To provide a framework for Council to invest all of its surplus funds ‘the portfolio’ within approved risk guidelines.
The policy aims to guide Council’s officers charged with managing the investment portfolio to achieve Council’s investment objectives and expectations and to protect the portfolio from loss. Funds are to be invested in a manner which maximizes safety of the portfolio.
A further objective of the policy is to ensure there is sufficient liquidity available to Council to meet all anticipated cash flow requirements. Significant costs can be incurred by Council as a result of unanticipated sale of investments to meet cash flow demands.
The policy will identify appropriate benchmarks for returns which meet Council’s investment expectations.