2019-06-28 Special Meeting Agenda

SPECIAL MEETING AGENDA   28 JUNE 2019




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SPECIAL MEETING AGENDA                                                                    28 JUNE 2019

  INVESTMENT OF SURPLUS FUNDS POLICY

  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.
  When considering investment options, the investment officer will establish a margin of 10 basis
  points in interest rate returns to give preference to those institutions considered to be responsible
  investors (e.g. do not invest in fossil fuel companies).
  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.
  Criteria of authorised dealers and broker
  Council will maintain a list of authorised financial institutions and securities brokers that the
  investment officers may deal with. These financial intermediaries must have a minimum long term
  rating of at least either A+/A1/A+ from Standard and Poors, Moodys or Fitch IBCA.
  All transactions undertaken on behalf of the investment portfolio of Council will be executed either
  by Council directly, or through securities brokers registered as Australian Financial Service
  Licensees (ASIC) with an established sales presence in Australia, or direct issuers that directly issue
  their own securities which are registered on Council’s approved list of brokers/dealers and direct
  issuers.

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