States of Jersey Investment Strategies: Amendment

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A decision made on 18 October 2019

Decision Reference: MD-TR-2019-0100
Decision Summary Title:	Amendment to the ‘States Investment Strategies’ document.		Date of Decision Summary:	16th October 2019
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 ‘States Investment Strategies’ document		Date of Written Report:	16th October 2019
Written Report Author:	Head of Treasury and Investment Management		Written Report : Public or Exempt?	Public
Subject: The amendment of the ‘States Investment Strategies’ document and presentation to the States.
Decision(s): The Minister approved the amended ‘States Investment Strategies’ document. The Minister decided to present the updated document to the States.
Reason(s) for Decision: Paragraph 25 of the Public Finances (Jersey) Law 2019, (sub paragraph 1) states the Minister may cause any money of the States or money held by the States or a States body to be invested and (sub paragraph 3) the Minister must present to the States an investment strategy in respect of any money to be invested, and must do the same for any amendment to the strategy. Under advice from the Treasury Advisory Panel following consultation with Aon, the States Investment Advisor, a number of changes to the Investment Strategy were recommended. Changes to the Strategy are as follows: An investment strategy for the Jersey Reclaim Fund has been modified. The Strategy has been prepared in line with the objectives of the Fund and in consultation with the Minister for External Relations and his issued distribution policy. The portfolio holds a diverse mix of assets designed to meet a distribution target but also ensure a sufficient value of the Fund is protected meet its expected liabilities. The liabilities of the Fund reflect the expected level of drawings which might reasonably be expected from Banks who subsequently identify customers of dormant accounts previously paid into the Fund. The investment strategy for the Stabilisation Fund has been reviewed and modified, the portfolio seeks to hold only UK Gilts, which are expected to protect the value of the Fund and provide liquidity in the event of significant market turmoil or economic downturn. Once approved by the Minister in accordance with the Law the Investment Strategy document should be presented to the States.
Resource Implications: There are no resource implications from this decision. Any costs stemming from strategy changes will be met from sale proceeds and are expected to be minimal. The changes to strategy will be administered as part of the ongoing responsibilities within the Treasury & Investment Management Team.
Action required: The Head of Financial Governance to advise the Head of Treasury and Investment Management when the decision has been signed. The Greffier of the States is requested to arrange for the attached Strategy to be presented to the States. The Treasury and Investment Management Team will ensure changes are implemented.
Signature:		Position: Deputy S J Pinel, Minister for Treasury and Resources
Date Signed:		Date of Decision: