Dear Auction Proceeds Drafting Team, Following our last Drafting Team call, Erika and I in our work as Board Liaisons to the DT committed to getting language to clarify the status of the auction proceeds, their management, and investment status. As Co-Chair of the Board Finance Committee (BFC), I am sending the language below drafted together with ICANN Chief Financial Officer (CFO), Xavier Calvez, in reply to this request: ³The auction proceeds collected prior to the .WEB auction are held in a dedicated investment account with an investment manager that also manages the new gTLD program currently unused application fees, but in a separate account. The .WEB auction proceeds are currently held in a separate/dedicated bank account, until they are invested. Our usual practice for all investments held (Reserve Fund, and new gTLD investments, auction proceeds investments) has been that any gain (or loss) affects the capital, and therefore any return is immediately reinvested and becomes part of the capital. The funds invested are managed as per investment policies approved by the Board. The funds included in the Reserve Fund are managed as per ICANN¹s Investment Policy and the new gTLD related funds (application fees and auction proceeds) are managed by the New gTLD Investment Policy (both are available on ICANN.org <http://icann.org/> : https://www.icann.org/resources/pages/general-2014-01-06-en) <https://www.icann.org/resources/pages/general-2014-01-06-en)> . Both policies are conservative, but the New gTLD policy is even more conservative since the funds are held temporarily, with a short to mid-term investment horizon. On this basis, and considering the current level of interest rates across the world (close to 0, or negative in a few countries), the returns on these funds are very low as well.² I trust this is useful, however, if you do have any questions, please let us know. Best wishes, Asha and Erika