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Information and public services for the Island of Jersey

L'înformâtion et les sèrvices publyis pouor I'Île dé Jèrri

Investment Advisor: Extension of Contract

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A decision made 20 January 2023;

Decision Reference:  MD-TR-2023-849

Public

Subject: Extension of investment advisor contract

 

Report Title: Extension of contract for the investment advisor to the Common Investment Fund.

Exempt (Article 26)

Decision(s):

The Minister decided to approve a 3-year extension of the contract with Aon Solutions UK Limited ("Aon"), the current investment advisor to the Common Investment Fund, and to delegate the signing of the Amendment Letter to the Treasurer of the States.

Reason for Decision(s):

Under Article 25 of the Public Finances (Jersey) Law 2019, the Minister for Treasury and Resources must consult a person who is suitably qualified to provide investment advice in preparing an investment strategy. In addition, the Treasurer must, in consultation with a person who is suitably qualified to provide investment advice, ensure that the investment of any money under this Article is done in accordance with the Minister’s investment strategy.  The extension of this contract fulfils the requirements of the Public Finances (Jersey) Law 2019. In November 2022, the Treasury Advisory Panel (‘TAP’) undertook its annual service review with the senior executive of Aon, in the knowledge that the contract was due for renewal. As a result of the review, TAP concluded that it continued to be satisfied with the performance of Aon and supported their re-appointment as investment advisor.  There are significant benefits to maintaining a consistent long-term view of portfolio structure from the same investment advisor to avoid costly churn of underlying managers which may be many multiples of the advisor’s fees.

Resource Implications: There are no direct resource implications resulting from this decision. Any investment costs, including the fees charged by a person qualified to provide investment advice, can be withdrawn from the States Funds in accordance with the Public Finances (Jersey) Law 2019.

 

Action Required: The Head of Financial Governance to advise the Director of Treasury and Investment Management when the decision and the Amendment Letter are signed. The Director of Treasury and Investment Management to share the signed Amendment Letter with the investment advisor.

Signature:

 

 

Signed By: Minister for Treasury and Resources

Date Signed:

 

 

Date of Decision (If different from Date Signed):

 

 

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