2016-06-16 Special Meeting Agenda

2016/17 INVESTMENT POLICY


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 Investment Policy is to be reported to the Director Corporate Services and
Manager Financial Services 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 Manager
Financial Services 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
Noosa Shire 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 A+/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 Noosa Shire 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 Noosa Shire Council’s approved list of
brokers/dealers and direct issuers.

REPORTING
The Manager Financial Services will prepare a monthly report and evaluation of the transactions,
concentrations, performance and compliance of the investment portfolio. The report will include:
 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 held by investment risk category; and
 performance of the portfolio [relative to Bloomberg AusBond Bank Bill Index benchmark and/or
   BBSW].

On an annual basis, the Investment Policy will be reviewed and amended where required; any
amendments are to be approved by Council prior to the implementation of the revised investment
policy.




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