Purpose

A consolidated summary of the Council’s
investment activity.

Decision

Cabinet approved the
following recommendations to Full Council for consideration at its
meeting on 5 March 2025:

·      
Approve and implement the Integrated Investment Framework set out
in this report.

·      
Approve that the target for the overall return on Council
investments should aspire to at least meet forecasts for inflation
over the medium term

·      
Approve that the benefits of investing in the Pension Fund should
be used as a benchmark when evaluating other investments

·      
Adopt the asset allocation percentage ranges set out in the
framework and work towards achieving these

·      
Agree that the overarching objective of this framework is to
achieve an overall return on Council investments and to reduce
costs and liabilities, while maintaining adequate cash balances for
operational purposes, and not exposing the capital value of
investments to unnecessary risk

·      
Agree that assets must only be acquired for strategic purposes.
Such prospective acquisitions must be considered individually, with
the reasons for investment limited to regeneration or development
of the location, or other strategic purposes in which the asset is
established. Out-of-borough acquisitions may also be considered by
exception.

·      
Approve The Investment Executive to implement, monitor and report
on the investment strategy
 
Reasons for Decision: The Investment
Framework sets out the Council’s strategic objectives in
respect of risk management, and its attitude towards investment
risk, as well as current levels of investment activity. Approval is
sought for the updated Integrated Investment Framework for the
Council going forward which seeks to diversify the risk and future
proof the Council against possible future economic downturns, as
well as actions that will be taken to implement the Framework.