2020-07-10 Special Meeting Agenda

Page 16 of 59

INVESTMENT OF SURPLUS FUNDS POLICY

 INVESTMENT PARAMETERS
 Investable funds
 For the purposes of this policy, investable funds are the moneys available for investment at any one
 time and include Council’s bank account balance. Included in this balance is any moneys held by
 Council on behalf of external parties (for example cash performance bonds).
 Investable funds will be determined against the cash flow needs of Council following the adoption of
 the annual budget.
 Authorised investments
 Without specific approval from Council or the Treasurer, investments are limited to those prescribed
 by Section 6 of the Statutory Bodies Financial Arrangements Act 1982 for local governments with
 Category 1 investment power, which include:
 e  deposits with a financial institution;
 e  interest bearing deposits;
 ¢  commercial paper;
 e  bank accepted/endorsed bank bills;
 e  bank negotiable certificates of deposit;
 e  short term bonds;
 e  floating rate notes;
 e  QIC Cash Fund; and
 e  QTC Capital Guaranteed Cash Fund, Debt Offset Facility, Fixed Rate Deposit (up to 12 months)
    and QTC Working Capital Facility.
 Prohibited investments
 This Policy prohibits any investment carried out for speculative purposes. The Financial Services
 Manager may include a prohibited investments list within the Investment Guidelines.
 The following investments are prohibited by this investment policy:
 e  derivative based instruments (excluding floating rate notes);
 e  principal only investments or securities that provide potentially nil or negative cash flow;
 e  stand-alone securities issued that have underlying futures, options, forward contracts and swaps
    of any kind; and
 e  securities issued in non-Australian dollars.

 Portfolio investment parameters and credit requirements
 The following table shows the credit ratings and counterparty limits for Council:
  Short Term Rating (Standard & Poor’s) or equivalent | Individual             Total Limit
                                                              Counterparty
                                                              Limit

PUnrated NN

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