Treasury and Resources
Ministerial Decision Report
Amendment to the States of jersey Investment Strategy DOCUMENT
- Purpose of Report
The amendment of the States of Jersey Investment Strategy and presentation to the States.
- Background
Regulation 3 of the Public Finances (Transitional Provisions) (No.2) (Jersey) Regulations 2005 charges the Minister to develop and to invest in accordance with the investment strategy.
Regulation 4(1) states the, 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 Common Investment Fund (“CIF”) allows Funds to access the various investment classes through investment ‘Pools’ in order to meet their respective strategies. The States of Jersey Investment Strategy also contain a strategy for each Pool.
- Amendments to the States of Jersey Investment Strategy Document
The States of Jersey Investment Strategy document has been updated to include:
An investment strategy for the Housing Development Fund; this strategy serves to manage the proceeds from the recent bond issuance to balance the need for preservation of capital value of the fund which reflects the undrawn monies allocated to the Social Housing projects.
The investment strategy allocates 25% of the Housing Development Fund portfolio to growth assets, including Equities, Absolute Return Bonds and Property asset classes. The remaining 75% is allocated non growth (risk reducing) assets including Cash, Gilts and Corporate Bonds asset classes.
- Recommendation
It is recommended that the Minister approves the amendment to the States of Jersey Investment Strategy document and present it to the States.
- Reason for Decision
Regulation 3 of the Public Finances (Transitional Provisions) (No.2) (Jersey) Regulations 2005 charges the Minister to develop and to invest in accordance with the investment strategy.
Regulation 4(1) states the, 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 Common Investment Fund (“CIF”) allows Funds to access the various investment classes through investment ‘Pools’ in order to meet their respective strategies. The States of Jersey Investment Strategy also contain a strategy for each Pool.
The States of Jersey Investment Strategy document has been updated to include the following:
An investment strategy for the Housing Development Fund; this strategy serves to manage the proceeds from the recent bond issuance to balance the need for preservation of capital value of the fund which reflects the undrawn monies allocated to the Social Housing projects.
- Resource Implications
There are no additional resource implications from this decision. The changes to strategy will be administered as part of the ongoing responsibilities within the Treasury.
Report author : Head of Treasury and Investment Management | Document date : 16 June 2014 |
Quality Assurance / Review : Director of Treasury Operations | File name and path: \\ois.gov.soj\sojdata\TRY\Treasury\Sections\Corporate Finance\Ministerial Decisions\DSs, WRs and SDs\2014-0059 - Amendment to the States of Jersey Investment Strategy\WR - States of Jersey - updated Investment Strategy June 2014.doc |
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