2015-06-29 Special Meeting Agenda

INVESTMENT OF COUNCIL FUNDS POLICY


Ethics and Conflicts of Interest

Prudent Person Standard

The standard of prudence is to be used by investment officers when managing the overall portfolio.
Investments will be managed with the care, diligence and skill that a prudent person would exercise
in managing the affairs of other persons. This includes having in place appropriate reporting
requirements that ensure the investments are being reviewed and overseen regularly.

Investment officers are to manage the investment portfolios not for speculation, but for investment
and in accordance with the spirit of this policy. Investment officers are to avoid any transaction that
might harm confidence in Council. They will consider the safety of capital and income objectives
when making an investment decision.

Ethics and conflicts of interest

Consideration will be given to ethical investment principles in determining the approved counterparty
for investment of funds.

Investment officers / employees shall refrain from personal activities that would conflict with the
proper execution and management of Council’s investment portfolio. This includes activities that
would impair the investment officer’s ability to make impartial decisions. This policy requires that
employees and investment officials disclose to the Chief Executive Officer (CEO) any conflict of
interest or any investment positions that could be related to the investment portfolio.

Council will also refrain from investments in agencies for which any potential conflict of interest in
their dealings with Council might arise.

Delegation of authority

Authority for implementation of this policy is delegated by Council to the CEO in accordance with
section 257 (1) (b) – delegation of local government powers contained in the Local Government Act
2009.

Authority for the day-to-day management of Council’s investment portfolio is to be delegated by the
CEO to the Director Corporate Services and to the Manager Financial Services in accordance with
section 259 of the Local Government Act 2009, and subject to regular reviews with the Director
Corporate Services and Chief Executive Officer.

Guiding Principles

Council’s overall objective is to invest funds at the most advantageous rate of interest available to it
at the time, for that investment type, and in a way that it considers most appropriate given the
circumstances.

In priority, the order of investment activities shall be preservation of capital, liquidity, and return.

Preservation of capital

Preservation of capital shall be the principal objective of the investment portfolio. Investments are to
be performed in a manner that seeks to ensure security of principal of the overall portfolio. This would
include managing credit and interest rate risk with given risk management parameters and avoiding
any transactions that would prejudice confidence in Council or its associated entities.




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