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HomeMy WebLinkAboutFIN 05-26 Report to Council Report Number: FIN 05-26 Date: May 25, 2026 From: Stan Karwowski Director, Finance & Treasurer Subject: Investment Portfolio Activity for the Year Ended December 31, 2025 Ontario Regulation 438/97 under the Municipal Act, 2001 File: F-3700-001 Recommendation: 1. That Report FIN 05-26 regarding the Investment Portfolio Activity for the Year Ended December 31, 2025 be received for information. 1.0 Executive Summary: The purpose of this report is to share a summary of the investment activity and year-end balance in the portfolio for 2025. 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 few years have seen the value of the portfolio consistently rise which is primarily as a result of the ongoing development in Pickering which provides the collection of development charges. Overall, returns on the City’s portfolio compare favourably to market benchmarks. 2.0 Relationship to the Pickering Strategic Plan: The recommendations in this report respond to the Pickering Strategic Plan Priorities of Champion Economic Leadership & Innovation; Advance Innovation & Responsible Planning to Support a Connected, Well-Serviced Community; Strengthen Existing & Build New Partnerships; and Foster an Engaged & Informed Community. 3.0 Financial Implications: Total investment income including bank account interest for 2025 was $7.06 million (2024 - $9.65 million) of which $3.98 million (2024 - $7.09 million) was for Current (Operating) Funds. The balance of the income was allocated to the various reserve funds. Lower investment FIN 05-26 May 25, 2026 Page 2 income in 2025 compared to 2024 is the result of lower interest rates from all investment sources. 4.0 Discussion: The purpose of this report is to share a summary of the investment activity and year-end balance in the portfolio for 2025. 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 few years have seen the value of the portfolio consistently rise which is primarily a result of the ongoing development in Pickering which provides the collection of development charges. Overall, returns on the City’s portfolio compare favourably to market benchmarks. 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. The 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. 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 the Regulation’s information requirements. The portfolio balance of $233.2 million (2024 - $204.2) as at December 31, 2025 has increased over the prior year. However, the City’s outstanding capital commitments for the year ending December 31, 2025 is estimated to be $154 million. The increase is primarily as a result of the increase in development charge collections over the prior year from the ongoing building activity in the City, particularly in the Seaton area. The return on the portfolio, maintained with Nesbitt Burns, decreased in 2025 with a weighted yearly rate of return of 4.31% (2024 – 4.99%) on the combined short-term and long-term investments. This was as a result of the interest rates that were elevated from January to August 2024, beginning to decline; short-term rates were averaging at 4.50 % at the end of 2024, the average of the short-term rates at the end of 2025 were 3.21%. The average rate of the investment portfolio for both the short-term and long-term investments is 4.07%. The City’s holdings of investments in the portfolio continue to be mainly guaranteed investment certificates (GIC) to take advantage of higher yields. Since GICs don’t provide the same liquidity, the City also changed the timing of maturities to a ladder approach with both the short-term and long-term paper, to allow for maturities every month. As a result, the City was able to lock into GICs to obtain higher yields but also ensuring sufficient cash flows to meet the FIN 05-26 May 25, 2026 Page 3 City’s financial needs. The decreases in the Bank of Canada rate from June to December 2024 had an impact on the 2025 portfolio’s performance. With the Bank of Canada rate lowered in 2025, a reduction in the 2026 portfolio performance is anticipated. The net performance on TD Wealth’s portion of the portfolio for 2025 was 5.12% (2024 – 5.39%). Again, with the interest rates declining after August 2024, the portfolio’s performance began to decline. TD Wealth’s short-term investments represent 7.88% of total short-term investments held in the investment portfolio. In July 2025, the City of Pickering added a High Interest Savings Account (HISA) held by ONE Investment. ONE Investment is a not-for-profit company that has been helping Ontario municipalities with their investment needs for over 30 years. The company's mission is to empower Ontario municipalities to harness the power of investments as a financial planning tool. The High Interest Savings Account’s balance of $30.25 million at the end of 2025 is fully liquid and readily available for the City of Pickering’s needs. The average rate of return in 2025 was 3.09%. For comparison purposes, the following benchmarks provide the closest representative return data. When considering these benchmarks, there are issues that should be taken into consideration when comparing the representative rates of return. First, the guidelines set out in the Municipal Act prohibits Municipalities 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 the investment guidelines within the policy prohibits. Also, the City’s investment portfolio has a smaller percentage of qualified fixed income investments that are slightly longer than the one-year maturity period that typically defines money market investments. The annual returns from both Nesbitt Burns and TD Wealth either outperformed or were in-line with FTSE Canada 91 Day T-Bill Index (formerly CIBC Canada 91 Day T-Bill Index) (2.97%) and the Morningstar Canadian Money Market Mutual Fund Index (2.84%). The average return on interfund investments (internal loans) was 4.58% (2024 – 3.71%). At year-end 2025, the total portfolio of approximately $233.2 million, consisted of approximately $123.1 million or 52.8% in external long-term investments and approximately $594 thousand or 0.25% in Interfund Investments (Internal Loans). The balance of approximately $109.5 million is short-term investments due within the year. All investments were made in accordance with the Investment Policy approved by Council on March 4, 1998 (Resolution #56/98). Attachments: 1. Investment Activities for 2025 FIN 05-26 May 25, 2026 Page 4 2. Outstanding Investments as of December 31, 2025 3. Investment Account Overview - Correspondence from BMO Nesbitt Burns 4. Performance Report - Correspondence from TD Wealth 5. Statement of Account – Correspondence from ONE Investment 6. History and about the ONE High Interest Savings Account Prepared By: Susan Marsh, Manager, Accounting Services Approved/Endorsed By: Stan Karwowski, Director, Finance & Treasurer SK:sm Recommended for the consideration of Pickering City Council By: Marisa Carpino, M.A. Chief Administrative Officer Financial Purchase Maturity Institution Instrument Cost Principal Yield Term Date Date Short Term Nesbitt Burns Bank of Montreal GIC Annual 5,418,000 5,418,000 5.260% 366 16-Jan-24 16-Jan-25 Matured Bank of Montreal GIC Annual 9,323,067 9,323,067 5.160% 367 28-Jun-24 30-Jun-25 Matured Bank of Montreal MRTG CORP GIC Annual 9,327,850 9,327,850 5.160% 367 28-Jun-24 30-Jun-25 Matured Bank of Montreal TRUST CO GIC Annual 8,862,726 8,862,726 5.160% 367 28-Jun-24 30-Jun-25 Matured Bank of Montreal GIC 8,900,000 8,900,000 4.210% 272 08-Oct-24 07-Jul-25 Matured Bank of Montreal TRUST CO GIC Annual 5,613,304 5,613,304 5.060% 365 22-Jul-24 22-Jul-25 Matured Bank of Montreal GIC Annual 10,700,000 10,700,000 4.220% 365 02-Oct-24 02-Oct-25 Matured Bank of Montreal MRTG CORP GIC Annual 10,700,000 10,700,000 4.220% 365 02-Oct-24 02-Oct-25 Matured Bank of Montreal TRUST CO GIC Annual 10,700,000 10,700,000 4.220% 365 02-Oct-24 02-Oct-25 Matured Bank of Montreal GIC Annual 3,858,000 3,858,000 4.080% 365 15-Oct-24 15-Oct-25 Matured Bank of Montreal GIC Annual 6,677,000 6,677,000 3.770% 365 04-Dec-24 04-Dec-25 Matured Bank of Montreal MRTG CORP GIC Annual 7,638,620 7,638,620 3.420% 365 18-Dec-24 18-Dec-25 Matured Bank of Montreal MRTG CORP GIC Annual 5,703,000 5,703,000 3.420% 365 20-Jan-25 20-Jan-26 Bank of Nova Scotia GIC Annual 10,000,000 10,000,000 3.380% 365 30-Jun-25 30-Jun-26 Bank of Nova Scotia MRTG CORP GIC Annual 10,000,000 10,000,000 3.380% 365 30-Jun-25 30-Jun-26 Bank of Nova Scotia GIC Annual 5,837,000 5,837,000 3.620% 365 23-Jul-25 23-Jul-26 TD Bank GIC Annual 11,151,000 11,151,000 3.020% 365 02-Oct-25 02-Oct-26 TD Bank GIC Annual 11,151,000 11,151,000 3.020% 367 03-Oct-25 05-Oct-26 TD Bank GIC Annual 4,232,000 4,232,000 2.920% 367 17-Oct-25 19-Oct-26 TD Bank GIC Annual 7,018,000 7,018,000 3.020% 367 05-Dec-25 07-Dec-26 Bank of Nova Scotia GIC Annual 7,900,065 7,900,065 3.080% 365 18-Dec-25 18-Dec-26 TD Wealth Toronto Dominion Bank GIC 3,403,239 3,403,239 5.150% 366 30-Jan-24 30-Jan-25 Matured Toronto Dominion Bank GIC 2,320,924 2,320,924 5.050% 367 08-Mar-24 10-Mar-25 Matured Toronto Dominion Bank GIC 3,805,515 3,805,515 3.600% 365 30-Jan-25 30-Jan-26 Toronto Dominion Bank GIC 2,438,773 2,438,773 3.200% 365 10-Mar-25 10-Mar-26 Total Short-term 182,679,083 182,679,083 CITY OF PICKERING INVESTMENT ACTIVITIES FOR 2025 Attachment 1 - Report FIN 05-26 Financial Purchase Maturity Institution Instrument Cost Principal Yield Term Date Date CITY OF PICKERING INVESTMENT ACTIVITIES FOR 2025 Long Term Nesbitt Burns Bank of Montreal GIC Annual 4,200,000.00 4,200,000.00 5.160% 732 21-Mar-24 23-Mar-26 Bank of Montreal Mortgage Corp GIC Annual 4,200,000.00 4,200,000.00 5.160% 732 21-Mar-24 23-Mar-26 Bank of Montreal Trust Company GIC Annual 3,175,000.00 3,175,000.00 5.180% 731 12-Apr-24 13-Apr-26 Bank of Montreal GIC Annual 4,052,000.00 4,052,000.00 5.220% 730 01-May-24 01-May-26 Bank of Montreal GIC Annual 1,755,777.00 1,755,777.00 4.550% 1,096 01-May-23 01-May-26 Bank of Montreal GIC Annual 1,868,000.00 1,868,000.00 5.040% 1,097 31-May-23 01-Jun-26 Bank of Montreal GIC Annual 4,384,091.00 4,384,091.00 4.760% 730 17-Jul-24 17-Jul-26 Bank of Montreal GIC Annual 5,739,000.00 5,739,000.00 5.560% 1,098 22-Aug-23 24-Aug-26 Bank of Montreal Trust Company GIC Annual 6,368,000.00 6,368,000.00 5.560% 1,098 29-Aug-23 31-Aug-26 Bank of Montreal GIC Annual 3,089,000.00 3,089,000.00 5.620% 1,097 12-Oct-23 13-Oct-26 Bank of Montreal Trust Company GIC Annual 3,662,000.00 3,662,000.00 3.470% 730 18-Dec-24 18-Dec-26 Bank of Montreal GIC Annual 2,994,000.00 2,994,000.00 3.470% 730 23-Dec-24 23-Dec-26 Bank of Nova Scotia GIC Annual 9,200,000.00 9,200,000.00 3.580% 549 08-Jul-25 08-Jan-27 Bank of Montreal GIC Annual 4,166,000.00 4,166,000.00 4.980% 1,098 26-Mar-24 29-Mar-27 Bank of Montreal GIC Annual 1,991,000.00 1,991,000.00 4.860% 1,095 10-Jun-24 10-Jun-27 CIBC Unsecured Senior Notes 2,784,184.98 2,748,900.80 4.950% 889 21-Jan-25 29-Jun-27 Bank of Montreal Mortgage Corp GIC Annual 3,000,000.00 3,000,000.00 3.370% 730 22-Jul-25 22-Jul-27 Bank of Montreal GIC Annual 3,683,000.00 3,683,000.00 2.860% 730 17-Nov-25 17-Nov-27 Bank of Montreal GIC Annual 2,274,000.00 2,274,000.00 3.860% 1,095 19-Nov-24 19-Nov-27 Bank of Montreal Trust Company GIC Annual 1,952,000.00 1,952,000.00 3.470% 1,095 13-Jan-25 13-Jan-28 National Bank of Canada GIC 8,500,000.00 8,500,000.00 3.220% 1,096 15-Sep-25 15-Sep-28 Bank of Nova Scotia GIC Annual 11,151,000.00 11,151,000.00 3.330% 1,097 02-Oct-25 03-Oct-28 TD Wealth Toronto Dominion Bank GIC Annual 1,032,570.00 1,032,570.00 5.100% 1,096 10-Nov-23 10-Nov-26 Toronto Dominion Bank Mortgage GIC CMPD Annual2,261,767.00 2,261,767.00 3.700% 1,095 02-Dec-24 02-Dec-27 Toronto Dominion Bank GIC CMPD Annual 2,261,767.00 2,261,767.00 3.700% 1,095 02-Dec-24 02-Dec-27 Bank of Montreal Canadian Bond Semi-Annual 2,003,846.40 1,981,726.34 4.710% 959 22-Apr-25 07-Dec-27 Toronto Dominion Bank Mortgage GIC Semi-Annual2,000,000.00 2,000,000.00 4.350% 1,461 05-Jun-24 05-Jun-28 Toronto Dominion Bank GIC Annual 2,647,000.00 2,647,000.00 3.620% 1,098 09-Sep-25 11-Sep-28 Toronto Dominion Bank GIC CMPD Annual 2,602,600.00 2,602,600.00 3.370% 1,096 24-Nov-25 24-Nov-28 Toronto Dominion Bank Mortgage GIC CMPD Annual1,890,250.00 1,890,250.00 3.440% 1,096 01-Dec-25 01-Dec-28 Toronto Dominion Bank PAC Mortgage GIC Semi-Annual2,023,000.00 2,023,000.00 4.250% 1,826 05-Jun-24 05-Jun-29 Toronto Dominion Bank GIC CMPD Annual 1,023,588.00 1,023,588.00 3.270% 1,464 10-Nov-25 13-Nov-29 Toronto Dominion Bank GIC CMPD Annual 2,602,600.00 2,602,600.00 3.480% 1,463 24-Nov-25 26-Nov-29 CIBC Bank Protected Notes Annual 3,359,400.00 3,359,400.00 4.200% 2,199 20-Oct-24 28-Oct-30 CIBC Bank Protected Notes annual 3,295,000.00 3,295,000.00 4.700% 1,826 12-Dec-25 12-Dec-30 Total Long-term 123,191,441 123,134,037 Total External Investments 305,870,524 305,813,120 Interfund Investments (Internal Loans)0 ONE Investment (HISA)30,248,917 Total Investment Activity 336,062,037 Attachment 1 - Report FIN 05-26 Financial Purchase Maturity Institution Instrument Cost Principal Yield Term Date Date CITY OF PICKERING INVESTMENT ACTIVITIES FOR 2025 Long Term Dispositions Nesbitt Burns Bank of Montreal GIC Annual 1,850,000.00 1,850,000.00 5.000% 747 22-Dec-22 07-Jan-25 Matured Bank of Montreal GIC Annual 2,662,000.00 2,662,000.00 4.980% 733 18-Jan-23 20-Jan-25 Matured Bank of Montreal GIC Annual 2,346,000.00 2,346,000.00 5.710% 733 19-Jul-23 21-Jul-25 Matured Bank of Montreal GIC Annual 7,400,000.00 7,400,000.00 5.760% 731 15-Sep-23 15-Sep-25 Matured Bank of Montreal GIC Annual 3,480,000.00 3,480,000.00 5.800% 732 16-Nov-23 17-Nov-25 Matured TD Wealth Toronto Dominion Bank 2,363,037.74 2,482,000.00 2.667% 740 31-Aug-23 09-Sep-25 Matured Toronto Dominion Bank Mortgage GIC 1,013,945.00 1,013,945.00 0.950% 1,826 10-Nov-20 10-Nov-25 Matured Royal Bank of Canada GIC 2,151,882.00 2,151,882.00 5.100% 1,097 23-Nov-22 24-Nov-25 Matured Toronto Dominion Bank GIC 2,750,000.00 2,750,000.00 5.100% 1,097 23-Nov-22 24-Nov-25 Matured Canadian Western Bank 1,950,200.00 2,000,000.00 3.860% 878 25-Nov-22 21-Apr-25 Matured Toronto Dominion Bank Mortgage GIC 2,750,000.00 2,750,000.00 5.100% 1,096 01-Dec-22 01-Dec-25 Matured CIBC Protected Notes 2,000,000.00 2,000,000.00 5.750% 374 03-Dec-24 12-Dec-25 Called Total Dispositions 32,717,065 32,885,827 Attachment 1 - Report FIN 05-26 Financial Purchase Maturity Interest Institution Instrument Cost Principal Yield Term Date Date Payable Dates Short-term Current & Reserve Fund Investments Nesbitt Burns Bank of Montreal MRTG CORP GIC Annual 5,703,000.00 5,703,000.00 3.42% 365 20-Jan-25 20-Jan-26 Bank of Nova Scotia GIC Annual 10,000,000.00 10,000,000.00 3.38% 365 30-Jun-25 30-Jun-26 Bank of Nova Scotia MRTG CORP GIC Annual 10,000,000.00 10,000,000.00 3.38% 365 30-Jun-25 30-Jun-26 Bank of Nova Scotia GIC Annual 5,837,000.00 5,837,000.00 3.62% 365 23-Jul-25 23-Jul-26 TD Bank GIC Annual 11,151,000.00 11,151,000.00 3.02% 365 02-Oct-25 02-Oct-26 TD Bank GIC Annual 11,151,000.00 11,151,000.00 3.02% 367 03-Oct-25 05-Oct-26 TD Bank GIC Annual 4,232,000.00 4,232,000.00 2.92% 367 17-Oct-25 19-Oct-26 TD Bank GIC Annual 7,018,000.00 7,018,000.00 3.02% 367 05-Dec-25 07-Dec-26 Bank of Nova Scotia GIC Annual 7,900,065.00 7,900,065.00 3.08% 365 18-Dec-25 18-Dec-26 TD Wealth Toronto Dominion Bank GIC 3,805,515.00 3,805,515.00 3.60% 365 30-Jan-25 30-Jan-26 Toronto Dominion Bank GIC 2,438,773.00 2,438,773.00 3.20% 365 10-Mar-25 10-Mar-26 Total Short-term 79,236,353.00 79,236,353.00 Long-term Reserve Fund Investments Nesbitt Burns Bank of Montreal GIC Annual 4,200,000.00 4,200,000.00 5.16% 732 21-Mar-24 23-Mar-26 Bank of Montreal Mortgage Corp GIC Annual 4,200,000.00 4,200,000.00 5.16% 732 21-Mar-24 23-Mar-26 Bank of Montreal Trust Company GIC Annual 3,175,000.00 3,175,000.00 5.18% 731 12-Apr-24 13-Apr-26 Bank of Montreal GIC Annual 4,052,000.00 4,052,000.00 5.22% 730 01-May-24 01-May-26 Bank of Montreal GIC Annual 1,755,777.00 1,755,777.00 4.55% 1096 01-May-23 01-May-26 Bank of Montreal GIC Annual 1,868,000.00 1,868,000.00 5.04% 1097 31-May-23 01-Jun-26 Bank of Montreal GIC Annual 4,384,091.00 4,384,091.00 4.76% 730 17-Jul-24 17-Jul-26 Bank of Montreal GIC Annual 5,739,000.00 5,739,000.00 5.56% 1098 22-Aug-23 24-Aug-26 Bank of Montreal Trust Company GIC Annual 6,368,000.00 6,368,000.00 5.56% 1098 29-Aug-23 31-Aug-26 Bank of Montreal GIC Annual 3,089,000.00 3,089,000.00 5.62% 1097 12-Oct-23 13-Oct-26 Bank of Montreal Trust Company GIC Annual 3,662,000.00 3,662,000.00 3.47% 730 18-Dec-24 18-Dec-26 Bank of Montreal GIC Annual 2,994,000.00 2,994,000.00 3.47% 730 23-Dec-24 23-Dec-26 Bank of Nova Scotia GIC Annual 9,200,000.00 9,200,000.00 3.58% 549 08-Jul-25 08-Jan-27 Bank of Montreal GIC Annual 4,166,000.00 4,166,000.00 4.98% 1098 26-Mar-24 29-Mar-27 Bank of Montreal GIC Annual 1,991,000.00 1,991,000.00 4.86% 1095 10-Jun-24 10-Jun-27 CIBC Unsecured Senior Notes 2,784,184.98 2,748,900.80 4.95% 889 21-Jan-25 29-Jun-27 (Jun 30, Dec 30) Bank of Montreal Mortgage Corp GIC Annual 3,000,000.00 3,000,000.00 3.37% 730 22-Jul-25 22-Jul-27 Bank of Montreal GIC Annual 3,683,000.00 3,683,000.00 2.86% 730 17-Nov-25 17-Nov-27 Bank of Montreal GIC Annual 2,274,000.00 2,274,000.00 3.86% 1095 19-Nov-24 19-Nov-27 Bank of Montreal Trust Company GIC Annual 1,952,000.00 1,952,000.00 3.47% 1095 13-Jan-25 13-Jan-28 CITY OF PICKERING OUTSTANDING INVESTMENTS AS AT DECEMBER 31, 2025 Attachment 2 - Report FIN 05-26 Financial Purchase Maturity Interest Institution Instrument Cost Principal Yield Term Date Date Payable Dates CITY OF PICKERING OUTSTANDING INVESTMENTS AS AT DECEMBER 31, 2025 National Bank of Canada GIC 8,500,000.00 8,500,000.00 3.22% 1096 15-Sep-25 15-Sep-28 Bank of Nova Scotia GIC Annual 11,151,000.00 11,151,000.00 3.33% 1097 02-Oct-25 03-Oct-28 TD Wealth Toronto Dominion Bank GIC Annual 1,032,570.00 1,032,570.00 5.10% 1096 10-Nov-23 10-Nov-26 Toronto Dominion Bank Mortgage GIC CMPD Annual 2,261,767.00 2,261,767.00 3.70% 1095 02-Dec-24 02-Dec-27 COMPOUND ANNUALLY Toronto Dominion Bank GIC CMPD Annual 2,261,767.00 2,261,767.00 3.70% 1095 02-Dec-24 02-Dec-27 COMPOUND ANNUALLY Bank of Montreal Canadian Bond Semi-Annual 2,003,846.40 1,981,726.34 4.71% 959 22-Apr-25 07-Dec-27 (Jun 7, Dec 7) Toronto Dominion Bank Mortgage GIC Semi-Annual 2,000,000.00 2,000,000.00 4.35% 1461 05-Jun-24 05-Jun-28 (Jun 5, Dec 5) Toronto Dominion Bank GIC Annual 2,647,000.00 2,647,000.00 3.62% 1098 09-Sep-25 11-Sep-28 Toronto Dominion Bank GIC CMPD Annual 2,602,600.00 2,602,600.00 3.37% 1096 24-Nov-25 24-Nov-28 COMPOUND ANNUALLY Toronto Dominion Bank Mortgage GIC CMPD Annual 1,890,250.00 1,890,250.00 3.44% 1096 01-Dec-25 01-Dec-28 COMPOUND ANNUALLY Toronto Dominion Bank PAC Mortgage GIC Semi-Annual2,023,000.00 2,023,000.00 4.25% 1826 05-Jun-24 05-Jun-29 (Jun 5, Dec 5) Toronto Dominion Bank GIC CMPD Annual 1,023,588.00 1,023,588.00 3.27% 1464 10-Nov-25 13-Nov-29 COMPOUND ANNUALLY Toronto Dominion Bank GIC CMPD Annual 2,602,600.00 2,602,600.00 3.48% 1463 24-Nov-25 26-Nov-29 COMPOUND ANNUALLY CIBC Bank Protected Notes Annual 3,359,400.00 3,359,400.00 4.20% 2199 20-Oct-24 28-Oct-30 CIBC Bank Protected Notes annual 3,295,000.00 3,295,000.00 4.70% 1826 12-Dec-25 12-Dec-30 Total Long-term 123,191,441.38 123,134,037.14 Total External Investments: Nesbitt Burns and TD Wealth 202,427,794.38 202,370,390.14 ONE Investment High Interest Savings Account Portfolio 30,248,916.96 30,248,916.96 2.775%rate @ Dec 31, 2025 Interfund Investments (Internal Loans) Development Charge Reserve Fund 594,093.68 3.65% to 5.50% various various various Total as at December 31, 2025 233,213,400.78 Attachment 2 - Report FIN 05-26 YOUR PERFORMANCE REPORT AS OF DECEMBER 31, 2025 ACCOUNT 365-132 06 CORP.OF THE CITY OF PICKERING Time-weighted rates of return as of December 31, 2025 Period 2025 Jan Feb Mar Apr May Jun Jul Monthly rates of return (%) 0.34 0.35 0.39 0.37 0.38 0.37 0.36 Compound year-to-date rates of return(%) 0.34 0.69 1.08 1.46 1.85 2.23 2.60 2025 Quarters 1st 2nd 3rd 4th Quarterly rates of rehu-n (%) 1.08 1.13 1.06 0.96 Cumulative rates ofreturn (%) 1.08 2.23 3.32 4.31 Aug Sep Oct Nov Dec 0.57 0.13 0.33 0.31 0.31 3.18 3.32 3.66 3.98 4.31 Monthly ROR 0/o 0.60 0.50 0.40 0.30 0.20 0.10 0.00 BMO e· I Private Wealth YEAR-TO-DA TE PERFORMANCE Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec PAGE 4 OF 7 Attachment 3 - Report FIN 05-26 Attachment 4 - Report FIN 05-26 Attachment 5 - Report FIN 05-26 ONE Investment History Supporting municipal investment for 30 years. ONE Investment offers municipalities and treasurers access to a broad range of investment products, including those that comply with Ontario's Legal List of municipal investment, High Interest Savings Accounts, and a Prudent Investment program. As well, ONE offers training opportunities, one-on-one investment advice and a full range of tools and templates to support Council communications. 1993 •The Municipal Finance Officers' Association and the Association of Municipalities of Ontario (AMO) form the ONE Fund to create investment offerings tailored to municipal needs. •A Peer Advisory Committee, comprised of municipal treasurers, ensures the fund aligns with municipal goals and guidelines. •The fund offers Money Market and Bond portfolios tailored to municipal investment needs and compliant with provincial regulations. 2007 •ONE expands investment options with a Canadian Equity Portfolio - the only equity offering approved by the province for municipal investors. 2008 •Universe Corporate Bond portfolio is launched. 2010 •ONE rebrands to ONE Investment Program. 2015 •Leveraging the scale of the sector, ONE Investment negotiates a High-Interest Saving Account (HISA) at highly competitive rates for short-term monies. 2016 •The ONE Investment Advisory Committee, comprised of investment industry experts, is formed to advise staff on investment management. 2017 •The Government of Ontario passes legislation to allow municipalities to invest under the Prudent Investor Standard. 2018 •As of March 1, 2018, municipalities can take advantage of Prudent Investment Regime, provided they meet provincial requirement. •ONE Investment is incorporated as a not-for-profit organization, allowing ONE to broaden investment options and offer formal investment advice to municipalities. •As of November 23, 2018, ONE Investment receives an exemption from the Ontario Securities Commission (OSC) to offer formal investment advice to municipalities. 2020 •ONE Investment creates the Prudent Investment (PI) Program. •The ONE Joint Investment Board (ONE JIB) is formed as a municipal service board to manage PI investments of Six Founding Municipalities. •The Founding Municipalities appointed initial members of the ONE JIB. The ONE JIB is set up to include those with global investment expertise and municipal finance experts. •At launch, ONE JIB is managing $500 million in investments for the six founding municipalities. Attachment 6 - Report FIN 05-26 2024 • ONE enhances its Prudent Investment Program by engaging an Outsourced Chief Investment Officer (OCIO) - PH&N Institutional, through a competitive RFP. • ONE JIB grows to manage PI investments for 15 municipalities with a total balance of >$2 billion. • Total investments with ONE Investment exceeded $4 billion ONE High Interest Savings Account ONE Investment has offered the ONE High Interest Savings Account (HISA) since 2015. ONE helps investors obtain the best interest rate on every dollar, every day by aggregating all investor deposits. In 2021, the ONE Board approved the addition of two new HISA providers. This provides investors the flexibility to keep one or open multiple accounts for diversification purposes. Select from the following options: • Scotiabank • CIBC NOTE: To find rate details or APPLY for an account, please email ONE@oneinvestment.ca Highlights • Fully Liquid Account: Access to your funds within couple of days • No Service Charges: No Transaction or Monthly Fee • No Minimum or Maximum Balances • Earn high interest calculated daily • Online access to account activity and statements • Deposits are eligible for Canadian Deposit Insurance Corporation (CDIC) coverage. ONE Advisory Team can assist to create a customized savings goal for your organization. Contact ONE@oneinvestment.ca today to find what might be the best allocation to this account, given your investment objectives. Attachment 6 - Report FIN 05-26