CAB1308 Appendix A

Approved Organisations for the Investment of Council Funds

Organisation Maximum

Top ten Building Societies £3,000,000

Other Building Societies with assets in excess of £500 million £2,000,000

Clearing Banks with Fitch IBCA support ratings 1-3, individual £3,000,000 ratings A-B and short term credit rating F1

Wholly owned subsidiaries of the above banks £1,000,000

Other Local Authorities 3,000,000

Nationalised Industries £2,000,000

UK Government (including gilts and the Debt Management Office) £2,000,000

Instant Access Rate Accounts of the clearing banks noted above £5,000,000

Page 1 CAB1308 Appendix B

Short Term Investments Outstanding as at 31st March 2006

Borrower Amount Repayment Rate £ Date %

Hinckley & Rugby Building Society 1,000,000 3.4.06 5.12 Kent Reliance Building Society 1,000,000 4.4.06 5.04 Leek United Building Society 2,000,000 5.4.06 5.08 Stroud & Swindon Building Society 2,000,000 4.7.06 4.48 Cheshire Building Society 1,000,000 31.7.06 4.5 Lambeth Building Society 2,000,000 3.8.06 4.66875 Norwich and Peterborough Building Society 1,500,000 7.8.06 4.5 Cumberland Building Society 1,000,000 4.10.06 4.5 Progressive Building Society 1,000,000 5.4.06 4.51 Scarborough Building Society 1,000,000 18.4.06 4.5 Universal Building Society 1,000,000 26.10.06 4.61 Furness Building Society 1,000,000 3.11.06 4.67375 Nottingham Building Society 1,000,000 3.11.06 4.61 Nationwide Building Society 2,000,000 6.11.06 4.64 Scarborough Building Society 1,000,000 6.11.06 4.66 Bank of Scotland (Ireland) 1,000,000 9.11.06 4.66 Furness Building Society 1,000,000 15.5.06 4.61 Northern Rock plc 1,000,000 5.12.06 4.635 Skipton Building Society 3,000,000 14.12.06 4.65 Bradford & Bingley Building Society 1,000,000 13.4.06 4.55 Universal Building Society 1,000,000 13.4.06 4.55 Norwich and Peterborough Building Society 500,000 5.1.07 4.50

£28,000,000

Long Term Investments Outstanding as at 31st March 2006

Borrower Amount Repayment Rate £ Date %

Local Authorities Mutual Investment Trust 1,360,016 flexible variable

ADC Debenture 50,000 flexible nil

Chelsea Building Society 2,000,000 4.4.07 5.3 Nottingham Building Society 1,000,000 5.4.07 5.08 CAB1308 Appendix C

CIPFA Benchmarking Clubs Treasury Management Benchmarking 2005/06

Investment

Average annual return on investments in 2005/06 2004/05

Winchester City Council 4.90% 4.58%

CIPFA Benchmarking Club 4.70% 4.64%

Sterling Interbank Rate 4.52% 4.52%

Comment: Cash investments are actively managed by the Finance Department using four money brokers to provide the best rates. The use of an external cash manager for part of the portfolio has been considered but taking into account the current comparatively low and stable rates of return, the advice of Butlers and the experience of other Benchmarking Club members it has been decided to retain in-house management of investments.

Average Investment Management Costs 2005/06 2004/05

Winchester City Council (in house) £0.56 per £000 invested £0.49

CIPFA Benchmarking Club (in house) £0.42 per £000 invested £0.48

CIPFA Benchmarking Club (external) £1.50 per £000 invested £1.46

Comment: Staff costs are almost the same as the average with other overhead costs being higher