States of Jersey Investment Strategies: Amendment and Presentation to the States

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A decision made 30 October 2013:

Decision Reference: MD-TR-2013-0097
Decision Summary Title:	Amendment to the States of Jersey Investment Strategy		Date of Decision Summary:	24 October 2013
Decision Summary Author:	Head of Treasury and Investment Management		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Amendment to the States of Jersey Investment Strategy		Date of Written Report:	24 October 2013
Written Report Author:	Head of Treasury and Investment Management		Written Report : Public or Exempt?	Public
Subject: The amendment of the States of Jersey Investment Strategies and presentation to the States.
Decision(s): The Minister approved the amended ‘States of Jersey Investment Strategies’; and decided to request the document be presented to the States at the earliest opportunity.
Reason(s) for decision:. In compliance with Regulation 3 of the Public Finances (Transitional Provisions) (No. 2) (Jersey) Regulations 2005, detailed investment strategies are maintained within the ‘States of Jersey Investment Strategies’ for all monies to which Regulation 3(1) applies. These investment strategies include a strategic asset allocation detailing the allotment of monies across investment classes. The Common Investment Fund (“CIF”) allows Funds to access to the various investment classes through investment ‘Pools’ in order to meet their respective strategies. The States of Jersey Investment Strategies also contain a strategy for each Pool. In accordance with the Regulation 4, as soon as practical after the Minister has prepared the Investment Strategy, or any review of it, the Minister must present it to the States. The States of Jersey Investment Strategies document has been updated and the following key changes have been made: i.) The investment strategy for the Consolidated Fund was amended, as recommended by the Investment Advisor, to more efficiently invest the significant cash holdings of the Fund. ii.) The description of the CIF has been updated to include reference to the Pooled UK Property Pool as an ‘alternative’ asset class; individual fund strategies referencing alternatives have been updated to make reference to this class. iii.) The description of the CIF has been updated to include reference to the proposed emerging market equity asset class anticipated to be introduced in 2014. iv.) The Jersey Teacher Superannuation Fund Strategy has been updated to more clearly define its ability to participate in the CIF.
Resource Implications: None.
Action required: Greffier of the States is requested to arrange for the attached States of Jersey Investment Strategies to be presented to the States at the earliest opportunity.
Signature:		Position: Senator P. F.C. Ozouf, Minister for Treasury and Resources
Date Signed:		Date of Decision:

States of Jersey Investment Strategies: Amendment and Presentation to the States

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Treasury and Resources

Ministerial Decision Report

Amendment to the States of jersey Investment Strategy

Purpose of Report

The amendment of the States of Jersey Investment Strategies and presentation to the States.

Background

In compliance with Regulation 3 of the Public Finances (Transitional Provisions) (No. 2) (Jersey) Regulations 2005, detailed investment strategies are maintained within the ‘States of Jersey Investment Strategies’ for all monies to which Regulation 3(1) applies. These Investment Strategies include a strategic asset allocation detailing the allotment of monies across investment classes.

Regulation 4 states that as soon as practical after the Minister has prepared the investment strategy, or any review of it, the Minister must present it to the States.

Amendments to the States of Jersey Investment Strategy Document:

The ‘States of Jersey Investment Strategies’ document has been updated and the following key changes have been made:

i.) The investment strategy for the Consolidated Fund was amended, as recommended by the Investment Advisor, to more efficiently invest the significant cash holdings of the Fund.

ii.) The description of the CIF has been updated to include reference to the Pooled UK Property Pool as an ‘alternative’ asset class; individual fund strategies referencing alternatives have been updated to make reference to this class.

iii.) The description of the CIF has been updated to include reference to the proposed emerging market equity asset class anticipated to be introduced in 2014.

iv.) The Jersey Teacher Superannuation Fund Strategy has been updated to more clearly define its ability to participate in the CIF.

All changes were subject to advice from the States of Jersey Investment Advisor. The Minister will lodge the updated States of Jersey Investment Strategies for presentation to the States.

Recommendation

It is recommended the Minister approve the amended ‘States of Jersey Investment Strategies’ document and as lodge for presentation to the States.

Reason for Decision

In compliance with Regulation 3 of the Public Finances (Transitional Provisions) (No. 2) (Jersey) Regulations 2005, detailed investment strategies are maintained within the ‘States of Jersey Investment Strategies’ for all monies to which Regulation 3(1) applies. These investment strategies include a strategic asset allocation detailing the allotment of monies across investment classes.

The Common Investment Fund (“CIF”) allows Funds to access to the various investment classes through investment ‘Pools’ in order to meet their respective strategies. The States of Jersey Investment Strategies also contain a strategy for each Pool.

In accordance with the Regulation 4, as soon as practical after the Minister has prepared the Investment Strategy, or any review of it, the Minister must present it to the States.

Resource Implications

None.

Report author : Head of Treasury and Investment Management	Document date : 24 October 2013
Quality Assurance / Review : Director of Treasury Operations	File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DSs, WRs and SDs\2013-0097 -\MD report Updated Investment Strategy.doc
MD sponsor : Director of Treasury Operations