| Item | Description | Resolution |
|---|---|---|
| PART 1 - PUBLIC | ||
| MATTERS FOR RECOMMENDATION TO THE COUNCIL | ||
| CB 12/018 |
Treasury Management Strategy Statement and Annual Investment Strategy for 2012/13 |
The report of the Director of Finance provided details of the current investment position from which it was noted that a number of downgrades by the credit rating agencies had led to increasingly limited access to both UK and non-UK financial institutions. As a result of a review of the approach to assessment of credit risk, the report invited the Cabinet to consider adopting a lower credit requirement and to use Sector's creditworthiness methodology to guide future updates to the Council's internal lending list. Such changes had been incorporated into the Treasury Management Strategy Statement and Annual Investment Strategy for 2012/13 which was also reviewed and presented for adoption. It was noted that the Audit Committee had reviewed the matters covered by the report at its meeting on 23 January 2012 and the revised arrangements had been commended for adoption subject to an alteration to the text of Appendix 5 to the Strategy which had now been incorporated. RECOMMENDED: That (1) the treasury management position as at 6 January 2012 be noted; (2) the officers' decision not to call for the premature repayment of investments held with Barclays and the Nationwide be endorsed; (3) Sector's creditworthiness methodology be adopted for use in the selection and deselection of counterparties to be included on or removed from the Council's internal lending list; (4) the minimum credit criteria of Fitch long term A, short term F1, individual (viability) C (bbb-) and support 1 be adopted for use by the Council's external fund manager; (5) a 20% exposure limit to counterparties, groups of related counterparty and non-UK sovereigns be adopted; and (6) the Treasury Management Strategy Statement and Annual Investment Strategy for 2012/13, as set out at Annex 4 to the report, be adopted. *Referred to Council |