Another council CDO matures

Gosford Council has reported that another of its overseas Colateralised Debt Obligation investments has matured, returning $2,091,947 - around 70 per cent of the initial capital invested.

Council's director corporate services Mr Nic Pasternatsky told Council that over 80 per cent of council's portfolio was now invested with Australian Authorised Deposit-Taking Institutions.

"It is a well-diversified portfolio that has been prudently managed to take advantage of market opportunities that have risen in the last couple of years," said Mr Pasternatsky's report.

"With markets still factoring in another interest rate cut late in 2013, overall returns are expected to decline in the upcoming months.

"However, with term deposit margins still historically wide, it is expected that council can continue to achieve above benchmark returns with prudent investment selection for its short and long term holdings," stated the report.

Mr Pasternatsky said that Council's Investment Portfolio had a current market valuation of $59,400,855, with a face value of $67,357,660.

"Without marked-to-market influences, Council's investment portfolio yielded 4.35 per cent per annum during the month.

"Council's investment strategy is continuously monitored in order to ensure that the investment returns achieved are maximised with minimum risk involved," he said.

Gosford Council Agenda COR.28, 23 Apr 2013