To consider a joint report of the Executive Members for Investment and for Corporate Resources, and of the Chief Finance Officer.

NOTE: A related report is to be considered in Part II of this agenda.

[NOTE: A related report was considered in Part II of this agenda. Minute 125 below refers.]

The Executive Member for Investment, Executive Member for Corporate Resources and Chief Finance Officer submitted a report seeking the Executive’s approval to recommend to Council an increase in the fund established to support the acquisition of investment assets, in line with a proposed Investment Strategy, of which details were given elsewhere on the agenda.

An opportunity was provided for Members to ask questions in relation to the report. These centred on risk management issues, the credentials and track record of the Council’s proposed investment advisors, the rationale for the level at which the fund was set, the identity and location of potential investments, and the need for accountability and oversight in relation to the fund’s deployment. It was emphasised that the current recommendations related to the establishment of a funding facility, and not to any specific investment decisions, which would be subject to due diligence and made under the authority of the proposed Investment Management Board. The Executive Member for Investment advised that he was happy to discuss further details outside of the meeting; and confirmed that full details of the Investment Strategy would be brought to a subsequent meeting of the Executive.

            RESOLVED -That it be recommended that Council:-

(1) approve and adopt the Summary Investment Strategy as detailed in Appendix 1 to the report considered in Part II of the agenda.

(2) approve the increase to the Capital Investment Programme in 2017/18 as detailed in Appendix 2 to the report considered in Part II of the agenda.

(3)   approve the governance structure and reporting and monitoring arrangements proposed for an Investment Management Board (IMB) as detailed in Paragraphs 15 of the report.

(4) approve the setting up of an Investment Management Company to manage investments where appropriate and delegate authority to the Director of Legal and Democratic Services in consultation with the Chief Executive and the Executive Member for Investment to take all necessary steps to establish a company with the powers to invest and manage investments in line with the Summary Investment Strategy.

(5) delegate decision making in accordance with the provisions of the Summary  Investment Strategy to the IMB.

(6) approve the amendment to the MRP policy as outlined in Paragraph 19 of the report.

(7) approve the changes to the Prudential Borrowing indicators as set out in Appendix 2  to the report considered in Part II of the agenda.

(8) approve the changes to the Treasury Management investment counterparty limits as detailed in Appendix 3 to the report considered in Part II of the agenda.