City of Ryde has reported in its January Investment Report that returns from its Investment portfolio for the month of January were down on previous months at 3.22%. However, even with this result, Council’s 12 month weighted average return was at 7.51% which was 0.73% above the UBSA 1 Year Bank Bill Index benchmark.
Council has received $1.959 million to date from interest on investments which is $219k below estimated income. This reflects the volatility in global markets which has affected returns on various investments. However, as reflected in the 12 month weighted average return, due to the balance and level of diversity in Council’s portfolio, Council’s returns have been able to exceed the benchmark.
Since July 2007, Council has also continued to improve its governance and systems relating to its investment portfolio. This has included improving the quality of its investment reports it provides to Council and the community on a monthly basis and appointing an Independent Investment advisor.
“From an on-going review of the level of detail and information provided in Council’s Investment reports, City of Ryde has worked hard to disclose all available information and details relating to its investments,” Councillor Michael Butterworth stated.
Councillor Michael Butterworth has been the advocate in building additional features such as a full description of each investment, including terms and fees in Council’s monthly report in ensuring the community continues to be fully informed on the performance of Council’s portfolio.
“One of the investments I have been concerned about is Council’s Grange IMP Investment. Since July 2007, this investment has been written down in value by approximately $1 million, to reflect the current value in the market however, this has been fully disclosed and explained in our monthly reports. While it is important to stress no actual loss has been realised and after allowing for this writedown, Council’s returns to date on all investments has been $3 million, resulting in a net income of $1.959 million as at 31 January 2008,” Councillor Michael Butterworth stated.
“Constant vigilance remains the key and I am committed to remaining vigilant to protect rate-payers money,” said Councillor Michael Butterworth.
Councillor Michael Butterworth has requested further information to be provided on Council’s overall performance of its portfolio to ensure the community is fully informed of Council’s investment portfolio. He stated that Council and its Staff need to continue to use its best endeavours to manage and protect Council’s investments in a difficult financial climate.
Ends
This press release was approved by the Mayor, Clr Ivan Petch.
Contact: Lee Kirkland, City of Ryde, T 9952 8083
