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Tendring District Council (TDC) is continuing to keep a
close eye on its investments to ensure that it maintains a balanced
portfolio.
The Council has been focussing much more closely on its treasury
activity for nearly a year now in light of the unprecedented and
increasing volatility in the financial markets.
A formal review in early June was carried out in consultation
with external advisors who actively monitor the Council's
investments and provide advice where appropriate.
Interest earned from these plays a significant part in
supporting TDC's overall budget each year and in turn has helped
boost investment in the District.
David Lines, Leader of the Council, said that the aim was to
maintain a portfolio that balanced security, liquidity and
yield.
"It includes a mix of banks, building societies, and treasury
bills," he said.
A summary of the Council's current position is £15.545 million
invested with banks, £10.25 million with building societies and £4
million in treasury bills.
"The Council has to consider overall market conditions, credit
ratings, the amount currently invested with any one party - as well
as the timing of anticipated future payments - when an investment
is made," added Cllr Lines.
He said that this disciplined approach has gone on historically,
as well as in response to the situation which is being faced
globally.
"The Council's investment activity is carried out in accordance
with Government guidelines and through formally approved treasury
management practices," he said.
"These set out both the options of where the money can be
invested and the limit of how much can be invested with each."
The majority of the Council's investments are earmarked for
future projects and payments - and only £3.9 million is uncommitted
and held in the uncommitted reserve.
This uncommitted reserve is used to support prudent financial
planning as well as meeting any unexpected or unforeseen
obligations or responsibilities that may arise, in line with a best
practice approach taken by all
Councils. |