Agenda item

To consider the report for information

DECISION:

To accept the report for information

DECISION: The Investment Manager presented a report on the actual results of the Council's treasury management during 2023/24, against the strategy approved by the Full Council on 3 March 2024. It was reported that it had been a very busy and prosperous year for the Council's treasury management activity as the activity had remained within the constraints originally set. It was confirmed that there were no defaults by institutions in which the
Council had invested money with.

It was reported that £3.5m in interest had been received on investments, which was higher than the £3.2m included in the budget.  It was noted, at the start of the financial year the Bank Rate had been set at 4.25%, however the Bank of England's Monetary Policy Committee increased the Bang Rate to 5.25% in August 2023 and the Bank Rate was kept at 5.25% until March 2024.

On 31 March 2023, the Council was in a very strong position with net investments, which had resulted from a high level of investments and operational capital. This included £56 million of the Ambition Board's funding and £31 million of the Pension Fund. It was reiterated that the lending activity had been very quiet in the year with only loan repayments taking place.

⁠It was reported, in the context of investments, that the Council had continued to invest with Banks and Housing Associations, Financial Market Funds, Pooled Funds, Local Authorities and Debt Management Office which was consistent with the type of investments made for a number of years now. It was noted that the pooled funds were mid/long-term investments which brought in a very good income level, and with the Council's funding levels healthy, the Investment Unit was considering a further investment in these funds in the near future.

In the context of the compliance report and indicators, it was reported that all activities had complied in full with the CIPFA code of practice and the Council's treasury management strategy - this was good news and showed that there was robust management of the funding. Reference was made to the indicators where it was highlighted that every indicator complied with the expectation except for one (Interest Rates Disclosure). It was explained that this indicator had been set during low interest conditions in March 2023 and, therefore, it was reasonable that the amounts were slightly higher than expected.

The members thanked the officer for the report.

In response to a question regarding selling or disposing of investment before the maturity date (pooled investments) and although it seemed to highlight a loss of £70K on the face of things, it still paid a good interest rate of 5.8%, the Investment Manager noted that these investments were medium term / long-term investments with significant interest income and performed very positively at the end of their term. Although no profit had been received to date, the situation was being monitored continuously and regular advice provided by Arlingclose.

DECISION:

To accept the report for information

To accept the report for information