Agenda item

Report of the Chamberlain.

The Board received a report of the Chamberlain concerning the City of London Corporation’s response to the Investment Reform Criteria and Guidance for the Local Government Pension Scheme. Members discussed the reform in detail, noting the following points:

·         Discussions regarding fees would be held individually with fund managers regarding the decrease in scale of current investments once the Pension Fund was moved.

·         Local Authorities would retain control over their own investment strategy and asset allocations, but would not be able to choose fund managers (although the Corporate Treasurer advised that within the London CIV there was likely to be some choice). Whilst there was no requirement to hold passive investments, this should be kept under review.

·         Officers had no strong objections with regard to the consultation on draft regulations, which set up legislation for intervention should Local Authorities not comply with the reformed criteria.

·         The Corporation was a founding member of the CIV, and the Chairman of Policy chaired the Pensions CIV Sectoral Joint Committee, with the Chairman of the Financial Investment Board Deputising.

Members noted the CIV was holding a launch event later in the month, and also agreed to invite Hugh Grover, Chief Executive Officer at London LGPS CIV Ltd., to a future meeting.

RESOLVED – That the report be noted.