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NOTES TO
FINANCIAL STATEMENTS (CONT’D)

31 March 2015

29 FINANCIAL INSTRUMENTS, FINANCIAL RISKS AND CAPITAL RISKS MANAGEMENT (cont’d)

Market risk — Price risk management

The Group is exposed to equity securities price risk from investments classified as financial assets at fair value
through profit or loss. The market values of these investments are affected by, amongst others, changes in
market prices as a result of changes in the global economic conditions, macro and micro economic factors
affecting the country where the investments are quoted, and factors specific to the investee corporations.

To manage the price risk arising from investment in equity securities, the Group diversifies its portfolio across
different markets and industries as appropriate.

Sensitivity analysis for price risk

If movements in financial markets result in a 5% (2014: 5%) appreciation/depreciation in the value of the quoted
equity and other investments, all other variables being held constant, the Group’s surplus would have been
higher/lower by $42,218,000 (2014: $33,142,000).

If movements in financial markets result in a 5% (2014: 5%) appreciation/depreciation in the value of the
unquoted investments, all other variables being held constant, the Group’s surplus would have been higher/
lower by $55,779,000 (2014: $41,738,000).

Foreign currency risk management

The Group’s investments which are managed by fund managers may be in instruments denominated in foreign
currencies. Currency exposure arising from such investments is managed by fund managers. Additional
information is set out in Note 9.

The main foreign currency exposure of investments (net of foreign currency forwards) based on information
provided to management is as follows:

Japanese Pound

US Dollar Euro Yen Sterling Others

$’000 $’000 $’000 $’000 $’000

2015 469,201 54,676 27,366 42,491 316,436

2014 380,100 66,918 21,217 32,996 195,410

82 NTU ANNUAL REPORT 2015