HomeMy WebLinkAboutFIN 09-19r/ „j
DICKERING
Report to
Executive Committee
Report Number: FIN 09-19
Date: June 17, 2019
From: Stan Karwowski
Director, Finance & Treasurer
Subject: Investment Portfolio Activity for the Year Ended December 31, 2018
Ontario Regulation 438/97 under the Municipal Act, 2001
Recommendation: It is recommended that report FIN 09-19 of the Director,
Finance & Treasurer regarding Investment Portfolio Activity for the Year Ended
December 31, 2018 be received for information.
Executive Summary: The following report and attachments represent a summary
of the investment activity and year end balance in the portfolio. Investment activity for
the year 2018 was based on a portfolio of approximately $165.5 million. Current Fund
investments are limited to one year or less and Reserve Funds to 10 years or less
under the Council approved policy. Overall returns on the City's portfolio compare
favourably to market benchmarks.
Financial Implications: Total investment income, including bank account interest for
2018 was $2.85 million (2017 - $1.77 million) of which $1.30 million (2017 - $751,000)
was for Current (Operating) Funds. The balance of the income was allocated to the
various reserve funds.
Discussion: The City's investment portfolio is comprised of two main components:
(i) Reserve Funds; and
(ii) Balances available in the Current Fund, when not required to meet current
operating expenditures. This latter balance can vary greatly depending upon
many factors including the timing of the receipt of property taxes and levy
payments to the School Boards and the Region.
Investments are undertaken as one consolidated pool of funds and interest earned is
credited back to the appropriate funds.
FIN 09-19 June 17, 2019
Subject: Investment Portfolio Activity for the Year Ended December 31, 2018 Page 2
Ontario Regulation 438/97 under the Municipal Act, 2001
The Treasurer of the City of Pickering is required under Provincial Regulation 438/97 to
report certain information and opinions to Council. The schedules to this report are
included as part of that Regulation's information requirements. The portfolio balance at
December 31, 2018 of $165.5 million (2017 - $164.1 million) has increased nominally
over the prior year.
The return on the portfolio maintained with Nesbitt Burns increased in 2018 with a
weighted yearly rate of return of 1.56 per cent (2017 — 0.89 per cent) on the combined
short-term and long-term investments. This was a result of a steady increase in interest
rates throughout 2018.
The net performance on TD Wealth's portion of the portfolio for 2018 was 1.79 per cent
(2017 — 1.83 per cent). This slight increase is attributed to the types of investments
being held. The portion of the portfolio invested with TD Wealth primarily consists of
one year Guaranteed Investment Certificates (GIC). Interest rates are higher than the
interest rates for Banker's Acceptances and the one year term protects the City from
fluctuations in interest rates, but GIC's are less liquid than these other investment
instruments.
Investment parameters are narrow due to the Municipal Act and regulations limiting the
selection of qualified investments for municipal entities. Furthermore, staffs approach
tends to be conservative, given that they are investing public money. Notwithstanding
these restrictions, the annual returns from both Nesbitt Burns and TD Wealth
outperformed the annual returns for the CIBC World Markets 91 -Day T -Bill Index (1.15
per cent) and the Morningstar Canadian Money Market Mutual Fund Index (1.20 per
cent). These indices are deemed to be comparative benchmarks for reviewing the
portfolio's performance and are considered the standard for analysis of investment
funds in the industry.
The average return on interfund investments (internal loans) was 2.42 per cent (2017 —
2.32 per cent).
At year end 2018, the total portfolio of approximately $165.5 million, consisted of
approximately $63.8 million or 38.5 per cent in external long-term investments and
approximately $2.0 million or 1.2 per cent in interfund investments (internal loans). The
balance of approximately $99.7 million is short-term investments due within the year.
All investments were made in accordance with the Investment Policy approved by
Council. In the future, staff will be considering the inclusion of credit unions in the pool
of investment options, that meet the investment criteria as stated in Ontario Regulation
438/97.
FIN 09-19 June 17, 2019
Subject: Investment Portfolio Activity for the Year Ended December 31, 2018 Page 3
Ontario Regulation 438/97 under the Municipal Act, 2001
Attachments:
1. Investment Activities for 2018
2. Outstanding Investments as at December 31, 2018
3. Portfolio Performance Review - Correspondence from BMO Nesbitt Burns
4. Portfolio Performance - Correspondence from TD Wealth
Prepared By:
Kristine Senior
Manager, Accounting Services
Approved/Endorsed By:
Stan Karwowski
Director, Finance & Treasurer
Recommended for the consideration
of Pickering City Council
Tony Prete
Chief Administrative Officer
CITY OF PICKERING INVESTMENT ACTIVITIES FOR 2018
Financial Purchase Maturity
Institution Instrument Cost Principal Yield Term Date Date
Short Term
Nesbitt Burns Toronto Dominion Bank Bdn Discount Note 7,474,050 7,500,000 1.196% 106 25 -Sep -17 9 -Jan -18
Firstbank Bankers Acceptance 5,373,318 5,389,000 1.158% 92 4 -Oct -17 4 -Jan -18
Firstbank Bankers Acceptance 7,170,784 7,192,000 1.200% 90 10 -Oct -17 8 -Jan -18
Firstbank Bankers Acceptance 3,689,714 3,700,000 1.183% 86 25 -Oct -17 19 -Jan -18
Firstbank Bankers Acceptance 6,397,971 6,416,000 1.143% 90 24 -Nov -17 22 -Feb -18
Bank of Nova Scotia Bankers Acceptance 6,263,476 6,281,000 1.122% 91 27 -Nov -17 26 -Feb -18
Bank of Nova Scotia Bankers Acceptance 6,036,475 6,053,000 1.148% 87 1 -Dec -17 26 -Feb -18
Bank of Nova Scotia Bankers Acceptance 8,401,002 8,424,000 1.148% 87 1 -Dec -17 26 -Feb -18
Toronto Dominion Bank Bankers Accept. 6,049,978 6,068,000 1.236% 88 4 -Dec -17 2 -Mar -18
Toronto Dominion Bank Bankers Accept. 6,306,706 6,326,000 1.241% 90 5 -Dec -17 5 -Mar -18
Firstbank Bankers Acceptance 7,701,593 7,725,000 1.233% 90 27 -Dec -17 27 -Mar -18
Firstbank Bankers Acceptance 14,999,052 15,038,000 1.231% 77 28 -Dec -17 15 -Mar -18
Toronto Dominion Fixed Rate Deposit Note 10,065,202 10,026,000 2.171% 181 3 -Oct -17 2 -Apr -18
Bank of Nova Scotia 10,008,891 10,015,000 1.330% 210 3 -Oct -17 1 -May -18
Firstbank Bankers Acceptance 5,431,509 5,449,000 1.336% 88 4 -Jan -18 2 -Apr -18
Firstbank Bankers Acceptance 7,191,335 7,215,000 1.397% 86 8 -Jan -18 4 -Apr -18
Toronto Dominion Bank Bankers Accept. 7,538,749 7,565,000 1.428% 89 17 -Jan -18 16 -Apr -18
Firstbank Bankers Acceptance 3,699,305 3,712,000 1.392% 90 19 -Jan -18 19 -Apr -18
Firstbank Bankers Acceptance 6,453,917 6,476,000 1.403% 89 22 -Feb -18 22 -May -18
Royal Bank of Canada Bankers Acceptance 6,808,196 6,833,000 1.461% 91 26 -Feb -18 28 -May -18
CIBC Bankers Acceptance 6,974,590 7,000,000 1.461% 91 26 -Feb -18 28 -May -18
Bank of Nova Scotia Bankers Acceptance 6,974,590 7,000,000 1.461 % 91 26 -Feb -18 28 -May -18
Firstbank Bankers Acceptance 6,453,917 6,476,000 1.403% 89 22 -Feb -18 22 -May -18
Firstbank Bankers Acceptance 6,067,528 6,090,000 1.438% 94 2 -Mar -18 4 -Jun -18
Firstbank Bankers Acceptance 6,327,077 6,350,000 1.437% 62 5 -Mar -18 6 -May -18
Firstbank Bankers Acceptance 7,604,754 7,632,000 1.453% 90 15 -Mar -18 13 -Jun -18
Firstbank Bankers Acceptance 7,605,445 7,633,000 1.453% 91 15 -Mar -18 14 -Jun -18
Firstbank Bankers Acceptance 7,760,680 7,787,000 1.491 % 83 29 -Mar -18 20 -Jun -18
Bank of Nova Scotia 1/4 Bankers Acceptance 5,979,480 6,000,000 1.456% 86 4 -Apr -18 29 -Jun -18
Firstbank Bankers Acceptance 5,431,431 5,451,000 1.461% 90 4 -Apr -18 3 -Jul -18
FirstbankBankersAcceptance 5,431,158 5,451,000 1.465% 91 4 -Apr -18 4 -Jul -18
Firstbank 1/4 Bankers Acceptance 5,977,920 6,000,000 1.465% 92 4 -Apr -18 5 -Jul -18
Bank of Nova Scotia Bankers Acceptance 7,599,319 7,628,000 1.514% 91 16 -Apr -18 16 -Jul -18
Toronto Dominion Bank Bankers Accept. 3,711,599 3,724,000 1.452% 84 19 -Apr -18 12 -Jul -18
Firstbank Bankers Acceptance 5,131,254 5,150,000 1.482% 90 1 -May -18 30 -Jul -18
Firstbank Bankers Acceptance 4,882,801 4,900,000 1.478% 87 1 -May -18 27 -Jul -18
Firstbank Bankers Acceptance 6,621,476 6,646,000 1.519% 89 23 -May -18 20 -Aug -18
Royal Bank of Canada Bankers Acceptance 3,986,160 4,000,000 1.457% 87 28 -May -18 23 -Aug -18
CIBC Bankers Acceptance 7,074,369 7,100,000 1.453% 91 28 -May -18 27 -Aug -18
Bank of Nova Scotia Bankers Acceptance 9,771,808 9,808,000 1.486% 91 28 -May -18 27 -Aug -18
Firstbank Bankers Acceptance 6,349,779 6,374,000 1.530% 91 5 -Jun -18 4 -Sep -18
Firstbank Bankers Acceptance 6,114,246 6,138,000 1.541% 92 5 -Jun -18 5 -Sep -18
Firstbank Bankers Acceptance 7,696,039 7,724,000 1.490% 89 13 -Jun -18 10 -Sep -18
Bank of Nova Scotia Bankers Acceptance 7,697,337 7,726,000 1.494% 91 14 -Jun -18 13 -Sep -18
Bank of Nova Scotia Bankers Acceptance 5,450,052 • 5,467,000 1.474% 77 3 -Jul -18 18 -Sep -18
Bank of Nova Scotia Bankers Acceptance 7,786,612 7,816,000 1.531% 90 20 -Jun -18 18 -Sep -18
# IN3WHDVIjV
CITY OF PICKERING INVESTMENT ACTIVITIES FOR 2018
Financial Purchase Maturity
Institution Instrument Cost Principal Yield Term Date Date
Firstbank Bankers Acceptance 5,999,505 6,021,000 1.469% 89 29 -Jun -18 26 -Sep -18
Firstbank Bankers Acceptance 19,379,494 19,402,000 1.514% 28 30 -Aug -18 27 -Sep -18
Firstbank Bankers Acceptance 5,999,450 6,023,000 1.628% 88 5 -Jul -18 1 -Oct -18
Bank of Montreal Bankers Acceptance 5,494,212 5,516,000 1.626% 89 5 -Jul -18 2 -Oct -18
Firstbank Bankers Acceptance 1,069,693 1,074,000 1.651% 89 12 -Jul -18 9 -Oct -18
Firstbank Bankers Acceptance 3,784,572 3,800,000 1.653% 90 12 -Jul -18 10 -Oct -18
Royal Bank of Canada Bankers Acceptance 7,651,958 7,684,000 1.698% 90 17 -Jul -18 15 -Oct -18
Bank of Nova Scotia Bankers Acceptance 4,915,861 4,936,000 1.661% 90 27 -Jul -18 25 -Oct -18
Bank of Nova Scotia Bankers Acceptance 5,150,161 5,171,000 1.641 % 90 31 -Jul -18 29 -Oct -18
Firstbank Bankers Acceptance 6,645,574 6,673,000 1.693% 89 22 -Aug -18 19 -Nov -18
Firstbank Bankers Acceptance 3,999,414 4,016,000 1.701% 89 23 -Aug -18 20 -Nov -18
Firstbank Bankers Acceptance 6,373,248 6,400,000 1.702% 90 4 -Sep -18 3 -Dec -18
Firstbank Bankers Acceptance 6,138,543 6,164,000 1.701% 89 6 -Sep -18 4 -Dec -18
Firstbank Bankers Acceptance 7,723,192 7,756,000 1.704% 91 10 -Sep -18 10 -Dec -18
Toronto Dominion Bank Bankers Accept. 7,725,507 7,757,000 1.691 % 88 13 -Sep -18 10 -Dec -18
Bank of Nova Scotia Bankers Acceptance 4,999,368 5,020,000 1.674% 90 19 -Sep -18 18 -Dec -18
Firstbank Bankers Acceptance 6,027,005 6,052,000 1.701% 89 26 -Sep -18 24 -Dec -18
Firstbank Bankers Acceptance 19,401,839 19,453,000 1.604% 60 27 -Sep -18 26 -Nov -18
Firstbank Bankers Acceptance 19,452,799 19,475,000 1.736% 24 27 -Nov -18 21 -Dec -18
Royal Bank Of Canada 4,942,868 4,915,000 2.980% 225 24 -Sep -18 7 -May -19
Toronto Dominion Bank Dep. Note 3,370,646 3,361,000 2.447% 190 24 -Sep -18 2 -Apr -19
Firstbank Bankers Acceptance 6,022,324 6,049,000 1.738% 93 1 -Oct -18 2 -Jan -19
Firstbank Bankers Acceptance 5,515,569 5,540,000 1.738% 93 2 -Oct -18 3 -Jan -19
Firstbank Bankers Acceptance 1,073,623 1,078,000 1.771% 84 12 -Oct -18 4 -Jan -19
Firstbank Bankers Acceptance 3,799,629 3,816,000 1.808% 87 12 -Oct -18 7 -Jan -19
Toronto Dominion Bank Bankers Accept. 7,784,345 7,819,000 1.817% 92 15 -Oct -18 15 -Jan -19
Firstbank Bankers Acceptance 4,938,331 4,962,000 1.922% 91 25 -Oct -18 24 -Jan -19
Toronto Dominion Bk Bdn Disc. Note 5,170,592 5,196,000 1.929% 93 29 -Oct -18 30 -Jan -19
Toronto Dominion Bank Bankers Accept. 5,438,823 5,465,000 1.952% 90 21 -Nov -18 19 -Feb -19
Bank of Nova Scotia Bankers Acceptance 5,438,889 5,466,000 1.956% 93 21 -Nov -18 22 -Feb -19
Firstbank Bankers Acceptance 6,399,298 6,429,000 1.970% 86 3 -Dec -18 27 -Feb -19
Firstbank Bankers Acceptance 6,163,269 6,192,000 1.978% 86 4 -Dec -18 28 -Feb -19
Toronto Dominion Bank Bankers Accept. 7,820,491 7,859,000 1.997% 90 11 -Dec -18 11 -Mar -19
Bank of Nova Scotia Bankers Acceptance 7,820,151 7,857,000 2.000% 86 11 -Dec -18 7 -Mar -19
Bank of Nova Scotia Bdn Disc. Note 5,073,860 5,097,000 2.030% 82 19 -Dec -18 11 -Mar -19
Firstbank Bankers Acceptance 6,051,302 6,080,000 1.990% 87 24 -Dec -18 21 -Mar -19
T -D Wealth Royal Bank Of Canada GIC 2,097,480 2,097,480 1.300% 365 26 -Jan -17 26 -Jan -18
Royal Bank Of Canada GIC 2,071,618 2,071,618 1.250% 365 23 -Feb -17 23 -Feb -18
TD MTG GIC 2,148,679 2,148,679 1.410% 367 25 -Aug -17 27 -Aug -18
Royal Bank Of Canada GIC 2,124,747 2,124,747 1.850% 367 26 -Jan -18 28 -Jan -19
Royal Bank Of Canada GIC 2,097,513 2,097,513 1.850% 367 23 -Feb -18 25 -Feb -19
Royal Bank Of Canada GIC 2,179,141 2,179,141 2.150% 365 27 -Aug -18 27 -Aug -19
Total Short-term 564,997,223 566,767,178
CITY OF PICKERING INVESTMENT ACTIVITIES FOR 2018
Financial Purchase Maturity
Institution Instrument Cost Principal Yield Term Date Date
Long Term
Nesbitt Burns CIBC Senior Deposit Note 1,890,580 1,908,000 1.660% 727 23 -Jan -18 20 -Jan -20
Bank Of Nova Scotia 5 Yrs. Senior Dep. Note 1,955,045 1,952,000 2.270% 671 13 -Mar -18 13 -Jan -20
Province Of Ontario 1,961,809 1,951,000 2.100% 544 13 -Mar -18 8 -Sep -19
Royal Bank Of Canada 3,146,255 3,135,000 2.350% 623 26 -Mar -18 9 -Dec -19
Bank Of Montreal Fixed Rate Dep. Note 1,842,607 1,832,000 2.840% 631 12 -Sep -18 4 -Jun -20
Bank Of Nova Scotia 7 Yrs. Senior Dep. Note 2,696,047 2,662,000 3.270% 851 13 -Sep -18 11 -Jan -21
C!BC Deposit Note 3,920,425 4,008,000 1.900% 924 15 -Oct -18 26 -Apr -21
Bank Of Montreal Fixed Rate Dep. Note 3,649,702 3,684,000 2.100% 662 14 -Dec -18 6 -Oct -20
Toronto Dominion Bank Dep. Note 2,729,146 2,733,000 2.621% 1,094 24 -Dec -18 22 -Dec -21
Royal Bank Of Canada Sr. Dep. Note 2,478,472 2,497,000 1.920% 571 24 -Dec -18 17 -Jul -20
Bank Of Nova Scotia 5 Yrs. Senior Dep. Note 2,484,711 2,502,000 2.090% 625 24 -Dec -18 9 -Sep -20
Bank Of Montreal Fixed Rate Dep. Note 2,487,941 2,505,000 2.100% 652 24 -Dec -18 6 -Oct -20
C!BC Global Social Dep. Notes 2,708,251 2,694,000 2.900% 995 24 -Dec -18 14 -Sep -21
Royal Bank Of Canada Sr. Dep. Note 2,485,531 2,516,000 2.030% 812 24 -Dec -18 15 -Mar -21
CIBC Deposit Note 1,984,265 2,036,000 1.640% 931 24 -Dec -18 12 -Jul -21
Bank Of Montreal Deposit Note 1,993,874 2,053,000 1.610% 1,039 24 -Dec -18 28 -Oct -21
Total Long-term 40,414,662 40,668,000
Total External Investments
Interfund Investments (Internal Loans)
Total Investment Activity
605,411,885 607,435,178
607,435,178
Long Term Dispositions
Bank of Nova Scotia Senior Dep. Notes 1,899,454 ,1,892,000 2.370% 121 12 -Sep -17 11 -Jan -18 Matured
Cdn Imperial Bk Of Commerce 1,497,976 1,482,000 2.220% 1,807 26 -Mar -13 7 -Mar -18 Matured
Province of Ontario Debenture 2,641,622 2,444,000 4.200% 2,711 5 -Oct -10 8 -Mar -18 Matured
Bank of Nova Scotia 5 Yr.Senior Dep. Notes 1,327,128 1,320,000 2.242% 1,745 11 -Jun -13 22 -Mar -18 Matured
Bank of Nova Scotia 5 Yr. Senior Dep. Notes 1,890,060 1,848,000 2.242% 1,053 4 -May -15 22 -Mar -18 Matured
RBC Sr Dep Note 1,126,569 1,116,000 2.820% 265 20 -Oct -17 12 -Jul -18 Matured
Bank of Nova Scotia Senior Dep. Notes 2,518,250 2,437,000 2.750% 970 17 -Dec -15 13 -Aug -18 Matured
Province of Ontario Series DMTN218 2,791,841 2,712,000 2.100% 906 16 -Mar -16 8 -Sep -18 Matured
Bank of Montreal Fixed Rate Dep. Note. 1,938,875 1,857,000 3.210% 911 16 -Mar -16 13 -Sep -18 Matured
CIBC Deposit Note 3,995,264 3,957,000 1.700% 676 2 -Dec -16 9 -Oct -18 Matured
Royal Bank of Canada 3,808,338 3,665,000 2.770% 1,058 18 -Jan -16 11 -Dec -18 Matured
Total Dispositions 25,435,378 24,730,000
CITY OF PICKERING OUTSTANDING INVESTMENTS AS AT DECEMBER 31, 2018
Financial
Institution Instrument
Short-term Current & Reserve Fund Investments
Nesbitt Burns Royal Bank of Canada
TD Deposit Note
Firstbank Bankers Acceptance
Firstbank Bankers Acceptance
Firstbank Bankers Acceptance
Firstbank Bankers Acceptance
TD Bankers Acceptance
Firstbank Bankers Acceptance
TD Bond Discount Note
TD Bankers Acceptance
BNS Bankers Acceptance
Firstbank Bankers Acceptance
Firstbank Bankers Acceptance
TD Bankers Acceptance
BNS Bankers Acceptance
BNS Bond Discount Note
Firstbank Bankers Acceptance
TD Wealth RBC GIC
RBC GIC
TD MTG GIC
Total Short-term
Long-term Reserve Fund Investments
Nesbitt Burns TD Deposit Note
CIBC Deposit Note
BNS 5 yr Sr Deposit Note
RBC
Province of Alberta
BNS Sr Dep Note
Province of Ontario
CIBC Sr Deposit Note
BNS 5 yr Sr Deposit Note
Province of Ontario
RBC
BMO Fixed Rate Deposit Note
BNS 7 Yr Deposit Note
CIBC Deposit Note
BMO Fixed Rate Deposit Note
RBC Sr Deposit Note
BNS 5 Yr Sr Deposit Note
BMO Fixed Rate Dep Note
Purchase Maturity
Cost Principal Yield Term Date Date
4,930,729.97 4,915,000.00 2.98% 225 24 -Sep -18 7 -May -19
3,365,670.73 3,361,000.00 2.45% 190 24 -Sep -18 2 -Apr -19
6,022,323.91 6,049,000.00 1.74% 93 1 -Oct -18 2 -Jan -19
5,515,568.60 5,540,000.00 1.74% 93 2 -Oct -18 3 -Jan -19
1,073,623.32 1,078,000.00 1.77% 84 12 -Oct -18 4 -Jan -19
3,799,629.36 3,816,000.00 1.81% 87 12 -Oct -18 7 -Jan -19
7,783,345.36 7,819,000.00 1.82% 92 15 -Oct -18 15 -Jan -19
4,938,331.26 4,962,000.00 1.92% 91 25 -Oct -18 24 -Jan -19
5,170,591.56 5,196,000.00 1.93% 93 29 -Oct -18 30 -Jan -19
5,438,822.65 5,465,000.00 1.95% 90 21 -Nov -18 19 -Feb -19
5,438,888.64 5,466,000.00 1.96% 93 21 -Nov -18 22 -Feb -19
6,399,298.02 6,429,000.00 1.97% 86 3 -Dec -18 27 -Feb -19
6,163,269.12 6,192,000.00 1.98% 86 4 -Dec -18 28 -Feb -19
7,820,490.90 7,859,000.00 2.00% 90 11 -Dec -18 11 -Mar -19
7,820,150.67 7,857,000.00 2.00% 86 11 -Dec -18 7 -Mar -19
5,073,859.62 5,097,000.00 2.03% 82 19 -Dec -18 11 -Mar -19
6,051,302.40 6,080,000.00 1.99% 87 24 -Dec -18 21 -Mar -19
2,124,747.00 2,164,270.20 1.85% 367 26 -Jan -18 28 -Jan -19
2,097,513.00 2,136,529.62 1.85% 367 23 -Feb -18 25 -Feb -19
2,179,141.00 2,225,992.53 2.15% 365 27 -Aug -18 27 -Aug -19
99,207,297.09 99,707,792.35
1,795,585.45 1,790,000.00 2.45% 868 15 -Nov -16
3,538,781.74 3,522,000.00 2.35% 927 9 -Dec -16
3,569,574.98 3,543,000.00 2.40% 1053 9 -Dec -16
2,307,158.28 2,294,000.00 2.98% 788 10 -Mar -17
2,442,797.85 2,439,000.00 2.00% 614 25 -Sep -17
3,668,771.12 3,663,000.00 2.46% 455 14 -Dec -17
1,846,898.77 1,825,000.00 4.40% 534 15 -Dec -17
1,898,774.81 1,908,000.00 1.66% 727 23 -Jan -18
1,953,715.43 1,952,000.00 2.27% 671 13 -Mar -18
1,955,987.03 1,951,000.00 2.10% 544 13 -Mar -18
3,141,196.38 3,135,000.00 2.35% 623 26 -Mar -18
1,840,758.15 1,832,000.00 2.84% 631 12 -Sep -18
2,691,686.09 2,662,000.00 3.27% 851 13 -Sep -18
3,927,723.10 4,008,000.00 1.90% 924 15 -Oct -18
3,650,582.73 3,684,000.00 2.10% 662 14 -Dec -18
2,478,699.40 2,497,000.00 1.92% 571 24 -Dec -18
2,484,904.81 2,502,000.00 2.09% 625 24 -Dec -18
2,488,124.10 2,505,000.00 2.10% 652 24 -Dec -18
Interest
Payable Dates
2 -Apr -19 Apr 2 & Oct 2
24 -Jun -19 Jun 24 & Dec 24
28 -Oct -19 Apr 28 & Oct 28
7 -May -19 May 7 & Nov 7
1 -Jun -19 Jun 1 & Dec 1
14 -Mar -19 Mar 14 & Sept 14
2 -Jun -19 Jun 2 & Dec 2
20 -Jan -20 Jan 20 & Jul 20
13 -Jan -20 Jan 13 & Jul 13
8 -Sep -19 Mar 8 & Sept 8
9 -Dec -19 Jun 9 & Dec 9
4 -Jun -20 Jun 4 & Dec 4
11 -Jan -21 Jan 11 & Jun 11
26 -Apr -21 Apr 26 & Oct 26
6 -Oct -20 Apr 6 & Oct 6
17 -Jul -20 Jan 17 & Jul 17
9 -Sep -20 Mar 9 & Sept 9
6 -Oct -20 Apr 6 & Oct 6
CITY OF PICKERING OUTSTANDING INVESTMENTS AS AT DECEMBER 31, 2018
Financial
Institution Instrument
CIBC Global Social Dep Notes
RBC Senior Note
CIBC Deposit Notes
BMO Deposit Note
TD Deposit Note
TD Wealth National Bank Extendible Step Up
CIBC Deposit Note
Total Long-term
Total External Investments
Interfund Investments (Internal Loans)
Development Charge Reserve Fund
Purchase
Cost Principal Yield Term Date
2,708,151.00 2,694,000.00 2.90% 995 24 -Dec -18
2,485,793.90 2,516,000.00 2.03% 812 24 -Dec -18
1,984,654.22 2,036,000.00 1.64% 931 24 -Dec -18
1,994,271.95 2,053,000.00 1.61% 1039 24 -Dec -18
2,729,171.13 2,733,000.00 2.62% 1094 24 -Dec -18
2,000,000.00 2,000,000.00 2.70% 3653 6 -Nov -15
2,099,000.00 2,099,000.00 2.50% 3653 18 -Nov -15
63,682,762.42
162,890,059.51
63,843,000.00
163,550,792.35
Maturity Interest
Date Payable Dates
14 -Sep -21 Mar 14 & Sept 14
15 -Mar -21 Mar 15 & Sept 15
12 -Jul -21 Jan 12 & Jul 12
28 -Oct -21 Apr 28 & Oct 28
22 -Dec -21 Jun 22 & Dec 22
6 -Nov -25 Nov 6
18 -Nov -25 May 18 & Nov 18
1,986,799.00 1.83% to 2.64% various various various
Total as at December 31, 2018 165,537,591.35
ATTACHMENT# TO REPORT#
BMO Wealth Management
BMO Nesbitt Burns
Mr. Stan Karwowski
Division Head, Finance and Treasurer
Corporate Services Department, City of Pickering
1 The Esplanade, Pickering, ON L1V 6K7
Dear Stan,
May 10, 2019
Account Reference: The Corporation of the City of Pickering Account # 36543206-10
The following is an overview of City of Pickering Investment Account at BMO Wealth Management, BMO Nesbitt
Burns. The review includes the rates of return for the account for Calendar 2018 as well as historical annual '
rates of return for the previous 14 years dating back to 2004. Additionally I have also included both Economic
and Capital Markets commentary for 2018 and comments and discussion looking forward in 2019 from some of
BMO Capital Markets top analysts and strategists.
The Big Fade
Canada
Sal Guatieri, Senior Economist January 4, 2019
The Canadian economy performed largely as expected in 2018 with estimated annual growth of around 2.1%
falling just shy of our call at the start of the year. This would mark a sharp slowdown from the prior year's 3.0%
pace as three driving forces—the oil price recovery, supportive financial conditions and enhanced child benefit
payments— all faded. Rising interest rates corralled household credit to the slowest pace since 1983, slicing the
rate of consumer spending almost in half to around 2%. New auto sales reversed 8% in 2018 from record highs.
After bolting out of the gate, business investment slowed, initially due to ,mounting uncertainty about NAFTA
and then to rising concern about a global trade war. Tougher mortgage rules also took the wind out of the
previous high -flying Vancouver and Toronto housing markets. On the plus side, exports benefitted from stronger
U.S. demand and a weaker currency, while the federal government kept the spending taps open, despite a
sizeable budget deficit. Moreover, the recent Business Outlook Survey showed surprisingly positive sentiment
and intentions to increase spending and hiring.
Growth is expected to ebb further to 1.8% in 2019 owing to depressed oil prices, Alberta's mandatory crude
output cuts, a slower. U.S. and global economy, and GM's Oshawa plant closure. While Alberta's output cuts
have helped shrink the discount on Western Canadian Select crude to a more normal $16 from a record above
$50, the main issue is that WTI prices fell 25% in 2018 amid a whopping 40% plunge in the last three months of
the year to $46 a barrel. OPEC reductions should support a partial recovery in WTI prices this year to an average
of $59. Led by weakness in the energy sector, growth in business spending is expected to slip below 2% in 2019
from an estimated 5% in 2018, despite support from the accelerated depreciation allowance and (the assumed)
approval of the USMCA by the new U.S. Congress. Consumer spending growth will downshift further to below
2%. Home sales and prices are unlikely to rise this year, while housing starts should decelerate from elevated
levels that have been supported by the fastest population growth in 27 years. The good news is that the
economy should expand enough to keep the jobless rate hovering near its four -decade low of 5.6%.
After raising rates 75 basis points in 2018, the Bank of Canada has turned cautious as it tries to discern the
impact of lower oil prices and tighter financial conditions on the economy. Low inflation -all three of the Bank's
core measuresstood at 1.9% in November -provides the luxury of time. Assuming some recovery in oil prices
and financial markets, the Bank could raise policy rates in April and October, with a final move in 2020 to the low
end of a neutral range (2.5% -to -3.5%). Under this scenario, the 10 -year Canada yield, which ended 2018 below
where it started, could climb from 1.9% recently to 2.3% by year-end.
The Canadian dollar fell 8% against the mighty greenback in 2018,undercut by the downturn in oil prices and
ongoing competitiveness issues, such as the lack of pipeline capacity. The currency will struggle to get off the
ground in 2019, though a partial recovery in oil prices could prod it toward 75 cents (C$1;34) by year-end from
73.3 cents (C$1.364) at the start of the year.
Our keyforecasts for the Canadian economy
May 10, 2019
•
• .' 2018 :
2019
2020
-
Q4 Q1
.Q2<: ' Q3. Q4.
3• - Q4 2017'
-2018 :%2019 -.x2020
Production
q/q ea chng : as.
Real GOP (chain -weighted)
Final Sales
1.3 2.6 2.0 0.4
0.1 3.9 3.8 -1.3
0.2
-1.1
• 2.3 `` 2.2 1.5
3.9 :, 2.0 1.4
:1.6`
1.6
,- 1.5 `.= 1.6 '=13
1.5 1.6 1.5
3.0
2.1
1.8 • 1.4 -,11.7
1.7Final
2.0 1.3 1.7..
Final Domestic Demand
1.5 1.2 -0.5 -1.5
2.5
1.9 = ' 1.7 1.5
..17-
,
1.6 ( 1.6 • 1.5
3.1
1.9 1.0 .: 1.6
Consumer Spending
Durables
15 1.7 1.3 0.7
0.7 -1.4 -1.8 -2.0
2.2
2.3
1.6 -; 1.6 .1 4
1.7 '- 13 15
1.4:
1.3 _
1.4 -;= 1.4 • 1.4
13 ] 3 1.3
3.6
7.1
2.1 _-1.5„. 1.4:
1.1 _ 0 4 ,'.•1..4
Nondurables
0.5 0.8 1.9 0.0
2.6
1.6 -. 1.6 . �=_13
14.
1.3 -:- -- 1.3 13
2.7
1.6 13 1.3
Services
2.4 2.7 1.5 2.0
2.1
1.6 1.6 1.4
.1.5
1.5 -. 15 1.5
3.3
2.6 1.8 1.5
Government Spending
1.9 0.9 1.6 -0.6
3.3
2.1 2.0 2.0
2.2
1.8 2.0 • 1.8
2.7
2.7 1.7 • ::2.0
Business Investment
7.0 -1.4 -10.8 -10.9
2.2
3.8 32 29
-2.8
2.3 2.3 2.0
2.5
1.7 -1.9 .2.7
Non-residential Construction
-22 -32 -8.0 -15.0
2.5
4.0 -.; 33 --3 D
X3.0.
2.5 --- 2.5 •:2.0
1.1
-0.9 -2.3 ?2.9
Machinery and Equipment
22.7 1.3 -14.7 -4.8
1.7
3.5 2.8 2.8
' 25
2.0 ,' 2.0 ' : 2.0
4.7
5,8 -1.3 2.5
Residential Construction
-9.7 0.6 -5.5 -14.7
2.0
1.5 05 0.0
1.0
1.0 1.0 1.0
2.4
-2.3 -2.8 0.8
Exports
1.0 14.6 3.3 -0.2
-4.7
5.7 2.7 1.6
2.0'
,2 .0 = 2.0 2.0
1.1
3.3 1.5'1, '2.2
Imports •
4.7 5.2 -8.6 -1.1
6.3
-0.4 . 2.0 2.0
- 2.1
2.0 2.0 •. ' 2.0
4.2
2:9 ---`0.8 '1.9
2007$ bins (contribution in ppts : at.)
Inventory Change
21.3 15.4 5.4 13,4
19.9
11,8 r 12.9 '13.4
13.5
135 13.5 13.6
17.6
13.9 14.5 13.5
Contribution to GDP Growth
1.0 -1.1 -1.9 1.5
1.3
02
-1.6.. 02 _0.1
.
0.0 '- 0.0 0.0
0.8
-0.2 0.1 -0.1
Net Exports
-25.6 -12.0 8.2 9.6
--8.4
1.4--. 2.6 -:19
.1.7;-
° 1.7 -.`-17 •.`.1.7
-7.3
4.9-06 1.7
Contribution to GDP Growth
-13 2.8 4.0 0.3
-3.6
. -1.9 - 02 .--0.2
-0.1
0.0 , s 0.0 "` 0.0
-1.1
0.1 02 •:
Brian Belski - Chief Investment Strategist January 7, 2019
Caution Remains Prevalent Heading Into 2019
2018 was a difficult year to say the least with the S&P/TSX declining 11.6% marking the worst annual
performance since 2008. In fact, there were very few areas to hide, with only Technology and Consumer Staples
posting positive returns on the year. Furthermore, the S&P/TSX declined 5.8% in December, the worst
December price return since 1931. On the bright side, fundamentals have remained resilient throughout 2018,
with the bulk of the decline being driven by multiple contraction. In fact, both the 12 -month forward and
12 -month trailing price -to -earnings ratios contracted by 3.8x in 2018, the largest contraction since 2011. Indeed,
sentiment remains clearly negative as global and domestic concerns continue to weigh heavily on Canadian
equities heading into 2019. Ultimately, we believe barring a broad global recession, which we do not expect, the
market has already priced in a significant economic and earnings slowdown. As such, we believe investors
should view the current weakness as an opportunity to add to preferred high-quality Canadian names that
should and will outperform in a rebound.
Performance Shifts Suggest Investors Hedging Against Recession
Since the S&P 500 peak on September 20, 2018, Canadian sector rotation has clearly favoured the traditional
recession play book. In fact, while the broad market has experiencea significant multiple compression, there has
been little to no multiple compression within the traditional defensive sectors since the start of the correction.
Furthermore, since the end of July, investors have shown a clear preference for lower risk fundamentals, as only
our Low Risk and High Quality factor profile categories have outperformed. Indeed, not only are recent flows
moving to more traditionally defensive sectors from the more cyclicals, but also investors are shifting to lower
volatile names and stronger profitability, and away from companies with high growth expectations.
Analysts Shifting to More Cautious Tone
With equities deep in correction territory, a hawkish fed, elevated US -China trade war rhetoric and government
shutdown concerns, analysts have taken a more cautious tone. In fact, the percent of upward revisions have
now fallen back the long-term historical average after remaining elevated for over a year.
Global Index and Commodity Returns: December 31, 2018
Major Global Indices £r commodities
Index 1M , 3M 6M 12M YTD
S&P/TSX -5.8 -10.9 -12.0 -11.6 -11.6
S&P/TSX 60 -5.9 -9.8 -11.0 -10.5 -10.5
S&P/TSX Small Cap -3.9 -15.0 -17.9 -20.1 -20.1
S&P 500 -9.2 -14.0 -7.8 -6.2 -6.2
DJ Industrial Average -8.7 -11.8 -3.9 -5.6 -5.6
NASDAQ Composite -9.5 -17.5 -11.7 -3.9 -3.9
STOXX Europe 50 -5.9 -10.0 -9.3 -13.1 -13.1
FTSE 100 -3.6 -10.4 -11.9 -12.5 -12.5
Japan Nikkei 225 -10.5 -17.0 -10.3 -12.1 -12.1
ASX All Ordinaries -0.7 -9.7 -9.2 -7.4 -7.4
MSCI EM (Emerging Markets) -2.8 -7.8 -8.7 -12.3 -12.3
Crude Oil WTI (NYM $/bbl) Continuous
Gold (NYM $/ort) Continuous
-10.8 -38.0 -38.8 -24.8 -24.8
4.5 7.1 2.1 -2.1 -2.1
EQUITIES REi3OU
(indices : N
50tM0Yi,26"I''
'
Equities
3000
2500
2000
1500
1000
500
07 09 11 13 15 17 19
rd
LOONIELANGLJISHESb
as 0 2019)
(USt
30000 110
25000 100
20000 90
15000 80
10000 70
5000 60
GROWTH TO MODERATE
(Iffy % ctiaiige)
6
17 18 19 20
Canada 3.0 1.8 1.5 1.7
US 2.2 2.9 2.5 1.7 forecast
00 02 04 06 08 10 12 14 16 18 • 20
FULLY EMPLOYED
(percent)
Unemployment Rate
14 -
12•10
Canada
U.S.
2
j
Canadian Dollar
Parity
03
OS
07
09 11
forecast
74.36C
13 15. 17 19
CONSUMER SPENDING DOWNSHIFTS
(y/y Wo change)
Real Personal Consumption Expenditures
6
-4
U.S.
forecast
—r--
00 02 04 06 08 10 12 14 16 18 • 20
- „-
INFLATION ON MUT-ET;
Consumer Price Index (y/y %change)
6
Canada
Headline
forecast
1.9%
United States
forecast
Core,
-3 3
• forecast
07 12 17 07 12 17
1.64'
70 75 80 85 90 95 00 05 10 15 20 ' core= CP1ex 8most volatile components a Indirect taxes 2 core =CPI ex food 6 energy
NATURAL GAS FIZZLES, CROPS DROP
Commodity price range since start of 2019
Materials Er Foodstuffs
(as of May 6, 2019)
Lumber
(U5$/
'Woo sgft) 314.90
Soybeans Ll
(US$/bu)
7.79
oD fcurrrei
439.50
8.71
Wheat
(U5$/bu) 3.99
Corn
(US$/bu) 3.27
Metals & Energy
(as of May 6, 2019)
Gold Vq.
(US$/oz)
1269.50
oil
(US$/bbl)
45.41
Natural Gas
5.31 (U5$/mmblu) 2.46
3.57
OIL PRICES RECOVER.
(US$/bbl : as of May 6, 2019).
150 -
1343.75 125
6225 y 100
66.40
75 -
r
3.59 50 1
p . 25
298 07
Coppet
(US$/Ib) 2.63
North American Outlook — Canada
WTI Crude Oil
09 11 13 15 17 19
May 7, 2019
• Investors also expect the Bank of Canada to chop rates this year, though not due to too -low inflation—the
core rate is practically sitting on the 2% target—but because of a downbeat economy. Real GDP barely grew
in Q4 and looks to do just slightly better in Q1. Mandated oil output cuts are a factor, but the bigger issue is
that even non -energy exports have backfired recently due to a slowing global economy, fading
competitiveness and trade tensions with both the U.S. (metals) and China (agriculture). Consumers are in no
mood to drive the expansion, as they are now borrowing at the slowest rate in 35 years to get a handle on
record debt burdens. Meantime, the housing market is merely steadying after last year's slump in the face
of higher interest rates and tougher lending rules, and remains weak in some regions, notably Vancouver
and the oil-producing provinces.
• Canada does have a few things going for it, though. The first is the recovery in oil prices and a sharp decline
in the discount on Canadian crude, which is now about half its norm. While this won't overcome regulatory
hurdles and spur new investment, it will pump much-needed revenue into the coffers of energy producers
and Alberta's Government. The second is the fastest population growth in a quarter century, driven by
strong international migration. This has boosted labour force growth and eased worker shortages, in turn
encouraging hiring. Outside the energy patch, business investment intentions remain positive, according to
the Business Outlook Survey. The federal government's accelerated depreciation allowance was a helpful
initial step in bridging the competiveness gap.
• The bad news is that wages and productivity are depressed, with the former rising about 2% in the past
year and the latter stalling after a listless decade. Zero real wage gains provide little support to consumers,
while zero productivity undercuts competitiveness further. Consequently, although GDP growth is expected
to pop above 2% in Q2, in part due to some easing in oil output restrictions, we still see a slower 1.5% pace
in 2019, down from 1.8% in 2018 and not much faster than the population is growing. This risks an upturn in
the jobless rate from current four -decade lows.
• With so much stacked against it the Canadian dollar will do well to hold its own against a firm greenback.
We see it hovering below 75 cents (US) for most of 2019, barring a further climb in oil prices which we deem
unlikely given record U.S. shale production.
• Given the sluggish economy, the Bank of Canada has backed away (at least for now) from plans to lift rates
further. While Governor Poloz continues to warn that the current 1.75% policy rate remains below
the neutral range of 2.25% -to -3.25%, the tightening hurdle appears high, barring an upside growth surprise.
At the same time, a rate cut is unlikely given that core inflation is on target and growth is expected to
improve at least somewhat this summer. We see a standoff, with rates on hold for the next two years.
• Legislative failure to ratify the USMCA, weaker growth in resource gobbling China, and growing trade
tensions between Canada and China are several downside risks to the Canadian economy. USMCA
ratification appears unlikely until after the presidential election, which will weigh on business spending. The
country's best hope for an upside surprise is if the U.S. economy outperforms.
Provincial GDP
Real GDP Growth Rate (percent
British
lumbia
2017 3.8
2018 2.4
Canada
2017 3.0
2018 1.8
2019 1.4
2020 1.7
2019 1.8 T
f>s„2020 2.4 Alberta ` ; Manic ba
of
2017 4.4 '2017 3.2 Quebe
2018 2.3 , 2018 1.3,!1 2017, 2.8
2019 1.3 2019 1.5 11 2018 2.5
2020 2.2 2020 162019 1.6
Saskatchewan, Ontario 2020 1.5
2017 2.2 2017 2.8
2018 1.6 _ 2018 2.2
2019 0.9 2019 1.6
12020 1.3 2020 17 °
Shaded bars are BMO Economics forecasts
Ontario
Newfoundland
and Labrador
2017 0.9
1"2018 -2.7
2019 , 2.0
2020 0.2
ew
Brunswick
2017 1.8
2018 0.1
2019 0.6
2020 0.7
Prince Edward
Island
2017 3.5
r 2018 2.6
2019 1.2
2020 0.9
Nova
Scotia
2017 1• .5
2018 1.2
2019 0• .7:.
2020 0• .7
Ontario's economy has moderated after a powerful multi-year run. Real GDP is expected to grow 1.6% this
year, down from 2.2%_in 2018 and an average pace of 2.5% in the four years prior to that. The downshift largely
reflects a move back toward potential for the province, with some key sectors, such as housing, coming off the
boil.
The' housing market is stabilizing after a wave of recent policy measures (15% tax on non-resident buyers and
OSFI rules), and after five Bank of Canada rate hikes. Toronto detached home prices are down roughly 10% from
their peak, but condo prices remain at record levels and vacancies are extremely low. This highlights that,
despite measures to cool price growth, fundamental supply/demand conditions are still very supportive.
Meantime, markets outside the Greater Golden Horseshoe continue to perform very well.
The labour market is solid, with 2.5% y/y job growth in 2019Q1, the strongest in 16 years. The jobless rate, at
6% has held relatively steady over the past year amid surge in the labour force, but the province has been able
to churn out enough jobs to absorb the influx. The province drew in a record 215,000 migrants from outside
Canada and other provinces in 2018. Export volumes are rising at a very modest pace, and longer-term
issues remain as relatively high labour and electricity costs continue to pose challenges- many sectors are
pushing capacity limits, but have been shy to deploy new investment. That said, USMCA clarity, accelerated CCA
allowances and a business -friendly policy shift should support business confidence and investment.
The Province of Ontario is projecting a $10.3 billion deficit in FY19/20 (1.2% of GDP), following an $11.7 billion
shortfall expected for FY18/19. The Province expects the deficit to shrink gradually before returning to balance
in FY23/24, and will focus on reducing real per -capita program spending, while following through on tax -cut
promises.
Portfolio Performance Review
For comparison purposes we have included the following benchmarks that provide the closest representative
return data. There are three separate issues that should be taken into consideration when comparing the
representative rates of return. First, the guidelines set out in the Municipal Finance Statutes governing your
investment policy prohibit you from owning any fixed income investments that are not either government
guaranteed or issued by a major Canadian Chartered Bank. Canadian money market funds used to construct the
Morningstar Canadian Money Market Index contain a high percentage of higher yielding money market products
including investments such as asset backed securities, some of which your investment policy prohibits you from
holding. Secondly, your portfolio has a smaller percentage of qualified fixed income investments that are slightly
longer than the 1 year maturity period that typically defines money market investments.
Annual Account Return Benchmark Comparisons*
Calendar Year :
Your BMO Nesbitt Burns
Account Return**
CIBC World Markets
91 Day T -Bill Index**
Morningstar Canadian
Money Market Mutual
Fund Index ***
2018
1.56%
1.15%
1.20%
2017
0.89%
0.52%
0.47%
2016
0.84%
0.50%
0.32%
2015
1.36%
0.64%
0.37%
2014
1.51%
0.91%
0.59%
2013
1.23%
0.97%
0.56%
2012
1.37%
0.93%
0.58%
2011
2.4.9%
0.96%
0.64%
2010
1.25%
0.37%
0.31%
2009
1.54%
0.52%
0.53%
2008
4.92%
3.13%
2.84%
2007
4.27%
4.29%
3.82%
2006
3.81%
3.84%
3.21%
2005
2.51%
2.48%
1.87%
2004
4.39%
2.27%
1.51%
* Return Comparisons are derived from separate third party sources which are believed to be accurate but are not
guaranteed by BMO Nesbitt Burns Inc.
** Comparative benchmarks have been selected that are most reasonable to use for comparison purposes but are not 100%
specific to the investment guidelines followed by the representative account in question.
*** The Morningstar Fund Indices are the best available representation of the performance of aggregate dollars actually
invested,currently and historically, in Canadian money market mutual funds and/or segregated funds. The indices measure
the dollar weighted return of assets in Canadian funds. The return calculation does not suffer from survivorship bias, as the
impact of returns with funds that are no longer active are retained. Funds that report returns before fees are excluded from
Morningstar Fund Indices. Returns are rounded to 2 decimal places.
In conclusion, I would like to highlight the following points;
a) Our investment parameters are much narrower than money market funds. Government legislation
governing Municipal Investments limits the selection of qualified investments.
b) Within the portfolio, we have successfully blended a small percentage of investments with a time
horizon exceeding 12 months, but less than 3 years.
c) The account maintains an active pattern of cash in -flows and out -flows as a result of the nature of the
cash-flow requirements of an entity like the City of Pickering. As a result, it can be difficult to execute a
specific investment plan that is not highly liquid and flexible.
d) While the current and anticipated interest rate environment is extremely important in shaping the
composition of the account portfolio, we always endeavour to attempt to avoid making decisions that
could be construed as market timing any changes in relation to Bank of Canada rate decisions.
Sincerely,
Atimw e Ockee
Andrew R. Geddes PFP, CIM, FCSI
Vice President, Portfolio Manager, Senior Investment Advisor
BMO Wealth Management, BMO Nesbitt Burns Inc.
CIM
: CHARTERED
INVESTMENT MANAGER
(F.?s4Of CSI
Client Reports Disclaimer
This report is not an official statement. It is a supplemental consolidated summary of your positions held at BMO
Nesbitt Burns Inc. along with unofficial positions held off -book. It is provided to you solely for information
purposes and may, in part, be based on information provided by you or from third party sources and must not
be relied upon for its accuracy. The unofficial positions identified, in this statement with (*) may be held at other
financial institutions where they may not be covered by the Canadian Investor Protection Fund ("CIPF"). Please
consult the monthly statements you receive from the relevant financial institution(s) to determine CIPF
coverage. Also, please consult the monthly statements you receive from BMO Nesbitt Burns Inc. to determine
which positions are held in segregation. In October of each year, your official statement from BMO Nesbitt Burns
will include a request that clients examine their month-end statements carefully and bring to BMO Nesbitt
Burns' auditor's attention any discrepancies.
Securities Disclaimer
The opinions, estimates and projections contained herein are those of the author as of the date hereof and are
subject to change without notice and may not reflect those of BMO Nesbitt Burns Inc. ("13M0 NBI"). Every effort
has been made to ensure that the contents have been compiled or derived from sources believed to be reliable
and contain information and opinions that are accurate and complete. Information may be available to BMO
Nesbitt Burns or its affiliates that is not reflected herein. However, neither the author nor BMO NBI makes any
representation or warranty, express or implied, in respect thereof, takes any responsibility for any errors or
omissions which may be contained herein or accepts any liability whatsoever for any loss arising from any use of
or reliance on this report or its contents. This report is not to be construed as an offer to sell or a solicitation for
or an offer to buy any securities. BMO NBI,its affiliates and/or their respective officers, directors or employees
may from time to time acquire, hold or sell securities mentioned herein as principal or agent. NBI will buy from
or sell to customer's securities of issuers mentioned herein on a principal basis. BMO NBI, its affiliates, officers,
directors or employees may have a long or short position in the securities discussed herein, related securities or
in options, futures or other derivative instruments based thereon. BMO NBI or its affiliates may act as financial
advisor and/or underwriter for the issuers mentioned herein and may receive remuneration for same. A
significant lending relationship may exist between Bank of Montreal, or its affiliates, and certain of the issuers
mentioned herein. BMO NBI is a wholly owned subsidiary of Bank of Montreal. Any U.S. person wishing to effect
transactions in any security discussed herein should do so through BMO Nesbitt Burns Corp. Member -Canadian
Investor Protection Fund.
Corporate Trade -mark Disclaimer
®"BMO (M -bar roundel symbol)" is a registered trade -mark of Bank of Montreal, used under licence.
® "Nesbitt Burns" is a registered trade -mark of BMO Nesbitt Burns Inc. BMO Nesbitt Burns Inc. is a wholly-owned
subsidiary of Bank of Montreal.
BMO Wealth Management is the brand name for a business group consisting of Bank of Montreal and certain of
its affiliates in providing wealth management products and services.
TD Wealth
Bill MacMillan
THE CORPORATION OF THE CITY OF PICKERING (7AS047A)
As of May 29. 2019
PORTFOLIO PERFORMANCE (CAD)
Changes in Market Value
2018
01/01/2018 - 12/31/2018
Starting Value $ 10,384,480.84
Inflows $ 0.00
Outflows $ -108,584.84
Income $ 192,209.22
Ending Value $ 10,461,471.41
Performance
Money -Weighted -Net 1.794 %
Notes: Values in percentage are annualized for periods of more than twelve months.
05/30/2019 Page: 1/3
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