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Updated Investment Strategy (October 2014)

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A decision made on 17 October 2014:

Decision Reference:  MD-TR-2014-0125

Decision Summary Title:

Amendment to the SoJ Investment Strategies Document

Date of Decision Summary:

16 October 2014

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 SoJ Investment Strategies Document

Date of Written Report:

16 October 2014

Written Report Author:

Head of Treasury and Investment Management

Written Report :

Public or Exempt?

Public

Subject: Amendment to the States of Jersey Investment Strategies and presentation to the States.

Decision(s): The Assistant Minister approved the amended ‘States of Jersey Investment Strategies’ and decided to present the updated document for presentation to the States.

Reason(s) for decision: In compliance with Paragraph 3 of the Public Finances (Transitional Provisions) (No. 2) (Jersey) Regulations 2005, detailed investment strategies are maintained for all monies to which Paragraph 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 access to 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 Paragraph 4 of the same regulation, 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 to include a paragraph permitting short term movements away from Strategy under advice from the States of Jersey Investment Advisor for operational reasons. The full paragraph is included in the report to this decision.

 

The Assistant Minister will lodge the updated States of Jersey Investment Strategies for presentation to the States.

Resource Implications: None.

Action required:  Greffier of the States is requested to present the attached report to the States Treasury and Investment Management Team to ensure changes are implemented.

Signature:

 

 

 

Position: Deputy E J Noel, Assistant Minister for Treasury and Resources

Date Signed:

 

Date of Decision:

Updated Investment Strategy (October 2014)

 - 1 -

Treasury and Resources

Ministerial Decision Report

 

 

Amendment to the States of jersey Investment Strategy

 

  1. Purpose of Report

Amendment of the States of Jersey Investment Strategies and presentation to the States.

 

  1. Background

In compliance with Paragraph 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 Chapter 1 of that regulation applies. These Investment strategies include a strategic asset allocation detailing the allotment of monies across investment classes.

 

Paragraph 4 of the same regulation, 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.

 

  1. Amendments to the States of Jersey Investment Strategy Document:

The States of Jersey Investment Strategies document has been updated to include a paragraph permitting short term movements away from Strategy under advice from the States of Jersey Investment Advisor for operational reasons. The added paragraph has been included below:

 

Operational movements from Strategy:

At times it may be necessary for Funds to move away from the strategic allocation detailed within their Investment Strategy for operational reasons. An example of this would be the removal of an investment manager who has been downgraded by the Investment Advisor necessitating the liquidation of that managers assets with little notice. In this case assets would be held in existing asset classes on a temporary basis until a new manager can be appointed.

 

These movements will not be deemed a breach of Strategy, but a timetable for replacement of the manager in order to facilitate movement back to within strategic ranges must be tabled with the Treasury Advisory Panel as soon as is administratively feasible.”

 

  1. Recommendation

It is recommended the Assistant Minister approve the amended ‘States of Jersey Investment Strategies’ and to request presentation of the updated document to the States.

 

  1. Reason for Decision 

In compliance with Paragraph 3 of the Public Finances (Transitional Provisions) (No. 2) (Jersey) Regulations 2005, detailed investment strategies are maintained for all monies to which Paragraph 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 access to 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 Paragraph 4 of the same regulation, 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 to include a paragraph permitting short term movements away from Strategy under advice from the States of Jersey Investment Advisor for operational reasons. The full paragraph is included in the report to this decision.

 

The Assistant Minister will lodge the updated States of Jersey Investment Strategies for presentation to the States.

 

  1. Resource Implications

None.

 

Report author : Head of Treasury and Investment Management

Document date : 16 October 2014

Quality Assurance / Review : Director of Treasury Operations

File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DSs, WRs and SDs\2014-0125 - Updated Investment Strategy Oct 2014\WR - Updated Investment Strategy Oct 2014.doc

MD sponsor : Director of Treasury Operations

 

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