1. CIPFA Scottish Treasury Management Forum Current Investment Practices And Investment Framework Scottish Treasury Management Forum

2. “review the current investment management practices and bring forward proposals which would form a framework for authorities to work within which will ensure a consistency of approach based on a sound risk assessment in relation to investment opportunities” The 2009 remit was to: Investments - Overview Scottish Treasury Management Forum

3. Authorities have taken a range of pro-active measures to manage and mitigate the investments risks over the last two years Authorities have different requirements and therefore different appetites for risk In light of their risk appetite, authorities should continue to consider how they manage their counterparty risk e.g. from the perspective of number, level of commitment, quality etc The lessons of BCCI should not be lost on authorities Where appropriate, authorities should consider other investment opportunities 2009 Summary Scottish Treasury Management Forum

4. Premature Debt Redemption Money Market Funds? Collective Local Authority Investment Product? Government Backed Certificates of Deposit Treasury Bills Other Products? 2009 - Other Investment Options Scottish Treasury Management Forum

5. Yield Liquidity Security Scottish Treasury Management Forum

6. Significant premature repayment of PWLB debt to de-risk investment portfolio A reduction in the periods which deposits are placed for A tightening of credit criteria used to produce the counterparty list Investment with counterparties which would be most likely to receive UK Government and Central Bank support Greater use of instant access accounts Inclusion of additional more secure counterparties such as the DMO Security - 2009 Actions Already Taken Scottish Treasury Management Forum

7. Refinancing Risk Scottish Treasury Management Forum Counterparty Risk v.

8. LGov Fin Stats Total Debt Scottish Treasury Management Forum TMF Gross Debt £11,490,801 (‘000) £10,507,658 (‘000) 31 March 2011 Debt

9. Whole of Scotland LAs – PWLB Maturity Profile Scottish Treasury Management Forum

10. Whole of Scotland LAs – PWLB Rates Scottish Treasury Management Forum

11. Security - Counterparty Concentration - 2009 Scottish Treasury Management Forum

12. Security - Counterparty Concentration - 2011 Scottish Treasury Management Forum

13. Security / Yield - Deposit Rates Scottish Treasury Management Forum

14. Investments - Scotland-wide Summary Scottish Treasury Management Forum 2009 £1,003,225,985 2011 £1,751,095,700 + £748 million

15. Investments - Scotland-wide Summary Scottish Treasury Management Forum 20092011 DMO£81,530,0008.13%£40,340,0002.30% Local Authorities£93,070,0009.28%£224,250,00012.81% Government Guaranteed£40,000,0003.99%£38,496,6332.20% European Investment Bank£00.00%£4,714,2060.27% £214,600,00021.39%£307,800,83817.58%

16. Investments - Scotland-wide Summary Scottish Treasury Management Forum

17. Investments - Scotland-wide Summary Scottish Treasury Management Forum 20092011 Money Market Funds£14,968,0211.49%£165,133,0829.43% Bonds Fund£00.00%£20,000,0001.14% Other£00.00%£1,424,9790.08% £14,968,0211.49%£186,558,06110.65%

18. Investments - Scotland-wide Summary Scottish Treasury Management Forum 20092011 Nationwide Building Society£68,500,0006.83%£36,400,0002.08% Other Building Societies£31,900,0003.18%£00.00% £100,400,00010.01%£36,400,0002.08%

19. Investments - Scotland-wide Summary Scottish Treasury Management Forum 20092011 Lloyds TSB Bank£20,000,0001.99%£5,500,0000.31% HSBC Bank plc£22,300,0002.22%£20,000,0001.14% Barclays Bank£73,500,0007.33%£93,557,3415.34% Other Banks£59,000,0005.88%£60,000,0023.43% £174,800,000.0017.42%£179,057,34310.23%

20. Investments - Scotland-wide Summary Scottish Treasury Management Forum 20092011 Bank of Scotland Plc£228,108,56122.74%£469,965,06326.84% Royal Bank of Scotland£40,316,8754.02%£315,763,67118.03% Santander£102,888,47410.26%£154,363,9738.82% Clydesdale£127,144,05412.67%£101,186,7505.78% £498,457,963.6849.69%£1,041,279,45759.46%

21. Security / Yield - Deposit Rates Scottish Treasury Management Forum