Issue - meetings

This report gives details of performance against the Council’s Treasury Management Strategy and Annual Investment Plan for 2019/20.

Councillor Richard Samuel introduced the report by saying that the average rate of interest earned over the first quarter was 0.95%, which was 0.33% above the benchmark (7 day LIBID +0.05%).  This reflected the placement of £3m long term strategic investment in the CCLA Local Authority’s Property Fund during the quarter.

The Council’s external borrowing as at 30th June 2019 totalled £225.1 million.

The Council’s Capital Financing Requirement (CFR) as at 31st March 2019 was £300.7 million. The difference from actual borrowing reflected self-investment of reserves and the savings from avoiding new borrowing were greater than the interest rate achieved on investments.

The report highlighted that the Strategic Diversified Income Funds the Council were considering investing in as part of the MTFS target to generate additional investment income from strategic longer terms investments, did have a small proportion of investments directly in Fossil Fuel related companies (4%-8% of investments).  If these investments were not made it was estimated there would be a reduction in forecast income in the region of £100-£150k.  The Council would look to seek to influence the investment managers to reduce the element of fossil fuel companies in their portfolios or the Council would withdraw gradually from investment in Fossil Fuel related companies over a period of time.

Councillor Richard Samuel moved the recommendations.

Councillor Dine Romero seconded the motion by welcoming the initiative of gradual movement away from investment in Fossil Fuel related companies.

Councillor Samuel added that he would involve Councillor Sarah Warren (with her Climate Change Emergency portfolio) in discussions on future long term investments in companies that were not Fossil Fuel related. 

RESOLVED (unanimously) that the Cabinet agreed to:

2.1  The Treasury Management Report to 30th June 2019, prepared in accordance with the CIPFA Treasury Code of Practice, is noted.

2.2  The Treasury Management Indicators to 30th June 2019 are noted.