Issue - meetings

Report FSD17059

The report summarises treasury management activity during the March quarter and includes the Treasury Management Annual Report for 2016/17, which is required to be reported to full Council. The report ensured that the Council was implementing best practice in accordance with the CIPFA Code of Practice for Treasury Management. Investments as at 31^st March 2017 totalled £269.9m and there was no external borrowing. The balance of investments stood at £304.5m as at 31^st December 2016 and £285.5m as at 31^st March 2016 (plus £24.4m of temporary borrowing), and, at 31^st May 2017 it stood at £294.9m.

The report proposed changes to the Council’s Treasury Management Strategy. The changes were (i) inclusion of a secured loan for a residential development in Beckenham which would help deliver the Council’s Housing objectives, (ii) an increase in the limits for pooled investment schemes to £80m, (iii) a reduction in the counterparty rating criteria for Housing Associations to A- and (iv) a temporary increase in the counterparty limit with Lloyds Bank. It was also intended that the Diversified Growth Fund (DGF) assets would be sold and the funds invested in Multi-Asset Income Funds which would provide better income with low volatility.

RESOLVED that the Portfolio Holder and Council be asked to –

  (a) Note the Treasury Management Annual Report for 2016/17;

  (b) Approve the following changes to the Council’s Treasury Management Strategy -

(i)  Inclusion of a secured loan that helps deliver the Council’s housing objectives, as detailed in section 3.5.2;

(ii)  An increase to the limit for pooled investment schemes to £80m as detailed in section 3.5.3;

(iii)  A reduction to the counterparty rating criteria for Housing Associations to A- as detailed in section 3.5.4;

(iv)  A temporary increase in the counterparty limit with Lloyds bank as detailed in section 3.5.5; and

(c) Approve the actual prudential indicators within the report.