Agenda item

Report of the Chamberlain

The Board considered a report of the Chamberlain setting out the City of London Corporation’s Treasury Management Strategy Statement and Annual Investment Strategy (TMSS) for 2022/23. The Chairman introduced the item before the Chamberlain introduced the report, which was a requirement in line with CIPFA guidance. The Chamberlain highlighted the key areas of the strategy, including a proposal to introduce multi-asset funds to the list of permitted non-specified investments, with an overall limit of up to £50million, which would be implemented following due diligence if agreed. The Chamberlain also advised that revised versions of the Treasury Management Code of Practice and the Prudential Code for Capital Finance in Local Authorities would be applied from the 2023/24 financial year and therefore were not applicable to this version of the TMSS, although the key changes were highlighted in the report.

In response to a request from the Chairman, the Chamberlain outlined the due diligence process for implementing the proposed multi-asset fund allocation, which involved a shortlisting of suitable products by LINK Asset Services before these were scrutinised by officers in conjunction with the Chairman and Deputy Chairman, accounting for factors such as cashflow requirements and volatility. The Chamberlain advised that the limit of up to £50million represented an initial testing of the market, which could be raised to up to £100million if appropriate and subject to further Member approval.

The Board noted that the TMSS would also be submitted to the BHE Board and Finance Committee for endorsement before submission to the Court of Common Council for approval. The Chamberlain advised that, if approved, new investments in multi-asset funds could be placed within 6 months. A Member queried the extent to which an ESG overlay should be required for short- and medium-term investments, and whether this should form part of the due diligence process. The Chamberlain responded that a requirement to address ESG considerations would be included within the revised CIPFA Codes; wording on managing ESG risks was now included in the TMSS and this would develop over time.

RESOLVED – That the Financial Investment Board reviews and approves the Treasury Management Strategy Statement and Annual Investment Strategy for 2022/23, for submission to the Finance Committee and the Court of Common Council as part of the City Fund 2022/3 Budget Report for formal adoption.