The Investment Committee met on Monday 20 July 2026 to review treasury management updates and outturns, and to receive a progress report on the City Surveyor's Business Plan. The meeting also included a significant discussion and farewell to Kate Limna, the Corporate Treasurer, who was retiring after a long and distinguished career.

Treasury Management Update

The committee received an update on the City of London Corporation's treasury management portfolio as at 31 May 2026. The portfolio had a market value of £1,000.4 million, an increase of £79.8 million from the previous reporting period. This increase was attributed to income from business rates and property sales, offset by payments to central government and expenditure on major projects.

The report detailed the asset allocation, with the majority of cash balances invested on a short-term basis. Fixed-term deposits accounted for 42% of the portfolio, followed by liquidity funds (21%), ultra-short dated bond funds (16%), and short dated bond funds (16%). Investment returns on short-term money market instruments remained robust, with the average rate of return for the portfolio at 4.44% as at 31 May 2026.

The economic outlook was discussed, with the Consumer Prices Index (CPI) at 2.8% and the Bank of England's Monetary Policy Committee (MPC) holding the interest rate at 3.75%. Market expectations suggested a potential rate hike later in the year, though sentiment remained volatile due to geopolitical developments. The report noted that while short-term investment returns had trended downwards in the previous financial year, this was not expected to continue in the near term due to concerns over growing inflation.

Treasury Management Outturn 2025/26

The committee also reviewed the Treasury Management Outturn for the 2025/26 financial year. The City's treasury balances stood at £920.6 million as at 31 March 2026, a decrease of £36.0 million over the year, primarily due to expenditure on major projects, offset by property sales and financial investment drawdowns. Short-term investment returns reduced throughout the year as the Bank of England cut the base rate, bringing it down to 3.75% by March 2026. The report confirmed that investment activities conformed to the approved strategy, with no liquidity difficulties or breaches of the creditworthiness policy. The overall rate of return for the year was lower than the previous year, reflecting the decrease in interest rates.

City Surveyor's Business Plan 2025-30 - Quarter 4 2025/26 Update

A progress report on the City Surveyor's Business Plan for 2025-30 was presented, covering the fourth quarter of the 2025/26 financial year. The department assesses its progress through 24 Key Performance Indicators (KPIs), with 16 of these overseen by the Investment Committee. By the end of the fourth quarter, 8 KPIs had met their targets, 2 were rated amber, and 1 was rated red. Four MSCI KPIs were to be updated verbally during the meeting.

The department reported an underspend of £825,000 on its City Fund and City's Estate services against a budget of £32 million. This underspend was mainly attributed to lower professional fees, savings from deferred or cancelled repair projects, and income at Smithfield Market. A budget carry-forward request of £724,000 was submitted for essential refurbishment works.

The red-rated KPI was Minimise Arrears, which stood at 4.60% against a target of less than 2%. This increase was primarily due to annual insurance charges invoiced in December, and the department was working with relevant teams to expedite recovery. Amber-rated KPIs included Adherence to Budgetary Spend Profiles for Walbrook and the Central Criminal Court, and CWP Programme Adherence to Budgetary Spend Profiles. The KPI for Achieve Budgeted Rental Forecasts was also amber, with actual income at £99.03 million against a target of £101.1 million, due to the earlier finalisation of property sales.

Farewell to Kate Limna

A significant portion of the meeting was dedicated to acknowledging the retirement of Kate Limna, the Corporate Treasurer, after 35 years of service to the City Corporation and nearly 40 years in local government. Members expressed their deep gratitude for her unwavering commitment, sound judgment, and dedication. Councillor Timothy Richard Butcher, Chair of the Investment Committee, highlighted Ms. Limna's legacy of stewardship, professionalism, and excellence. Ms. Limna thanked the committee members and officers for their support over the years and introduced her successor, James Graham, who would be taking over as Director of Investments and Treasury in September.