OIC Strategic Reserve Fund performs exceptionally
Orkney Islands Council is managing its investments well, according to a recent report considered by the new Council.
The report, heard in private due to commercial sensitivities, provided information on the valuation of the Council’s ‘managed funds’.
The report showed that the Council’s Strategic Reserve Fund increased by £27.4m or 15.6% over the 2016 – 2017 financial year – considered as an exceptional performance for this type of fund.
The value of the Strategic Reserve Fund now sits at £207.2m.
Investment decisions are made on behalf of the Council by appointed specialist fund managers who select the companies in which to invest on behalf of the Strategic Reserve Fund in order to earn a return on those investments. The aim of the fund managers is to return an annual surplus to the Council that is used to supplement the running of services and to protect services and jobs. The reserves are invested for the future benefit of Orkney and also support a range of projects that contribute to the current economic and social wellbeing of the county. These include major infrastructure projects like the extension to Hatston Pier and community initiatives such as the new Birsay Hall.
Councillor Leader James Stockan is Chair of the Investments Sub-Committee. He said: “This has been an exceptional year for investment returns, which helps us in preparation for the hard and difficult years that are being predicted for local authority funding. We have already taken a much larger contribution from the Strategic Reserve Fund to keep local services functioning. We are mindful that investments can go down as well as up, so we have to proceed in a cautious manner.”