NAMBUCCA SHIRE COUNCIL

 

 

Ordinary Council Meeting - 15 September 2011

 

LATE AGENDA                                                                                        Page

 

 

  

L        General Manager Report

L.1     Investment Report to 31 August 2011   


      


Ordinary Council Meeting                                                                                            15 September 2011

General Manager's Report

ITEM L.1      SF394              150911         Investment Report to 31 August 2011

 

AUTHOR/ENQUIRIES:     Faye Hawthorne, Accountant         

 

Summary:

 

The total return on investments from 1 July to 31 August 2011 is $223,701.

 

During August Term Deposit interest rates ranged from 5.36% for 30 days and up to 5.90% for 1 year. Council placed two Term Deposits during the month – one for 9 months @ 5.98% and one for 7 months @ 5.55%.

 

The Managed Funds balances and returns for the month are:

 

·                  Macquarie Income Plus - balance $3,377,120 negative return $44,203

·                  Blackrock - balance $213,531 nil return

·                  TCorp - balance $910,250 negative return $30,118

·                  UBS – balance $6,701 negative return $363

 

Council currently has $6.35 Million with Managed Funds and the balance of $25.184 Million on term deposits.

 

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

 

OPTIONS:

 

This report is for information only.

 

 

DISCUSSION:

 

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

 

1 Investments Placed 1 to 31 August 2011

 

 

Date

 Amount

Period (Days)

Institution Accepted With

Rate

5.8.2011

$800,000.00

286

NAB

5.98%

25.8.2011

$1,233,494.91

238

Newcastle Permanent

5.55%


 

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

 

Term Deposits/Bank Bills

 

 

 

Institution

 Amount

Period (Days)

Rate

 Interest

NAB

 $  1,043,852.77

180

6.24%

 $32,300.53

Newcastle Permanent

 $  1,161,668.77

364

6.20%

 $71,826.14

 

 

Managed Funds

 

 

 

 

Institution

Amount

Period (Days)

Performance for Month

Returns This Month

Annualised Performance FYTD

Returns FYTD

UBS Wealth M'ment Aust Ltd

 $6,701.20

31

-5.14%

-$363.23

0.00%

 $  -  

Macquarie Global Income Opportunity

 $3,377,119.69

31

-1.29%

-$44,203.14

-0.61%

-$20,652.35

Blackrock

 $213,531.22

31

1.46%

 $3,079.78

1.44%

 $3,079.78

 

 

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

 $910,250.05

31

-3.20%

-$30,117.69

-$101,074.75

N/A

-4.96%

Longreach 2-2007*

 $986,000.00

31

0.48%

 $4,700.00

-$16,100.00

 $86,615.06

0.03%

Longreach Series 26*

 $444,050.00

31

2.02%

 $8,800.00

-$51,700.00

 $17,500.00

2.91%

Averon II*

 $414,900.00

31

0.17%

 $700.00

-$85,100.00

 $28,396.10

-0.24%

 

 


 

3 Investments held at 31 August 2011

 

 

 

 

 

Institution

 Amount

 Date Invested

Period (Days)

Maturity Date

 Interest Due at maturity

Interest

Days to 30.06.12

Interest to 30.06.12

BCCU - No 1

$531,434.50

04/03/11

365

03/03/12

 $34,543.24

6.50%

484

 $45,805.29

BCCU - No 2

$723,112.14

27/05/11

1096

27/05/14

 $143,306.96

6.60%

400

 $52,301.81

BCCU - No 3

$1,066,847.97

02/06/11

366

02/06/12

 $69,000.22

6.45%

394

 $74,278.92

IMB - No 1

$1,194,304.53

13/01/11

252

22/09/11

 $51,452.60

6.24%

534

 $109,030.51

IMB - No 2

$1,000,000.00

11/03/11

283

19/12/11

 $48,691.51

6.28%

477

 $82,070.14

Bankwest - No 1

$598,551.01

31/03/11

210

27/10/11

 $20,593.43

5.98%

457

 $44,815.24

Bendigo & Adel. - No 1

$1,060,535.47

14/04/11

469

26/07/12

 $84,488.36

6.20%

443

 $79,804.57

Savings & Loans - No 1

$574,853.40

10/02/11

210

08/09/11

 $20,505.73

6.20%

506

 $49,409.04

Savings & Loans - No 2

$1,030,065.75

07/10/10

364

06/10/11

 $62,970.04

6.13%

632

 $109,332.59

Savings & Loans - No 3

$1,075,159.46

12/11/10

367

14/11/11

 $68,430.51

6.33%

596

 $111,129.66

Bank of Qld - No. 1

$1,000,109.59

11/03/11

270

06/12/11

 $46,237.94

6.25%

477

 $81,687.03

Newcastle Perm.-No 1

$1,233,494.91

25/08/11

238

19/04/12

 $44,639.00

5.55%

310

 $58,143.23

NAB - No 1

$1,049,309.72

10/03/11

224

20/10/11

 $40,247.50

6.25%

478

 $85,885.28

NAB - No 2

$1,115,655.59

20/04/11

239

15/12/11

 $45,292.56

6.20%

437

 $82,815.27

NAB - No 3

$1,072,443.58

05/07/11

731

05/07/13

 $138,749.52

6.46%

361

 $68,520.62

NAB - No 4

$1,135,310.15

28/07/11

196

09/02/12

 $38,224.80

6.27%

338

 $65,918.28

NAB - No 5

$800,000.00

05/08/11

286

17/05/12

 $37,485.59

5.98%

330

 $43,252.60

NAB - No 6

$1,101,017.99

10/12/10

364

09/12/11

 $72,468.10

6.60%

568

 $113,082.09

NAB - No 7

$1,000,000.00

30/06/11

203

19/01/12

 $34,982.74

6.29%

366

 $63,072.33

NAB - No 8

$800,000.00

30/06/11

539

20/12/12

 $75,489.53

6.39%

366

 $51,260.05

Suncorp - No 1

$886,897.88

09/06/11

187

13/12/11

 $28,489.83

6.27%

387

 $58,960.24

Westpac - No 1

$884,435.09

30/06/11

196

12/01/12

 $28,590.76

6.02%

366

 $53,388.86

Bend & Adel(CPG)-No 2

$750,000.00

17/06/11

367

18/06/12

 $47,131.85

6.25%

379

 $48,672.95

AMP(CPG) - No 1

$1,000,000.00

30/06/11

366

30/06/12

 $62,671.23

6.25%

366

 $62,671.23

AMP(CPG) - No2

$1,000,000.00

22/07/11

272

19/04/12

 $44,712.33

6.00%

344

 $56,547.95

Rabobank(Aust)-No.1

$500,000.00

25/03/11

367

26/03/12

 $33,180.82

6.60%

463

 $41,860.27

Rabobank(Aust)-No.2

$1,000,000.00

25/03/11

1832

30/03/16

 $358,871.23

7.15%

463

 $90,697.26

Blackrock  Fund

$213,531.22

31/08/11

30

30/09/11

 $879.28

5.01%

304

 $8,910.04

Macquarie Income

$3,377,119.69

31/08/11

30

30/09/11

 $16,654.29

6.00%

304

 $168,763.46

UBS Wealth  Aust Ltd

$6,701.20

31/08/11

30

30/09/11

 $27.54

5.00%

304

 $279.06

NSW Treasury Corp

$910,250.05

31/08/11

30

30/09/11

 $  -  

0.00%

304

 $ -  

Longreach 2-2007

$986,000.00

31/08/11

30

30/09/11

 $1,620.82

2.00%

304

 $16,424.33

Longreach Series 26

$444,050.00

31/08/11

30

30/09/11

 $ -  

0.00%

304

 $  -  

Averon II

$414,900.00

31/08/11

30

30/09/11

 $  -  

0.00%

304

 $  -  

TOTAL

 $31,536,090.89

 

 

 

 $1,800,629.86

 

 

 $2,078,790.20

 

 

4 Interest Earned on Investments: August 2011

 

 

 

 

 

 

 

 

 

 

Total

Interest earned to date

 

 

 

 $223,701.10

Plus

Accrued Interest due to 31/08/11

 

 

 

 $585,785.74

Accrued  to 31/08/11

 

 

 

 $809,486.84

Plus

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

 

 

 

-$14,200.00

* Investment Returns to 31/08/11

 

 

 

 $795,286.84

Amount of interest expected from all funds and reserves as per Budget

$1,491,607.00

* To ensure consistency, returns take into account unrealised gains in Capital Protected Investments for August of ($14,200)

  Unrealised losses were added back in previous investment reports.

 

 

 

 

 

5  Performance Report - 31 August 2011

 

 

TERM DEPOSITS

 

 

Institution

Invested Amount

Days  Invested

Date of  Maturity

Interest Rate

Amount of interest due on maturity

Total interest & investment due on maturity

BCCU - No 1

$531,434.50

365

03/03/12

6.50%

$34,543.24

$565,977.74

BCCU - No 2

$723,112.14

1,096

27/05/14

6.60%

$143,306.96

$866,419.10

BCCU - No 3

$1,066,847.97

366

02/06/12

6.45%

$69,000.22

$1,135,848.19

IMB - No 1

$1,194,304.53

252

22/09/11

6.24%

$51,452.60

$1,245,757.13

IMB - No 2

$1,000,000.00

283

19/12/11

6.28%

$48,691.51

$1,048,691.51

Bankwest - No 1

$598,551.01

210

27/10/11

5.98%

$20,593.43

$619,144.44

Bend & Adel. - No 1

$1,060,535.47

469

26/07/12

6.20%

$84,488.36

$1,145,023.83

Savings & Loans - No 1

$574,853.40

210

08/09/11

6.20%

$20,505.73

$595,359.13

Savings & Loans - No 2

$1,030,065.75

364

06/10/11

6.13%

$62,970.04

$1,093,035.79

Savings & Loans - No 3

$1,075,159.46

367

14/11/11

6.33%

$68,430.51

$1,143,589.97

Bank of Qld - No. 1

$1,000,109.59

270

06/12/11

6.25%

$46,237.94

$1,046,347.53

NC Perm.-No 1

$1,233,494.91

238

19/04/12

5.55%

$44,639.00

$1,278,133.91

NAB - No 1

$1,049,309.72

224

20/10/11

6.25%

$40,247.50

$1,089,557.22

NAB - No 2

$1,115,655.59

239

15/12/11

6.20%

$45,292.56

$1,160,948.15

NAB - No 3

$1,072,443.58

731

05/07/13

6.46%

$138,749.52

$1,211,193.10

NAB - No 4

$1,135,310.15

196

09/02/12

6.27%

$38,224.80

$1,173,534.95

NAB - No 5

$800,000.00

286

17/05/12

5.98%

$37,485.59

$837,485.59

NAB - No 6

$1,101,017.99

364

09/12/11

6.60%

$72,468.10

$1,173,486.09

NAB - No 7

$1,000,000.00

203

19/01/12

6.29%

$34,982.74

$1,034,982.74

NAB - No 8

$800,000.00

539

20/12/12

6.39%

$75,489.53

$875,489.53

Suncorp - No 1

$886,897.88

187

13/12/11

6.27%

$28,489.83

$915,387.71

Westpac - No 1

$884,435.09

196

12/01/12

6.02%

$28,590.76

$913,025.85

Bend & Adel(CPG)-No 2

$750,000.00

367

18/06/12

6.25%

$47,131.85

$797,131.85

AMP (CPG) - No 1

$1,000,000.00

366

30/06/12

6.25%

$62,671.23

$1,062,671.23

AMP (CPG) - No 2

$1,000,000.00

272

19/04/12

6.00%

$44,712.33

$1,044,712.33

Rabobank –No 1

$500,000.00

367

26/03/12

6.60%

$33,180.82

$533,180.82

Rabobank –No 2

$1,000,000.00

1,832

30/03/16

7.15%

$358,871.23

$1,358,871.23

Total Term Deposits

$25,183,538.73

 

 

 

$1,781,447.93

$26,964,986.66

 

 

MANAGED FUNDS- Medium term

 

 

 

 

Blackrock Diversified Credit

 

 

 

 

Anticipated return per month - 5.01%

 

 

 

 

Institution

 

 

Additional

Performance

Redemptions/

Current Market

 

Date

Investment

Deposits

 

Pay Outs

Value

Bal Bgt Forward

30/06/2011

$210,451.44

 

 

 

$210,451.44

Returns

31/07/2011

 

 

$3,079.78

 

$213,531.22

Returns

31/08/2011

 

 

$0.00

 

$213,531.22

 

 

$210,451.44

$0.00

$3,079.78

$0.00

$213,531.22

 

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

30/06/2011

$3,397,772.04

 

 

 

$3,397,772.04

Returns

31/07/2011

 

 

$23,550.79

 

$3,421,322.83

Returns

31/08/2011

 

 

-$44,203.14

 

$3,377,119.69

 

 

$3,397,772.04

$0.00

-$20,652.35

$0.00

$3,377,119.69

 

 

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

30/06/2011

$7,488.94

 

 

 

$7,488.94

Quarterly Management Fee

14/07/2011

 

 

-$424.51

 

$7,064.43

Returns

31/08/2011

 

 

-$363.23

 

$6,701.20

 

 

$7,488.94

$0.00

-$787.74

$0.00

$6,701.20

 

 

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

30/06/2011

$955,880.45

 

 

 

$955,880.45

Returns

31/07/2011

 

 

-$15,512.71

 

$940,367.74

Returns

31/08/2011

 

 

-$30,117.69

 

$910,250.05

 

 

$955,880.45

$0.00

-$45,630.40

$0.00

$910,250.05

 

 

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

30/06/2011

$985,670.00

 

 

 

$985,670.00

Returns

31/07/2011

 

 

-$4,370.00

 

$981,300.00

Returns

31/08/2011

 

 

$4,700.00

 

$986,000.00

 

 

$985,670.00

$0.00

$330.00

$0.00

$986,000.00

 


 

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

30/06/2011

$431,150.00

 

 

 

$431,150.00

Returns

31/07/2011

 

 

$4,100.00

 

$435,250.00

Returns

31/08/2011

 

 

$8,800.00

 

$444,050.00

 

 

$431,150.00

$0.00

$12,900.00

$0.00

$444,050.00

 

 

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

30/06/2011

$415,900.00

 

 

 

$415,900.00

Returns

31/07/2011

 

 

-$1,700.00

 

$414,200.00

Returns

31/08/2011

 

 

$700.00

 

$414,900.00

 

 

$415,900.00

$0.00

-$1,000.00

$0.00

$414,900.00

Total Managed Funds-Performance since July 2011

$0.00

-$51,760.71

$0.00

$6,352,552.16

Total investments for the month

 

$31,536,090.89

Total investments on maturity

$33,317,538.82

 


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 2011/2012 based on current performance.

 

 

FINANCIAL IMPLICATIONS:

 

Direct and indirect impact on current and future budgets

 

A review of budgeted interest returns for 2011/2012 will be completed with the September 2011 Budget Review and GPG Research & Advisory have provided Council with the updated interest rates.

 

Source of fund and any variance to working funds

 

Interest on investments was assessed with the September 2011 Budget Review.  Variances will be distributed between the Water, Sewerage and General Funds for the first quarter of the financial year.

 

 

Attachments:

There are no attachments for this report.