Investment Report - Quarter 3 Financial Update (2016)
(in thousands of dollars)

Investment earnings on the portfolio for the third quarter of 2016 amounted to $3,776. Segmented earnings were $2,786 on primary portfolio investments, $392 on the cash balance, and $96 on sinking fund investments.

The third quarter annualized yield on the investment and cash portfolio was 2.62 per cent vs. 2.67 per cent in Q2 2016. At September 30, 2016 the portfolio had unrealized market gains (market value vs. book value including accrued interest) of $12,115.

Total net investment income for 2016 to date is favourable when compared to the budget by $1,388.

Quarterly Gross Investment Income

	Q1	Q2	Q3	Q4	Total
2016 Budget (Net)	$ 2,616	$ 2,927	$ 3,126	$ 3,505	$ 12,175
2016 Actual (Net)	3,320	3,625	3,113	3,505	13,563
Variance	$ 703	$ 698	$ (13)	$ -	$ 1,388

Note: Net amounts are after budgeted transfers from Investment Income Stabilization Reserve ($190) , Hospital Contribution Reserve ($460), as well as an annual transfer of interest income to the Development Charge/Rate Reserves ($915). These annual transfers are allocated on a monthly basis.

Institution	Investment by Institution	Percentage Holdings
Investments
Corporate	$183,364	41.2%
Municipal	72,527	16.3%
Provincial	181,444	40.7%
Federal	-	0.0%
Region of Niagara	8,201	1.8%
Total excluding Cash	445,537	100.0%
Cash
General Checking *	18,770
Savings	80,657
Sinking Fund	44
Total including Cash	$ 545,008

*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 $584.

Funds	Book Value	Weight Q2
Cash	$99,427	18.2%
Cash Equivalents < 1 Year	54,064	9.9%
2 Year	35,779	6.6%
3 Year	40,549	7.4%
4 Year	39,378	7.2%
5+ Year	265,838	48.8%
Sinking Fund (Incl. Cash)	9,972	1.8%
Total Portfolio	$545,008	100%

List of Investments Outstanding as of June 30, 2016

* Note: Holdings by security percentages exclude cash balances.

Institution	Investment by Institution	Percentage Holdings *
Corporate
Bank of Montreal	$57,017	12.8%
Bank of Nova Scotia	20,200	4.5%
Canadian Imperial Bank of Commerce	-	0.0%
HSBC Bank of Canada	17,600	4.0%
National Bank of Canada	45,900	10.3%
Royal Bank of Canada	42,647	9.6%
Corporate Total	183,364	41.2%
Municipal
City of Guelph	1,000	0.2%
City of London	1,999	0.4%
City of Montreal	5,131	1.2%
City of Ottawa	5,679	1.3%
City of Quebec	2,278	0.5%
City of Saskatoon	3,331	0.7%
City of Toronto	9,067	2.0%
District of Muskoka	176	0.0%
Municipal Finance Authority of British Columbia	10,947	2.5%
New Brunswick Municipal Finance Authority	6,362	1.4%
Region of Durham	280	0.1%
Region of Halton	1,518	0.3%
Region of Peel	3,524	0.8%
Region of Waterloo	11,437	2.6%
Region of York	5,214	1.2%
York Region District School Board	4,585	1.0%
Municipal Total	72,527	16.3%
Provincial
Province of Ontario	35,829	8.0%
Province of Quebec	25,794	5.8%
Province of British Columbia	3,091	0.7%
Province of Alberta	1,201	0.3%
Province of Manitoba	17,515	3.9%
Province of Nova Scotia	14,455	3.2%
Province of Newfoundland	23,149	5.2%
Province of New Brunswick	3,999	0.9%
Province of Prince Edward Island	1,480	0.3%
Ontario Hydro	36,279	8.1%
Quebec Hydro	18,652	4.2%
Provincial Total	181,444	40.7%
Federal
-	-	0.0%
Federal Total	-	0.0%
Region of Niagara Debentures	15,260,767	3.3%
Total excluding Cash	445,537	100.0%
Cash and Cashable Guaranteed Investment Certificates	99,471
Total including Cash	$ 545,008

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