Decision details

1.  That the Treasury Management performance for the second quarter of 2018/19 be noted;

2.  That Council be recommended to approve  the inclusion of the new Low Volatility Net Asset Value (LVNAV) category of Money Market Funds into the Treasury Management Strategy; and

3.  That Council be recommended to approve the non-reporting of Treasury Management Activity quarterly.

In line with government guidance, the Council’s policy is to seek to achieve the highest rate of return on investments whist maintaining appropriate levels of risk, particularly security and liquidity.

The current approved 2018/19 Treasury Management Strategy permits the use of ‘standard’ Constant Net Asset Value (CNAV) Money Market Funds with a limit of £15m in each fund, as well as, Variable Net Asset Value (VNAV) funds, with a limit of £10m in each fund, and a maximum of £25m at any one time.  New regulations coming into effect reforming Money Market Funds mean there will be classification changes, which includes the introduction of Low Volatility Net Asset Value (LVNAV) funds. As a result the Council must update the Treasury Management Strategy in line with these Money Market Fund classification changes.