Issue - meetings
Treasury Monitoring Report
Meeting: 13/07/2010 - Audit Committee (Item 12)
12 Treasury Management Activity for Period Ending 31 May 2010 PDF 105 KB
Minutes:
Mr Alan Finch (Service Head Corporate Finance) presented the report highlighting the main issues for consideration.
Members drew attention to the outturn figures for 2009 – 10. In reply Mr Finch reported that in both cases the Council had outperformed the portfolio benchmark . However investment returns were starting to decrease in quarter 2 of 2010.
Officers were reviewing the trade off between investment risk and the need to diversify to secure the right balance. This issue would be discussed with the Council’s treasury.
Member questioned whether there were any plans to move away from the 'UK only policy' of investing all money in UK Banks. Mr Finch confirmed that officer were looking at investing a limited amount of funds in the foreign Domicile Institutions at the right rates, rather just small UK banks. However there were limited options for securing favourable returns with the current investment criteria. Consequently consideration was being given to amending the credit criteria/ treasury management strategy to take into account current market conditions. However this decision would need to be taken by Full Council. Officers were satisfied with the balance between overnight and long term investment. However the Council did obtain better rates over the long term.
The fund currently had more overnight deposits than expected, but it was anticipated that this would correct itself over the course of the year.
At the request of Members, Mr Finch Agreed to check the figures for Clydesdale PLC Bank in the investment strategy (page 118) and to report back on the reasons for these figures accordingly.
Action: Alan Finch (Service Head Corporate Finance)
RESOLVED That the contents of the Treasury Activity Report for period ending 31 May 2010 be noted.
Meeting: 29/06/2010 - Audit Committee (Item 74.)
74. Treasury Management Activity for Period Ending 31 May 2010 PDF 106 KB
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