* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download Investment returns - Rother District Council
Private equity in the 1980s wikipedia , lookup
Investor-state dispute settlement wikipedia , lookup
Private equity secondary market wikipedia , lookup
Fund governance wikipedia , lookup
Internal rate of return wikipedia , lookup
Private money investing wikipedia , lookup
Rate of return wikipedia , lookup
Interbank lending market wikipedia , lookup
Leveraged buyout wikipedia , lookup
Corporate venture capital wikipedia , lookup
International investment agreement wikipedia , lookup
Deposit insurance wikipedia , lookup
Socially responsible investing wikipedia , lookup
Environmental, social and corporate governance wikipedia , lookup
Early history of private equity wikipedia , lookup
United States Treasury security wikipedia , lookup
Investment banking wikipedia , lookup
History of investment banking in the United States wikipedia , lookup
Agenda Item: 7.7 Rother District Council Report to - Audit Committee Date - 30 March 2011 Report of the - Director of Resources Subject - Treasury Management Report Recommendation: It be RESOLVED: That the report be noted Head of Service: Robin Vennard Introduction 1. Cabinet approved the Council’s 2010/11 Investment Strategy in February this year. As part of the review for the new strategy, it was agreed that regular reports would be presented to this Committee on the Council’s treasury management activities. Members are also reminded that investment activity is also reported through the Members’ Bulletin. Review of Investment Performance Investment returns – in-house managed funds 2. Appendix 1 details the Sector report which explains the current economic environment. The in-house managed funds total £11.9m and the return for the year to the end of February 2011 is 1.04%. The current deposits are analysed below: Rother's Limits Still able to Invest Currently Invested £ £ £ Unlimited Unlimited Banks Nat West - TRO (Treasury Reserve Office) Santander - CALL ACCOUNT Santander - Deposit 650,189.23 12,000,000 10,349,811 Santander - Deposit 2 Nat West SIBA (Special Interest-Bearing A/c) 0.00 Unlimited Unlimited Bank of Scotland (HBOS) - CALL ACCOUNT Bank of Scotland (HBOS) - DEPOSIT 1 1,000,000.00 8,795,096.00 10,554.40 12,000,000 10,489,446 1,500,000.00 Bank of Scotland (HBOS) - DEPOSIT 2 0.00 Bank of Scotland (HBOS) - DEPOSIT 3 0.00 TOTALS 24,000,000 ac110330 – Treasury Management 1 20,839,257 11,955,839.63 Investment Returns - Investec 3. The performance for Investec for the year to February 2011 is a return of around 0.84% based on a fund of around £12.3m. A full breakdown of the current investments is shown at Appendix 2. The following table analyses the fund over the various types of investment and shows the capital returns and losses as well as the interest earned: £ Opening Capital Balance 01/04/10 £ 12,198,291.97 Fixed Interest Securities & Floating Rate Notes Realised Capital Gain Interest Received Purchased Interest Change in Accrued Interest Capital Appreciation / Depreciation 10,406.73 44,745.94 -28,300.10 2,956.84 -6,002.50 23,806.91 Certificates of Deposit & Commercial Paper Realised Capital Gain/Loss Interest Received Change in Accrued Interest Capital Appreciation/Depreciation -10,256.07 90,622.60 13,403.00 5,247.59 99,017.12 2,169.57 -52.64 2,116.93 -18,741.03 -3,279.68 -22,020.71 Deposit Account Interest Received Interest Accrued Expenses Management Fee VAT on Management Fee Total Fund at 28 February 2011 12,301,212.22 Borrowing 4. The Council has not entered into any new borrowing activity since becoming debt free in April 2002. Forecast 5. Sectors forecast for base rate is shown below and shows that interest rates are not expected to rise until quarter 3 of 2011. 6. This means for the current financial year it is likely that the Council will underachieve its investment budget by £200,000 and this has already been ac110330 – Treasury Management 2 reported to Cabinet. The Interest Equalisation reserve will be depleted during 2011/12 and the impact of this has been considered in setting next years budget. 7. The use of capital resources over the next 5 years will also reduce the amount the Council achieves in investment returns. As part of the resetting work currently underway this to will need to be addressed to reduce reliance in the revenue budget on investment returns. Members are asked to refer to the Revenue and Capital Monitoring report (Agenda item 7.5) presented to Cabinet earlier this month for further details. Malcolm Johnston Director of Resources Risk Assessment Statement There are no direct risks arising from this report. Failure to follow the Council’s investment strategy could increase the risk of financial loss. ac110330 – Treasury Management 3