Investment Strategy

Introduction

1. The investment of surplus funds by local authorities is governed by the Local Government Act 2003 Section 15 (1)(a).
2. In accordance with such advice council investments should be based on:
   • Security – protecting the capital sum invested from loss.
   • Liquidity – ensuring the funds are available for expenditure when needed.
   • Yield – income return on investment.
3. A ‘Specified Investment’ is one which is made in sterling and for not longerthan a year. Such short-term investments made with the UK Government or a Local Authority (as defined) or a Town/Parish Council will automatically be Specified Investments.
4. The Council for prudent management may use deposits with banks, building societies, local authorities, other public authorities approved public sector investment funds.
5. The choice of institution and length of deposit will be at the approval of the Council.
6. Any other type of investment is considered ‘Non-Specified Investment’ to which there can be greater risk.