We are pleased to let you know that the revised Investment Policy was adopted by Council at the meeting on 26 July 2022 and replaces the previously standing policy.
The Investment Policy provides a framework to ensure Council maintains a policy that complies with the Local Government Act, 1993, the Local Government (General) Regulation 2021 and the Ministerial Investment Order and that Council or its representatives exercise care, diligence and skill that a prudent person would exercise in investing council funds.
Thank you for providing feedback. You can view the Council minutes, Item 9.6, page 9 here.
In November 2021 our existing Investment Policy was reviewed by Council's investment advisors. The review noted there had been no changes to the Ministerial Investment Orders over the last 12 months and that the policy and its frameworks continue to be appropriate for Council.
However four amendments were proposed following consultation with Council's Investment advisors, these were presented to the Audit, Risk and Improvement Committee at its meeting in December 2021.
The amendments proposed to the existing Investment Policy include:
- reducing the maximum investment percentage of the portfolio than can be exposed to the Unrated category from 20% to 5%
- allowing unrated investments covered by the Australian Government Guarantee Scheme and limit the exposure to a maximum of $250,000 per Institution
- reducing the maximum investment percentage for the Unrated TCorp Funds Category from 10% to 5%
- providing clarity on grandfathered investments by including a statement that: "investments made before the date of 12 January 2011 and held under the Ministerial Investment Orders are deemed to have been made in compliance with this policy, so long as the investments have not been subject to any restructuring or switching as stated in those Orders".
At the meeting held on Tuesday 24 May, 2022 Council considered the proposed amendments in the draft revised Investment Policy. Council resolved to place the draft policy on exhibition and include an additional bullet point in the Policy Statement that when exercising the power of investment, Council should consider, but not be limited by:
- The exposure of that investment to financial risks associated with climate change.
Council also resolved to seek feedback concerning any types of investments not in line with community values. For example due to their impact on the environment or community, and that Council should avoid investment in.
View the Council Report, Item 9.3, pg. 35
The draft revised Investment Policy was exhibited between 27 May and 26 June 2022. Feedback was considered and resulted in amendments to the policy. Read the Community Engagement Report for details.
Timeline item 1 - complete
May - Jun 2022: Public exhibition of draft revised Investment Policy
Timeline item 2 - complete
Jun - Jul 2022: Review feedback, finalise revised Investment Policy
Timeline item 3 - complete
Jul 2022: Council Report to consider engagement outcomes and adoption of revised Investment Policy
Timeline item 4 - complete
Jul 2022: Replace existing Investment Policy
Have a question?
To learn more about this policy, please contact:
|Name||Terry Burrell - Deputy Chief Financial Officer, Transactional Accounting|
|Phone||1300 434 434 (during business hours)|
Marked Draft Revised Investment Policy, Northern Beaches Council, PO Box 82 Manly NSW 1655.