Agenda and minutes

To receive any apologies for absence.

Apologies for absence were received from Councillors Doron and Marshall and from Keith Brown (Non-voting member).

The Chair will consider the admission of any late items of Urgent Business to be dealt with under Item 5 below.

There was no urgent business.

A member with a disclosable pecuniary interest or a prejudicial interest in a matter who attends a meeting of the authority at which the matter is considered:

(i) must disclose the interest at the start of the meeting or when the interest becomes apparent, and

(ii) may not participate in any discussion or vote on the matter and must withdraw from the meeting room.

A member who discloses at a meeting a disclosable pecuniary interest which is not registered in the Register of Members’ Interests or the subject of a pending notification must notify the Monitoring Officer of the interest within 28 days of the disclosure.

Disclosable pecuniary interests, personal interests and prejudicial interests are defined at Paragraphs 5-7 and Appendix A of the Members’ Code of Conduct.

None declared.

The report refers to the costs of establishing a Collective Investment Vehicle (‘CIV’) for the London Local Government Pension Scheme (LGPS), and seeks approval for an additional contribution towards the cost of establishing the London CIV.

The Committee received a report setting out details of the costs of establishing a Collective Investment Vehicle (‘CIV’) for the London Local Government Pension Scheme (LGPS).  It was noted that a further funding request towards the cost of establishing the London CIV had been received, and consequently authority was sought for the payment of an extra contribution of £50,000, in addition to the £25,000 previously agreed by the Corporate Committee at its meeting on September 2013.

The Committee was informed that the CIV would, if subsequently agreed by the Committee, assume responsibility for the appointment of fund managers, and that the establishment of the CIV was designed to both reduce investment management fees and to improve performance for those funds that select active fund management.

The Committee, supported by comments from its non-voting members and Independent Advisor, were of the opinion that any risks associated with making the additional payment were greatly outweighed by the possible benefits that could be gained from the creation of, and participation in, the CIV; however, the Chair stressed that the Committee did not want to commit the Council to long-term involvement in the CIV and wanted to be in a position whereby the Council could withdraw from the CIV at short notice if it considered it necessary.

During its consideration of the matter the Committee noted the comments of Keith Brown, a non-voting member of the Committee who was unable to be present, which were submitted via an email document that was tabled at the meeting.

RESOLVED:

That a payment of £50,000, in addition to the contribution of £25,000 agreed by the Corporate Committee at its meeting on 13 September 2013, be made towards the cost of establishing the London Collective Investment Vehicle (CIV).

To consider any items admitted at item 2 above.

There were no exempt items of an urgent nature.

Monday 15 December 2014 at 7.00pm.

The Committee noted that its next meeting was scheduled for Monday 15^th December 2014 at 7.00pm.