Agenda and minutes

Apologies were received from Henry Colthurst, Alderman Robert Howard, James de Sausmarez, Ian Seaton and Deputy Philip Woodhouse.

There were no declarations.

The Town Clerk to provide a verbal update in relation to the resolution of the

Investment Committee dated 9 May 2017 appointing the Board and its Chairman

and Deputy Chairman.

The Board noted the resolution of the Investment Committee on 9 May 2018, appointing the Board and approving its terms of reference. With regards to the Board’s appointments to the Social Investment Board, the Board agreed that Henry Colthurst should be appointed alongside the Chairman.

To agree the public minutes and non-public summary of the meeting held on22 March 2018.

It was clarified that the use of the word ‘underwritten’ to describe the central government’s role in loans between local authorities was misleading. The central government had the power to intervene in the finances of a local authority in exceptional circumstances, and for this reason it is considered unlikely that any local authority would default on a loan repayment. However, Central government does not underwrite loans taken out by local authorities.

RESOLVED – That, pending the above clarification, the public minutes and non-public summary of the meeting held on 22 March 2018 be agreed as a correct record.

Report of the Town Clerk.

The Board noted that Member training would be available to members of the Financial Investment Board and Finance Committee, and would not be delivered through the Member Development Steering Group. Officers would liaise to arrange a suitable date and time in the ensuing months.

RESOLVED – That the report be noted.

Report of the Chamberlain

The Board received a report of the Chamberlain concerning the monthly investment analysis review for March 2018.

RESOLVED – That the report be noted.

Report of the Chamberlain

The Board considered a report of the Chamberlain reviewing the amended risks and actions for the Financial Investment Board’s revised risk register. The register had been amended following feedback from Members at the last meeting of the Financial Investment Board and the Investment Committee.

RESOLVED – That the Financial Investment Board confirm that appropriate control measures were in place, and agree to review the risk register twice per year, updating where necessary.

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

11-16                                                                                       3

17-18                                                                                       -

To agree the non-public minutes of the meeting held on22 March 2018.

RESOLVED - That the non-public minutes of the meeting held on 22 March 2018 be agreed as a correct record.

The Board received a presentation from representatives of Principles for Responsible Investment (PRI). The organisation sets global principles and monitors asset managers and asset owners in relation to these principles through investment strategy and implementation. City of London Corporation intends to sign up to the PRI on behalf of all its underlying capacities. The Board was advised the Corporation would be required to complete a detailed annual review on its activities that would be returned to PRI for evaluation. During the first year of membership, the annual review would be private, and feedback will be provided. In subsequent years the annual review would be made public.

The Board was given an overview of PRI and where the Corporation would fit in. PRI worked with an international network of around 2000 signatories to put six principles for responsible investment into practice. The organisation is investor-led and supported by the UN, with over US$80trillion dollars of assets currently under management, largely concentrated in Europe.

The PRI defined responsible investment as an approach to investing that aims to incorporate ESG factors into investment decisions, to better manage risk and generate sustainable, long-term returns. Key behaviours considered and expected of signatories centred around ESG integration, ESG screening and active ownership. The world was changing quickly and ESG factors could reveal macro trends, and help to identify the opportunities of the future.

The key expectation of being a PRI signatory was the year-on-year reporting on the implementation of the principles of responsible investment. As an outsource investor, the Corporation’s value would be in the selection and monitoring of fund managers. PRI would help the Corporation to identify ESG risks and pick up on future risks, in line with the market. The average reporting score of signatories had improved over the 8 years the model had

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 Chamberlain

The Board received reports of the Chamberlain and of Mercer.

Report of Mercer

There were no non-public questions.

There was no other business.