Venue: Committee Rooms - West Wing, Guildhall
Contact: Joseph Anstee
tel. no.: 020 7332 1480
Email: joseph.anstee@cityoflondon.gov.uk
No. | Item |
---|---|
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. |
|
Members' Declarations under the Code of Conduct in respect of items on the agenda Minutes: There were no declarations. |
|
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. |
|
Minutes of the previous meeting PDF 64 KB To agree the public minutes and non-public summary of the meeting held on 12 February 2019. Minutes: RESOLVED - That the public minutes and non-public summary of the meeting held on 12 February 2019 be agreed as a correct record. |
|
Monthly Investment Analysis PDF 348 KB Report of the Chamberlain 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 |
|
Risk Register for the Financial Investment Board PDF 72 KB Report of the Chamberlain 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;
|
|
Report of Action Taken PDF 51 KB Report of the Town Clerk 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. |
|
Questions on matters relating to the work of the Committee Minutes: There were no questions. |
|
Any Other Business that the Chairman considers urgent Minutes: There was no other business. |
|
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. 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 - |
|
Non-public minutes of the previous meeting To agree the non-public minutes of the meeting held on 12 February 2019. Minutes: RESOLVED - That the non-public minutes of the meeting held on 12 February 2019 be agreed as a correct record.
|
|
Non-Public Outstanding Actions Report of the Town Clerk Minutes: The Board received a list of non-public outstanding actions. |
|
Review Report of FIB Activities over the last 12 Months Report of the Chamberlain Minutes: The Board received a report of the Chamberlain. |
|
Investment Monitoring Report to 28 February 2019 Report of the Chamberlain Minutes: The Board received a report of the Chamberlain. |
|
Stewardship Review Report of the Chamberlain Minutes: The Board considered a report of the Chamberlain. |
|
Global Equity Manager Post Transition Analysis (Pension Fund) Report of the Chamberlain Minutes: The Board received a report of the Chamberlain. |
|
Global Equity Manager Transition (City's Cash and Bridge House Estates) Report of the Chamberlain Minutes: The Board received a report of the Chamberlain. |
|
Non-Public Report of Action Taken Report of the Town Clerk Minutes: The Board received a report of the Town Clerk. |
|
Non-public questions on matters relating to the work of the Committee Minutes: There were several non-public questions. |
|
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. |