Contrary to media reports:

• the City of Melville does not have any funds directly invested in the sub-prime market; and
  

• the City of Melville does not invest in or trade on the share market.

Like many other organisations and businesses, however, the City of Melville has invested in credit (money) market related investments that despite having initially high credit ratings of AA and above have been affected by the downturn in the global credit markets precipitated by the sub-prime mortgage crisis in the United States last year.

The City of Melville has always sought to take a conservative approach to its investments and residents and ratepayers can be assured that the City is taking the necessary steps to mitigate against further book losses and will where possible recover any losses that may eventually be incurred should any of its investments fail.