2015-06-29 Special Meeting Agenda

INVESTMENT OF COUNCIL FUNDS POLICY


Portfolio investment parameters and credit requirements

The following table shows the credit ratings and counterparty limits for Council:

 Short Term Rating                                       Individual                   Total Limit
 (Standard & Poor’s) or equivalent                       Counterparty Limit

 A1+ - Financial Institutions                            35%                          100%
 A1 – Financial Institutions                             30%                          30%
 A2 – Financial Institutions                             15%                          30%
 A3 – Financial Institutions                             5%                           10%
 Unrated                                                 Nil                          Nil
 QTC Pooled Cash Management Fund                         100%                         100%

It is noted that for the purposes of this investment portfolio, the percentage limits apply effective from
the date of purchase as a percentage of the market value of the portfolio. No more than 20 per cent
of the portfolio is to be invested in floating rate notes.

Maturity

The maturity structure of the portfolio will reflect a maximum term to maturity of no longer than 12
months.

Liquidity requirement

Given the nature of the funds invested, no more than 20 per cent of the investment portfolio will be
held in illiquid securities and at least 10 per cent of the portfolio can be called at no cost or will mature
within 0-7 days.

Breaches

Any breach of this policy is to be reported to the CEO and rectified within 24 hours of the breach
occurring.

Where Council holds an investment that is downgraded below the minimum acceptable rating level,
as prescribed under regulation for the investment arrangement, Council shall within 28 days after
the change becomes known to the local government, either obtain Treasurer’s approval for
continuing with the investment arrangement or sell the investment arrangement (including, for
example, withdrawing a deposit).

Where limits for different risk categories or where counterparty limits are breached, the Manager
Financial Services will bring the matter to the attention of the Director Corporate Services with a
recommendation on potential options (e.g. continuing with the investment through until maturity, or
withdrawing a deposit).

Safekeeping and custody

Each transaction will require written confirmation by the broker / dealer / bank. Council will hold
security documents, or alternatively a third party custodian authorised by the Manager Financial
Services and evidenced by safekeeping receipts may hold security documents.




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