What are spec investments?

Answer 1

SPECIFIED INVESTMENTS

These are to be sterling investments of a maturity period of not more than 364

days, or those which could be for a longer period but where the Council has the

right to be repaid within 364 days if it wishes. These are low risk assets where

the possibility of loss of principal or investment income is considered negligible.

These include investments with:

(i) The UK Government (such as the Debt Management Office, UK Treasury

Bills or a Gilt with less than one year to maturity).

(ii Supranational bonds of less than one year's duration.

(iii) A local authority, parish council or community council.

(iv) An investment scheme that has been awarded a high credit rating by a

credit rating agency (although this definition is changing in the draft CLG

Investment Guidance to "High Credit Quality").

(v) A body that has been awarded a high credit rating by a credit rating agency

(such as a bank or building society).

For category (iv) this covers a money market fund rated by Standard and

Poor's, Moody's or Fitch rating agencies.

Taken from committeeadmin.lancaster.gov.uk