Like many other organisations and businesses, the City has invested in credit (money) market related investments. Initially these investments had high credit ratings of AA and above but they have since been affected by the downturn in the global credit markets, precipitated by the sub-prime mortgage crisis in the United States.
Contrary to media reports:
- the City does not have any funds directly invested in the sub-prime market
- the City does not invest in or trade on the share market.
The City has always sought to take a conservative approach to its investments. Residents and ratepayers can be assured the City is taking the necessary steps to mitigate against further losses, and where possible will recover any losses that may be incurred should any of its investments fail.
You can find out further information from the Investment Overviews below.