Issue - meetings

The report will update the committee on the Council’s treasury management activities and performance in the third quarter of 2010/11 and will report the results of the selection exercise undertaken to add further Money Market Funds to the lending list.

We considered the Council’s Treasury Management activity and performance during the third quarter of 2010/11 which showed compliance against the Prudential Indicators and the Treasury Management Strategy Statement.  We noted that during this quarter £40m of long term borrowing had matured and was repaid to the PWLB (Public Works Loan Board).  This had resulted in a reduction in cash balances, which had been invested short term only in money market funds, and an instant access call account. It was explained to the committee that money market funds operated with a wide diversification of investments and therefore were a good vehicle for investing money in. They also allowed instant access to funds when needed.

Members were advised that the Council were operating 3 money market fund accounts and further, to a detailed selection exercise  involving  the Lead Finance Officer, Head of Finance,  treasury & pensions(supported by Arlingclose Ltd the Council’s treasury management advisers) , four  further money market funds were recommended for investment in.   Clarification was sought on  whether any  alternative money market funds had been researched, other than those set out in the report,  and in response it was noted that this list of funds were on the recommendation of  treasury advisors.

RESOLVED

1. That members note the Treasury Management activity undertaken during the third quarter of 2010/11 and the performance achieved.

2. That the following selection of additional Money Market Funds, for the lending list, be approved:

• J.P Morgan Asset Management Sterling Liquidity Fund  - £20m limit
• Invesco Short Term Investments Company Sterling Liquidity Portfolio  - £5m limit
• BlackRock Institutional  Sterling Liquidity Fund – £20m limit
• BlackRock Institutional Government Sterling Liquidity Fund  - £12m limit