Page 57 - Demo

Note 7
Portfolio Investments (Cont’d)
(in thousands)
To manage price risk, the Corporation takes a mindful approach to diversify its investments in limited partnerships focusing on different sectors of innovation creating sectoral diversification. In addition, each limited partnership has established a target mix of investment types and the Corporation will aggregate investment types to ensure appropriate sectoral diversification within a reasonable risk tolerance and in accordance with the limited partnership’s investment mandate.
Based on the financial position of the Corporation on March 31, 2023, if the value of investments decreased by five percent, with all other variables held constant, net assets decrease approximately by $10,170 (2022 – $9,358). In practice, actual investments results may differ from this analysis and the difference could be material.
(b) Foreign Currency Risk
The Corporation is exposed to foreign currency risk associated with portfolio investments and cash denominated in USD. Foreign currency risk is the risk that the value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. Investments and cash denominated in USD currencies are translated into Canadian dollars using the reporting date exchange rate.
The value of the Corporation’s investments in limited partnerships denominated in USD may change due the changes in exchange rates. $119,390, or 59% of the Corporation’s investment, are denominated in US dollars (2022 – $105,429, or 56%). The carrying amount of cash denominated in USD is $3,070 (2022 – $586).
If the value of the Canadian dollar increased by 10% against the U.S. dollar, and all other variables are held constant, the potential loss in carrying value to the Corporation would be approximately 6.0% of total investments and cash (2022 – 5.7%). The Corporation does not participate in any foreign currency hedging activities.
(c) Liquidity Risk
Liquidity risk is the risk that a given investment or asset cannot be traded quickly enough in the market to prevent a loss. The Corporation’s investments are long term and highly illiquid. There is no assurance that the Corporation will ultimately realize the carrying value of the investments.
To manage these risks, the Corporation has established policies around the type of limited partnerships that it invests in. Investment commitments exceed cash on hand, and management plans to use future distributions from the limited partnerships to meet the commitments.
(d) Other Risks
The Corporation is not exposed to significant credit and interest risk.
Contractual Rights
(in thousands)
Contractual rights are rights of the Corporation to economic resources arising from a grant agreement from the Government of Alberta that will result in both assets and revenues in the future when the terms of those contracts or agreements are met.
Note 8
2023
$–
Contractual rights from agreement
2022 $ 50,000
2022 2023
55