The Investment Committee was scheduled to discuss a range of topics related to the City of London Corporation's investment portfolio, including risk management, treasury management, and property strategy. The committee was also expected to elect a chair and deputy chair for the upcoming year. A key item for decision was the update on the strategy for Leadenhall Market.

Leadenhall Market Strategy Update

A report on the Leadenhall Market strategy was added to the agenda as a supplementary item. The report was submitted by the City Surveyor, and was scheduled for decision by the committee. The agenda noted that the item was received too late to be circulated with the main agenda.

Risk Register Update

The Investment Committee was scheduled to review and consider updates to the risk registers for the overall investment portfolio, the City Surveyor’s Department, and Corporate Treasury. The Risk Register Update for Investment Committee report, jointly submitted by the City Surveyor and the Chamberlain, aimed to provide members with an overview of risk management activities relevant to the committee's responsibilities.

The report highlighted a change in the risk rating for IC 05 Sustainability and Impact, which was increased from Green to Amber. This change reflected an increased likelihood of the risk, though the impact was considered low due to the City of London Corporation's commitment to its Climate Action Strategy. However, the report noted that existing interim targets to achieve net zero by 2040 were under review.

The report also mentioned that SUR SMT 006 Construction Consultancy Management had been reviewed following member comments, but the risk rating remained unchanged and would be kept under observation.

The report included three appendices:

• Appendix A: Overarching Risk Register
• Appendix B: The City Surveyor’s Departmental Risk Register
• Appendix C: The Corporate Treasury Risk Register

The appendices contained detailed information on specific risks, their potential impact, and the actions being taken to mitigate them.

City Surveyor's Departmental Risk Register

Appendix B of the risk register update included key points regarding risks owned by the City Surveyor's Department (CSD). Several risks were identified as having a Red current risk score of 16, including:

• SUR SMT 005 Construction and Service Contracts Price Inflation: This risk was attributed to market conditions leading to input price inflation, potentially causing project and programme cost escalation.
• SUR SMT 006 Construction Consultancy Management: This risk related to poor performance by consultants, potentially leading to abortive work, delays, or non-performance.
• SUR SMT 009 Recruitment and Retention of Property Professionals: This risk stemmed from uncompetitive pay and benefits structures, poor work environments, and a lack of professional progression, making it difficult to attract and retain qualified property professionals.
• SUR SMT 011 Contractor Failure: This risk pertained to the potential failure of a primary contractor or a principal sub-contractor, potentially delaying project delivery or increasing costs.

One risk, SUR SMT 016 Investment Property Group Staffing and Capacity, was rated as Amber with a current risk score of 12. This risk related to the necessity for new skill sets and increased capacity within the Investment Property Group, driven by evolving corporate investment objectives, organisational needs, and market accessibility.

Corporate Treasury Financial Investments

Appendix C summarised the risks for Corporate Treasury relevant to the Investment Committee. The register contained five risks:

• CHB IC 01 Insufficient assets - City's Estate
• CHB IC 02 Targeted returns - City's Estate
• CHB IC 03 Service provider failure
• CHB IC 07 Failure to discharge responsible investment duties
• CHB IC 04 Counterparty failure- Treasury Management

Treasury Management Update

The Investment Committee was scheduled to discuss the Treasury Management Update as at 31 March 2025, a report from the Chamberlain providing a summary of the City of London Corporation’s treasury management portfolio as of that date. The report included updates on asset allocation and performance of the short-term investment portfolio.

As of 31 March 2025, the treasury management investment portfolio had a market value of £956.6 million, a decrease of £164.7 million since 31 December 2024. This decrease was attributed to business rates payments, major project expenditures, transfers to the BlackRock ICS Sterling Liquidity Fund, Museum of London drawdown payments, property insurance premium payments, and Mayoral Community Infrastructure Levy payments. These were partially offset by business rates income, financial investment drawdowns, drawdowns from the BlackRock ICS Sterling Liquidity Fund, additional Home Office income, and settlement from the Department for Education.

The report noted that £90 million was divested from the City’s Estate Financial Investment portfolio, with £59 million initially invested in the BlackRock ICS Sterling Liquidity Fund to support the City’s Major Projects programme.

The report also provided a summary of the asset allocation by instrument type as of 31 December 2024 and 31 March 2025. As of 31 March 2025, most of the Corporation’s cash balances were invested on a short-term basis with eligible banks, with the highest allocation in fixed-term deposits (42%). Liquidity funds made up 17% of the portfolio, while ultra-short-dated bond funds accounted for 16%. The remaining portion of the portfolio (17%) was invested in short-dated bond funds.

The report included a summary of the average return by asset type, as well as the overall average rate of return (RoR). As of 31 March 2025, the average rate of return for the portfolio was 5.09% (compared to 5.05% on 31 December 2024).

The report also discussed the economic context, noting that the Consumer Prices Index (CPI) rose by 2.6% in the 12 months to March 2025, down from 2.8% in February. The Bank of England’s Monetary Policy Committee (MPC) voted to reduce interest rates by 25bps to 4.25% at its meeting in May 2025.

The report included three appendices:

• Appendix 1: Counterparty Exposure as at 31 March 2025
• Appendix 2: Monthly Investment Analysis Review March 2025
• Appendix 3: Treasury Management Counterparties 2024/25: Economic, Social & Governance (ESG) Checklist

Other Matters

The committee was also scheduled to:

• Elect a Chair and Deputy Chair.
• Approve the public minutes and non-public summary of the meeting held on 17 February 2025.
• Receive the Committee’s Forward Plan.
• Receive the Order of the Court of Common Council dated 25 April 2025.
• Consider a motion to exclude the public from the meeting for certain items involving exempt information.