Cabinet received a report of the Director of Corporate Resources setting out the mid year treasury management position.
The report was introduced and it was confirmed that an annual mid-year update was required by CIPFA guidance. Key points relating to the borrowing position and investments were highlighted and it was confirmed that in all cases the levels of security, liquidity and return were considered in that order of priority. A shift in investments away from the banking sector, which was no longer Government protected and therefore entailed higher risk, was reported.
Cabinet noted the fast paced level of variation in the stock markets and felt that risks across different sectors should be balanced. It was confirmed that this was continuously being done and agreed that future reports also include reference to the stress testing of banks with regard to their investment potential.
The high levels of return demonstrated in table 4 of the report were welcomed and it was noted that this was at lower levels of risk than those associated with property investment.
The recommendations in the report were considered and agreed. The decision record is attached.