Andrew Boutflower, Deputy Investment and Borrowing Manager (Hampshire County Council) introduced the report.
In answer to Members’ questions, it was stated that the return of 1.04% on long-term investments referred to in table 4 of the Report would be clarified. Subsequent to the meeting it was confirmed that the return of 1.04% was correct, but the two percentage figures had not been updated; instead of 0.94% and 0.86% for the rates at 30.09.2018 they should have stated 1.06% and 1.03%.
The Committee debated whether the Council was too risk averse in its investment strategy. The Strategic Director: Resources commented that the Council required cash to fund its capital programme, and the funding of the capital programme would reduce balances in the forthcoming months.
Councillor Ashton added that the Council did have investments in higher risk assets that increased investment returns. Cash was also used to reduce borrowing which had a positive effect in combating inflation.
RESOLVED:
That the Treasury Management Mid Year Monitoring Report 2018/19 be noted.