Download The Sir Murray MacLehose Trust Fund Trustee`s Report

The Sir Murray MacLehose Trust Fund Trustee’s Report
For the period of 1 April 2006 to 31 March 2007
The Sir Murray MacLehose Trust Fund was set up at the suggestion of non-official
members of the then Executive and Legislative Councils to commemorate the distinguished
service of Lord Murray MacLehose as Governor of Hong Kong from 1971 to 1982. The Sir
Murray MacLehose Trust Fund Ordinance (Chapter 1118), enacted on 21 May 1982, provides
for the establishment and administration of the Fund. Section 3 of the Ordinance stipulates
that the Fund is to be used for the benefit of the people of Hong Kong in such manner as the
Chief Executive in his sole discretion may direct.
2.
While the Secretary for Home Affairs Incorporated is the trustee of the Fund, the
accounting work is carried out by the Trust Funds, Temples and Cemeteries Joint Secretariat.
The Director of Audit is appointed by the Chief Executive under Section 7(2) of the
Ordinance as the auditor of the accounts of the Fund.
Investment of the Fund
3.
Under Section 5(2) of the Ordinance, an investment advisory committee (the
Committee) has been appointed to give advice on the investment of the Fund. The members
of the Committee as at 31 March 2007 were Mr MA Chiu-cheung, Andrew (Chairman),
Ms LEE Jai-ying, Mr CHEN Chung-nin, Rock, JP and Miss KO Kit-ying, Patra. HSBC
Investments (Hong Kong) Limited has been appointed as the manager of the Fund and is
responsible for the day-to-day financial arrangement of the Fund.
Grants from the Fund
4.
Since the Fund’s inception in 1982, grants have been approved for 91 projects and
the total amount approved was HK$96.13 million as at 31 March 2007. Out of the
91 approved projects, 72 projects have been completed, seven were cancelled, 11 were
pending final settlement of payments and one was still on-going.
Accounts of the Fund
5.
As at 31 March 2007, the capital of the fund was HK$50,488,157 and the
accumulated surplus of the fund was HK$40,815,759. A copy of the audited Balance Sheet
and Income and Expenditure Account for the year ended 31 March 2007 is at the Appendix.
(Tsang Tak-sing)
Secretary for Home Affairs Incorporated
Trustee
MacLehose Fund
5 December 2007
Appendix
MACLEHOSE FUND
BALANCE SHEET AS AT 31 MARCH 2007
Note
2007
HK$
2006
HK$
4
89,436,333
58,156,513
604,919
340,556
1,341,494
36,076,292
91,382,746
94,573,361
78,830
__________
83,190
__________
91,303,916
=========
94,490,171
=========
50,488,157
50,488,157
40,815,759
__________
44,002,014
__________
91,303,916
=========
94,490,171
=========
CURRENT ASSETS
Financial assets at fair value through
profit or loss
Accounts receivable
Bank deposits
CURRENT LIABILITIES
Accounts payable
NET CURRENT ASSETS
ACCUMULATED FUND
Capital
Accumulated surplus
The accompanying notes 1 to 6 form part of these financial statements.
(Tsang Tak-sing)
Secretary for Home Affairs Incorporated
Trustee
MacLehose Fund
5 December 2007
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MACLEHOSE FUND
INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2007
Note
2007
HK$
2006
HK$
471,486
563,982
2,580,668
1,952,616
INCOME
Dividends
Interest
5
Gains on disposal of financial assets at
fair value through profit or loss
-
Unrealised gains on financial assets at
fair value through profit or loss
829,610
5,449,224
3,443,484
Refund of grants
300,683
503,033
Exchange gains
54,562
8,856,623
7,292,725
EXPENDITURE
Grants
11,696,154
-
Losses on disposal of financial assets at
fair value through profit or loss
17,337
-
Investment management fee and charges
329,387
Exchange losses
-
(DEFICIT)/SURPLUS FOR THE YEAR
4
-
60,501
12,042,878
__________
380,192
__________
(3,186,255)
=========
6,912,533
=========
The accompanying notes 1 to 6 form part of these financial statements.
-
319,691
MACLEHOSE FUND
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2007
Accumulated
surplus
HK$
Capital
HK$
Balance at 1 April 2005
Total
HK$
50,488,157
37,089,481
87,577,638
__________
6,912,533
__________
6,912,533
__________
50,488,157
44,002,014
94,490,171
Deficit for the year 2006-07
__________
(3,186,255)
__________
(3,186,255)
__________
Balance at 31 March 2007
50,488,157
=========
40,815,759
=========
91,303,916
=========
Surplus for the year 2005-06
Balance at 31 March 2006
The accompanying notes 1 to 6 form part of these financial statements.
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MACLEHOSE FUND
CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2007
2007
HK$
2006
HK$
CASH FLOWS FROM OPERATING ACTIVITIES
(Deficit)/Surplus for the year
(3,186,255)
Dividends
6,912,533
(471,486)
(563,982)
Interest income
(2,580,668)
(1,952,616)
Unrealised gains on financial assets at fair value through profit or
loss
(5,449,224)
(3,443,484)
Losses/(Gains) on disposal of financial assets at fair value through
profit or loss
17,337
(829,610)
Decrease/(Increase) in accounts receivable
41,968
(1,259)
(Decrease)/Increase in accounts payable
(4,360)
5,461
(11,632,688)
127,043
NET CASH (USED IN)/FROM OPERATING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of financial assets at fair value through profit or
loss
(61,973,921)
(19,165,511)
36,125,988
43,245,876
485,135
554,783
2,260,688
2,152,449
NET CASH (USED IN)/FROM INVESTING ACTIVITIES
(23,102,110)
26,787,597
NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS
(34,734,798)
26,914,640
36,076,292
9,161,652
1,341,494
36,076,292
1,341,494
36,076,292
Proceeds from disposal of financial assets at fair value through
profit or loss
Dividends received
Interest received
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS AT END OF YEAR
ANALYSIS OF THE BALANCES OF CASH AND CASH
EQUIVALENTS
Bank deposits with original maturity within three months
The accompanying notes 1 to 6 form part of these financial statements.
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MACLEHOSE FUND
NOTES TO THE FINANCIAL STATEMENTS
1.
GENERAL
The financial statements of the MacLehose Fund (the Fund) are prepared in
accordance with section 7(1) of the Sir Murray MacLehose Trust Fund Ordinance
(SMMTFO - Cap. 1118). The Fund was established in 1982 for the benefit of the
people of Hong Kong and is applied in such manner as the Chief Executive in his
sole discretion may direct in accordance with section 3 of the Sir Murray
MacLehose Trust Fund Ordinance. The address of the Fund’s principal place of
business is 34th Floor, Wu Chung House, 213 Queen’s Road East, Wan Chai, Hong
Kong.
2.
SIGNIFICANT ACCOUNTING POLICIES
(a)
Statement of compliance
The financial statements have been prepared in accordance with applicable Hong
Kong Financial Reporting Standards (HKFRSs) issued by the Hong Kong Institute
of Certified Public Accountants and accounting principles generally accepted in
Hong Kong.
(b)
Basis of preparation
The financial statements have been prepared on an accrual basis and under the
historical cost convention except that financial assets at fair value through profit or
loss are stated at fair value as explained in the accounting policy set out in note 2(d)
below.
(c)
Adoption of new/revised HKFRSs
The Fund has adopted the new/revised HKFRSs which are effective and relevant to
the Fund for the current accounting period.
The Fund has not early applied any HKFRS that is not yet effective for the current
accounting period. The Fund has considered that these HKFRSs may not have a
significant impact on its results of operations and financial position.
(d)
Financial assets at fair value through profit or loss
Financial assets classified as held for trading are included in the category “financial
assets at fair value through profit or loss”. Financial assets are classified as held for
trading if they are acquired for the purpose of sale in the near term. Financial
assets under this category are carried at fair value based on their quoted market
prices at the balance sheet date. Changes in the fair value are included in the
income and expenditure account in the period in which they arise. Gains or losses
on disposal are also recognised in the income and expenditure account.
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(e)
Foreign currency translation
Hong Kong dollar is the currency of the primary economic environment in which the
Fund operates. Foreign currency transactions during the year are translated into
Hong Kong dollars at the exchange rates ruling at the transaction dates. Monetary
assets and liabilities denominated in foreign currencies are translated into Hong
Kong dollars at the exchange rates ruling at the balance sheet date. Exchange gains
and losses are dealt with in the income and expenditure account.
(f)
Revenue recognition
Interest income is recognised on an accrual basis. Dividend income is recognised
when the Fund’s right to receive payment is established.
(g)
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, demand deposits, and other
short-term highly liquid investments that are readily convertible to a known amount
of cash and are subject to an insignificant risk of changes in value, having been
within three months of maturity when acquired.
3.
RISK MANAGEMENT
The Fund’s major financial instruments include financial assets at fair value through
profit or loss and bank deposits. The main risks associated with these financial
instruments are market risk and credit risk. Market risk is the risk that changes in
market variables such as interest rates, equity prices and exchange rates may affect
the fair value or cash flows of a financial instrument. Credit risk is the risk that
one party to a financial instrument will fail to discharge an obligation and cause the
other party to incur a financial loss. To minimise the potential adverse effects of
such risks, the Investment Advisory Committee monitors the Fund’s investment
management activities and stipulates the investment guidelines and strategy of the
Fund. Operating within the investment guidelines and strategy endorsed by the
Investment Advisory Committee, the fund manager (appointed under section 6(1) of
the SMMTFO) conducts the day-to-day investment management and risk
management of the Fund and provides professional advice in relation to the
investment of funds.
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2007
HK$
4.
2006
HK$
FINANCIAL ASSETS AT FAIR VALUE
THROUGH PROFIT OR LOSS
Equity Securities – at fair value
Listed in Hong Kong
18,283,166
15,819,811
Unlisted
14,181,815
10,952,372
32,464,981
26,772,183
2,005,064
2,014,702
Listed outside Hong Kong
36,124,674
24,895,228
Unlisted
18,841,614
4,474,400
56,971,352
__________
31,384,330
__________
89,436,333
========
58,156,513
========
1,014,579
823,309
1,566,089
__________
1,129,307
__________
2,580,668
========
1,952,616
========
Debt Securities – at fair value
Listed in Hong Kong
5.
INTEREST
Interest on bank deposits
Interest on bonds
6.
COMMITMENTS
As at 31 March 2007, there were commitments of HK$13,303,846 (2006: Nil) in
respect of a grant approved by the Chief Executive in October 2006.
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