Revised Investment Strategy published

24 July 2009

​​The Minister for Treasury and Resources, Senator Philip Ozouf, has published a revised Inv​estment Strategy to help maximise returns from States investments.

The Strategy covers all the main States funds, including the Strategic Reserve, Stabilisation Fund, Social Security (Reserve) Fund, Consolidated Fund, Currency Notes and Coins Fund, and pension funds.

Senator Ozouf said: “Management of the States investments is very important and our strategy must be clear. The aim is to maximise the long-term return from the States assets wherever possible, taking account of both risk and ethical considerations. This comprehensive strategy enables us to move forward in a responsible way and take advantage of market conditions as they change.”

The long-term aim for the Strategic Reserve is to move increasingly into equities. This comes at a time when market values are particularly low and reflects the long-term nature of the fund and the historic performance of equity markets over the longer term.

The Investment Strategy also sets out the Treasury’s intention to establish a ‘Common Investment Fund’. This will allow all States funds, particularly smaller ones, to benefit from a wider range of investment opportunities and the economies of scale that can be obtained by pooling resources.

The Treasury is committed to openness and transparency not least on investment matters. Senator Ozouf commented: “To further improve transparency I intend to report on the performance of the main funds twice a year in future; so in addition to the reporting in the States, annual accounts, an interim report on performance to the end of June will also be published.”

This Investment Strategy has been published as part of a programme aimed at reinforcing the States approach to prudent investment management.