2016-06-16 Special Meeting Agenda

2016/17 INVESTMENT 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 the Noosa Shire Council’s bank account balance. Included in this balance is any
moneys held by Council on behalf of external parties (for example developer contributions).

The investable funds should be matched against the cash flow needs of Council deemed by the
Manager Financial Services following adoption of the Noosa Shire Council’s 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:
     deposits with a financial institution;
     interest bearing deposits;
     commercial paper;
     bank accepted/endorsed bank bills;
     bank negotiable certificates of deposit;
     short term bonds;
     floating rate notes;
     QIC Cash Fund; and
     QTC Capital Guaranteed Cash Fund, Debt Offset Facility, Fixed Rate Deposit (up to 12 months)
      and QTC Working Capital Facility.

Prohibited investments
This Investment Policy prohibits any investment carried out for speculative purposes. The Manager
Financial Services may include a prohibited investments list within the Investment Guidelines.

The following investments are prohibited by this investment policy:
 derivative based instruments (excluding floating rate notes);
 principal only investments or securities that provide potentially nil or negative cash flow;
 stand-alone securities issued that have underlying futures, options, forward contracts and swaps
   of any kind; and
 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
    A1+ - Financial Institutions                                   35%                100%
    A1+ - Bond Mutual Funds                                        30%                50%
    A1 – Financial Institutions                                    30%                30%
    A2 – Financial Institutions                                    15%                30%
    A3 – Financial Institutions                                    5%                 10%
    Unrated                                                        Nil                Nil
    QIC / QTC Pooled Cash Management Fund                          100%               100%

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.
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