Jersey Teachers' Superannuation Fund: Delegation of Certain Functions from Management Board to the Treasurer of the States

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A decision made 18 May 2017:

Decision Reference: MD-TR-2017-0064
Decision Summary Title:	JTSF Management Board delegation of investment powers		Date of Decision Summary:	15th May 2017
Decision Summary Author:	Head of Investment Management and Pensions		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	JTSF Management Board delegation of investment powers		Date of Written Report:	15th May 2017
Written Report Author:	Head of Investment Management and Pensions		Written Report : Public or Exempt?	Public
Subject: The delegation of certain investment powers of the Jersey Teachers’ Superannuation Fund (JTSF) Management Board to the Treasurer of the States of Jersey.
Decision(s): The Minister decided to approve the delegation of the responsibility for the appointment, termination and monthly operational monitoring of investment managers for the JTSF from the JTSF Management Board to the Treasurer of the States of Jersey.
Reason(s) for decision: Under the Teachers’ Superannuation (Jersey) Law 1979, Article 2 (paragraph 2A & B), the Management Board requires the consent of the Minister for Treasury and Resources to delegate “any power, duty or function relating to the investment of money in the fund”. Under the Public Finances (Transitional Provisions) (No. 2) (Jersey) Regulations 2005 Article 5 & 6 the Treasurer must ensure that any investments made are properly managed, controlled and accounted for and that the Treasurer must appoint any investment manager. The CIF is managed under this regulation and the JTSF Management Board is requesting permission to delegate the responsibility of these investment powers to the Treasurer, to bring the JTSF assets in line with the CIF. Accordingly the Management Board is asking the Minister to consent to delegate the responsibility for the appointment, termination and monthly operational monitoring of investment managers for the JTSF from the JTSF Management Board to the Treasurer of the States of Jersey On 31 July 2013 the assets of JTSF were transferred into the States of Jersey Common Investment Fund (CIF). At that time the JTSF Management Board were unwilling to transfer responsibility for appointing and terminating investment managers. Having experienced the workings of the CIF, the Management Board are now confident to delegate some of their powers. Additionally the structure of the CIF has changed so that investment pools are split by asset class as opposed to investment manager. Going forward the Management Board will retain the ability to allocate assets to a CIF pool but the responsibility for the appointment, termination and monthly operational monitoring of investment managers within the pool will lie with the Treasurer of the States of Jersey. This decision was agreed by the JTSF Management Board at their meeting on 29 March 2017.
Resource Implications: All expenses are paid from investment holdings of the funds.
Action required: The Head of Decision Support to advise the Head of Investment Management and Pensions that this decision has been approved so he can advise the JTSF Management Board
Signature:		Position: Senator A J H Maclean, Minister for Treasury and Resources
Date Signed:		Date of Decision: