Good Investments for Local Councils

The longer-serving of my blog readers will recall a posting last year that I had met some ‘nice men in the city’. Well I can now reveal that they are not only nice but clever!

CCLA is an investment company which works for Churches, Charities and Local Authorities. It has specialist funds for each of the three categories as particular pieces of legislation apply to each sector.
Yesterday at our Local Authority Board meeting we were given an update as to progress. Both the funds which apply to local authorities are doing incredibly well both in terms of the number of people using them and in the returns they are making for those authorities.

The first fund is the Public Sector Deposit Fund which has only been in existence for about 2 years. It provides a pooled investment in money markets which enables it to give a safe but reasonable return. Its returns are in the middle of the investment range which is more than most councils can get through their treasury functions and more than 90 councils ranging from small town councils to the mighty Corporation of London now invest some of their short-term funds through it. The number is growing rapidly and some big hitters will shortly be announced which should attract in every council to put some money in.

The second fund is LAMIT a property investment fund. This has been in existence for years but has recently gone through a metamorphosis and will shortly start looking for even more new investors. Over the past few years and certainly now LAMIT has beaten the index for commercial property and provides good returns for medium to long-term funds. For reasons which I do not claim to understand this fund has a unique position in legislation which enables it to run at very low costs which, of course help the returns. Again all councils need to find some place to put medium to long term holdings and this is a good one. This fact was emphasised by a telling graph which showed that putting just a small amount in property through a shared fund is giving a better total rate of return than just holding cash because of the very small returns on cash because of the depressed interest rates of the moment.

Now I know that all my blog readers are very clever which means that you would not buy a bar of chocolate on my advice so do not take my word for it. Have look yourself at http://www.ccla.co.uk or contact Andrew Robinson on 0800 022 3505. Even better get your Director of Resources to make contact.

Proper investment means more money for social and other services. Please don’t let your council fail to take advantage of what is on offer here.

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