Issue - meetings

To consider the report of the Head of Treasury Services.

Scrutiny Committee – Resources considered the report at their meeting on 28 January 2009 and their comments will be reported.

(Report circulated)

The report of the Head of Treasury Services was submitted, seeking adoption by the Council of the Annual Investment Strategy 2009-10, as required under section 15(1)(a) of the Local Government Act 2003.

Scrutiny Committee – Resources considered the report at their meeting on 28 January 2009 and the support and comments of members were noted.  Executive members welcomed discussion of ethical investment and supported the request of Scrutiny Committee – Resources to invite the Fund Manager to deliver a briefing for members on the Investment Strategy and ethical investments. Members acknowledged the difficulty of balancing cautious investment with reasonable interest rates.

In response to a member’s query regarding the level of in-house expertise in the context of the Icelandic bank investments, the Director Corporate Services reported that those banks had high credit ratings and many professional advisers were advising investment in them at the time. He re-iterated that the great majority of the Council’s investments were undertaken through external Fund Managers but it was necessary for the in-house team to make day-to-day treasury management decisions in accordance with the Strategy. He informed members that the Strategy reflected the amendments adopted by the Council in December 2008.

Executive recommended that the amended Annual Investment Strategy be adopted and the delegations contained therein be approved.

The report of the Head of Treasury Services was submitted, seeking adoption by the Council of the Annual Investment Strategy 2009-10, as required under section 15(1)(a) of the Local Government Act 2003.

Scrutiny Committee – Resources considered the report at their meeting on 28 January 2009 and the support and comments of members were noted.  Executive members welcomed discussion of ethical investment and supported the request of Scrutiny Committee – Resources to invite the Fund Manager to deliver a briefing for members on the Investment Strategy and ethical investments. Members acknowledged the difficulty of balancing cautious investment with reasonable interest rates.

In response to a member’s query regarding the level of in-house expertise in the context of the Icelandic bank investments, the Director Corporate Services reported that those banks had high credit ratings and many professional advisers were advising investment in them at the time. He re-iterated that the great majority of the Council’s investments were undertaken through external Fund Managers but it was necessary for the in-house team to make day-to-day treasury management decisions in accordance with the Strategy. He informed members that the Strategy reflected the amendments adopted by the Council in December 2008.

RECOMMENDED that the amended Annual Investment Strategy be adopted and the delegations contained therein be approved.

(Report circulated)

To consider the report of the Head of Treasury Services - report circulated

Councillor Martin declared a personal interest as a Member of the Co-operative Bank.

The Head of Treasury Services presented a report seeking adoption by the Council of the Annual Investment Strategy 2009/10, as required under section 15(1)(a) of the Local Government Act 2003.

The Head of Treasury Services stated that the Strategy had been amended in December 2008 in response to the current financial environment and the Icelandic banking crisis. The Council invested in a range of different financial institutions which, in line with the Council’s investment strategy, were mostly banks or building societies. The Council’s fund manager had produced a discussion document in respect of ethical investments. The fund manager would, if required, come to a future meeting to discuss the issue of ethical investments or any other aspect of the Council’s investments.

Members discussed the issue of ethical investments and requested that the Fund Manager be invited to deliver a Member briefing on the Investment Strategy.

The Scrutiny Committee - Resources endorsed the report and requested that Executive recommend to Council the adoption of the amended Annual Investment Strategy and delegations contained therein.

(Report circulated)