SPECIFIED INVESTMENTS: (All such investments will be sterling denominated, with maturities up to maximum of 1 year, meeting the minimum ‘high’ rating criteria where applicable) Minimum ‘High’ Credit Criteria Use Debt Management Agency Deposit Facility 100% In-house Term deposits – local authorities 100% In-house Term deposits – banks and building societies ** Green In-house Term deposits – banks and building societies ** Green Fund Managers ** The Council has determined that it will only use approved counterparties from countries with a minimum sovereign credit rating of AA-from Fitch or equivalent. Term deposits with nationalised banks and banks and building societies Minimum Credit Criteria Use Max % of total investments Max. maturity period part nationalised banks blue In-house 100% 364 days part nationalised banks sovereign Fund Managers 100% 364 days Banks part nationalised by high credit rated (sovereign rating) countries – non Sovereign rating In-house and Fund Managers 100% 364 days
Collateralised deposit (see note below) UK sovereign rating In-house and Fund Managers Certificates of deposit issued by banks and building societies covered by UK Government (explicit) guarantee UK sovereign rating In-house Certificates of deposit issued by banks and building societies covered by UK Government (explicit) guarantee sovereign rating Fund Managers Government Gilts sovereign rating In-house buy and hold and Fund Managers Bonds issued by multilateral development banks AAA In-house buy and hold and Fund Managers Bond issuance issued by a financial institution which is explicitly guaranteed by the UK Government (refers solely to GEFCO - Guaranteed Export Finance Corporation) sovereign rating In-house buy and hold and Fund Managers Sovereign bond issues (other than the govt) AAA In-house buy and hold and Fund Managers Treasury Bills sovereign rating In house and Fund Managers Note: as collateralised deposits are backed by collateral of AAA rated local authority LOBOs, this investment instrument is regarded as being a AAA rated investment as it is equivalent to lending to a local authority. Collective Investment Schemes structured as Open Ended Investment Companies (OEICs): - 1. Government Liquidity Funds AAA In-house and Fund Managers 2. Money Market Funds AAA In-house and Fund Managers 3. Enhanced cash funds AAA Fund Managers 4. Bond Funds (see note 3) typically not rated Fund Managers
5.4 Accounting treatment of investments The accounting treatment may differ from the underlying cash transactions arising from investment decisions made by this Council. To ensure that the Council is protected from any adverse revenue impact which may arise from these differences, we will review the accounting implications of new transactions before they are undertaken. NON-SPECIFIED INVESTMENTS: 1. Maturities of ANY period Minimum Credit Criteria Use Max % of total investments Max. maturity period Fixed term deposits with variable rate and variable maturities: deposits Green In-house 20 3 years Commercial paper issuance covered by a specific UK Government (explicit) guarantee UK sovereign rating or green Fund Managers 20 3 years Commercial paper issuance covered by a specific UK Government (explicit) guarantee sovereign Fund Managers 20 3 years Commercial paper other F1+, AA- This is a strong rating - You are required to put the minimum rating here Fund Managers 20 3 years Corporate bonds F1+, AA- This is a strong rating - You are required to put the minimum rating here Fund Managers 20 3 years Other debt issuance by banks covered by UK Government (explicit) guarantee sovereign Fund Managers 20 3 years Floating rate notes AA- This is a strong rating - You are required to put the minimum rating here Fund Managers 20 3 years Property fund (Property Funds do not have credit ratings) In house and Fund Managers 20 10 years