Overview
This Output covers the management of the Territory Banking Account (TBA) and the investment and borrowing activities of the ACT Government. The Directorate provides services to the Government including financial asset and liability management through the establishment of investment and borrowing policies and objectives, and the coordination and implementation of cash management, investment and borrowing activities. The Directorate, through the TBA, recognises and manages the general government's financial investment assets and borrowing liabilities. Revenues on behalf of the Territory are transferred to the TBA and fortnightly appropriation disbursements are made to agencies from the TBA.
Highlights
During 2013-14, the Directorate:
- facilitated the centralised daily cash management function;
- managed the Territory's debt and TBA investment portfolios;
- completed a new Territory borrowing in the form of a fixed rate nominal bond ($500 million face value), May 2024 maturity; and
- procured a new master custody services provider for the financial investment assets of the TBA.
TBA met all of its accountability indicators. The accountability indicator relating to the difference between the net investment earnings rate and benchmark was exceeded. The investment portfolio delivered an investment return for the 2013-14 financial year of 3.6 per cent (net of fees), compared to the portfolio's performance benchmark return of 3.1 per cent. This was mainly due to the performance of the cash enhanced investment portfolio from the portfolio's exposure to high quality investment grade securities across diverse sectors of the Australian credit market.
Future Directions
In 2014-15, the Directorate will:
- continue to manage Territory borrowings and associated risks;
- continue to manage, monitor and review, as necessary, the TBA investment portfolio in accordance with the established investment policies;
- transition to the new master custody services provider; and
- procure professional investment management and investment advisory service providers as required.
Further Information can be obtained from:
Patrick McAuliffe
Director
Asset Liability Management
+61 2 6207 0187