2021-06-30 Special Meeting Agenda

SPECIAL MEETING AGENDA   30 JUNE 2021




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SPECIAL MEETING AGENDA                                                                      30 JUNE 2021

 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 Financial
 Services Manager 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 At+/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.

 REPORTING
 The Financial Services Manager will prepare a monthly report and evaluation of the transactions,
 concentrations, performance and compliance of the investment portfolio. The report will include:
 e     summary of securities held at the end of the reporting period by counterparty;
 °     liquidity of the portfolio as at reporting date;
 °     percentage of the portfolio considered ethical investment;

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