Agenda item
TREASURY MANAGEMENT 2015/16: BRIEFING
- Meeting of Audit and Governance Committee, Monday, 16 February 2015 10.30 am, NEW (Item 11/15)
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The Treasury Management policy, strategy statement and prudential indicators report is required to be adequately scrutinised before being recommended to the full County Council. This briefing provides explanation as to the proposed changes to the 2015/16 Treasury Management Strategy.
Minutes:
Declarations of interest:
None.
Witnesses:
Phil Triggs, Strategic Finance Manager – Pensions & Treasury
Key points raised during the discussion:
1. The Strategic Finance Manager – Pensions & Treasury introduced the report and updated the committee that in the past week £30m had been added to borrowing at 3.23% interest.
2. A Member asked if the recent announcement about grant aid would require the strategy to be updated. The Strategic Finance Manager clarified that the strategy gave the general approach to management.
The Director of Finance rejoined the meeting at 12.35pm.
3. The Strategic Finance Manager – Pensions & Treasury confirmed that the remaining deposit with Icelandic banks had been auctioned off and that the monies had been received that day. This brings the Icelandic situation to a close.
4. In response to a query about the 364 day limit on investments, the Strategic Finance Manager – Pensions & Treasury explained that the limit was seen as a reasonable timescale.
5. Members asked why the US was not included as an approved country for investment. The Strategic Finance Manager – Pensions & Treasury said that neither the US nor the UK are in the sovereign AAA rated category. However, with the recovery in the US, it would not be long until its AAA rating was resumed. He reminded the Board that the use of Money Market Funds is restricted to funds with three AAA ratings, from two of the three rating agencies.
6. It was queried what the Council’s exposure was if gilt yields were to go negative. The Strategic Finance Manager – Pensions & Treasury informed the Board that gilt yields translate directly into the rates on offer twice-daily. If gilt yields were to enter negative territory it would mean very low interest rates for the authority. It was felt that we had seen the lowest point for gilt yields.
Actions/Further information to be provided:
None.
RESOLVED:
That the Committee NOTES the report.
Committee next steps:
None.
Supporting documents:
- Treasury Management briefing, item 11/15 PDF 93 KB
- Annex 1, item 11/15 PDF 353 KB
- Annex 1 Appendix 1 - TM Policy, item 11/15 PDF 99 KB
- Annex 1 Appendix 2 - PIs, item 11/15 PDF 279 KB
- Annex 1 Appendix 3 - Economic Outlook 201516, item 11/15 PDF 22 KB
- Annex 1 Appendix 4 -TM delegation, item 11/15 PDF 177 KB
- Annex 1 Appendix 5 - Institutions, item 11/15 PDF 255 KB
- Annex 1 Appendix 6 - Countries, item 11/15 PDF 17 KB
- Annex 1 Appendix 7 - MRP, item 11/15 PDF 11 KB