The City of Moose Jaw’s stock investments lost over $500,000 during the third quarter of this year, while both portfolios have lost more than $14 million year-to-date.
During city council’s Nov. 14 regular meeting, council received the investment committee’s report with results from Q3 of 2022. Council then voted unanimously to receive and file the document.
The report showed from July 1 to Sept. 30, the moderate-term portfolio decreased by 0.24 per cent and lost $56,737.57. This dropped the portfolio to $23,712,577.23 from $23,769,314.80.
Year-to-date, the portfolio has declined 7.80 per cent.
Long-term portfolio
From July 1 to Sept. 30, the long-term portfolio decreased by 0.71 per cent and lost $476,818.34, the report showed. This dropped the portfolio to $66,994,498.29 from $67,471,316.63.
Year-to-date, the portfolio has declined by 13.79 per cent.
Combined, both portfolios lost $533,555.91 during the third quarter, equal to about 17 percentage points in municipal taxation.
One percentage point this year equalled $310,755.26 in municipal taxation.
Coun. Dawn Luhning, a member of the investment committee, explained that 4.25 per cent is the annual return percentage objective for the moderate-term portfolio. However, that number stands at 3.06 per cent.
Furthermore, six per cent is the annual return percentage objective for the long-term portfolio. Yet, since its inception, the return has been 3.31 per cent.
Meanwhile, the city has an extra $2,716,000 of long-term portfolio money invested in its bank account, providing a return of 4.35 per cent. That money will return to the actual portfolio once money manager RBC Dominion Securities selects a longer-term investment option for those funds.
“The first three quarters of 2022 is seeing the financial markets experience volatility, and this is something the city expects and has anticipated in its investment policy,” said Luhning.
These investments are different from the money that individuals contribute because there is usually an endpoint for the latter investments, whereas a corporation — such as Moose Jaw — has an unending lifespan, she continued.
Even though the losses are difficult to take — and have been for everyone — the markets “always go up,” and there are opportunities for the municipality to invest in bonds and GICs that will be beneficial in the short term.
The committee takes a long-term view on investments, which allows the city to weather short-term market downturns, Luhning said. The committee has also structured the investments so there are liquid assets — such as GICs — that will mature during the next few years. This ensures the committee doesn’t have to sell equities and bonds during this downturn.
“The city’s investment manager will be re-balancing the moderate- and long-term portfolios when there is strength in the market to a neutral asset mix, adding … bonds and quality dividend funds,” she added.
The next regular council meeting is Monday, Nov. 28.
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.
