At its meeting of October 15, 2013, the Corporate Administration Finance and Enterprise Committee will be considering receipt of Report Number FIN-13-40 2013 Interim Investment Performance Report that provides an update on the City’s investment performance as required under Ontario regulation 438/97 of the Municipal Act, 2001. Unfortunately, the local printed media outlet the Guelph Mercury printed a story respecting this report that included several inaccuracies and omitted more positive messages identified in the Key Findings sections of the CAFE report. Attached please find a Briefing Note developed by CHR Corporate Communications that summarizes the misinterpretations referenced here and the actions taken to contact the Guelph Mercury to provide corrections to the media coverage.
The corrections outlined in the attachment and sent to the Guelph Mercury relate primarily to the treatment of the asset backed securities. Contrary to the news story that states another $373 thousand write down is occurring on top of $1.4 million already “lost”, the ABS’s remain an investment held on the City’s balance sheet and are still traded on the market. The incorrect interpretation afforded by the Guelph Mercury overshadowed what staff believe is the positive aspect of the report, namely that the City has earned $1.8 million in investment income as of June 30, 2013 which is a $604,000 surplus compared to budget realized directly as a result of staff’s changed investment strategies including entering into a new banking relationship. Staff