Council’s investment portfolio tops $145 million

Gosford Council has received its February investment report which states there were no credit events in the Collateralised Debt Obligations (CDO) portfolio during the month.

The report states that a $4 million floating rate note from Newcastle Permanent Building Society was added to the portfolio during the month.

“The addition of this long term security from a locally based Authorised Deposit-taking Institution (ADI) is expected to achieve above benchmark returns over the next three years,” the report says.

“Council has a well-diversified portfolio with 92 per cent of the portfolio spread among the top three credit rating categories (A long term/A2 short term and higher).

“It is expected that Council can continue to achieve above benchmark returns with prudent investment selection for its short and long term holdings.

“As at 28 February 2015, Council’s investment iortfolio had a current market valuation of $145,317,368 or the hold to maturity value (face value) of $144,575,307.

“Compared to January 2015, of the nine structured securities and Floating Rate Notes held as at 28 February 2015, 100 per cent showed an increase in market value.

“The net market value increase for the period was $57,109. “Council’s investment portfolio return outperformed the bank bill index benchmark during the month (4.28 per cent per annum versus 2.76 per cent per annum).

“Council’s portfolio will continue to outperform if no more credit events are recorded in the structured security portfolio. “Without market-tomarket infl uences, Council’s investment portfolio yielded 3.46 per cent per annum during the month,” the report states.

Gosford Council agenda
CEO.6, 24 Mar 2015

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