NORTH BATTLEFORD - The City of North Battleford has made changes to its institutional investment policy.
Council passed an amended investment policy bylaw, with a view towards increasing their overall return on investments.
According to Brent Nadon, director of finance, most of the changes are of a housekeeping variety, but there is one larger change: to add a new moderate-term portfolio to the current short-term and long-term portfolios.
The plan is to establish a moderate-term portfolio with a three-to-five-year time horizon, which Nadon said “would provide additional opportunities to increase investment returns. This strategy will also minimize the dollar value of our funds that are kept in the short-term pool where we tend to get the lowest return.”
Nadon also addressed ways in which the city could increase its returns in the short-term pool. He said he had talked to their investment managers and where possible a more aggressive approach to the short-term pool will be taken. He said the city finance team will take a slightly more active management stance and spend more time comparing their short-term pool and cash management balances on a daily or weekly basis.
The biggest impact, he said, is having a medium-term fund and being able to move funds from the short-term pool into it. The short-term pool currently carries about $5 million in funds.
The changes to the policy were made in conjunction with RBC Wealth Management, with Brendon Boothman and Jerrod Schafer both involved in reviewing the policy for housekeeping changes and adjustments. The changes were also discussed by council members at Planning Committee.
The amended investment policy bylaw was passed in three readings Monday.
