NAMBUCCA SHIRE COUNCIL

 

 

Ordinary Council Meeting - 17 February 2011

 

LATE AGENDA                                                                                        Page

 

8        General Manager Report

8.5     Investment Report to 31 January 2011  

 

 

          General Manager's Summary of Items to be Discussed in Closed Meeting

 .1      Proposed sale of access land to allow Nash subdivision to proceed - Kylie Street, Macksville Industrial Estate

It is recommended that the Council resolve into closed session with the press and public excluded to allow consideration of this item, as provided for under Section 10A(2) (c) of the Local Government Act, 1993, on the grounds that the report contains information that would, if disclosed, confer a commercial advantage on a person with whom the Council is conducting (or proposes to conduct) business.

 

 

  


      


Ordinary Council Meeting

17 February 2011

General Manager's Report

ITEM 8.5      SF394              170211         Investment Report to 31 January 2011

 

AUTHOR/ENQUIRIES:     Faye Hawthorne, Accountant         

 

Summary:

 

The total return on investments from 1 July to 31 January 2011 is $1,056,896.95.

 

During January, Term Deposit interest rates ranged from 5.69% for 30 days and up to 6.58% for 12 months. Council placed four Term Deposits during the month between 88 and 252 days with interest rates from 5.63% to 6.24%.

 

With the Managed Funds, Macquarie Income Plus (with a balance of $4,291,434) returned a positive return of $31,352,  Blackrock (balance $353,148) returned $2,737 & TCorp, (Long Term Growth Trust) returned  $13,780.

 

Council currently has $8.81 Million with Managed Funds and the balance of $23.58 Million on term deposits.

 

This report details all the investments placed during November and Council funds invested as at 31 January 2011.

 

The following investment report has been drawn up in accordance with the Local Government Act 1993 (as amended), the Regulations and Council Policy 1.9 – Investment of Surplus Funds

 

 

C P Doolan

Responsible Accounting Officer

 

 

Recommendation:

 

That the Accountants’ Report on Investments placed to 31 January 2011 be noted.

 

 

OPTIONS:

 

This report is for information only.

 

DISCUSSION:

 

This report details all the investments placed during January 2011 and Council funds invested as at 31 January 2011.

 


1  Investments Placed 1 to 31 January 2011

 

Date

 Amount

Period (Days)

Quotes

%

Accepted

 

13.01.11

$1,194,304.53

252

IMB

6.24%

IMB

 

ING

6.11%

6.24%

Savings & Loans

6.17%

 

Date

 Amount

Period (Days)

Quotes

%

Accepted

 

20.01.11

$866,134.39

140

Suncorp

6.25%

Suncorp

 

ING

6.10%

6.25%

AMP

6.00%

 

Date

 Amount

Period (Days)

Quotes

%

Accepted

 

22.01.11

$1,100,714.81

88

NAB

5.63%

NAB

 

Cth

5.42%

5.63%

Macquarie

5.15%

 

Date

 Amount

Period (Days)

Quotes

%

Accepted

 

28.01.11

$1,101,392.97

181

NAB

6.21%

NAB

 

ING

5.99%

6.21%

Cth

5.59%

 

 

2  Investments Matured & Interest & Returns 1 to 31 Jan 2011

Term Deposits/Bank Bills

Institution

 Amount

Period (Days)

Rate

 Interest

IMB

 $1,153,746.39

210

6.11%

 $40,558.14

Suncorp

 $837,600.00

198

6.28%

 $28,534.39

NAB

 $1,067,876.86

184

6.10%

 $32,837.95

Bankwest

 $555,404.18

194

6.30%

 $18,597.67

NAB

 $1,068,534.79

184

6.10%

 $32,858.18

LGFS

 $548,034.37

31

5.85%

 $2,701.26

 

Managed Funds

 

 

 

 

 

Institution

Amount

Period (Days)

Performance for Month

Returns This Month

Annualised Performance FYTD

Returns FYTD

UBS Wealth M'ment Aust Ltd

 $1,414,893.61

31

0.00%

-$701.16

-43.31%

 $17,315.97

Macquarie Global Income Opportunity

 $4,291,434.02

31

0.74%

 $31,351.88

83.76%

 $237,993.93

Blackrock

 $353,147.78

31

0.78%

 $2,737.57

24.64%

 $14,075.05

 

Long Term Funds

 

 

 

 

 

Institution

Amount

Period (Days)

Performance for Month

Monthly change in net asset value

Change in net asset value LTD

Coupons Paid to Date

Annualised Performance FYTD

NSW Treasury Corp

 $968,530.65

31

1.44%

 $13,779.68

-$34,435.99

N/A

137.76%

Longreach 2-2007*

 $963,580.00

31

0.68%

 $6,530.00

-$38,520.00

 $76,201.36

3.07%

Longreach Series 26*

 $418,250.00

31

1.37%

 $5,650.00

-$77,500.00

 $17,500.00

27.57%

Averon II*

 $403,150.00

31

2.05%

 $8,100.00

-$96,850.00

 $28,396.10

22.40%

 

 

3  Investments held at 31 Jan 2011

 

 

 

 

Institution

 Amount

Period (Days)

Maturity Date

 Interest Due at maturity

Interest

BCCU

$679,936.19

365

27/05/11

 $43,175.95

6.35%

BCCU

$515,706.85

182

03/03/11

 $15,814.54

6.15%

BCCU

$1,013,506.85

189

03/02/11

 $32,537.73

6.20%

IMB

$1,194,304.53

252

22/09/11

 $51,452.60

6.24%

Bankwest

$1,105,669.47

280

05/05/11

 $53,011.55

6.25%

Bankwest

$579,868.14

196

31/03/11

 $18,682.87

6.00%

Macquarie Bank**

$321,036.16

273

07/07/11

 $14,767.22

6.15%

Macquarie Bank

$897,726.13

219

14/07/11

 $33,664.73

6.25%

Bendigo & Adelaide

$1,029,095.89

189

14/04/11

 $31,439.58

5.90%

Savings & Loans

$1,075,159.46

367

14/11/11

 $68,430.51

6.33%

Savings & Loans

$1,030,065.75

364

06/10/11

 $62,970.04

6.13%

Savings & Loans

$560,818.94

154

10/02/11

 $14,126.18

5.97%

Newcastle Permanent

$1,161,668.77

364

25/08/11

 $71,826.14

6.20%

NAB

$1,101,392.97

181

28/07/11

 $33,917.17

6.21%

NAB

$1,100,714.81

88

20/04/11

 $14,940.77

5.63%

NAB

$1,101,017.99

364

09/12/11

 $72,468.10

6.60%

NAB

$1,036,635.62

197

05/07/11

 $35,807.95

6.40%

NAB

$1,012,958.91

184

05/02/11

 $30,893.86

6.05%

NAB

$1,014,013.70

210

10/03/11

 $35,296.01

6.05%

Suncorp

$866,134.39

140

09/06/11

 $20,763.50

6.25%

Westpac

$854,400.00

210

30/06/11

 $30,035.09

6.11%

Westpac(CPG)

$1,000,000.00

188

28/04/11

 $30,904.11

6.00%

Bendigo & Adelaide(CPG)

$750,000.00

181

16/06/11

 $23,244.86

6.25%

Bendigo & Adelaide(CPG)

$1,030,000.00

209

23/06/11

 $37,156.19

6.30%

Bankwest(CPG)

$1,000,000.00

258

21/07/11

 $42,764.38

6.05%

LGFS - CRI

$548,034.37

28

28/02/11

 $2,459.40

5.85%

Blackrock Diversified Credit Fund

$353,147.78

28

28/02/11

 $1,416.85

5.23%

Macquarie Global Income Opportunity

$4,291,434.02

28

28/02/11

 $19,752.35

6.00%

UBS Wealth Management Aust Ltd

$1,414,893.61

28

28/02/11

 $5,426.99

5.00%

NSW Treasury Corp Long Term Growth

$968,530.65

28

28/02/11

 $    -  

0.00%

Longreach 2-2007

$963,580.00

28

28/02/11

 $ 1,478.37

2.00%

Longreach Series 26

$418,250.00

28

28/02/11

 $   -  

0.00%

Averon II

$403,150.00

28

28/02/11

 $    -  

0.00%

TOTAL

 $32,392,851.95

 

 

 $950,625.59

 

** Deposits - Government Guarantee of 1% covered by institution

 

 


 

4  Interest Earned on Investments: January 2011

Total

Interest earned to date

 

 

 

 $1,056,896.95

 

 

 

 

 

 

Plus

Interest due to 31/01/11

 

 

 

 $377,730.41

 

 

 

 

 

 

Accrued  to 31//01/11

 

 

 

 $1,434,627.36

 

 

 

 

 

 

Plus

Year to date unrealised changes in Net Asset Value of Capital Protected Securities

 

 

 

-$20,280.00

* Investment Returns to 31/01/11

 

 

 

 $1,414,347.36

 

 

 

 

 

 

Amount of interest expected from all funds and reserves

 

 

 

 

as per Budget

 

 

 

 $1,504,500.00

 

 

 

 

 

 

* To ensure consistency, returns take into account unrealised gains in Capital Protected Investments for January of ($20,280)

  Unrealised losses were added back in previous investment reports.

 


5        Performance Report

 

TERM DEPOSITS

 

 

 

 

Institution

Invested

Days

Date of

Interest

Amount of

Total interest &

 

Amount

Invested

Maturity

Rate

interest

investment

 

 

 

 

 

due on

due on

 

 

 

 

 

maturity

Maturity

BCCU

$679,936.19

365

27/05/11

6.35%

$43,175.95

$723,112.14

BCCU

$515,706.85

182

03/03/11

6.15%

$15,814.54

$531,521.39

BCCU

$1,013,506.85

189

03/02/11

6.20%

$32,537.73

$1,046,044.58

Macquarie Bank

$897,726.13

219

14/07/11

6.25%

$33,664.73

$931,390.86

IMB

$1,194,304.53

252

22/09/11

6.24%

$51,452.60

$1,245,757.13

Bankwest

$1,105,669.47

280

05/05/11

6.25%

$53,011.55

$1,158,681.02

Bankwest

$579,868.14

196

31/03/11

6.00%

$18,682.87

$598,551.01

Westpac

$1,000,000.00

188

28/04/11

6.00%

$30,904.11

$1,030,904.11

Savings & Loans

$1,075,159.46

367

14/11/11

6.33%

$68,430.51

$1,143,589.97

Macquarie Bank

$321,036.16

273

07/07/11

6.15%

$14,767.22

$335,803.38

Bendigo & Adelaide

$1,029,095.89

189

14/04/11

5.90%

$31,439.58

$1,060,535.47

Savings & Loans

$1,030,065.75

364

06/10/11

6.13%

$62,970.04

$1,093,035.79

Savings & Loans

$560,818.94

154

10/02/11

5.97%

$14,126.18

$574,945.12

Newcastle Permanent

$1,161,668.77

364

25/08/11

6.20%

$71,826.14

$1,233,494.91

NAB

$1,101,392.97

181

28/07/11

6.21%

$33,917.17

$1,135,310.14

NAB

$1,100,714.81

88

20/04/11

5.63%

$14,940.77

$1,115,655.58

NAB

$1,101,017.99

364

09/12/11

6.60%

$72,468.10

$1,173,486.09

NAB

$1,036,635.62

197

05/07/11

6.40%

$35,807.95

$1,072,443.57

NAB

$1,012,958.91

184

05/02/11

6.05%

$30,893.86

$1,043,852.77

NAB

$1,014,013.70

210

10/03/11

6.05%

$35,296.01

$1,049,309.71

Suncorp

$866,134.39

140

09/06/11

6.25%

$20,763.50

$886,897.89

Bendigo & Adelaide

$750,000.00

181

16/06/11

6.25%

$23,244.86

$773,244.86

Bendigo & Adelaide

$1,030,000.00

209

23/06/11

6.30%

$37,156.19

$1,067,156.19

Westpac

$854,400.00

210

30/06/11

6.11%

$30,035.09

$884,435.09

Bankwest(CPG)

$1,000,000.00

258

21/07/11

6.05%

$42,764.38

$1,042,764.38

LGFS Committed Rolling Investment (Capital Protected)

$548,034.37

31

31/01/11

5.85%

$2,722.91

$550,757.28

Total Term Deposits

$23,579,865.89

 

 

 

$922,814.54

$24,502,680.43

 

 

 

 

 

 

 


 

MANAGED FUNDS- Medium term

 

 

 

 

 

 

 

 

 

 

Blackrock Diversified Credit

 

 

 

Anticipated return per month 5.23%

 

 

 

 

Institution

 

 

Additional

Performance

Redemptions/

Current Market

 

Date

Investment

Deposits

 

Pay Outs

Value

Bal Bgt Forward

30/06/2010

$441,092.53

 

 

 

$441,092.53

Returns

31/07/2010

 

 

$3,079.78

 

$444,172.31

Returns

31/08/2010

 

 

$3,764.17

 

$447,936.48

Returns

30/09/2010

 

 

$2,737.58

 

$450,674.06

Wind up

22/10/2010

 

 

 

-$108,521.54

$342,152.52

Returns

31/10/2010

 

 

$3,124.72

 

$345,277.24

Returns

30/11/2010

 

 

$1,026.60

 

$346,303.84

Returns

31/12/2010

 

 

$4,106.37

 

$350,410.21

Returns

31/01/2011

 

 

$2,737.57

 

$353,147.78

 

 

 

 

 

 

 

 

 

$441,092.53

$0.00

$20,576.79

-$108,521.54

$353,147.78

 

 

Macquarie Global Income Opportunity

 

 

 

 

 

Anticipated return per month 6.00%

 

 

 

 

 

Institution

 

 

Additional

Performance

Redemptions/

Current Market

 

 

Date

Investment

Deposits

 

Pay Outs

Value

 

Bal Bgt Forward

30/06/2010

$4,053,440.09

 

 

 

$4,053,440.09

 

Returns

31/07/2010

 

 

$25,229.72

 

$4,078,669.81

 

Returns

31/08/2010

 

 

$37,030.73

 

$4,115,700.54

 

Returns

30/09/2010

 

 

$37,243.28

 

$4,152,943.82

 

Returns

31/10/2010

 

 

$42,691.13

 

$4,195,634.95

 

Returns

30/11/2010

 

 

$33,249.82

 

$4,228,884.77

 

Returns

31/12/2010

 

 

$31,197.37

 

$4,260,082.14

 

Returns

31/01/2011

 

 

$31,351.88

 

$4,291,434.02

 

 

 

$4,053,440.09

$0.00

$237,993.93

$0.00

$4,291,434.02

 


 

UBS Wealth Management Aust Ltd

 

 

 

 

Anticipated return per month 5.00%

 

 

 

 

 

Institution

 

 

Additional

Performance

Redemptions/

Current Market

 

 

Date

Investment

Deposits

 

Pay Outs

Value

 

Bal Bgt Forward

30/06/2010

$285,813.11

 

 

 

$285,813.11

 

Additions

21/07/2010

 

$1,012,553.42

 

 

$1,298,366.53

 

Redemptions

22/07/2010

 

 

 

-$800,000.00

$498,366.53

 

Redemptions

29/07/2010

 

 

 

-$100,000.00

$398,366.53

 

Returns

31/07/2010

 

 

$2,058.38

 

$400,424.91

 

Redemptions

5/08/2010

 

 

 

-$150,000.00

$250,424.91

 

Redemptions

19/08/2010

 

 

 

-$200,000.00

$50,424.91

 

Additions

19/08/2010

 

$1,016,387.12

 

 

$1,066,812.03

 

Redemptions

20/08/2010

 

 

 

-$800,000.00

$266,812.03

 

Additions

26/08/2010

 

$1,017,459.18

 

 

$1,284,271.21

 

Returns

31/08/2010

 

 

-$433.18

 

$1,283,838.03

 

Additions

23/09/2010

 

$1,022,953.42

 

 

$2,306,791.45

 

Redemptions

23/09/2010

 

 

 

-$1,200,000.00

$1,106,791.45

 

Additions

30/09/2010

 

$1,024,084.93

 

 

$2,130,876.38

 

Redemptions

30/09/2010

 

 

 

-$500,000.00

$1,630,876.38

 

Returns

30/09/2010

 

 

$3,416.27

 

$1,634,292.65

 

Redemptions

7/10/2010

 

 

 

-$300,000.00

$1,334,292.65

 

Redemptions

21/10/2010

 

 

 

-$500,000.00

$834,292.65

 

Additions

21/10/2010

 

$1,028,109.59

 

 

$1,862,402.24

 

Redemptions

22/10/2010

 

 

 

-$1,000,000.00

$862,402.24

 

Redemptions

28/10/2010

 

 

 

$1,029,260.27

$1,891,662.51

 

Additions

28/10/2010

 

 

 

-$600,000.00

$1,291,662.51

 

Funds From Blackrock Windup

22/10/2010

 

$108,521.54

 

 

$1,400,184.05

 

Returns

31/10/2010

 

 

-$87.64

 

$1,400,096.41

 

Additions

4/11/2010

 

$1,029,652.18

 

 

$2,429,748.59

 

Redemptions

5/11/2010

 

 

 

-$1,000,000.00

$1,429,748.59

 

 Interest from Suncrop T/D

23/11/2010

 

 

 

$34,012.60

$1,463,761.19

 

 Interest from Bendigo T/D

26/11/2010

 

 

 

$5,215.07

$1,468,976.26

 

Returns

30/11/2010

 

 

-$418.77

 

$1,468,557.49

 

 Interest from Bendigo T/D

16/12/2010

 

 

 

$29,116.85

$1,497,674.34

 

Redemptions

22/12/2010

 

 

 

-$800,000.00

$697,674.34

 

Additions

22/12/2010

 

$1,004,438.36

 

 

$1,702,112.70

 

Returns

31/12/2010

 

 

$13,482.07

 

$1,715,594.77

 

Redemptions

20/01/2011

 

 

 

-$300,000.00

$1,415,594.77

 

Returns

31/01/2011

 

 

-$701.16

 

$1,714,893.61

 

 

 

 

 

 

 

 

 

 

 

$285,813.11

$8,264,159.74

$17,315.97

-$7,152,395.21

$1,414,893.61

 


 

MANAGED FUNDS- Long Term Funds

 

 

 

 

 

 

 

 

 

 

NSW Treasury Corp

 

 

 

Anticipated return per month  0.00%

 

 

 

Institution

 

 

Additional

Performance

Redemptions/

Current Market

 

Date

Investment

Deposits

 

Pay Outs

Value

 

 

 

 

 

 

 

Bal Bgt Forward

30/06/2010

$890,567.41

 

 

 

$890,567.41

Returns

31/07/2010

 

 

$24,651.70

 

$915,219.11

Returns

31/08/2010

 

 

-$9,837.79

 

$905,381.32

Returns

30/09/2010

 

 

$23,956.31

 

$929,337.63

Returns

31/10/2010

 

 

$11,633.66

 

$940,971.29

Returns

30/11/2010

 

 

-$2,597.81

 

$938,373.48

Returns

31/12/2010

 

 

$16,377.49

 

$954,750.97

Returns

31/01/2011

 

 

$13,779.68

 

$968,530.65

 

 

 

 

 

 

 

 

 

$890,567.41

$0.00

$77,963.24

$0.00

$968,530.65

 

Longreach 2-2007 - (Capital Protected)

 

 

 

Anticipated return per month 2.00%

 

 

 

 

Institution

 

 

Additional

Performance

Redemptions/

Current Market

 

Date

Investment

Deposits

 

Pay Outs

Value

 

 

 

 

 

 

 

Bal Bgt Forward

30/06/2010

$961,140.00

 

 

 

$961,140.00

Returns

31/07/2010

 

 

-$6,400.00

 

$954,740.00

Returns

31/08/2010

 

 

$7,070.00

 

$961,810.00

Returns

30/09/2010

 

 

-$5,430.00

 

$956,380.00

Returns

31/10/2010

 

 

$4,680.00

 

$961,060.00

Returns

30/11/2010

 

 

$3,190.00

 

$964,250.00

Returns

31/12/2010

 

 

-$7,200.00

 

$957,050.00

Returns

31/01/2011

 

 

$6,530.00

 

$963,580.00

 

 

 

 

 

 

 

 

 

$961,140.00

$0.00

$2,440.00

$0.00

$963,580.00

 

Longreach Series 26 (Capital Protected)

 

 

 

Anticipated return per month 0.00%

 

 

 

 

Institution

 

 

Additional

Performance

Redemptions/

Current Market

 

Date

Investment

Deposits

 

Pay Outs

Value

 

 

 

 

 

 

 

Bal Bgt Forward

30/06/2010

$409,450.00

 

 

 

$409,450.00

Returns

31/07/2010

 

 

$2,050.00

 

$411,500.00

Returns

31/08/2010

 

 

$4,400.00

 

$415,900.00

Returns

30/09/2010

 

 

-$5,250.00

 

$410,650.00

Returns

31/10/2010

 

 

$2,200.00

 

$412,850.00

Returns

30/11/2010

 

 

-$750.00

 

$412,100.00

Returns

31/12/2010

 

 

$500.00

 

$412,600.00

Returns

31/01/2011

 

 

$5,650.00

 

$418,250.00

 

 

 

 

 

 

 

 

 

$409,450.00

$0.00

$8,800.00

$0.00

$418,250.00


 

Averon II (Capital Protected)

 

 

 

 

 

 

 

 

 

 

 

Anticipated return per month 0.00%

 

 

 

 

Institution

 

 

Additional

Performance

Redemptions/

Current Market

 

Date

Investment

Deposits

 

Pay Outs

Value

 

 

 

 

 

 

 

Bal Bgt Forward

30/06/2010

$396,450.00

 

 

 

$396,450.00

Returns

31/07/2010

 

 

-$3,700.00

 

$392,750.00

Returns

31/08/2010

 

 

$3,200.00

 

$395,950.00

Returns

30/09/2010

 

 

$200.00

 

$396,150.00

Returns

31/10/2010

 

 

$2,050.00

 

$398,200.00

Returns

30/11/2010

 

 

-$2,000.00

 

$396,200.00

Returns

31/12/2010

 

 

-$1,150.00

 

$395,050.00

Returns

31/01/2011

 

 

$8,100.00

 

$403,150.00

 

 

 

 

 

 

 

 

 

$396,450.00

$0.00

$6,700.00

$0.00

$403,150.00

Total Managed Funds-Performance since July, 2010

$8,264,159.74

$371,789.93

-$7,260,916.75

$8,812,986.06

Total investments for the month

$32,392,851.95

Total investments on maturity

$33,315,666.49



CONSULTATION:

 

Grove Research and Advisory.

 

 

SUSTAINABILITY ASSESSMENT:

 

Environment

 

There are no environmental implications.

 

Social

 

There are no social implications.

 

Economic

 

There are no economic implications.

 

Risk

 

That Council may not meet its budget returns for 2010/2011 based on current performance.

 

 

FINANCIAL IMPLICATIONS:

 

Direct and indirect impact on current and future budgets

 

A review of budgeted interest returns for 2010/2011 will be completed with the December Budget Review and GPG Research & Advisory will provide Council with the updated interest rates.

 

Source of fund and any variance to working funds

 

Interest on investments was assessed with the December 2010 Budget Review.  Variances have not been distributed between the Water, Sewerage and General Funds for the first and second quarter of the financial year.

 

 

Attachments:

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