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AA Rayner Fund - Movement of funds.

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A decision made (06/07/2009) regarding: AA Rayner Fund - Movement of funds.

Decision Reference:  MD-TR-2009-0111

Decision Summary Title:

AA Rayner Fund movement of Funds

Date of Decision Summary:

6th July 2009

Decision Summary Author:

Dawn Rabet

Strategic Investments Manager, Treasury

Decision Summary:

Public or Exempt?

Public

Type of Report:

Oral or Written?

N/A

Person Giving

Oral Report:

N/A

Written Report

Title:

Movement of funds from Bank Deposits to Cash Managers

Date of Written Report:

6th July 2009

Written Report Author:

Dawn Rabet

Strategic Investments Manager, Treasury

Written Report :

Public or Exempt?

Public

Subject:

Change in the investments of the Fund from BNP bank deposit to the States Cash managers (RLAM)

Decision(s):

The Minister for Treasury and Resources approved the transfer of AA Rayner Funds of monies held on bank deposit to States Cash Managers, Royal London Asset Management.

Reason(s) for Decision:  

Public Finances (Jersey) Law 2005 and its associated financial directions provides that an instrument established for a special fund or trust can provide for the way the money is invested (Article 6 (5)) 

The Ann Alice Rayner Fund Objects, Purpose and Administration documentation Lodged at the Greffe on 13th March 2001, permits the Finance and Economics Committee (now Treasury and Resources Minister) to make changes in the investments of the Fund as it considers necessary. 

The reason for the decision to move the cash deposits to Cash managers is to maximise the return retaining minimum risk to the Fund in the short term whilst a strategy is being developed for the “Common Investment Fund.”

Resource Implications:

None, other than that indicated in the attached report.

Action required:

Strategic Investments Manager to instruct the Investments team to open up sub accounts with RLAM under the existing agreement and to transfer monies at the next maturity date from BNP.

Signature: 
 
 

Position: Senator P F C Ozouf, Minister for Treasury and Resources 

                 

Date Signed:

Date of Decision:

AA Rayner Fund - Movement of funds.

TREASURY AND RESOURCES department  

Movement of funds from Bank Deposits to Cash Managers 

  1. Purpose of Report

To recommend the movement of cash deposits for Ann Alice Rayner Fund from BNP to the States Cash Managers, Royal London Asset Managers (RLAM). 

  1. Background

The Public Finances (Jersey) Law 2005 and its associated financial directions provides that an instrument established for a special fund or trust can provide for the way the money is invested (Article 6 (5)) 

The Ann Alice Rayner Fund Objects, Purpose and Administration documentation Lodged at the Greffe on 13th March 2001, permits the Finance and Economics Committee (now Treasury and Resources Minister) to may make changes in the investments of the Fund as it considered necessary. 
 

  1. Current Situation and Proposal

The majority of the Fund value is held on short term cash deposits with BNP (approximately £1.1m), due to the current economic situation.

An overall strategy is being developed for the investments of Special Funds (which includes A.A. Rayner Fund) into a Common Investment Fund.

As an interim measure; in order to maximise investment returns for the Fund maintaining the current risk and cash requirement profile; advice has been sought from the States Investment Adviser (Hewitt) and the recommendation is to move funds to the States Cash Managers’ (RLAM).  

Funds will then be invested in cash based investments, under the existing States agreement with RLAM, held in a separately identifiable account.

All returns on these cash based investments will be reinvested in the AA Rayner Fund.

    

  1. Recommendation

To transfer cash deposits held at BNP, at the next available maturity date to the States Cash managers (RLAM). 
 
 
 

Dawn Rabet

Strategic Investments Manager

Treasury & Resources Department 

 

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