Agenda and minutes

Apologies for absence were received from Alderman Robert Hughes-Penney and Deputy Clare James.

There were no declarations.

To agree the public minutes and non-public summary of the meeting held on 3 June 2020.

RESOLVED - That the public minutes and non-public summary of the meeting held on 3 June 2020 be agreed as a correct record.

Report of the Town Clerk

The Board received a list of outstanding actions. The Chairman advised that the Risk Register was on the agenda for the meeting, and that the Board would now provide an update to the Local Government Pensions Board in September, due to the cancellation of the Local Government Pensions Board’s July meeting.

RESOLVED – That the report be noted.

Report of the Chamberlain

The Board considered a report of the Chamberlain reviewing the Financial Investment Board’s risk register. The Chairman introduced the item and advised that further amendments had been made to the Risk Register following discussion at the last Board meeting. In response to a question from a Member, the Chamberlain confirmed that the target score for risk CHB FIB 07 had been omitted in error, but was the same as the current score.

A Member suggested that there may be a bigger risk around targeted returns than was currently set out, due to the volatility of markets and capital. Whilst it was not necessarily a red risk, the Board could consider amending the risk scores.

In response to a question from a Member, the Chamberlain explained that whilst the overall maturity of the Pension Fund was monitored, and a cash balance of around £5 million held as a liquidity buffer, which was also monitored, there was no formal Treasury Management strategy specifically for the Pension Fund. The Chairman added that this would be a logical point for the Board to discuss, and requested that this be added to the Outstanding Actions list to be brought back to the Board for consideration.

RESOLVED – That the Financial Investment Board:

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

b)    Confirm that there are no further risks relating to the services overseen by the Financial Investment Board; and

c)    Request that officers amend the Register as suggested ahead of the Board’s next scheduled review in November.

Report of the Chamberlain

The Board received a report of the Chamberlain concerning the monthly investment analysis review for May 2020. The Board noted the current investment list, total investment values and average rate of return set out in the report.

The Deputy Chairman raised the possibility of introducing an overall limit on Local Authority lending in addition to the counterparty limit of £25 million. The Chamberlain advised that an overall limit was applied to other types of lending, and if agreed, could be incorporated to the Treasury Management Strategy and reported to the Court of Common Council for ratification.

In response to a question from a Member, the Chamberlain advised that whilst the Board received treasury management advice from Link Asset Services and a number of appointed fund managers used Link Fund Solutions, there was no conflict of interest for the City of London Corporation arising from any potential legal procedure against Link Fund Solutions as administrator of the Woodford Equity Income Fund.

RESOLVED – That the Financial Investment Board:

a)    Note the report; and

b)    Recommend an overall limit of £250 million for Local Authority lending be incorporated into the Treasury Management Strategy.

There were no questions.

There was no other business.

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.

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

10 – 18                                                                                    3

19 – 20                                                                                    -

To agree the non-public minutes of the meeting held on 3 June 2020.

RESOLVED – That the non-public minutes of the meeting held on 3 June 2020 be agreed as a correct record.

Report of the Town Clerk

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

Report of the Chamberlain

The Board considered a report of the Chamberlain.

Report of the Chamberlain

The Board considered a report of the Chamberlain.

Report of Mercer

The Board received a report of Mercer.

Report of the Chamberlain

The Board considered a report of the Chamberlain.

The Board received a report of the Chamberlain.

The Board considered a report of the Chamberlain.

Report of the Chamberlain

The Board received a report of the Chamberlain.

Report of the Chamberlain

The Board received a report of the Chamberlain.

Report of the Chamberlain

The Board considered a report of the Chamberlain.

Report of the Chamberlain

The Board received a report of the Chamberlain.

Report of the Town Clerk

The Board received a report of the Town Clerk.

There were no non-public questions.

There was no other business.