Report of the Chamberlain
The Board received a report of the Chamberlain concerning the monthly investment analysis review for December 2020. The Chamberlain advised of an error within the report and the Board noted that the average rate of return on the fixed-term deposit with Goldman Sachs was 0.13% and not 0.00%. The Chamberlain advised that this did not affect other calculations in the report, which were correct. The Board noted the current investment list, total investment values and average rate of return set out in the report.
The Chamberlain advised that typically calls on cash increased at this time of year and liquidity funds were useful for this purpose, but once this had been serviced, reallocations to achieve better value would be considered. The Chamberlain added that some reallocation to Ultra Short Dated Bond Funds had taken place in December and January, and this would be reflected in the next set of reports. In response to questions from Members, the Chamberlain clarified all values were net of fees.
Whilst noting the role of liquidity funds, Members were supportive of reallocation, particularly towards the Short and Ultra Short Dated Bond Funds if possible. Members also felt the Board would benefit from considering cashflow and balance sheet forecasts in order to identify what was required in implementing investment strategy.
The Chamberlain advised that the Treasury Management Strategy included a recommendation to consider additional investments, and that cashflow forecasts were monitored internally, with the Medium-Term Financial Plan reported to the Finance Committee. The Chamberlain added that a balance sheet review was under consideration and that officers would consider a format for reporting this information to the Board.
The Chairman proposed that the Board consider these matters further after agreeing the Treasury Management Strategy.
RESOLVED – That the report be noted.