ICANN Resolutions » Investment of Auction Proceeds
Important note: The Board Resolutions are as reported in the Board Meeting Transcripts, Minutes & Resolutions portion of ICANN's website. Only the words contained in the Resolutions themselves represent the official acts of the Board. The explanatory text provided through this database (including the summary, implementation actions, identification of related resolutions, and additional information) is an interpretation or an explanation that has no official authority and does not represent the purpose behind the Board actions, nor does any explanations or interpretations modify or override the Resolutions themselves. Resolutions can only be modified through further act of the ICANN Board.
Whereas, to date ICANN has collected US$233 million of auction proceeds.
Whereas, the Board Finance Committee has determined that auction proceeds need to be invested in a manner that preserves capital and keeps these funds readily available.
Whereas, the Board Finance Committee recommends that auction proceeds be distributed across three different investment managers, and invested in safe and liquid financial instruments.
Resolved (2016.11.08.05), the Board authorizes the President and CEO, or his designee(s), to take all actions necessary to distribute the auction proceeds across three different investment managers, which will be tasked with investing those proceeds in safe and liquid financial instruments.
To date ICANN has collected auction proceeds totaling US$233 million. ICANN continuously mitigates the risk of custody by distributing investments across more than one investment management firm. Considering the amount of auction proceeds collected to date, the number of firms used to manage these funds need to be increased from the one firm currently used, to three firms. Through an RFP conducted in 2013 for the New gTLD Program, ICANN has already qualified three investment management firms. The auction funds will be distributed across these three firms, in separate and distinct accounts holding exclusively auction proceeds. In addition, considering the intended usage of these funds in the near future, as per the ongoing community process, the BFC has recommended that the managers hold these funds in safe and liquid financial instruments.
As a result, the organization recommends that the auction proceeds be invested at three different investment managers to reduce the risk of custody, and be invested in safe and liquid financial instruments.
This action is not expected to have any fiscal impact, or any impact on the security, stability and resiliency of the domain name system.
This is an Organizational Administrative Function that does not require public comment.