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HomeMy WebLinkAboutFIN 12-18DICKERING 6/, Id Report to Executive Committee Report Number: FIN 12-18 Date: June 18, 2018 From: Stan Karwowski Director, Finance & Treasurer Subject: Investment Portfolio Activity for the Year Ended December 31, 2017 Ontario Regulation 438/97 under the Municipal Act, 2001 Recommendation: It is recommended that report FIN 12-18 of the Director, Finance & Treasurer regarding Investment Portfolio Activity for the Year Ended December 31, 2017 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 2017 totaled approximately $415.1 million with a year end balance in the portfolio of approximately $164.1 million. Current Fund investments are limited to one year or less and Reserve Funds to 10 years or less under the Council approved policy. The last two years have seen the value of the portfolio rise significantly which is primarily a result of recent sale of lands in Duffin Heights and an increase in building activity. Overall returns on the City's portfolio compare favourably to market benchmarks. Financial Implications: Total investment income, including bank account interest for 2017 was $1.77 million (2016 - $1.42M) of which $751,000 (2016 - $421,000) 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. FIN 12-18 June 18, 2018 Subject: Investment Portfolio Activity for the Year Ended December 31, 2017 Page 2 Ontario Regulation 438/97 under the Municipal Act, 2001 Investments are undertaken as one consolidated pool of funds and interest earned is credited back to the appropriate funds. 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, 2017 of $164.1 million (2016 - $112.4M) has increased over the prior year. This is primarily a result of recent land sales in Duffin Heights, an increase in building activity and the large debenture issue in 2017 required for funding of the new Operations Centre. The return on the portfolio maintained with Nesbitt Burns increased slightly in 2017 with a weighted yearly rate of return of 0.89% (2016 — 0.84%) on the combined short-term and long-term investments. This was a result of the interest rates beginning to rise in the latter half of 2017. The net performance on TD Wealth's portion of the portfolio for 2017 was 1.83% (2016 — 1.27%). 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 (0.52%) and the Morningstar Canadian Money Market Mutual Fund Index (0.47%). 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 2.32% (2016 — 2.38%). At year end 2017, the total portfolio of approximately $164.1 million, consisted of approximately $47.9 million or 29.2% in external long-term investments and approximately $3.6 million or 2.0% in Interfund Investments (Internal Loans). The balance of approximately $112.6 million is short-term investments due within the year. All investments were made in accordance with the Investment Policy approved by Council. FIN 12-18 June 18, 2018 Subject: Investment Portfolio Activity for the Year Ended December 31, 2017 Page 3 Ontario Regulation 438/97 under the Municipal Act, 2001 Attachments: 1. Investment Activities for 2017 2. Outstanding Investments as at December 31, 2017 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 Cityouncil Tony Prevedel, P.Eng. Chief Administrative Officer 44„,.,2 , 2.616 CITY OF PICKERING INVESTMENT ACTIVITIES FOR 2017 Financial Purchase Maturity Institution Instrument Cost principal Yield Term Date Date Short Term Nesbitt Burns Firstbank Bankers Acceptance 7,117,594 7,129,000 0.629% 93 4 -Oct -16 5 -Jan -17 Toronto Dominion Bank Bankers Accept 4,999,937 5,008,000 0.647% 91 5 -Oct -16 4-.I2n-17 Firstbank Bankers Acceptance 3,564,359 3,570,000 0.635% 91 28 -Oct -16 27 -Jan -17 Firstbank Bankers Acceptance 5,927,857 5,937,000 0.626% 90 30 -Nov -16 28 -Feb -17 Toronto Dominion Bank Bankers Accept. 6,355,516 6,365,000 0.635% 90 30 -Nov -16 28 -Feb -17 Firstbank Bankers Acceptance 5,976,123 5,986,000 0.670% 90 6 -Dec -16 6 -Mar -17 Toronto Dominion Bank Bankers Accept. 6,191,202 5,201,000 0.642% 90 9 -Dec -16 9 -Mar -17 Bank of Nova Scotia Bankers Acceptance 5,784,859 5,795,000 0.703% 91 19 -Dec -16 20 -Mar -17 Firstbank Bankers Acceptance 8,341,302 8,354,000 0.678% 82 28 -Dec -16 20 -Mar -17 Firstbank Bankers Acceptance 5,049,351 5,058,000 0.736% 85 10 -Jan -17 5 -Apr -17 Firstbank Bankers Acceptance 7,128,289 7,141,000 0.723% 90 10 -Jan -17 10 -Apr -17 Firstbank Bankers Acceptance 3,572,808 3,579,000 0.711% 89 27 -Jan -17 26 -Apr -17 Firstbank Bankers Acceptance 6,398,462 6,410,000 0.731% 90 28 -Feb -17 29 -May -17 Bank of Nova Scotia Bankers Acceptance 5,936,771 5,9.47,000 0.699% 90 28 -Feb -17 29 -May -17 Firstbank Bankers Acceptance 5,986,/45 5,997,000 0.687% 91 8 -Mar -17 5 -Jun -17 Toronto Dominion Bank Bankers Accept. 6,269,450 6,280,000 0.675% 91 9 -Mar -17 8 -Jun -17 Firstbank Bankers Acceptance 5,794,656 5,804,000 0.677% 87 20 -Mar -17 15 -Jun -17 Bank of Nova Scotia Bankers Acceptance 8,353,696 8,367,000 0.668% 87 20 -Mar -17 15 -Jun -17 Firstbank Bankers Acceptance 24,999,495 25,011,000 0.560% 30 31 -May -17 30 -Jun -17 Firstbank Bankers Acceptance 5272,128 5,281,000 0.675% 91 5 -Apr -17 5 -Jul -17 Firstbank Bankers Acceptance 7,141,123 7,154,000 0723% 91 10 -Apr -17 10 -Jul -17 Firstbank Bankers Acceptance 3,626,570 3,633,000 0.719% 90 26 -Apr -17 25 -Jul -17 Bank of Nova Scotia Bankers Acceptance 6,023,890 6,033,000 0.607% 91 29 -May -17 28 -Aug -17 Firstbank Bankers Acceptance 6,409,307 6,419,000 0.607% 91 29 -May -17 28 -Aug -17 Bank of Nova Scotia Bankers Acceptance 5,997,809 6,007,000 0.621% 90 7 -Jun -17 5 -Sep -17 Bank of Nova Scotia Bankers Acceptance 6,279,504 6,289,000 0.620% 89 8 -Jun -17 5 -Sep -17 Bank of Nova Scotia Bankers Acceptance 8,366,683 8,379,000 0.611% BB 15 -Jun -17 11 -Sep --17 CIBC Bankers Acceptance 5,896,438 5,905,000 0.602% 88 15 -Jun -17 11 -Sep -17 Firstbank Bankers Acceptance 30,025,760 30,079,000 1.044% 62 28 -Jul -17 28 -Sep -17 Firstbank Bankers Acceptance 14,974,800 15,000.000 1.041% 59 28 -Jul -17 25 -Sep -17 Firstbank Bankers Acceptance 5,339,014 5,351,000 0.900% 91 5 -Jul -17 4 -Oct -17 Firstbank Bankers Acceptance 7,154,220 7,171,000 0.951% 90 12 -Jul -17 10 -Oct -17 Firstbank Bankers Acceptance 3,632,895 3,642,000 1.005% 91 26 -Jul -17 25 -Oct -17 Bank of Nova Scotia Bankers Acceptance 6,246,215 6,253,000 1,090% 90 29 -Aug -17 27 -Nov -17 Firstbank Bankers Acceptance 6,239,175 6,255,000 1.077% 86 29 -Aug -17 23 -Nov -17 Toronto Dominion Bank Bankers Accept_ 6,007,106 6,025,000 1.222% 89 6 -Sep -17 4 -Dec -17 Toronto Dominion Bank Bankers Accept. 6,288,016 6,307,000 1.224% 90 6 -Sep -17 5 -Dec -17 CIBC Bankers Acceptance 8,378,569 8,401,000 1.206% 81 11 -Sep -17 1 -Dec -17 Bank of Nova Scotia Bankers Acceptance 6,020,881 6,037,000 1.206% 81 11 -Sep -17 1 -Dec -17 Firstbank Bankers Acceptance 7,568,920 7,592,000 1.197% 93 25 -Sep -17 27 -Dec -17 Toronto Dominion Bank Bdn Discount Na 7,474,050 7,500,000 1.196% 106 25 -Sep -17 9 -Jan -18 Toronto Dominion Fixed Rate Deposit Not 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 5,373,318 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 !JTACHNENT# / TO REPORT# ►� ►e1- I T. CITY OF PICKERING INVESTMENT ACTIVITIES FOR 2017 Financial Purchase Maturity Institution Instrument Cost Principal Yield Term Date Date 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 T -D Wealth Bk of Nova Scotia GIC 1.40% 2,068,521 2,068,521 1.400% 366 26 -Jan -16 26 -Jan -17 Royal Bank Of Canada GIC 1.40% 2,043,016 2,043,016 1.400% 366 23 -Feb -16 23 -Feb -17 Royal Bank Of Canada GIC 1.35% 2,120,059 2,120,059 1.350% 365 25 -Aug -16 25 -Aug -17 Royal Bank Of Canada GIC 1.30% 2,097,480 2,097,480 1.300% 365 26 -Jan -17 26 -Jan -18 Royal Bank Of Canada GIC 1.25% 2,071,618 2,071,618 1.250% 365 23 -Feb -17 23 -Feb -18 TD MTG GIC 1.41% 2,148,679 2,148,679 1.410% 365 25 -Aug -17 25 -Aug -18 Total Short term 415,125,080 415,864,373 Long Term Nesbitt Burns Royal Bank Of Canada 2,375,643 2,294,000 2.980% 847 10 -Mar -17 5 -Jul -19 Bank Of Nova Scotia Senior Deposit Note 1,899,454 1,892,000 2.370% 415 12 -Sep -17 1 -Nov -18 Province Of Alberta 2,454,341 2,439,000 2.000% 468 25 -Sep -17 6 -Jan -19 RBC Sr Dep Note 1,126,569 1,116,000 2.820% 265 20 -Oct -17 12 -Jul -18 BNS Sr Dep Note 3,698,971 • 3,663,000 2.462% 455 14 -Dec -17 14 -Mar -19 Province of Ontario 1,901,431 1,825,000 4.400% 534 15 -Dec -17 2 -Jun -19 Total Long-term 13,456,409 13,229,000 Long Term Dispositions Province of Ontario 2,685,896 2,399,000 4.300% 1,920 5 -Dec -11 8 -Mar -17 Matured Province of Ontario 1,928,759 1,908,000 1.900% 1,086 18 -Sep -14 8 -Sep -17 Matured Royal Bank of Canada Sr. Dep. Note 2,493,070 2,470,000 2.360% 1,673 21 -Feb -13 21 -Sep -17 Matured CIBC Deposit Notes 1,151,222 1,136,000 2.350% 1,792 21 -Nov -12 18 -Oct -17 Matured Bank of Montreal Fixed Rate Dep Note 3,788,326 3,722,000 2.240% 538 21 -Jun -16 11 -Dec -17 Matured Canada Housing Trust 1,916,201 1,905,000 1.700% 1,184 18 -Sep -14 15 -Dec -17 Matured Total Dispositions 13,963,475 13,540,000 CITY OF BICKERING OUTSTANDING INVESTMENTS AS AT DECEMBER 31, 2017 Financial Institution Instrument Short-term Current & Reserve Fund Investments Nesbitt Burns TD Bond Discount Note TD Fixed Rate Deposit Note Bank of Nova Scotia Firstbank Bankers Acceptance Firstbank Bankers Acceptance Firstbank Bankers Acceptance Firstbank Bankers Acceptance BNS Bankers Acceptance BNS Bankers Acceptance BNS Bankers Acceptance TD Bankers Acceptance TD Bankers Acceptance Firstbank Bankers Acceptance Firstbank Bankers Acceptance TO Wealth RSC GIC RBC GIC TO MTG GIC Total Short-term Purchase Maturity Cost Principal Yield Term Date Date Long-term Reserve Fund Investments Nesbitt Burns Province of Ontario Debenture CIBC Deposit Notes BNS Sr Deposit Note BNS Sr Deposit Note BNS Sr Deposit Note RBC Province of Ontario Rank of Mnntreal Fixed Rate Dep N TD Deposit Note CIBC Deposit Note CIBC Deposit Note BNS 5 yr Sr Deposit Note RBC BNS Sr Deposit Note Province of Alberta RBC Sr Dep Note BNS Sr Dep Note Province of Ontario TO Wealth National Benk Extendible Step Up CIBC Deposit Note Total Long-term Total External Investments 7,474,050.00 7,500,000.00 1.20% 106 25 -Sep -17 09 -Jan -18 10,065,201.66 10,026,000.00 2.17% 181 03 -Oct -17 02 -Apr -18 10,008,890.85 10,015,000.00 1.33% 210 03 -Oct -17 01 -May -18 5.373,318.01 5,389,000.00 1.16% 92 04 -Oct -17 04 -Jan -18 7,170,783.60 7,192,000.00 1.20% 90 10 -Oct -17 08 -Jan -18 3.689,714.00 3,700,000.00 1.18% 86 25 -Oct -17 19 -Jan -18 6,397,971.04 6,416,000.00 1.14% 90 24 -Nov -17 22 -Feb -18 6,263,476.01 6,281,000.00 1.12% 91 27 -Nov -17 26 -Feb -18 6,036,475.31 6,053,000.00 1.15% 87 01 -Dec -17 26 -Feb -18 8,401,002.48 8,424,000.00 1.15% 87 01 -Dec -17 26 -Feb -18 6.049,978.04 6,068,000.00 1.24% 88 04 -Dec -17 02 -Mar -18 6,306,705.70 6,326,000.00 1.24% 90 05 -Dec -17 05 -Mar -18 7,701,593.25 7,725,000.00 1.23% 90 27 -Dec -17 27 -Mar -18 14,999,051.58 15,038,000.00 1.23% 77 28 -Dec -17 15 -Mar -18 2,097,480.00 2,124,747.24 1.30% 365 26 -Jan -17 26 -Jan -18 2,071,618.00 2,097,513.23 1.25% 365 23 -Feb -17 23 -Feb -18 2,148,679.00 2,179,141.38 1.41% 367 25 -Aug -17 27 -Rug -18 112.255,988_53 112,554,401.85 2.448,956.92 2,444,000.00 4.20% 2711 05 -Oct -10 1,482,583.52 1,482,000.00 2.22% 1807 26 -Mar -13 1,320,330.86 1,320,000.00 2.24% 1745 11 -Jun -13 1,851,235.42 1,848,000.00 2.24% 1053 04 -May -15 2,455,846.55 2,437,000.00 2.75% 970 17 -Dec -15 3,711,740.70 3,665,000.00 2.77% 1058 18 -Jan -16 2,734,119.38 2,712,000.00 2.10% 906 16 -Mar -16 1,880,007.72 1,857,000.00 3.21% 911 15 -Mer --16 1,817,745.16 1,790,000.00 2.45% 868 15 -Nov -16 3,972,962.28 3,957,000.00 1.70% 676 02 -Dec -16 3,573,783.66 3,522,000.00 2.35% 927 09 -Dec -16 3,601,800.47 3,543,000.00 2.40% 1053 09 -Dec -16 2,344,975.36 2,294,000.00 2.98% 788 10 -Mar -17 1,892,677.68 1,892,000.00 2.37% 121 12 -Sep -17 2,451,917.68 2,439,000.00 2.00% 514 25 -Sap -17 1,123,697.07 1,116,000.00 2.82% 265 20 -Oct -17 3,697,62670 3,663,000.00 2.46% 455 14 -Dec -17 1,899,140.93 1,825,000.00 4.40% 534 15 -Dec -17 2,000,000.00 2,000,000.00 2.70% 3653 06 -Nov -15 2,099,000.00 2,099,000.00 2.50% 3653 18 -Nov -15 48,360,148.06 47,905,000.00 160,616,136.59 160,459,401.85 triter -fund Investments (Internal Loans) Development Charge Reserve Fund Interest Payable Dates 08 -Mar -18 Mar 8 & Sept 8 07 -Mar -18 Mar 7 & Sept 7 22 -Mar -18 Mar 22 & Sept 22 22 -Mar -18 Mar 22 & Sept 22 13 -Aug -18 Feb 13 & Aug 13 11 -Dec -18 Jun 11 & Dec 11 08 -Sep -18 Mar 8 & Sept 8 13 -Sep -18 Mar 13&Sept 13 02 -Apr -19 Apr 2 & Oct 2 09 -Oct -18 Apr 9 & Oct 9 24 -Jun -19 Jun 24 & Dec 24 28 -Oct -19 Apr 28 & Oct 28 07 -May -19 May 7 & Nov 7 11 -Jan -18 Jan 11 & Jul 11 01 -Jun -19 Jun 1 & Oec 1 12 -Jul -18 Jan 12 & Jul 12 14 -Mar -19 Mar 14 & Sept 14 02 -Jun -19 Jun 2 & Dec 2 06 -Nov -25 Nov 6 18 -Nov -25 May 18&Nov 18 3,595,241.00 1.83% to 3.96% various various various Total as at December 31, 2017 164,054,642.85 j ei r 11-0.1Y ATTACHMENT # TO REPO RT # 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 byy 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* 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 0.89% 0.84% 1.36% 1.51% .23% 1.37% 2.49% 1.25% 1.54% 4.92% 4.27% 3.81% 2.51% 4.39% 0.52% 0.47% 0.50% 0.32% 0.64% 0.37% 0.91% 0.59% 0.97% 0.56% 0.93% 0.58% 0.96% 0.64% 0.37% 0.31% 0.52% 0.53% 3.13% 2.84% 4.29% 3.82% 3.84% 3.21% 2.48% 1.87% 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, once I would once again 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 18 months. 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 8 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, 4,fieelo ,C, 7e&e1r Andrew R. Geddes PFP, CIM, FCSI Vice President, Portfolio Manager BMO Wealth Management, BMO Nesbitt Burns Inc. GIM° CHARTERED INVESTMENT MANAGER 6cs FELLOW OF CSI G FINANCIAL PLANNER BMO Nesbitt Burns Inc. ("BMO NBI") provides this commentary to clients for informational purposes only. The information contained herein is based on sources that we believe to be reliable, but is not guaranteed by us, may be incomplete or may change without notice. The comments included in this document are general in nature, and professional advice regarding an individual's particular position should be obtained. "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. Member -Canadian Investor Protection Fund. General Disclosure "BMO Capital Markets" is a trade name used by the BMO Financial Group for the wholesale banking businesses of Bank of Montreal and its subsidiaries BMO Nesbitt Bums Inc., BMO Capital Markets Limited in the U.K. and BMO Capital Markets Corp. in the U.S. BMO Nesbitt Burns Inc., BMO Capital Markets Limited and BMO Capital Markets Corp are affiliates. Bank of Montreal or its subsidiaries ("BMO Financial Group") has lending arrangements with, or provide other remunerated services to, many issuers covered by BMO Capital Markets. The opinions, estimates and projections contained in this report are those of BMO Capital Markets as of the date of this report and are subject to change without notice. BMO Capital Markets endeavours to ensure that the contents have been compiled or derived from sources that we believe are reliable and contain information and opinions that are accurate and complete. However, BMO Capital Markets makes no representation or warranty, express or implied, in respect thereof, takes no responsibility for any errors and omissions contained herein and accepts no liability whatsoever for any loss arising from any use of, or reliance on, this report or its contents. Information may be available to BMO Capital Markets or its affiliates that is not reflected in this report. The information in this report is not intended to be used as the primary basis of investment decisions, and because of individual client objectives, should not be construed as advice designed to meet the particular investment needs of any investor. This material is for information purposes only and is not an offer to sell or the solicitation of an offer to buy any security. BMO Capital Markets or its affiliates will buy from or sell to customers the securities of issuers mentioned in this report on a principal basis. BMO Capital Markets or its affiliates, officers, directors or employees have a long or short position in many of the securities discussed herein, related securities or in options, futures or other derivative instruments based thereon. The reader should assume that BMO Capital Markets or its affiliates may have a conflict of interest and should not' rely solely on this report in evaluating whether or not to buy or sell securities of issuers discussed herein. TD Wealth Bill MacMillan THE CORPORATION OF THE CITY OF PICKERING (7AS047A) As of May 28, 2018 PORTFOLIO PERFORMANCE (CAD) 01/01/2017 - 12/31/2017 Starting Value Inflows Outflows Income Ending Value $ 10,303,070.53 $ 0.00 $ -107,536.17 $ 193,717.17 $ 10,384,480.84 Time -Weighted Perf.-Net Money -Weighted Perf.-Net 1.834 % 1.841 % Notes: Values in percentage are annualized for periods of more than twelve months. Account Number Account Type Name Currency Market Value (CAD) 7AS047A Cash (CAD) THE CORPORATION OF THE CITY OF PICKERING CAD 10,342,762.82 05/29/2018 12:52 PM #.LN3N HDV # .L210d31! 0!