63 TREASURY MANAGEMENT - QUARTER 2 PERFORMANCE 2022/23 & MID-YEAR REVIEW PDF 349 KB
The report summarised treasury management activity during the second quarter of 2021/22 and included a mid-year review of the treasury management strategy statement and annual investment strategy (Appendix 4). The report ensured that the Council was implementing best practice in accordance with the CIPFA Code of Practice for Treasury Management. Investments as at 30 September 2022 totalled £390.6m (£427.6m at 30September 2021) and there was no outstanding external borrowing.
A Member noted that the returns being achieved from investments in the National Bank of Kuwait and the Qatar National Bank were in line with the returns achieved from High Street Banks and questioned whether there was any regime in which the Council would not invest. In response, the Head of Corporate Finance and Accounting explained that any investments were in line with the criteria established in the Council’s Treasury Management Strategy. Investments were not an endorsement of a regime and one of the key considerations was to maximise the income generated from investment. The Council’s professional advisers provided a list of countries which met the minimum credit ratings required. The Chairman noted that the investments were in the UK branch of the banks, were governed by the FCA and needed to comply UK laws and regulations.
In response to a question, the Head of Corporate Finance and Accounting confirmed that the Council did not have a responsible investment policy, however, the Treasury Management Strategy was presented to Committee annually and would next be presented in February 2023. The Head of Corporate Finance and Accounting reported that CIPFA guidance had begun to introduce an ethical dimension to decisions around treasury management.
In response to a question, the Head of Corporate Finance and Accounting agreed to provide a breakdown of the multi-asset fund following the meeting.
The Director of Finance explained to the Committee that the Council’s approach to Treasury Management focused on maximising returns on investments and tried to deal with volatility in the market through an income stabilisation fund. This was one of the long-term investments held by the Council.
RESOLVED: That the Portfolio Holder be recommended to:
1. Note the Treasury Management performance for the second quarter of 2022/23;
2. Recommend that Council approve the 2022/23 prudential indicators as set out in Appendix 4.