ICANN Resolutions » Operating Fund Investment Policy Update

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Operating Fund Investment Policy Update


Resolution of the ICANN Board
Meeting Date: 
Thu, 22 Jul 2021
Resolution Number: 
2021.07.22.06
Resolution Text: 

Whereas, the Operating Fund includes the funds used for ICANN's day-to-day operations and must contain enough funds to cover a minimum of three months of ICANN organization's operating expenses.

Whereas, the Supplemental Fund for Implementation of Community Recommendations (SFICR) allows ICANN to segregate resources in support of increasing the capacity of the organization to address projects that are multi-year and focus on community recommendations that are approved or soon to be adopted by the Board but do not fit within the annual budget.

Whereas, both ICANN organization and the Board Finance Committee have recommended that the Board approve an update to the ICANN Investment Policy to allow funds in the Operating Fund and SFICR to be invested in long-term investment instruments with moderate returns and a moderate liquidity level in order to outpace inflation while maintaining a low level of risk.

Resolved (2021.07.22.06), the Board approves the revised ICANN Investment Policy that, as revised, allows funds in the Operating Fund and SFICR to be invested in long-term, moderate-yield, and moderately liquid investment instruments.

Rationale for Resolution: 

As part of ICANN's Investment Policy, the Operating Fund should be at a level of funds to cover a minimum of three months of ICANN organization's operating expenses, and that any amount determined to be in excess may be transferred to either the Reserve Fund, to ensure its balance is at or above the minimum target level, or the SFICR to increase the capacity of the organization to address projects that are multi-year and focus on community recommendations that are approved or soon to be adopted by the Board but cannot fit within the annual budget. In order to outpace inflation while maintaining a low level of risk, ICANN organization and the Board Finance Committee (BFC) recommended that funds in the Operating Fund and SFICR be invested in long-term investment instruments with moderate returns and a moderate liquidity level.

ICANN org and the BFC recommended this change because funds in the Operating Fund and SFICR are currently not being invested as their eligible investments would not yield worthwhile return. Hence, these funds are not keeping up with inflation and are therefore losing value. The ICANN Investment Policy revisions would allow investments in long-term and moderately liquid instruments, enabling ICANN org to achieve some return and outpace inflation while maintaining a low level of risk due to the nature of the instruments.

Adopting the suggested modifications to the ICANN Investment Policy is in the best interest of ICANN and its community because it will expand the available investment options to optimize potential returns within acceptable risk parameters, which is also consistent with ICANN's mission.

This action is very likely to have a positive financial impact on ICANN in that the additional investment options should yield higher earnings. This action will not have an impact on the security, stability, or resiliency of the domain name system.

This is an Organizational Administrative function that does not require public comment.