Harper Sercombe
Hume council has implemented parameters to broaden its investment portfolio.
At a meeting on July 11, councillor Naim Kurt said the new investment policy marks an important step forward.
“Ensuring that our investments are not only financially sound but also socially responsible,” Cr Kurt said.
The policy will provide some flexibility to consider investing outside of the ‘big four’ banks, where it has traditionally invested, or opt for subsidiaries of these financial institutions.
Council is also taking an “aggressive approach” by considering banks with eco-investing or green investment products.
“It is important that this council applies a social lens to its investments,” Cr Kurt said.
“This demonstrates our commitment to sustainability and environmental stewardship.
“[It’s] our desire to make socially responsible investment choices.
“Ensures our investments align with our values and community needs.”
The diversification aspect of the policy will also stop council from investing more than 75 per cent of its cash into one financial institution.
“In the difficult financial times that the community finds itself in, it’s important that we strike a balance between financial growth and prudent risk management,” he said.
Council said the treasury investments policy has been established with the aim to maximise council’s return on its funds whilst protecting council from financial loss
The potential interest earnings for council, represents a significant source of revenue and this policy aims to facilitate this, it said.
