IOOF  | Annual Report 2012 The Group does not hold derivative financial instruments to hedge other market risk exposures, and does not hold or trade derivative  financial instruments for speculative purposes. Financial risks for the Group include market risk (including price risk, foreign exchange risk and cash flow and fair value interest rate  risk), credit risk, liquidity risk, and life insurance risk. Price risk is the risk that the fair value or future earnings of  a financial instrument will fluctuate because of changes in  market prices (other than from interest rate risk or currency risk,  as described later). The financial instruments managed by the  Group that are impacted by price risk consist of investment  units held in trusts, available for sale financial assets and the  share buy-back liability. The price risk associated with the units held in trusts is that the  fair value of those units will fluctuate with movements in the  redemption value of those units, which in turn is based on the  fair value of the underlying assets held by the trusts. This risk is  managed by choosing to invest in a mix of trusts operated by  the Group that will provide an overall diversified portfolio that  consists of cash, fixed income securities, equities, and listed  property securities; in a mix that provides the Group consistent  cash plus returns, benchmarked to exceed the UBSA Bank Bill  Index, as well as some participation in opportunities for capital  growth over the longer term. At 30 June 2012, had the value of the underlying equity in  relation to the share buy-back liabilities increased/decreased  by 1% (2011: 1%) with all other variables held constant, group  equity would decrease/increase by $278,000 (2011: $431,000). At 30 June 2012 had the price of the units / shares held by the Group in unlisted unit trusts / shares in other entities  increased / decreased by 1% (2011: 1%) with all other variables held constant, post-tax profit for the year would  increase / decrease by $19,000 (2011: $21,000) as a result of gains / losses recorded through profit or loss and available-for-sale reserves would increase / decrease by  $50,000 (2011: $286,000). The Parent has no exposure to price risk. The share buy-back liability recorded at balance date is  reflective of the fair value of the underlying shares of certain  Perennial subsidiaries. The price risk associated with this liability  is that the fair value of the particular equities could change  as a result of a change in the projected profitability of those  subsidiaries. It is considered impractical to manage the price  risk associated with this liability, and it is worth noting that the  more successful the Group is in growing its business in the  relevant sectors, the greater this liability will grow. Group sensitivity (i) Price risk (a) Market risk page 73 Consolidated Parent 2012 2011 2012 2011 $’000 $’000 $’000 $’000 Financial assets Loans and other receivables 17,735 23,967  155,301  61,819  Financial assets at fair value through profit or loss 5,605  8,029  - - Available-for-sale financial assets 7,177 28,577  - - Investments in associates - - 864  864  Investments in subsidiaries - - 849,796  849,796  30,517  60,573  1,005,961  912,479  Financial liabilities Payables 61,915  50,664  109  70  Borrowings 56,791  38  71,000  10,000  Contingent consideration 1,525  - - - Share buy-back liabilities 27, 8 4 6 43,112 - - 148,077  93,814  71,109  10,070 