To:
Audit and Finance Committee
Agenda Section:
Division:
Department:
Matters for Consideration
Corporate Performance
Finance
Item Number:
AUC - 16-016
Meeting Date:
December 8, 2016
Subject:
Investment Policy
Recommendation
That Item AUC 16-016, dated December 8, 2016 regarding the Investment Policy, be
received; and
That the updated Investment Policy attached as Schedule 1 to Item AUC 16-016, be
approved.
Executive Summary
The County’s financial responsibilities include the establishment of financial policies, procedures
and By-laws. This Item recommends changes to the Investment Policy.
The proposed Investment Policy has been updated to reflect current regulatory standards. The
policy has been enhanced by incorporating improved terminology and clarity of each component.
The authorized investments and sector limitations have been updated to reflect the use of The One
investment program and incorporates other types of investments that are included in the current
regulations. The Policy proposed complies with all applicable legislative requirements.
Background/Analysis/Options
The investment policy objective is to invest public funds in a manner that will provide the highest
investment return with the maximum security while meeting the daily cash flow demands of the
County and conforming to all legislation governing the investment of public funds.
Staff propose that the following changes summarized below be incorporated into the Investment
Policy. These proposed changes enhance the reporting relationship between the investment agent
December 8, 2016
Audit and Finance Committee - AUC 16-016
Page 2
and County management by improving the definitions for the eligible investments, maturity and
incorporating performance standards.
The changes include the following:

Scope - the itemized list of funds has been replaced with “all funds”

Authority – the section has been removed to reduce redundancy as the authority is
provided by legislation per regulation as set out in the Municipal Act, 2001. O.Reg 438/97.

Competitive selection of investments – the section has been removed. All investment
transactions are executed by an agent. Each investment is assessed based on the
objectives outlined in the policy (Section 4) and criteria that is set out in the Municipal Act,
2001. O.Reg 438/97

Safekeeping and Custody – the section has been added to provide more clarity and
reflect current standards.

Eligible Investments - the following paragraph “In terms of publically trades shares and
longer term debt of Canadian corporations the County must enter into an agreement with
the Local Authority Services Limited and the CHUMS Financing Corporation acting together
as the municipality’s agent for investing in “One – The Public Sector Group of Funds, as
circumstances dictate” has been replaced with “In terms of publically traded shares and
longer term debt of Canadian corporations the County must enter into an agreement with
the Local Authority Services Limited and the CHUMS Financing Corporation acting together
as the municipality’s agent for investing the security”

Investment Parameters – This section has been divided into smaller parts and replaced
with Diversification, Maximum Maturity and Performance Standards to provide more
clarity and reflect current standards.

Reporting Requirements – the policy includes “at least annually” to reflect the
requirements as set out in the Municipal Act, 2001. O.Reg 438/97. Management will review
reports on a monthly basis.

Glossary of Terms section has been added to provide the user with improved clarity and
to reflect current standards.

Appendix “A” which is Municipal Act, 2001, Ontario Regulation 438/97 Eligible
Investments and Related Financial Agreements – has been replaced with the most current
version.

Appendix “B” Authorized Investments and Sector Limitations –
The following eligible investments (O.Reg.438/97) have been added to the Authorized
Investments to provide more information or to be considered in future investment decisions:
o
o
o
Federal Guarantees
Schedule III Banks
Asset Backed Securities
Form issued: April 2016
December 8, 2016
o
Audit and Finance Committee - AUC 16-016
Page 3
“Pooled investment funds” has been replaced with the more appropriate “The One
Investment program. Detail list of individual components of this investment has
been added.
Financial and Resource Implications
There are no financial or resource implications associated with this Item.
Relationship to Corporate Strategic Plan
Culture of Workplace and Operational Excellence
 Provides services to residents in a fiscally sustainable and responsible manner
Reference Documents
There are no reference documents associated with this Item.
Attachments
Schedule 1 – POL-FIN-001 Investment Policy (proposed)
Schedule 2 – POL-FIN-001 Investment Policy (current)
Schedule 1 to AUC
16-016.docx
Prepared By
Schedule 2 to
AUC 16-016.pdf
Lealand Sibbick, Treasurer
Approvals
Trevor Wilcox, General Manager, Corporate Performance
Mark Aitken, Chief Administrative Officer
Date
November 29, 2016
November 29, 2016
Form issued: April 2016