The Council considered a report from the Audit Committee setting out

the Treasury Management Mid-Year Report 2018/19. The Council noted that recommendation 2 on the cover report should read £447.62m.

DECISION:

That the Council notes:

1.         That the treasury management activities and performance against targets for the half year ending 30 September 2018; and

2.         The Council’s investments as set out in Appendix 1 to the report. The balance outstanding as at 30 September 2018 was £447.62m which includes £10m pension fund cash awaiting investment.

(Action by: Neville Murton, Acting Corporate Director Resources).

The Council considered a report from the Audit Committee setting out

the Treasury Management Mid-Year Report 2018/19. The Council noted that recommendation 2 on the cover report should read £447.62m.

RESOLVED:

That the Council notes:

1.         That the treasury management activities and performance against targets for the half year ending 30 September 2018; and

2.         The Council’s investments as set out in Appendix 1 to the report. The balance outstanding as at 30 September 2018 was £447.62m which includes £10m pension fund cash awaiting investment.

Mr Neville Murton, Acting Corporate Director for Resources presented this report stating that the performance of investments was good. He referred Members to the investment benchmarking table on pages 83-84 and said a pooled sum of £65m had been invested. He said the council’s portfolio credit risk was lower than others and as a consequence the investment portfolio credit worthiness also improved from a A+ to AA-.

Mr Murton continued, that the Local Authority’s exposure to LOBO’s was £60m if it were to remain with RBS however negotiations were underway to rebuy the investments

In response to questions from Members the following was noted:

·         Members welcomed the buy back of investments from RBS

·         In response to if the Council was considering court action against banks for LOBO’s, Mr Murton stated that at present the local authority was not considering taking such action. However the Council was watching very closely the progress and outcome of court action taken by other authorities. Mr Murton said the mis-selling of LOBO’s may be hard to prove, than the case of LIBOR’s where interest rates were fixed.

·         Mr Murton confirmed the Council was looking to make ‘greener’ investments in the future.

·         Members asked if a breakdown could be provided in relation to equity investments – page 89. Mr Murton confirmed this information would be provided.

Members of the Committee AGREED to

1.    Note the contents of the treasury management activities and performance against targets for half year ending 30^th September 2018; and

2.    Note the Council’s investments as set out in Appendix 1. The balance outstanding as at 30^th September 2018 was £447.62m which includes £10m, pension fund cash awaiting investment.