Investment Report - Quarter 2 Financial Update (2016)

Investment earnings on the portfolio for the second quarter of 2016 amounted to $3,775,725. Segmented earnings were: $3,283,405 on primary portfolio investments, $409,258 on the cash balance, and $83,062 on sinking fund investments.

The second quarter annualized yield on the investment and cash portfolio was 2.67 per cent versus 2.56 per cent in Q4 2015. At June 30, 2016 the portfolio had unrealized market gains (market value versus book value including accrued interest) of $13,014,961.

Total net investment income for 2016 to date is favourable when compared to the budget by $1,401,306.

Quarterly Gross Investment Income

	Q1	Q2	Q3	Q4	Total
2016 Budget (Net)	$ 2,616,395	$ 2,927,036	$ 3,126,321	$ 3,505,368	$ 12,175,120
2016 Actual (Net)	3,319,848	3,624,888	3,126,321	3,505,368	13,576,426
Variance	$ 703,453	$ 697,852	$ -	$ -	$ 1,401,306

Note: Net amounts are after budgeted transfers from Investment Income Stabilization Reserve ($190,092) , Hospital Contribution Reserve ($459,608), as well as an annual transfer of interest income to the Development Charge/Rate Reserves ($915,107). These annual transfers are allocated on a monthly basis.

Institution	Investment by Institution	Percentage Holdings
Investments
Corporate	$ 182,655,159	39.8%
Municipal	76,058,343	16.6%
Provincial	184,969,442	40.3%
Federal	-	0.0%
Region of Niagara	15,260,767	3.3%
Total excluding Cash	458,943,711	100.0%
Cash
General Checking *	27,270,565
Savings	65,810,466
Sinking Fund	44,062
Total including Cash	$ 552,068,804

*Cash balances shown are the amounts held by the financial institution at the end of the quarter and do not include adjustments for outstanding payments or deposits. Balances include unrealized exchange gains on U.S. funds of $547,219.

Funds	Book Value	Weight Q2
Cash	$ 93,081,031	16.9%
Cash Equivalents < 1 Year	57,323,261	10.4%
2 Year	40,267,514	7.3%
3 Year	44,050,187	8.0%
4 Year	45,563,032	8.3%
5+ Year	261,836,871	47.4%
Sinking Fund (Incl. Cash)	9,946,908	1.8%
Total Portfolio	$ 552,068,804	100%

List of Investments Outstanding as of June 30, 2016

Institution	Investment by Institution	Percentage Holdings *
Corporate
Bank of Montreal	$ 59,287,058	12.9%
Bank of Nova Scotia	20,200,000	4.4%
Canadian Imperial Bank of Commerce	-	0.0%
HSBC Bank of Canada	17,600,000	3.8%
National Bank of Canada	44,900,000	9.8%
Royal Bank of Canada	40,668,101	8.9%
Corporate Total	182,655,159	39.8%
Municipal
City of Guelph	999,283	0.2%
City of London	1,999,188	0.4%
City of Montreal	5,136,834	1.1%
City of Ottawa	5,681,299	1.2%
City of Quebec	2,276,280	0.5%
City of Saskatoon	3,331,220	0.7%
City of Toronto	12,544,398	2.7%
District of Muskoka	175,709	0.0%
Municipal Finance Authority of British Columbia	10,960,250	2.4%
New Brunswick Municipal Finance Authority	6,363,271	1.4%
Region of Durham	283,167	0.1%
Region of Halton	1,517,810	0.3%
Region of Peel	3,524,123	0.8%
Region of Waterloo	11,438,793	2.5%
Region of York	5,216,186	1.1%
York Region District School Board	4,610,533	1.0%
Municipal Total	76,058,343	16.6%
Provincial
Province of Ontario	40,543,405	8.8%
Province of Quebec	25,575,679	5.6%
Province of British Columbia	3,066,305	0.7%
Province of Alberta	1,192,080	0.3%
Province of Manitoba	17,375,740	3.8%
Province of Nova Scotia	14,331,325	3.1%
Province of Newfoundland	22,960,536	5.0%
Province of New Brunswick	3,978,872	0.9%
Province of Prince Edward Island	1,468,189	0.3%
Ontario Hydro	35,988,094	7.8%
Quebec Hydro	18,489,218	4.0%
Provincial Total	184,969,442	40.3%
Federal
Export Development Canada	-	0.0%
Federal Total	-	0.0%
Region of Niagara Debentures	15,260,767	3.3%
Total excluding Cash	458,943,711	100.0%
Cash and Cashable Guaranteed Investment Certificates	93,125,093
Total including Cash	$ 552,068,804

Holding Type	Policy Percentage Limits
Corporate	50%
Municipal	25%
Provincial	75%
Federal	100%
Region of Niagara Debentures	100%