Issue - meetings
Treasury Activity for Period Ending 31st May 2009
Meeting: 15/12/2009 - Audit Committee (Item 6)
Treasury Activity for Period Ending 30th November 2009 (AC/007/09)
Minutes:
Mr Finch (Service Head Corporate Finance) presented the report highlighting the key points. Mr Finch reported that paragraph 5 (Credit Criteria) showed the credit requirements placed on financial institutions to which the Council lends. All of which demonstrated the relative strength of the banks within the Council’s lending and investment list. Mr Finch confirmed that the Council had restricted investment to institutions that had support from national governments and had a strong parent body and were approved by the ratings agencies as fit for purpose. At the request of the Chair, Mr Finch clarified the meaning of the credit ratings listed in Table 1 of the report regarding Credit Rating Requirements.
All of the institutions within table 3, (the investment strategy list of current investments) were UK based institutions. In the event the UK rating decreases and becomes less than that overseas, this position would be likely to change. A key issue was a lot of the banks that met the criteria were not currently lending.
It was planned to restrict the term for investment to a 6-9 month duration as there was advice that the interest rates may rise in 2010. The Council was currently making a 1.56% return on its investments which represented a relatively strong performance over the period being more than 1% over the Bank of England base rate.
RESOLVED: That the contents of the report (AC/007/09) be noted.
Meeting: 29/09/2009 - Audit Committee (Item 8)
Treasury Activity for Period Ending 31st May 2009
Minutes:
Mr Alan Finch (Service Head, Corporate Finance) presented a report regarding Treasury Activity for the period ending 31st May 2009, highlighting the salient points within.
In reply to questions, Mr Finch reported that the aim of the strategy was to optimise returns whilst taking appropriate account of risks. The majority of the Council’s funds were invested in UK institutions. The current position was fully compliant with the investment strategy agreed by the Council in March 2009. It was also Agreed that the report for Treasury Activity during the latest quarter be circulated to the Committee.
ACTION: Alan Finch (Service Head Corporate Finance)
RESOLVED: That the contents of the report be noted.
ACTION BY: Chris Naylor (Corporate Director Resources)
Alan Finch (Service Head Corporate Finance)