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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%
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