Issue - meetings

FSD18093

The Committee considered a report summarising treasury management activity during the second quarter of 2018/19.  The report also included a Mid-Year Review of the Treasury Management Strategy Statement and Annual Investment Strategy. The report ensured that that the Council was implementing best practice in accordance with the CIPFA Code of Practice for Treasury Management.  Investments as at 30^th September totalled £309.5m and there was no outstanding external borrowing.  For information and comparison, the balance of investments stood at £303.6m as at 30^th June 2018, £284.8m as at 31^st March 3018, and at £347m as at 6^th November 2018.

As the classification of Constant Net Asset Value (CNAV) funds would now only apply to funds mainly consisting of low yielding government debt, the Council’s existing Money Market Funds would convert into the new Low Volatility Net Asset Value (LVNAV) category. It was therefore proposed that the Treasury Management Strategy was amended to the following:

 “The Council may invest in AAA rated Money Market Funds, including Constant Net Asset Value (CNAV) Funds, Low Volatility Net Asset Value (LVNAV) funds and Variable Net Asset value (VNAV) funds. The total invested in each of the CNAV and LVNAV Funds must not exceed £15m at any time and £10m for VNAV funds. This includes the Payden Sterling Reserve Fund for which a limit of £15m is also applied. No more than £25m in total may be invested in VNAV funds at any time.”

The Committee also noted that at its meeting on 5^th July 2018, Members discussed the option of not reporting on treasury management activity quarterly unless Officers felt that a matter should come before the Committee sooner. As Financial Regulations currently required quarterly reports, the report requested that the Portfolio Holder recommended that Council formally approved this change.  There were three reports required by the Code of Practice, and it was intended that in year monitoring would be incorporated into these reports.

RESOLVED: That the Portfolio Holder be recommended to:

1.  Note the Treasury Management performance for the second quarter of 2018/19;

2.  Recommend that Council approves the inclusion of the new Low Volatility Net Asset Value (LVNAV) category of Money Market Funds into the Treasury Management Strategy, as set out in the report.

3.  Recommend that Council approves the non-reporting of treasury management activity quarterly, as set out in the report.