States of Jersey Investment Strategy: Amendment

Information about the publication of Ministerial Decisions

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision
providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made on 28 November 2014:

Decision Reference: MD-TR-2014-0141
Decision Summary Title:	Amendment to the States of Jersey Investment Strategy Document		Date of Decision Summary:	26 November 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 Strategy Document		Date of Written Report:	26 November 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 Minister approved the amended ‘States of Jersey Investment Strategies’ and decided to present the updated document 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 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. The Strategy of the Housing Development Fund (‘HDF’) is under review following receipt of updated drawdown assumptions proposed by Andium as well as updated figures reflecting the achieved rates on the issued bond and rates to be charged on issued loans. Due to the higher proportion of the fund being drawn down over a very short period, holding equity significantly increases the chance of the portfolio becoming insolvent as the fund will have insufficient time to recover from any potential losses. While a full strategic review is performed, the investment advisor has recommended crystallising gains from some existing classes which moves our allocation away from the strategic range. To allow the Treasury to act on such advice the following line has been added to the HDF strategy while the strategy is reviewed and updated: “The Investment Strategy of Housing Development Fund is subject to a rolling quarterly re-assessment process, in line with the recommendations of the States of Jersey Investment Advisor, as published on p99 of the 2015 draft budget statement. Consequently, under advice from the States of Jersey Investment Advisor, the Fund is permitted to periodically crystallise gains made by asset classes or make strategic allocations which can result in short term movements away from published strategy.”
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: Senator A J H Maclean, Minister for Treasury and Resources
Date Signed:		Date of Decision: