City Investments Show Modest First Quarter Gains
The financial markets may be down but the City of Moose Jaw was able to eek out a gain on their investments albeit below the cost of rising inflation.
At their most recent meeting Council received and filed the Investment Committee minutes. Minutes which showed modest returns on the City’s investments as well as a financial drawdown to bolster the 2022 - 2023 Operating Budget.
The Investment Committee reported the following:
Moderate-Term Pool – Portfolio Value $29,484,772.85; 1st Quarter Return (2.51%).
Long-Term Pool – Portfolio Value $79,922,131.98; 1st Quarter Return (4.77%).
At the present time the Consumer Price Index (CPI) for Canada is 6.8 percent from April 2021 to April 2022. The CPI is based on a fixed basket of goods and services designed according to international standards and methods.
Councillor Dawn Luhning told Council that the moderate pool had gains of just over two percent “which isn’t too bad” given how the market has been faring in the last little while.
“We are continuing to do no bad through these tumultuous times keeping in mind the City of Moose Jaw is a corporation and we have a very different outlook than individuals do when you are investing your money as an individual. So this is a very, very long process. The City of Moose Jaw will exist long after I am here and long after the rest of us are here,” Councillor Luhning told Council.
Additionally the report stated $2.71 million in cash from the Long-Term Portfolio is being invested in the City of Moose Jaw’s Operating Account.
The Investment Committee also decided to invest $2 million into iShares Global Quality Dividend over time. The funds will come from the Long Term Investment Pool.