Complete agenda for October 2009 Council Meeting (pdf, 1610KB)

Northland Regional Council - 21 October 2009 Page 112 Item 15CREDIT RATING OF INVESTMENT COUNTERPARTIESUnder Council’s Treasury Management Policy (TMP) section 5.3 allows investments tobe made in accordance with the following counterparty/issuer:Counterparty/Issuer Minimum long term /short term creditrating – stated andpossibleInvestmentsmaximum percounterparty($m)Interest rateriskmanagementinstrumentmaximum percounterparty($m)Total maximum percounterpartyNZ Government N/A unlimited none UnlimitedNZD RegisteredSupranationalsState Owned Enterprises[name]NZ Registered Bank[name]Corporate Bonds/ CP[names]*Local Government Stock/Bonds/ FRN/ CP [name]**A-/ A2 (if rated)Unrated($m)AAA 20.0 none 20.0A-/ A2 5.0 none 5.0A-/ A2 20.0 10.0 30.0A-/ A2 2.0 none 2.020.05.0nonenone20.05.0• *Subject to a maximum exposure no greater than 20% of the NFIP being invested in corporate debtsecurities at any one point in time.• ** Subject to a maximum exposure no greater than 60% of the NFIP being invested in LocalGovernment debt at any one point in timeThis summary list will be expanded on a counterparty named basis which will be authorised by the CEOCouncil currently holds three investments with the same counterparty which are notprovided with a credit rating. Council is maintaining a watching brief over theseinvestments and intends to hold these investments to maturity.FINANCIAL YEAR TO DATE PERFORMANCEYear to date, the investment portfolio has made a return of $1,890,484 against abudgeted return of $2,133,341. On call funds are currently earning a return of 3.15%and short term deposits between 4.25 and 5.00%.The breakdown of the year to date return by investment revenue stream is as follows: