Item - 2017.EX26.18

The Executive Committee recommends that:  

 
1.  City Council receive the report (June 1, 2017) from the Deputy City Manager and Chief Financial Officer for information.

This report provides information on the City's 2016 investment returns. In 2016, the City's investment portfolio of $5.1 billion earned $130.4 million and yielded a return of approximately 2.6 percent. This portfolio holds the City's working capital and the amounts designated for the City's reserves and reserve funds. The investment results for other funds, such as sinking, pension and trust funds are reported separately.

In compliance with the Regulation, a record of each transaction in the City's own securities is listed in Attachment 1 of this report.

Under the current Ontario legislation, municipalities are permitted to invest in either short-term money market fixed income securities or long-term bonds under prescribed rules. Municipalities are limited in investing in equities, only through the One Equity Portfolio (jointly administered by Association of Municipalities of Ontario and The Municipal Finance Officers' Association).

Effective January 1, 2018, the City's investments will be managed according to the "Prudent Investor" standard. This will broaden the City's investment portfolio to a variety of asset classes and it is expected that the City will earn a higher risk-adjusted return on its investments over time.