Appendix III - Permitted Investments 2025-26
Perth and Kinross Council · 5 March 2025
Back to Perth and Kinross Council — 5 March 2025 and its agenda
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PERTH AND KINROSS COUNCIL PERMITTED INVESTMENTS 2025/26 Total Individual Treasury Management Investment Type Limit Limit Objectives Counterparty Market Liquidity Fixed Deposits with approved Banks and Unlimited per Guaranteed investment Low risk applied in Risk of increase in Low risk of tied-up Building Societies up to 1 year policy returns Treasury Policy interest rates funds Instant Access Deposits with approved Banks Unlimited per Maximise liquidity Low risk applied in Risk of fall in interest No risks and Building Societies policy Treasury Policy rates Variable Rate deposits with approved Banks 35% per Maximise returns Low risk applied in Risk of fall in interest Low risk of tied-up and Building Societies up to 1 year policy Treasury Policy rates funds Fixed Deposits with approved Banks and £45M per Guaranteed longer term Increased risk applied Risk of increase in Higher risk of tied-up Building Societies over 1 year up to 3 Years policy investment returns in Treasury Policy interest rates funds Variable Rate deposits with approved Banks Lower of per Maximise longer term Increased risk applied Risk of fall in interest Higher risk of tied-up and Building Societies over 1 year up to 3 years 35% or £10M policy investment returns in Treasury Policy rates funds Certificates of Deposit, Fixed Bonds and other fixed Unlimited per Maximise returns and Low risk applied in Risk of increase in No risk as commercial paper issued by approved Banks and policy counterparty diversification Treasury Policy interest rates negotiable Building Societies, up to 1 Year Certificates of Deposit, Fixed Bonds and other fixed £45M per Longer term investment Low risk applied in Risk of increase in No risk as commercial paper issued by approved Banks and policy returns and counterparty Treasury Policy interest rates negotiable Building Societies, over 1 Year up to 3 Years diversification Floating Rate Notes and other variable commercial Unlimited per Maximise returns and Low risk applied in Risk of decrease in No risk as paper issued by approved Banks and Building policy counterparty diversification Treasury Policy interest rates leading negotiable Societies, up to 1 Year to loss in capital value Floating Rate Notes and other variable commercial £10M per Longer term investment Low risk applied in Risk of decrease in No risk as paper issued by approved Banks and Building policy returns and counterparty Treasury Policy interest rates leading negotiable Societies, over 1 Year up to 3 Years diversification to loss in capital value Risk Assessment
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PERTH AND KINROSS COUNCIL PERMITTED INVESTMENTS 2025/26 Total Individual Treasury Management Investment Type Limit Limit Objectives Counterparty Market Liquidity Risk Assessment AAA rated Short Term and Standard Money Market Unlimited per Maximise returns and Low risk applied in No risk as instant No risk Funds, including Low Volatility Net Asset Value policy liquidity on smaller Treasury Policy access (LVNAV) Funds. deposits Fixed Rate deposits with Local Unlimited per Maximise security on Low risk applied in Risk of increase in Low risk of tied-up Authorities, up to 1 Year policy fixed returns Treasury Policy interest rates funds Fixed Rate deposits with Local £45M per Longer term investment Low risk applied in Risk of increase in Higher risk of tied-up Authorities, from 1 Year up to 3 Years policy returns and counterparty Treasury Policy interest rates funds diversification Variable Rate deposits with Local 35% per Maximise security on Low risk applied in Risk of fall in interest Low risk of tied-up Authorities policy variable returns Treasury Policy rates funds Loans to third parties, including "soft loans" To be Subject to For operational Service Higher risk High risk, often given Higher risk of tied-up reviewed approval requirements on intrest-free terms, funds upon each by the but met by Service. application Council Investment Properties (controls and limits per Investment Property strategy document) Notes: 1. All investments to be made in sterling 2. The policy refered to above is defined in TMP4, Schedule 4.6 (Approved Lending & Investment Policy) 3. Individual limits apply to all investment types in aggregate 4. Variable rate limit (excluding instant access accounts) applies to all investment types in aggregate 5. The limit for amounts invested over 1 year refer to the remaining period to maturity of investments