Decision

The minutes of this meeting, attached at
Appendix A, were considered.
 
In response to Member questions, the Director
of Resources explained the rationale for creating the Investment
Performance Equalisation Reserve. Its purpose was to protect the
General Fund from any (otherwise unbudgeted) liability arising from
the possible removal of the ‘IFRS 9 statutory override’
which would then require the Council to make provision for the loss
in market values of its four active treasury investment funds:
 
·          
CCLA Property Fund
·          
Schroders Credit/Bond Fund
·          
UBS Multi Asset Fund
·          
CCLA Diversification Fund 
 
He also:
 
·     
confirmed that the General Fund benefited from the income generated
by the funds (£2,198,765 in 2023/24, which had exceeded the
budgeted amount by £703,065); and
 
·     
agreed to include further information about the returns from
Funding Circle in the next monitoring report to the
Sub-Committee.       
 

Action

Responsible Person

Deadline
 

To provide further information about the
continued returns from Funding Circle in the next monitoring report
to the Investment Sub-Committee, including the reason why an income
is still being generated (£1,271 in 23/24)  despite the Council ceasing to invest in 2020,
after which the redemption proceeds from Funding Circle loans were reallocated to the
CCLA, Schroders and UBS funds instead.

Mark Hak-Sanders

31.10.24 –
publication of the agenda pack for the Investment Sub-Committee
meeting on 7th November 2024

           
R E S O L V E D – that the minutes of this
meeting, attached at Appendix A, be received and the recommendation
in Item 3 be adopted (i.e. that the surplus investment income of
£703k be added to an Investment Performance Equalisation
Reserve to offset risks to the market value of assets, and
therefore not be reflected in the Council’s overall General
Fund outturn position).