The Investment Committee of the City of London Corporation met on Monday 6 October 2025 to discuss treasury management, risk management, and the climate action strategy. The committee was scheduled to review the public minutes from its July meeting, and to discuss the treasury management outturn for 2024-25, and an update on treasury management as of August 2025. Members were also scheduled to receive a verbal update on the Climate Action Strategy from the City Surveyor.

Risk Register Update

The Investment Committee was scheduled to review and make decisions regarding updates to the risk register. A joint report from the Chamberlain and the City Surveyor included updates on three risk registers:

• Overarching Risk Register, which captures risks related to the overall investment portfolio.
• City Surveyor's Departmental Risk Register, which maintains a comprehensive risk register of matters pertaining to the department's operation and objectives.
• Corporate Treasury Risk Register, which captures risks related to the treasury function and the City's Estate financial investments.

Several changes were scheduled to be discussed, including a decrease in the risk score for SUR SMT 005 Construction and service Contracts Price Inflation beyond that which was anticipated or planned from 16 (Red) to 12 (Amber), and a decrease in likelihood for SUM SMT 016 Investment Property Group Staffing and Capacity, reducing it from 8 (Amber) to 4 (Green). Additionally, SMT 010 Insurance – Investment and Corporate Estate was scheduled to be deactivated from the departmental risk register.

The report recommended that the committee:

• Consider the overarching risks and mitigations relating to the overall investment portfolio overseen by the Investment Committee (Appendix A - Overarching Risk Register for City Fund and Citys Estate).
• Note the actions taken across the organisation to effectively monitor and manage risks in the City Surveyor's operations (03 - Appendix B - The City Surveyors Department risks relevant to Investment Committee.pdf) and review the existing risks and actions on the IC Financial Investments risk register (04 - Appendix C - The Corporate Treasury Risk Register relevant to this Committee.pdf) and confirm that appropriate control measures are in place.

Treasury Management

The committee was scheduled to discuss the Treasury Management Outturn for 2024-25, and receive an update on Treasury Management as at 31 August 2025.

Treasury Management Outturn 2024-25

The Treasury Management Outturn 2024-25 report provided an annual review of treasury management activities and treasury indicators for 2024/25, as required by regulations issued under the Local Government Act 2003¹. The report noted that as of 31 March 2025, the City had treasury balances totaling £956.6m, with the majority held for payment to third parties or as restricted reserves. Cash balances increased by £55.4m over the year, primarily due to income from property sales and financial investment drawdowns, offset by expenditure on the Major Projects programme. Short term investment returns decreased throughout the year, with the Bank of England cutting the base rate by 0.25% in August 2024, November 2024, and February 2025, bringing the headline rate down from 5.25% to 4.50% as of 31 March 2025.

The report stated that the investment of funds during the year conformed to the approved strategy, with no liquidity difficulties or breaches of the approved creditworthiness policy. A new counterparty, Standard Chartered Bank, was onboarded during the year.

Treasury Management Update as at 31 August 2025

The Treasury Management Update as at 31 August 2025 included a summary of the City of London Corporation's treasury management portfolio (investments) as at 31 August 2025, an update on the current asset allocation of the short-term investment portfolio, and its performance. A monthly investment review report produced by the Corporation's treasury management consultants, MUFG Corporate Markets, was included as an appendix.

The treasury management investment portfolio had a market value of £1,020.8m as at 31 August 2025, a decrease of £16.1m from the balance as at 31 May 2025 (£1,036.9m). This decrease was principally due to business rates payments to central government of £327.8m, expenditure on Major Projects of £44.9m, and a Museum of London drawdown payment totalling £30.0m, offset by business rates income of £356m, and property disposal receipts of £30.0m and £21.5m.

The report noted that the Consumer Prices Index (CPI) rose by 3.8% in the 12 months to August 2025. The Bank of England's Monetary Policy Committee (MPC) cut bank rate by 25bps from 4.25% to 4.00% at its August meeting, and kept bank rate unchanged at 4.00% at its September meeting. MUFG Corporate Markets are forecasting bank rate to remain at 4.00% by December 2025, and decrease to 3.75% by March 2026, where it is forecast to remain until a further cut to 3.50% in the second half of 2026 where it will plateau. However, this sentiment remains volatile.

The Treasury Management Update as at 31 August 2025Appendix 3FINAL.pdf provided an Economic, Social & Governance (ESG) Checklist of Treasury Management Counterparties.

City Estate: 2-4 & 6-8 Eastcheap - Leasehold Sale

The Investment Committee was scheduled to discuss a report from the City Surveyor regarding the leasehold sale of 2-4 & 6-8 Eastcheap.

GW6: Oracle Property Manager (OPN) Replacement (MRI Horizon Implementation, Phases 1 and 2)

The Investment Committee was scheduled to discuss a report from the City Surveyor regarding the Oracle Property Manager (OPN) Replacement (MRI Horizon Implementation, Phases 1 and 2).

Delegations Request

The Investment Committee was scheduled to discuss a report from the City Surveyor regarding requests for Delegated Authority to approve investment property transactions.

City Fund & City's Estate: Investment Property Monitoring - Chief Officer Delegation

The Investment Committee was scheduled to discuss a report from the City Surveyor regarding Investment Property Monitoring - Chief Officer Delegation.