Investment Report - Quarter 4 Financial Update (2016)

Investment earnings on the portfolio for the fourth quarter of 2016 amounted to $3,876. Segmented earnings were $3,320 on primary portfolio investments, $461 on the cash balance, and $96 on sinking fund investments.

The fourth quarter annualized yield on the investment and cash portfolio was 2.83 per cent vs. 2.62 per cent in Q3 2016. At December 31, 2016 the portfolio had unrealized market gains (market value vs. book value including accrued interest) of $1,838.

Total net investment income for 2016 to date is favourable when compared to the budget by $1,598..

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	3,716	13,773
Variance	$703	$698	$(13)	$210	$1,598

Note: Net amounts are after budgeted transfers from Investment Income Stabilization Reserve ($190) , Hospital Contribution Internal Loan ($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	$168,877	38.2%
Municipal	70,781	16.0%
Provincial	194,388	44.0%
Federal	-	0.0%
Region of Niagara	8,202	1.9%
Total excluding Cash	442,248	100.0%
Cash
General Checking *	30,375
Savings	70,278
Sinking Fund	201
Total including Cash	$543,102

*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 $794,661.

Funds	Book Value	Weight Q2
Cash	$100,653	18.5%
Cash Equivalents < 1 Year	34,039	6.3%
2 Year	35,459	6.5%
3 Year	52,875	9.7%
4 Year	27,242	5.0%
5+ Year	282,680	52.0%
Sinking Fund (Incl. Cash)	10,154	1.9%
Total Portfolio	$543,102	100%

List of Investments Outstanding as of December 31, 2016 (in thousands of dollars)

Institution	Investment by Institution	Percentage Holdings *
Corporate
Bank of Montreal	$54,029	12.2%
Bank of Nova Scotia	20,200	4.6%
Canadian Imperial Bank of Commerce	-	0.0%
HSBC Bank of Canada	17,600	4.0%
National Bank of Canada	43,900	9.9%
Royal Bank of Canada	33,148	7.5%
Corporate Total	168,877	38.2%
Municipal
City of Guelph	-	0.0%
City of London	999	0.2%
City of Montreal	5,124	1.2%
City of Ottawa	5,677	1.3%
City of Quebec	2,279	0.5%
City of Saskatoon	3,331	0.8%
City of Toronto	9,023	2.0%
County of Wellington	851	0.2%
District of Muskoka	176	0.0%
Municipal Finance Authority of British Columbia	10,933	2.5%
New Brunswick Municipal Finance Authority	5,861	1.3%
Region of Durham	277	0.1%
Region of Halton	1,518	0.3%
Region of Peel	3,523	0.8%
Region of Waterloo	11,435	2.6%
Region of York	5,211	1.2%
York Region District School Board	4,560	1.0%
Municipal Total	70,781	16.0%
Provincial
Province of Ontario	36,069	8.2%
Province of Quebec	26,013	5.9%
Province of British Columbia	3,115	0.7%
Province of Alberta	1,211	0.3%
Province of Manitoba	18,659	4.2%
Province of Nova Scotia	14,578	3.3%
Province of Newfoundland	40,942	9.3%
Province of New Brunswick	4,020	0.9%
Province of Prince Edward Island	1,492	0.3%
Ontario Hydro	36,069	8.2%
Quebec Hydro	12,221	2.8%
Provincial Total	194,388	44.0%
Federal
Federal Total	-	0.0%
Region of Niagara Debentures	8,202	1.9%
Total excluding Cash	442,248	100.0%
Cash and Cashable Guaranteed Investment Certificates	100,855
Total including Cash	$543,102

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