Investment gap narrows

The gap between the face value and the market value of Gosford Council's investments continues to narrow, according to a report presented to the council meeting of Tuesday, August 6.

The report stated that as at June 30 this year, council's investment portfolio had a current market valuation of $108,766,229, against the "hold to maturity" value (face value) of $116,088,921.

All of council's nine structured securities showed an increase in their market value.

The net market value increase for the period was $141,600.

Council's investment portfolio return also outperformed the bank bill index benchmark during the month at 8.70 per cent per annum versus 2.83 per cent per annum.

Its portfolio is expected to return above benchmark returns if there are no further credit events within its CDO portfolio.

Without marked-to-market influences, council's investment portfolio yielded 4.29 per cent per annum during the month.

Gosford Council agenda COR.69, 6 Aug 2013