2018-07-06 Special Meeting Agenda

SPECIAL MEETING AGENDA    6 JULY 2018




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SPECIAL MEETING AGENDA                                                                  6 JULY 2018

  INVESTMENT OF SURPLUS FUNDS POLICY

  ETHICS AND CONFLICTS OF INTEREST

  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 policy. Investment officers are to avoid any transactions that
  might harm confidence in Council and will consider the safety of capital and income objectives when
  making investment decisions.
  Ethics and conflicts of interest
  Consideration will be given to ethical investment principles in determining the approved counterparty
  for investment of funds.

  Investment officers / employees shall refrain from personal activities that would conflict with the
  proper execution and management of Council’s investment portfolio. This includes activities that
  would impair the investment officer's ability to make impartial decisions. This policy requires that
  employees and investment officials disclose to the Chief Executive Officer (CEO) any conflict of
  interest or any investment positions that could be related to the investment portfolio.
  Delegation of authority
  Authority for implementation of this policy is delegated by Council to the CEO in accordance with the
  Local Government Act 2009, Section 257 (1) (b) — Delegation of local government powers.
  Authority for the day-to-day management of Council’s Investment Portfolio is to be delegated by the
  CEO to the Director Corporate Services and to the Manager Financial Services in accordance with
  section 259 of the Local Government Act 2009, and subject to regular reviews with the Director
  Corporate Services and CEO.

  GUIDING PRINCIPLES

  Council's overall objective is to invest its funds at the most advantageous rate of interest available
  to it at the time, for that investment type, and in a way that it considers most appropriate given the
  circumstances. In priority, the order of investment activities shall be the preservation of capital,
  liquidity, and return.
  Preservation of capital
  Preservation of capital shall be the principal objective of the investment portfolio. Investments are to
  be performed in a manner that seeks to ensure security of principal of the overall portfolio. This would
  include managing credit and interest rate risk with given risk management parameters and avoiding
  any transactions that would prejudice confidence in Council or its associated entities.
  Credit Risk
  Council will evaluate and assess credit risk prior to investment. The investment officer will minimise
  credit risk in the investment portfolio by prequalifying all transactions including the brokers / securities
  dealers with which they do business, diversify the portfolio and limit transactions to secure
  investments.

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