5. Treasury Management Practice (TMP1) – Credit and Counterparty Risk Management 5.1 SPECIFIED INVESTMENTS: All such investments will be sterling denominated, with maturities up to maximum of 1 year, meeting the minimum ‘high’ quality criteria where applicable. 5.2 NON-SPECIFIED INVESTMENTS: These are any investments which do not meet the specified investment criteria. A maximum of 20% will be held in aggregate in non-specified investment. A variety of investment instruments will be used, subject to the credit quality of the institution, and depending on the type of investment made it will fall into one of the above categories. The criteria, time limits and monetary limits applying to institutions or investment vehicles are:- Max % of Minimum total credit Max. maturity investments criteria / period per colour band institution DMADF – Government N/A 100% 6 months sovereign UK Government gilts 20% 5 years rating UK Government Treasury sovereign 20% 6 months bills rating Bonds issued by sovereign multilateral development 20% 6 months rating banks Money market funds AAA 100% Liquid Local authorities N/A 100% 5 years Yellow Up to 5 years Purple Up to 2 years 30% per Blue Up to 1 year Term deposits with banks institution and Up to 1 year and building societies 40% per Red Up to 6 Months group Green Up to 3 months No Colour Not for use Yellow Up to 5 years Purple Up to 2 years CDs or corporate bonds Blue Up to 1 year with banks and building 20% Up to 1 year societies Red Up to 6 Months Green Up to 3 months No Colour Not for use Enhanced cash funds 20% Corporate bond funds 20% sovereign Gilt funds 20% rating
5. Treasury Management Practice (TMP1) – Credit and Counterparty Risk Management 5.1 SPECIFIED INVESTMENTS: All such investments will be sterling denominated, with maturities up to maximum of 1 year, meeting the minimum ‘high’ quality criteria where applicable. 5.2 NON-SPECIFIED INVESTMENTS: These are any investments which do not meet the specified investment criteria. A maximum of 20% will be held in aggregate in non-specified investment. A variety of investment instruments will be used, subject to the credit quality of the institution, and depending on the type of investment made it will fall into one of the above categories. The criteria, time limits and monetary limits applying to institutions or investment vehicles are:- Minimum credit criteria / colour band Max % of total investments per institution Max. maturity period DMADF – Government N/A 100% 6 months UK Government gilts sovereign rating 20% 5 years UK Government Treasury bills sovereign rating 20% 6 months Bonds issued by multilateral development banks sovereign rating 20% 6 months Money market funds AAA 100% Liquid Local authorities N/A 100% 5 years Term deposits with banks and building societies Yellow Purple Blue Red Green No Colour 30% per institution and 40% per group Up to 5 years Up to 2 years Up to 1 year Up to 1 year Up to 6 Months Up to 3 months Not for use CDs or corporate bonds with banks and building societies Yellow Purple Blue Red Green No Colour 20% Up to 5 years Up to 2 years Up to 1 year Up to 1 year Up to 6 Months Up to 3 months Not for use Enhanced cash funds 20% Corporate bond funds 20% Gilt funds sovereign rating 20%