Issue - meetings

This report sets out an update on treasury management performance for the first six months of 2019/20.

This item includes a presentation from the Council’s external treasury advisors – Link Asset Services.

The Panel received a training presentation from the Council’s external treasury advisor, Link Asset Services. Members discussed the current economic environment, including the current US-China trade negotiations, and their implications for the Council’s treasury management policies and returns.

The panel requested a copy of the Council’s Treasury Management Strategy 2019/20, which officers agreed to circulate after the meeting. (Post meeting note - the Treasury Management Strategy is published on the Council’s website here)

Members noted that they would have the opportunity to review 2020/21’s Treasury Management Strategy when it is presented to Council in February 2020.

Members asked about the cost of the Council’s external advisors and how frequently they were used. Officers responded that the annual cost was around £9,000, and the advisors were used by officers frequently, specifically whenever a significant investment or borrowing decision arose. The advisors also provide officers with daily market updates relating to treasury matters, assist with producing a compliant Treasury Management Strategy, and provide the annual training presentation to Members.

Members asked whether the Council considered the ‘climate change’ agenda in its Treasury Management policies. Officers responded that the Council had to comply with CIPFA’s Treasury Management and Prudential Codes, which stipulate ‘Security, Liquidity & Yield’ as the priorities of treasury management. If a suitable ‘sustainable climate’ investment opportunity arises, which meets the criteria of CIPFA’s Treasury Management and Prudential Codes and of the Council’s TM Strategy, then it would be considered on its merits.

Following consideration, the Panel agreed to:

(1)          Receive the presentation from Link Asset Services – Treasury Solutions.

(2)          Note the performance on return of investments for the first six months of 2019/20

(3)          Note the current investment decisions being made within the terms set out in the Treasury Management Strategy.