Issue - meetings

The report provides an update on treasury management activity undertaken during April to June of the current financial year.  The treasury management outturn position for 2020/21 is also included in this report.

The report of the Director of Finance and Transformation provided an update on treasury management activity undertaken during April to June of the current financial year.  The treasury management outturn position for 2020/21 was also set out.

The report provided a commentary on investments derived from cash flow surpluses, core cash balances and other long term cash balances. A full list of investments held on 31 June 2021 was set out in Annex 1 to the report.

Particular reference was made to the adoption of a multi asset fund which aimed to generate returns over and above inflation and thus preserve spending power.  Three funds had been selected for investment with an expectation based on past performance that, each would deliver a return in excess of 3% per annum and preserve capital over the five-year duration of the investment.  £1m was being invested in each of the three funds which collectively were expected to generate £60,000 of additional income in 2021/22.

Member’s attention was drawn to the Revenue and Capital Outturn report for 2020/21 as set out at Annex 4 which provided a summary of the investment performance.  The combined performance of the Authority’s investments exceeded the revised estimate of £132,953 but were £224,047 less than the 2020/21 original estimates reflecting the Covid-19 impact on investment returns.

The impact of the pandemic on the economy was difficult to assess, and although fluctuations in long term property investments were expected, it was anticipated that there would be some capital appreciation.

RECOMMENDED: That the following be commended to Council:

(1)        The action taken in respect of treasury management activity for April to June 2021 be endorsed;

(2)        The £3m being applied to investment asset (diversified income) funds be noted; and

(3)        The 2020/21 outturn position be noted.

*Referred to Council