Treasury and Resources
Ministerial Decision Report
Amendment to the States of jersey Investment Strategy
- Purpose of Report
Amendment of the States of Jersey Investment Strategies and presentation to the States.
- 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.
- 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.”
- 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.
- 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.
- 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 |