ICANN Resolutions » Investment Policy Updates
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Whereas, the Board Finance Committee (BFC) requested that an outside expert review the ICANN Investment Policy and New gTLD Investment Policy (the Investment Policies) to ensure it is appropriate for ICANN.
Whereas, the outside expert completed a review of the ICANN Investment Policies and concluded that overall the Investment Policies continue to support well the conservative philosophy of ICANN's investment strategy.
Whereas, the outside expert recommended that modifications be made to the Investment Policies that enhance and clarify some provisions, which do not change the overall investment strategy.
Whereas, the BFC has evaluated and recommended the addition to the Investment Policies of Environmental, Social, & Governance (ESG) investment criteria that further enhance risk mitigation, and are consistent with ICANN's investment principles.
Resolved (2019.11.07.11), the Board adopts the revised ICANN Investment Policies.
In furtherance of its due diligence in regard to ICANN's Investment Policies the Board Finance Committee (BFC) requested ICANN organization to review the Policies. For this purpose, ICANN org engaged the services of an independent expert (Consultant). As a result of its review process, the Consultant recommended a few modifications to the Investment Policies, intended to: (i) update the policies to include language to add the Secured Overnight Financing Rate (SOFR) to the investment policies as a well-recognized money market index; and (ii) add Environmental, Social, & Governance (ESG) investment criteria. The ESG criteria meets the ICANN Investment Policies' parameters and recommended that it be added to the investment policies and that ESG would have comparable yield and performance.
The Consultant presented the analysis and the suggested changes to the Investment Policies related to SOFR and ESG investment to the BFC during its meeting on 13 June 2019. The evaluation of ESG provided an overview of the benefits of ESG investment criteria and the specifics of the current investment managers. These proposed modifications to the Investment Policies will enable the investment manager to optimize the investment strategies in line with the Investment Policies.
Adopting the suggested modifications is expected to be in the best interest of ICANN and the ICANN community in that it is meant to enhance and clarify certain aspects of ICANN's investment strategy while optimizing potential returns within acceptable risk parameters. This will support ICANN in meeting its mission, and in serving the public interest. 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