Issue - meetings

The Cabinet is requested to consider the agenda report and its appendices and make the following resolution as set out below:

That Cabinet reviews and notes the summary of treasury management activities and performance for the six months to 30 September 2019.

RESOLVED

That the Cabinet reviews and notes the summary of treasury management activities and performance for the six months to 30 September 2019.

Mr Wilding introduced the item. He explained that the 2019-2020 Treasury Management half yearly update represents a summary of the council’s treasury activity for the six months ending 30 September 2019. The update includes a summary of the council’s investment portfolio at 30 September 2019 including the split between short term and long term investments and the increase in treasury funds under management over the first half of the year to £82 million. He explained that the position reversed in December due to the fall in the number of local taxation receipts in February and March.

Mr Wilding then referred to how a number of significant short term investments have yielded a low rate of interest. He drew attention to Table 2 which details the external pooled funds with further details highlighted in Appendix A. Although there was a fall of £377,000 in fair value of the investments to the end of September due to initial transaction costs related to the local authority property fund, the income generated from the investments over the same period totalled approximately £2 million. Mr Wilding clarified that the £377,000 therefore remains a notional figure unless the council chooses to dispose of any of the investments. It is anticipated that there will be further investment in external pool funds of up to £17 million following careful consideration by officers and financial guidance from the council’s advisors Arlingclose. The investments will include:

·         Increasing the Multi Asset Funds from £3.65 million to a maximum £10 million

·         £5 million in the UK Equity Fund

·         Increasing the Corporate Bond Fund from £4.3 million to £10 million

·         Maintaining the £10 million in the Local Authority Property Fund

Mr Wilding emphasised that the investments offer an opportunity to generate a significant additional income to support front line services. He then drew attention to Section 9 which outlines the latest economic forecast which remains dependent on the wider global economy.

Mrs Lintill gave her support to further investment.

It was noted that no concerns or recommendations had been raised by the CGAC.

Decision

The Cabinet then voted unanimously to make the resolution below.

RESOLVED

That the Cabinet reviews and notes the summary of treasury management activities and performance for the six months to 30 September 2019.