2014-06-26 Budget Meeting Attachment H

STRATEGIC POLICY – 2014/15 INVESTMENT POLICY


Approved lists
The Manager Financial Services shall prepare and maintain the following approved counterparty
lists for the investment of funds:
 approved banks;
 approved commercial paper and medium term note issuers;
 approved brokers/dealer and direct issuers for purchase or sale of security with a minimum
     credit rating of A+; and
 approved credit unions.

New investment products
A new investment product requires a full risk assessment by the Manager Financial Services
(including compliance with the Act) and requires approval by the Director Corporate Services.

Breaches
Any breach of this Investment Policy is to be reported to the Director Corporate Services and
Manager Financial Services 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 Poor’s, Moody’s 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.


ROLES AND RESPONSIBILITIES
The Director Corporate Services and the Manager Financial Services are authorised to invest
Council’s operating funds at their discretion in investments consistent with this Investment Policy
and legislation.

The Manager Financial Services will report to Council for investment guidelines, approved lists and
oversight of investment activities for the purposes of this Investment Policy.




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