Circular Head Council wishes to advise the public that it has $4.5 million in unsecured investments in the form of collateralised debt obligations (CDOs). These investments were purchased in 2006 through the Commonwealth Bank's Global Markets division.

Due to the current crisis in world financial markets these investments have incurred an unrealised loss (book loss) of some $3.5 million for the year ended 30 June 2008.

Accounting standards require Council to revalue the CDOs each financial year to reflect market values. As market conditions change, Council's financial statements, and those of other organisations, will reflect fluctuations in the market value of CDOs.

However, as of November 18 2008 all of the $4.5 million in principal invested by Council remains intact with no physical cash loss. Council continues to receive quarterly interest on these investments.

Further enquiries may be directed to Tony Smart, Acting General Manager by Telephoning 0409 163 599.

Authorised for general media distribution by Mayor Daryl Quilliam, Circular Head Council on Tuesday 18 November 2008

  

Office:     33 Goldie Street, Smithton, TAS 7330 Postal Address:     PO Box 348 Smithton, TAS 7330 Telephone:       (03) 6452 4800 Facsimile:      (03) 6452 4861 E-mail      council@circularhead.tas.gov.au