MOOSE JAW — The City of Moose Jaw’s investment portfolios gained more than $2 million during the fourth quarter of 2024, which was nearly $3 million less than the previous quarter.
During city council’s Feb. 24 regular meeting, the investment committee presented a report with the fourth-quarter results. Council then voted unanimously to receive and file the document.
The report showed there was $84,536,849 in the long-term portfolio and $26,833,230.58 in the moderate-term portfolio as of Dec. 31, 2024, for a total of $111,370,079.58.
Long-term portfolio
From Oct. 31 to Dec. 31, 2024, the long-term portfolio increased by 2.35 per cent and gained $1,940,410.28. This increased the portfolio to $84,536,849 from $82,596,438.57.
The year’s total percentage increase for this portfolio was 14.9 per cent and the gains were $11,037,492.52.
Moderate-term portfolio
The report showed that from Oct. 31 to Dec. 31, 2024, the moderate-term portfolio increased by 1.73 per cent and gained $456,141.16. This increased the portfolio to $26,833,230.58 from $26,377,089.42.
The year’s total percentage increase for this portfolio was 10.17 per cent and the gains were $2,529,293.5.
Combined, both portfolios gained $2,396,551.44 during the fourth quarter, which is equal to roughly 6.8 percentage points of municipal taxation; one percentage point of taxation last year was $352,448.77.
In comparison, both portfolios gained $5,366,249.30 during the third quarter of 2024; the difference from the third to the fourth quarters was $2,969,697.86.
Since their inception in July 2019, both portfolios have produced a total return of $37,315,739.37 in earnings, equal to a municipal tax hike of roughly 105.8 percentage points.
Also, since inception, the moderate-term portfolio return has been 5.29 per cent and the long-term portfolio has been 7.35 per cent, both above the targeted thresholds of 4.25 per cent and six per cent, respectively.
Investment committee meeting
The minutes from the investment committee show that members authorized investment manager RBC Dominion Securities (RBCDS) to transfer $9.5 million from the moderate-term portfolio to the short-term portfolio to help fund a new landfill.
Furthermore, the committee authorized RBCDS to transfer $4.1 million from managed investments in the moderate-term portfolio so the city can use the money for funding the new landfill.
Members also authorized the investment manager to replace the Edgepoint Global Equity Portfolio with a U.S. Mid Cap Equity Portfolio that Blackrock manages.
Council comments
Coun. Chris Warren said that earning more than $37 million in investment earnings since 2019 was “incredible,” while he commended administration and the committee for managing those portfolios.
“You hear a lot in the community about the healthy reserves we have and this is exactly the benefit to the community,” he continued. “That is $37 million in earnings that is reducing the amount that we need to look back at our citizens and residents to fund our programs. Amazing!”
Warren then asked why the committee wanted to replace the Edgepoint Global Equity Portfolio with a U.S. Mid Cap Equity Portfolio.
Coun. Dawn Luhning, the committee rep, said Edgepoint has been a volatile stock for years and lacks “downside protection” from those fluctuations.
Chiming in, finance director Brian Acker said that particular fund has not performed well during the past five years.
The next regular council meeting is Monday, March 10.
