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Venue: Committee Rooms - West Wing, Guildhall

Contact: Joseph Anstee
tel. no.: 020 7332 1480  Email: joseph.anstee@cityoflondon.gov.uk

Items
No. Item

1.

Apologies

Minutes:

Apologies for absence were received from Alderman Robert Howard, Alderman Robert Hughes-Penney and Deputy Henry Pollard.

 

The Board gave thanks and paid tribute to Andrew McMurtrie, the immediate past Chairman who had served as Chairman of the Financial Investment Board for the past 4 years.

 ...  view the full minutes text for item 1.

2.

Members' Declarations under the Code of Conduct in respect of items on the agenda

Minutes:

There were no declarations.

 ...  view the full minutes text for item 2.

3.

Resolution of the Investment Committee

Minutes:

The Board noted the resolution of the Investment Committee meeting held on 16 May 2019, appointing the Board and approving its composition, membership, frequency of meetings and terms of reference.

 ...  view the full minutes text for item 3.

4.

Minutes of the previous meeting pdf icon PDF 64 KB

To agree the public minutes and non-public summary of the meeting held on 12 February 2019.

 ...  view the full agenda text for item 4.

Minutes:

RESOLVED - That the public minutes and non-public summary of the meeting held on 12 February 2019 be agreed as a correct record.

 ...  view the full minutes text for item 4.

5.

Monthly Investment Analysis pdf icon PDF 348 KB

Report of the Chamberlain

 ...  view the full agenda text for item 5.

Additional documents:

Minutes:

The Board received a report of the Chamberlain concerning the monthly investment analysis review for March 2019. The Board noted the current investment list, total investment values and average rate of return set out in the report.

 

The Chairman drew Members’ attention to the current investment list and suggested the Board consider further investment in short-dated bond funds, given their higher average rate of return. The Chamberlain advised that the counterparty limit for short-dated bond funds was £100 million and suggested that the Board consider an investment of an additional £25 million in each of the two funds. The Chamberlain added that whilst interest rates were going up for this type of investment they could also fall in the future. It was possible to withdraw from the funds at short notice. The Board agreed that officers should look at an additional investment of £25 million in each of the short-dated bond funds, making a total of £75 million in each. In discussing overall cash flows the Chamberlain added that there were more funds available than at February as the collection of business rates had resumed since then.

 

A Member asked whether any of the current allocations were considered competitive, citing the performance of Payden Sterling Reserve Fund.  It was noted that this was indicative of a different risk appetite and the Chamberlain responded that risk appetite in general would be reviewed, and that commentary on the performance of the Payden fund would be provided between meetings.

 

A Member asked for clarification on the downgrading of the Support Rating of Canadian Banks. The Chamberlain responded that this related to action taken by the prudential authorities in Canada that meant the Canadian banks had a lesser degree of support from the Canadian government, and so were considered to carry a greater degree

 ...  view the full minutes text for item 5.

6.

Risk Register for the Financial Investment Board pdf icon PDF 72 KB

Report of the Chamberlain

 ...  view the full agenda text for item 6.

Additional documents:

Minutes:

The Board considered a report of the Chamberlain reviewing the Financial Investment Board’s risk register. The Board noted that all risks except Governance were currently at target.

 

The Chairman suggested that the Board consider how to go about reaching their target position and that this be noted as an outstanding reference for the Board. The Board discussed whether the target risk score should be reconsidered, whether Principles of Responsible Investment (PRI) and risks related to the London Collective Investment Vehicle (LCIV) should be added to the Board’s risk register as part of the Governance risk, and whether cybersecurity and the risk of hacking was held within counterparty risk. The Board asked the Chamberlain to consider how best to incorporate risks relating to cybersecurity.

 

The Board noted a typing error to be corrected under the Insufficient Assets risk and asked that the covering report describe the Board’s reviews of the register as semi-annual rather than bi-annual. The Deputy Chairman suggested that in the long-term, risk relating to PRI could be incorporated into the Governance risk, but was an appropriate standalone risk at present.

 

RESOLVED – That the Financial Investment Board:

 

·         Review the existing risks and actions present on the Financial Investment Board’s Risk Register, and confirm that appropriate control measures are in place;

 

  • Confirm that a dedicated PRI risk is added to the Risk Register and brought back to the next meeting for consideration; and

 

  • Request that officers consider how to incorporate Cybersecurity and Pooling risks, adding a risk relating to the LCIV to the register if deemed appropriate and in line with other local authorities, and reconsider the target risk score for governance.
 ...  view the full minutes text for item 6.

7.

Report of Action Taken pdf icon PDF 51 KB

Report of the Town Clerk

 ...  view the full agenda text for item 7.

Minutes:

The Board received a report of the Town Clerk advising Members of actions taken by the Town Clerk under delegated authority or urgency procedures since the last meeting of the Committee.

 

RESOLVED – That the report be noted.

 ...  view the full minutes text for item 7.

8.

Questions on matters relating to the work of the Committee

Minutes:

There were no questions.

 ...  view the full minutes text for item 8.

9.

Any Other Business that the Chairman considers urgent

Minutes:

There was no other business.

 ...  view the full minutes text for item 9.

10.

Exclusion of the Public

MOTION - That under Section 100(A) of the Local Government Act 1972, the public be excluded from the meeting for the following items on the grounds that they involve the likely disclosure of exempt information as defined in Part I of the Schedule 12A of the Local Government Act.

 ...  view the full agenda text for item 10.

Minutes:

RESOLVED - That under Section 100(A) of the Local Government Act 1972, the public be excluded from the meeting for the following items on the grounds that they involve the likely disclosure of exempt information as defined in Part I of the Schedule 12A of the Local Government Act.

 

Item No.                                                          Paragraph(s) in Schedule 12A

11 – 18                                                                                    3

19 – 20                                                                                    -

 ...  view the full minutes text for item 10.

11.

Non-public minutes of the previous meeting

To agree the non-public minutes of the meeting held on 12 February 2019.

 ...  view the full agenda text for item 11.

Minutes:

RESOLVED - That the non-public minutes of the meeting held on 12 February 2019 be agreed as a correct record.

 

 ...  view the full minutes text for item 11.

12.

Non-Public Outstanding Actions

Report of the Town Clerk

 ...  view the full agenda text for item 12.

Minutes:

The Board received a list of non-public outstanding actions.

 ...  view the full minutes text for item 12.

13.

Review Report of FIB Activities over the last 12 Months

Report of the Chamberlain

 ...  view the full agenda text for item 13.

Minutes:

The Board received a report of the Chamberlain.

 ...  view the full minutes text for item 13.

14.

Investment Monitoring Report to 28 February 2019

Report of the Chamberlain

 ...  view the full agenda text for item 14.

Minutes:

The Board received a report of the Chamberlain.

 ...  view the full minutes text for item 14.

15.

Stewardship Review

Report of the Chamberlain

 ...  view the full agenda text for item 15.

Minutes:

The Board considered a report of the Chamberlain.

 ...  view the full minutes text for item 15.

16.

Global Equity Manager Post Transition Analysis (Pension Fund)

Report of the Chamberlain

 ...  view the full agenda text for item 16.

Minutes:

The Board received a report of the Chamberlain.

 ...  view the full minutes text for item 16.

17.

Global Equity Manager Transition (City's Cash and Bridge House Estates)

Report of the Chamberlain

 ...  view the full agenda text for item 17.

Minutes:

The Board received a report of the Chamberlain.

 ...  view the full minutes text for item 17.

18.

Non-Public Report of Action Taken

Report of the Town Clerk

 ...  view the full agenda text for item 18.

Minutes:

The Board received a report of the Town Clerk.

 ...  view the full minutes text for item 18.

19.

Non-public questions on matters relating to the work of the Committee

Minutes:

There were several non-public questions.

 ...  view the full minutes text for item 19.

20.

Any Other Business that the Chairman considers urgent and which the Committee agree should be considered whilst the public are excluded

Minutes:

There was one item of other business.

 ...  view the full minutes text for item 20.

 


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