Draft Cash Investment Policy

On 15 June 2022, Council resolved to exhibit a draft Cash Investment Policy.

In accordance with the Ministerial Investment Order dated 12 January 2011, all councils are required to adopt an Investment Policy which is consistent with the Order and Investment Policy Guidelines issued by the Office of Local Government. Council’s current Investment Policy was adopted in July 2017. The updated Cash Investment Policy continues to provide the governance framework which safeguards Council’s investment portfolio. The primary objectives of the policy are as follows:

• Capital Preservation – Preservation of capital is the principal objective of Council’s Investment Policy. Investments will be placed in a manner which ensures security and safeguarding of the investment portfolio.
• Liquidity Requirements – Investments will be placed giving due consideration to liquidity and ensuring Council has enough cash flow to meet its operational and capital requirements.
• Performance – Investments are expected to achieve a market average rate of return which is in line with Council’s risk tolerance.

Council appointed Laminar Capital as its investment advisor from 1 November 2021 and they have provided input into Council’s updated Cash Investment Policy. In summary, the recommendations include:

• Taking advantage of longer-term investments with a view of investing up to 3 years.
• Exposure to a broader list of issuers to allow the ability to take advantage of any special rates offered in the market (within institutional limits).
• Identify opportunities for investing in Floating Rate Notes (FRNs) from domestic banks.
• Expand the policy statement on environmentally and socially responsible investments to reflect a wider Environmental, Social and Governance (ESG) focus which looks at initiatives such as business ethics and climate initiatives, not just fossil fuels.

On 15 June 2022 Council resolved

THAT

1. The information on Council’s Investments as at 31 May 2022 be received and noted.
2. Council endorse the updated Cash Investment Policy to be placed on public exhibition for 28 days.
3. After the public exhibition period, a further Council report tabling any submissions received prior to adoption of the Cash Investment Policy.

Learn more and have your say:

• The draft Cash Investment Policy can be viewed online in the Document Library or in printed format at the Civic Centre and Council libraries.
• To make a submission, complete an online form, email mail@wsc.nsw.gov.au or write to Wingecarribee Shire Council, PO Box 141, Moss Vale 2577
• All submissions must be received by Tuesday 19 July 2022.
• Ask a question or contact the Finance Team by email mail@wsc.nsw.gov.au or on 02 4868 0888.