Agenda and minutes

Apologies were received from Roger Chadwick, Henry Colthurst, Andrew McMurtrie and Philip Woodhouse. Notice was received from Deputy Ken Ayers that he would attend the Board in part.

There were no declarations.

To agree, in addition to the Chairman or his nominee, the appointment of a Financial Investment Board member to the Social Investment Board.

A resolution from the Investment Committee on the appointment of the Financial Investment Board, its Chairman and Deputy Chairman, and the frequency of meetings was noted.

The Financial Investment Board was then asked to nominate one of its members - to sit alongside the Chairman - on the Social Investment Board.

RESOLVED:

(i)            That the Board’s appointment, election of Chairman and Deputy Chairman of the Board which took place at the Investment Committee on 14 May 2013, and the frequency of its meetings, be ratified.

(ii)           that Edward Lord – alongside the Chairman - sit on the Social Investment Board as a representative of the Financial Investment Board.

To agree the public minutes and non-public summary of the meeting held on 7 February 2013.

RESOLVED: That the public minutes of the meeting held on 7 February 2013 be agreed as an accurate record, subject to an amendment noting the apologies of Clare James.

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.

To agree the non-public minutes of the meeting held on 7 February 2013.

A report of the Chamberlain (copy attached).

The Corporate Treasurer summarised a report on investment performance monitoring to 31 March 2013.

RESOLVED: that the report be noted.

A report of Aon Hewitt (copy attached).

Aon Hewitt provided an overview of the Quarterly Investment Report as at 31 March 2013.

RESOLVED: that

(i)            The contents of the report be noted

(ii)           The Chamberlain be requested to submit an options paper to the Financial Investment Board in July on the potential for hedging. 

A report of the Chamberlain (copy attached).

The Corporate Treasurer introduced the review report of Aon Hewitt and the recommendations report from the Chamberlain on the appointment of a Transition Manager.

RESOLVED: that, subject to further negotiation, BlackRock be appointed as Transition Manager for the proposed equities investments reorganisation.

Andy Gilbert, Managing Director of Transition Management at BlackRock, addressed the Board on BlackRock’s approach to Transition Management.

RESOLVED: that

(i)            The Chamberlain seek external legal counsel on whether the Corporation’s three funds had to be treated as separate legal entities for the purposes of investment;

(ii)           The Chamberlain to receive feedback from BlackRock over whether their quoted fees may be reduced;

(iii)          The Chamberlain to report back to the Board on the potential movement of funds between pools and managers;

(iv)         Arrangements for adopting BlackRock as the preferred Transition Management candidate be progressed as quickly as possible, with demonstrable progress at the next Board meeting on 2 July;

(v)          The Chamberlain to circulate via email refreshed data on each of the accounts to the members of the Board.

A discussion paper from Aon Hewitt (copy attached).

Gary Allen of Aon Hewitt introduced the report on infrastructure as an asset class for institutional investors.

RESOLVED: that the report be noted.

Stewart Hay and Roger Pimm of Standard Life Capital Partners updated the committee on private equity, including an overview of their product offerings, including their Secondary Opportunities Fund (SOF).

RESOLVED:

(i)            That the presentation be noted; and

(ii)           The Chamberlain consider the options for private equity investment, including the Standard Life Secondary Opportunities Fund, and report back to the Board in July 2013.

There were no non-public questions.

City Cash

The Chairman noted that a paper on surplus City Cash was going to Resource Allocations Sub Committee on 13 June.