267694 EdinburghIT AR 2024 WEB - Flipbook - Page 76
74 / FINANCIAL REVIEW / THE EDINBURGH INVESTMENT TRUST PLC
NOTES TO THE FINANCIAL STATEMENTS / CONTINUED
Liquidity risk exposure
The contractual maturities of the financial liabilities at the year end, based on the earliest date on which payment can be
required, are as follows:
2024
Unsecured Senior Loan Notes - debt at par value
Interest on Unsecured Senior Loan Notes
Three
months
or less
£’000
More than
three
months
but less
than
one year
£’000
More than
one
year
£’000
Total
£’000
–
–
120,000
120,000
–
2,928
67,573
70,501
Amounts due to brokers
5,914
–
–
5,914
Share buybacks awaiting settlement
1,098
–
–
1,098
696
–
–
696
7,708
2,928
187,573
198,209
Three
months
or less
£’000
More than
three
months
but less
than
one year
£’000
More than
one
year
£’000
Total
£’000
Accruals
2023
Unsecured Senior Loan Notes - debt at par value
–
–
120,000
120,000
Interest on Unsecured Senior Loan Notes
–
2,928
70,500
73,428
Accruals
2,059
–
–
2,059
2,059
2,928
190,500
195,487
16.3 Credit risk
Credit risk encompasses the failure by counterparties to deliver securities which the Company has paid for, or to pay for
securities which the Company has delivered, and cash balances. Counterparty risk is minimised by using only approved
counterparties. The Company’s ability to operate in the short-term may be adversely affected if the Company’s custodian
suffers insolvency or other financial difficulties. However, with the support of the depositary’s restitution obligation the risk of
outright credit loss on the investment portfolio is remote. The Board reviews the custodian’s annual controls report and the
Manager’s management of the relationship with the custodian. Cash balances are limited to a maximum of 1% of net assets with
any one deposit taker, with only approved deposit takers being used, and a maximum deposit of 6% of net assets in aggregate
in liquidity funds with credit ratings of AAAm (or equivalent). These limits are at the discretion of the Board and are reviewed
on a regular basis. The investment policy also allows for UK Government Treasuries to be held. Such holdings are recorded as
cash equivalents if they meet the criteria set out in Note 1D on page 63.
16.4 Custody risk
All investment assets are held in custody by The Bank of New York Mellon (International) Limited in accounts segregated from
the bank’s own assets.
