Agenda item

Consideration was given to the report of the Corporate Director, Resources which provided information on the performance of the Pension Fund’s short term investments as at 31 December 2014 (for copy see file of Minutes).

In response to a comment from Councillor Martin the Committee was advised that £31,293 represented the total interest earned and not the net interest as stated in the report.

John Norton asked why the investments had returned less than the base rate of 0.5%. Philip Williams explained that 0.5% was the rate issued by the Bank of England but banks would offer a lower base rate than this. The interest rate was based on the 3 month LIBID rate which was currently 0.43%. Don McLure added that because this was a fluid position investments were for short term periods, and a maximum of 12 weeks.

Resolved:

That the position at 31 December 2014 regarding the Fund’s short term investments where £31,293 total interest was earned in the three month period, be noted.