2014-01-02 Budget Attachments

2013/14 INVESTMENT POLICY


                                                                                ATTACHMENT 6
NOOSA SHIRE COUNCIL INVESTMENT POLICY


POLICY PURPOSE
The intent of this document is to outline Noosa Council’s (Council) investment policy and
guidelines regarding the investment of surplus funds, with the objective to maximise earnings
within approved risk guidelines and to ensure the security of funds.

POLICY OUTCOME
The activities of the investment officers or fund managers responsible for stewardship of Council’s
funds will be measured against the standards in this Policy and its objectives. Activities that defy
the spirit and intent of this Policy will be deemed contrary to the Policy.

POLICY SCOPE
For the purpose of this policy, investments are defined as arrangements that are undertaken or
acquired for producing income and apply only to the cash investments of Council. This policy
applies to the investment of all surplus funds held by Council.

Category 1 investment power allows for investment with QTC or QIC, along with a range of other
higher-rated counterparties without further approval.

For the purposes of the appointment of an external fund manager pursuant to section 59 of the
Local Government Act 2009, to operate in a manner consistent with this policy will constitute
compliance.

POLICY STATEMENT
Council has been granted authority to exercise Category 1 investment power under Part 6 of the
Statutory Bodies Financial Arrangement Act 1982 (the Act).

The Treasurer may from time to time constrain the investing activities of local government by
limitation, caveat, restriction and/or other relevant regulation. Where this occurs, this Investment
Policy will be reviewed and reissued for the subsequent change in legislation.

AUTHORITY
All investments are to be made in accordance with:
 Statutory Bodies Financial Arrangements Act 1982
 Statutory Bodies Financial Arrangements Regulation 2007
 Local Government Act 2009

ETHICS AND CONFLICTS OF INTERST
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 Investment 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.




Noosa Shire Council                                                                      Page 1 of 7