Issue - items at meetings - Annual Investment Strategy 2011/12

Report of the Director of Finance (copy attached).

(1)         That Cabinet agrees the Annual Investment Strategy 2011/12 as set in Appendix 1 to this report; and recommends Council to approve the Strategy at the meeting on 24 March 2011.

190.1          The Cabinet considered a report of the Director of Finance seeking endorsement of the Annual Investment Strategy 2011/12 and recommending its approval to Full Council.

190.2          Councillor Mitchell requested further information about the new Public Sector Deposit Fund and what the council would have to demonstrate in order to take advantage of the opportunities on offer. She also queried the implications of separating the council’s housing debt from it’s non-housing debt.

190.3          Councillor Randall asked for more clarity about how the new system would work.

190.4          Councillor Young advised that the new fund was due to be launched in May and would be open to public bodies such as the council; capital security and liquidity would be it’s guiding principles and investment returns were expected to be competitive compared with other similar funds.

She explained that the council welcomed the opportunity for self financing within the Housing Revenue Account and that the preferred option was to split the debt between housing and general fund, enabling the council to manage each debt pools to the benefit of tenants and council tax payers; investments were primarily general fund reserves so there would be little impact and the housing account would continue to receive interest on it’s balances.   

190.1          The Head of Strategic Finance & Procurement advised that opportunities available through the Public Sector Deposit Fund would be considered alongside existing financial institutions, with the rates of return balanced against risk.

190.2          RESOLVED – That, having considered the information and the reasons set out in the report, the Cabinet accepted the following recommendation:

(1)         That the Annual Investment Strategy 2011/12, as set out in Appendix 1 to the report, be agreed; and recommended to Council for approval at its meeting on 24 March 2011.