The Chairman advised the Board that he had recently attended a London CIV (LCIV) meeting at London Councils as the nominated shareholder for the City of London Corporation Pension Fund.
The LCIV portfolio was an Authorised Contractual Scheme (ACS) regulated by the Financial Conduct Authority (FCA). If an authority wanted to hold passive, index-tracking funds under the umbrella of the LCIV, it was able to, but those funds were not available on the LCIV platform. The Chairman added that collectively, the local authorities invested in the LCIV currently carried more assets under management in passive funds than in active funds, with some authorities carrying as much as 40% passive in their individual portfolios. This was a contrast to the Corporation, which did not currently have any assets under management in passive funds. Members had not previously been minded to invest in passive funds, but were reminded that this was still an option.