Historical Resolution Tracking Feature » 2012-12-20 - New gTLD Funds Investment Policy

Important note: 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.

2012-12-20 - New gTLD Funds Investment Policy

Resolution of the ICANN Board
Topic: 
New gTLD Funds Investment Policy
Summary: 

Board adopts the New gTLD Funds Investment Policy.

Category: 
gTLDs
Meeting Date: 
Thu, 20 Dec 2012
Resolution Number: 
2012.12.20.21
URL for Resolution: 
http://www.icann.org/en/groups/board/documents/resolutions-20dec12-en.htm#2.e
Status: 
Complete
Implementation Actions: 
  • None
Resolution Text: 

Whereas, ICANN wants to take measures so that the new gTLD funds remain first and foremost safeguarded and liquid during the period of implementation of the program.

Whereas, ICANN has solicited external advice to design an investment policy that adheres to these objectives, while taking measures towards achieving a reasonable return.

Whereas, the Board Finance Committee has reviewed the New gTLD Funds Investment Policy suggested, has met with the advisor (by phone), and has recommended to the Board that the policy be adopted.

Resolved (2012.12.20.21), the Board adopts the New gTLD Funds Investment Policy.

Rationale for Resolution: 

ICANN has collected approximately US$355 million of application fees from applicants for generic top-level domains (gTLDs) in the New gTLD Program (net from pre-reveal withdrawals). The purpose of these application fees is to cover the costs of implementing the GNSO's Policy on new gTLDs through the New gTLD Program. Because of this specific usage of the funds, as well as the specific timeframe associated with such usage, a specific investment policy is called for to support the adequate investment of such funds for the time they will be held.

ICANN selected Bridgebay Investment Consultant Services to assist in the design of a specific investment policy for management the funds held for the New gTLD Program. The New gTLD Fund Investment Policy has been designed to enabling safeguarding, liquidity, and a reasonable return on investment during the period of time the funds are invested.

The Board Finance Committee reviewed the proposed New gTLD Funds Investment Policy and has met with the advisor, and concluded that the proposed policy does satisfy its stated goals. Accordingly, the Board Finance Committee recommended that the Board approve the proposed New gTLD Funds Investment Policy. The Board agrees with the BFC's conclusions and recommendation.

The suggested policy is not expected to have any direct effect on the public, except that the Applicants and the ICANN community may have a better understanding and transparency into how the New gTLD funds are being managed. The New gTLD Funds Investment Policy is expected to have a fiscal impact to the extent that the funds will be earning some return on investment during the period of time that the funds are invested. The creation of the New gTLD Funds Investment Policy will not have any impact on the security, stability and resiliency of the domain name system.

This is an Organizational Administrative Function not requiring public comment.

Other Related Resolutions: 
Additional Information: