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Legislative Assembly for the ACT: 1999 Week 2 Hansard (11 March) . . Page.. 654 ..

The following table details the year-to-date Borrowings Received transactions as per

the January financial statements (Statement of Cashflows):

Borrowing Type Source of Funds YTD Projected

31/1/99 Outcome

$'000 $'000

General Government

Refinanced Cwlth Debt Commercial Paper 18,753 37,500

Hsg Home Loan Program Commercial Paper 86,399 162,500

InTact Commercial Paper 9,757 80,000

ACTEW Commercial Paper 0 99,555

Arbitrage Commercial Paper 273,415 800,000

InTact Finance Lease Lease Facility 0 35,000

External Entity investments with CFU Rental Bond Fund, ACT Workers 5,924 53,007

Compensation Fund, Cnb Hospital

Trust

394,248 1,267,562

(3) As per the response to question 1, there are very strict guidelines within which investment purchases must be restricted. The general government investment funds are managed on behalf of the ACT by National Mutual Funds Management (NMFM). The investment mandate with NMFM details the limits which are place on the ACT's investments. For the year to date (31 January 1999) NMFM has purchased a range of investments of the following type; cash, bank bills, promissory notes, floating rate notes and fixed interest in a variety of counterparties. The ACT mandate is such that short term investments may only be in counterparty's rated A2 or higher as per Standard and Poors Australian Ratings. Long term investments may only be in counterparty's rated AA minus or higher as per Standard and Poors Australian Ratings.

Investments purchased by the CFU for arbitrage related purposes are also restricted to the same ratings limits. Investments purchased during the period 1 July 1998 to 31 January 1999 comprised of bank bills and promissory notes in a variety of counterparties rated A2 or higher. There is currently no outstanding transactions in relation to arbitrage.

Superannuation Fund investments are managed currently by five specialised funds managers. Each manager has a specific investment mandate within which they manage these funds. The investment portfolios include; Australian Equities (County Investment Management), Property (Commonwealth Financial Services), Australian Fixed Interest (NMFM), Overseas Equities (Clay Finlay) and a balanced fund manager (Bankers Trust).

(4) No. Outside of internal loans to ACT Government Departments, Authorities and TOC's, the ACT only undertakes investments for the reasons and in the manner outlined in 1 and 3 above.

(5) The movement in investment balances on the balance sheet, current and non-current, for the year to date period ending January 1999, is $60.285m. The movement is reconciled as follows: