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.