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ICANN Resolutions » Investment management – Adjustments to the account structure

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.

Investment management – Adjustments to the account structure


Resolution of the ICANN Board
Topic: 
Board approval to the changes of the new gTLD application fees investments accounts
Summary: 

Request for the Board to approve the consolidation of the existing three investment accounts to two which will hold and manage the funds resulting from new gTLD application fees collected

Category: 
Administration and Budget
Board
gTLDs
Meeting Date: 
Sun, 26 Apr 2015
Resolution Number: 
2015.04.26.25-2015.04.26.26
Resolution Text: 

Whereas, the Board approved in previous years the new gTLD Investment Policy and the creation of three different investment accounts to hold and manage the funds resulting from new gTLD application fees collected.

Whereas, the new gTLD Investment Policy requires that, when the aggregate amount of remaining new gTLD funds reaches $150 million, those remaining funds be managed by two investment firms instead of three.

Whereas, the new gTLD remaining funds amount to US$171 million as of 31 March 2015.

Whereas, auction proceeds have been collected for a total (net of auction costs) of approximately US$59 million.

Resolved (2015.04.26.25), the Board authorizes the President and CEO, or his designee(s), to take all actions necessary to consolidate the new gTLD remaining funds with two of the three existing investment managers.

Resolved (2015.04.26.26), the Board authorizes the President and CEO, or his designee(s), to take all actions necessary to invest the proceeds generated through the last resort auctions in the New gTLD Program in a segregated investment management account.

Rationale for Resolution: 

By the end of June 2012, and pursuant to the New gTLD Investment Policy (available at https://www.icann.org/resources/pages/investment-policy-new-gtld-2013-01...), the application fees received in the first application round in the New gTLD Program have been invested in investment accounts at three different investment firms. The Board-approved New gTLD Investment Policy includes a provision requiring that once the remaining funds under management reach $150 million, only two investment managers should be used. The current level of remaining new gTLD funds is US$171 million (as of 31 March 2015), and therefore is approaching the US$150 million threshold.

Separately, net auction proceeds gathered through the last resort auctions within the New gTLD Program of US$59 million have been collected over the past eight months and kept in a separate bank account. These funds need to be invested until the mechanism for disposition of the auction funds is determined.

As a result, the Board Finance Committee has approved a staff recommendation that that: (1) the remaining new gTLD funds are consolidated into two investment managers, as required by the of the New gTLD Investment Policy; and (2) the third investment manager (i.e., the investment manager that will no longer have New gTLD application funds under management) will be requested to create a new investment account, dedicated to managing auction proceeds received through the New gTLD Program.

This decision is in line with prior Board actions on the management of application fees collected within the New gTLD Program. This decision has no impact on the security, stability and resiliency of the Internet DNS.

This is an Organizational Administrative Function that does not require public comment at this stage.