Corporate

 
The Corporate Cluster is responsible for areas of financial risk management that are not allocated to individual businesses.
 

1. Liquidity risk

Term finance liabilities in respect of margin business are matched by appropriate assets with the same maturity profile. These assets are managed to ensure that sufficient liquid investments are available to match the cash flow profile of the term finance liabilities. The Group has significant liquid resources and substantial unutilised banking facilities to cover any mismatch position.
 
The maturity profile of term finance liabilities in respect of the margin business and the assets held to match this term finance is provided in the following table:
 
R million
<1 year
1—5 years
>5 years
Open
ended
Total
31 December 2010
         
Term finance liabilities
(1 675)
(1 651)
(46)
(3 372)
Interest-bearing liabilities held in respect of margin business (refer to note 16.1 in annual financial statements)
(1 652)
(1 417)
(46)
(3 115)
Add: Preference shares issued to subsidiaries and eliminated on consolidation
(23)
(234)
(257)
Assets held in respect of term finance
1 098
1 737
46
491
3 372
Equities and similar securities
Public sector stocks and loans
4
4
8
Debentures, insurance policies, preference shares and other loans
377
1 668
491
2 536
Cash, deposits and similar securities
590
65
655
Working capital assets and liabilities
127
46
173
           
Net term finance liquidity position
(577)
86
491
31 December 2009
         
Term finance liabilities (1 263) (2 310) (3 573)
Interest-bearing liabilities held in respect of margin business (refer to note 16.1 in annual financial statements) (1 211) (2 130) (3 341)
Add: Preference shares issued to subsidiaries and eliminated on consolidation (52) (180) (232)
Assets held in respect of term finance 1 508 1 293 365 407 3 573
Equities and similar securities
Public sector stocks and loans 3 5 8
Debentures, insurance policies, preference shares and other loans 951 1 062 365 407 2 785
Cash, deposits and similar securities 610 10 620
Working capital assets and liabilities (56) 216 160
           
Net term finance liquidity position
245 (1 017) 365 407
 
The unsecured subordinated bonds issued by Sanlam Life, which are matched by appropriate assets with similar maturity profiles, are also managed by the Corporate Cluster. These assets are managed to ensure that sufficient liquid investments are available to match the cash flow profile of the term finance liabilities.
 
The maturity profile of the term finance liabilities in respect of the unsecured subordinated bonds and the assets held to match this term finance is provided in the following table:
 
R million
<1 year
1—5 years
>5 years
Open
ended
Total
31 December 2010
         
Term finance liabilities
(2 056)
(2 056)
Interest-bearing liabilities
(2 031)
(2 031)
Add: Unsecured bonds issued to subsidiaries and eliminated on consolidation
(25)
(25)
Assets held in respect of term finance
(265)
1 717
487
117
2 056
Public sector stocks and loans
(4)
296
126
418
Debentures, insurance policies, preference shares and other loans
89
1 251
196
117
1 653
Cash, deposits and similar securities
(288)
170
165
47
Working capital assets and liabilities
(62)
(62)
           
Net term finance liquidity position
(265)
1 717
(1 569)
117
31 December 2009
         
Term finance liabilities (1 894) (1 894)
Assets held in respect of term finance (230) 1 126 998 1 894
Public sector stocks and loans (6) 114 235 343
Debentures, insurance policies, preference shares and other loans 39 692 763 1 494
Cash, deposits and similar securities (184) 342 158
Working capital assets and liabilities (79) (22) (101)
           
Net term finance liquidity position
(230) 1 126 (896)  
 

2. Sensitivity analysis – market risk

Refer to the analysis of the Group's exposure to market risk as measured by GEV.