Issue - meetings

(a)       That the report be noted; and

(b)       That Members agree not to pursue joint investments, as detailed in paragraph 3.05 of the report, any further at this time and that officers continue to monitor the situation in preparation for when market conditions change.  Opportunities for collaboration will continue to be discussed within practitioner groups.

The Finance Manager - Strategy & Technical introduced the quarterly update on matters relating to the Council’s 2012/13 Treasury Management Policy & Strategy Statement up to the end of February 2013.

The Finance Manager - Strategy & Technical gave an overview of the key considerations, including the suggestion made by Councillor G.S. Banks at the previous meeting for joint investment with neighbouring Authorities.  She advised that enquiries had been made by officers and although some pooled investment vehicles were available, there was currently no market for this type of investment.  In addition, there were legal issues over shared investments and risk which meant that this option was considered not viable at the present time.

Councillor G.H. Bateman asked about the current investments with liquidity funds at lower rates.  It was explained that the list of investments reflected what was available at the time that funds were needed to be invested and the Council’s self-imposed three month maximum term had only recently been lifted.  There was a need to manage cashflow as well as investments, and liquidity fund investments could be easily accessed.  Priority for investments was based on security, liquidity and yield in that order.

RESOLVED:

(a)       That the report be noted; and

(b)       That the Committee agree not to pursue joint investments, as detailed in paragraph 3.05 of the report, any further at this time and that officers continue to monitor the situation in preparation for when market conditions change.  Opportunities for collaboration will continue to be discussed within practitioner groups.