The City of Moose Jaw’s investments grew $3.1 million during the first quarter of this year, while they have grown by more than $14.9 million since they were invested nearly two years ago, data shows.
During city council’s May 25 regular meeting, the investment committee presented a report dealing with the first-quarter results from this year. Council then voted unanimously to receive and file the document.
There was $79,545,865.83 invested in the long-term portfolio and $32,376,600 invested in the moderate-term portfolio as of March 31, for a total of $111,922,465.83.
Long-term portfolio
City council invested $58,237,863.68 in the long-term portfolio in July 2019, and since then, the portfolio has grown 10.06 per cent or $11,630,420.93, the report showed.
From April 1, 2020 to March 31, 2021, the portfolio saw returns of 24.92 per cent or $15.96 million. Meanwhile, during the first quarter of this year, the portfolio grew 3.27 per cent or $2.51 million.
Total withdrawals or losses in the portfolio have totalled $8,696,918.94.
Moderate-term portfolio
City council invested $29,085,434.73 in the moderate-term portfolio in July 2019, and since then, the portfolio has grown 6.49 per cent or $3,291,165.27, the report shows.
From April 1, 2020 to March 31, 2021, the portfolio saw returns of 14.16 per cent or $4,015,958.52. Meanwhile, during the first quarter of this year, the portfolio grew 2.13 per cent or $676,716.47.
Total withdrawals or losses in the portfolio have totalled $2,185,391.12
Future outlook
RBC Dominion Securities — which manages the portfolios — said in its global investment outlook that with more vaccines on hand, case counts declining and businesses gradually resuming operations, bond yields have surged, stocks have climbed to record highs and various market signals suggest economies are on the cusp of a strong recovery.
“… the economy has been incredibly resilient for most of the pandemic and the damage from the second wave of the virus was milder than expected,” the report said. “We look for a significant rebound in economic growth this year, with most economies achieving pre-pandemic levels of output sometime this year or next.”
However, several factors make the growth outlook less clear, the report continued. Some risks include the unprecedented nature of the pandemic, uncertainties related to vaccine distribution and their ability against new variants, and the possibility of another wave. Uncertainties also exist with inflation and more fiscal stimulus.
“Our assessment is that these risks are roughly balanced in terms of their ability to turn out better or worse than expected. The vaccine and the virus represent greater downside risks, but the reverse is true regarding fiscal support,” added the report.
RBC expects the U.S. dollar to further weaken due to the cyclical nature of currencies, while the Canadian dollar is expected to outperform many of its G10 counterparts.
The next regular council meeting is Monday, June 14.
