Issue - meetings

Item CB 15/3 referred from Cabinet minutes of 3 February 2015

Item CB 15/3 referred from Cabinet minutes of 3 February 2015

RESOLVED:  That the recommendations at Minute CB 15/3 be approved.

The report of the Director of Finance and Transformation provided details of investments undertaken and returns achieved in the first nine months of the current financial year together with an introduction to the Annual Investment Strategy for 2015/16.

An explanation was given for the underperformance against budget attributable to the lower than expected return delivered by the external fund manager prior to transfer of the management of core funds in-house from 1 August 2014.  Details were given of the current investment position and internal lending list.  The Committee was advised that Capita, the Council’s treasury advisors, had amended their credit worthiness methodology to a minimum long-term credit rating of Fitch ‘A-‘ or equivalent, rather than Fitch ’A’ and this had been included in the Annual Investment Strategy for 2015/16.

The Cabinet was advised that the Audit Committee had reviewed the matters covered by the report at its meeting on 26 January 2015 and the revised arrangements had been commended for adoption.

RECOMMENDED:  That

(1)             the treasury management position as at 31 December 2014 be noted;

(2)             the current minimum long-term credit requirement be reduced from Fitch ‘A’ to Fitch ‘A-‘ or equivalent; and

(3)             the Treasury Management Strategy Statement and Annual Investment Strategy for 2015/16, as set out at Annex 3 to the report, be adopted.

*Referred to Council