Decision details

Chris Ward, Director of Finance and the Section 151 Officer, presented the report which sought revision of the investment strategy and broadening of the investment portfolio.

The Cabinet supported the recommendations within the report which are forwarded to Council for approval.

RECOMMENDED (1) That the Investment Strategy be amended to permit unsecured investments with a duration in excess of 2 years to be placed with banks

(2) That the Director of Finance and Information Services be given delegated authority to invest the Council's funds in equity trackers which follow the developed stock markets with a floor of 100% of the capital invested, ie. the Council's capital is guaranteed.

(3) That an investment limit of £70m be applied to equity trackers

(4) That the variable interest rate exposure limit be increased by (£70m) from (£278m) to (£348m), ie. that the limit for net variable interest rate investments be increased to £348m.

(5) That the investment limits applied to regions outside the United Kingdom be revised as follows:

(6) That the following actual treasury management indicators for the first quarter of 2015/16 be noted:

(a) The Council’s debt at 30 June:

(b) The maturity structure of the Council’s borrowing was

(c) The Council’s sums invested for periods longer than 364 days at 30 June 2015 were:

(d) The Council’s fixed interest rate exposure at 30 June 2015 was £228m, ie. the Council had net fixed interest rate borrowing of £228m. This is within the Council's approved limit of £304m.

(e) The Council’s variable interest rate exposure at 30 June 2015 was (£258m), ie. the Council had net variable interest rate investments of £258m. This is within the Council's approved limit of (£278m).