Decision details

City Funds

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: Yes

Decision:

1. Cabinet authorised entry into City Funds LP, a Limited Partnership established to support the One City Project operating within the structure detailed in the report and appendices.

 

2. Cabinet approved the investment of £5.0m into the City Funds for a initial term of 10 years with an option to extend for a further (+1), (+1) years (maximum 12 years) years with an anticipated return on investment of 4% p.a. net of fees.

 

3. Cabinet authorised the Director of Finance and Director of Legal & Democratic Services to finalise the terms of the required legal agreements (including the limited partnership agreement) for the investment in the City Funds LP.

 

4. Cabinet authorised the Director of Finance in consultation with and Director of Policy and Strategy to agree a common framework and timing for the annual impact report for the City Fund.

 

5. Cabinet acknowledged the limited involvement of the Council in City Fund investment decisions and that these will be made by the regulated Fund Manager, albeit in line with the approved investment policy.

 

6. Cabinet authorised the Director of Finance and Director of Legal & Democratic Services in consultation with the Deputy Mayor, Cabinet Member for Finance, Governance & Performance, to finalise the terms of the Investment Policy for the City Fund.

 

7. Cabinet delegated authority to the Deputy Mayor, Cabinet Member for Finance & Governance to be appointed as the Council’s representative on the Investment Advisory Committee and to appoint a suitably qualified officer to the Investment advisory Committee.

 

8. Cabinet authorised the Director of Finance in consultation with the Deputy Mayor, Cabinet Member for Finance, Governance & Performance, to agree the phased release of the investment to the City Funds.

 

9. Cabinet delegated authority to the Director of Finance in consultation with the Deputy Mayor, Cabinet Member for Finance, Governance & Performance to give the required notice at year 5 for release and repayment of the funds at year 10 or consider annually the extension of the period of investment for a period of up to a further 2 years (12 years in total).

 

Report author: Denise Murray

Publication date: 02/07/2019

Date of decision: 02/07/2019

Decided at meeting: 02/07/2019 - Cabinet

Effective from: 10/07/2019

Accompanying Documents: