planned activities within the investment and project portfolios.
- To ensure the targeted return for all reserve portfolio funds is appropriate to risk-return rates from liquid investments available in the marketplace.