The City of Ottawa wants to create a new board that could put its reserve funds and endowment into a broader range of investments, in the hopes of getting higher returns and do a better job weathering the cost of rising inflation.
Regulations in Ontario have historically meant municipalities have a limited and conservative list of options for investing money for which they don’t have an immediate use.
The provincial government changed the Municipal Act in 2018, however, to allow a “prudent investor regime” — beyond the City of Toronto. A group of nine smaller towns and cities have already begun pooling their money for investing.
The City of Ottawa now intends to create its own “municipal investment board” that will be given the control to manage investments and diversify the city portfolio, and it will recruit appointees.
In a report presented to the finance and economic development committee Tuesday, city finance staff noted Ottawa’s reserve fund of more than $2 billion had an investment return of just 1.18 per cent in 2021, but they hoped to boost returns long term by moving to the new model.
Staff noted “inflation erodes the purchasing power of a municipality over time” and the new regime could help it “mitigate this issue.”
“The city currently holds $2.1 billion in investments of which staff conservatively estimates half could be classified as funds not immediately required and could be invested over a longer term,” staff said in the report.
No member of the finance and economic development committee asked questions on Tuesday before approving the report to create the new investment board.
Coun. Shawn Menard, who is not on the committee, said he was happy to see the city move toward outsourcing authority for investing to an external board. Menard hoped the city would look at refusing to invest in the fossil fuel industry for environmental reasons.
The chief financial officer will now come up with a policy to set out the City of Ottawa’s targeted return on its investment, and the level of risk it is willing to take. That would go before a newly elected city council at the end of 2021.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
