County hears about investment options

By Sharon McLeay Times Contributor

Councillors at Wheatland County got a quick financial investment education when Scotia Wealth Management representatives spoke to them on July 2.
Rob Gray, asset manager, and Candace Haralson, a portfolio manager with Scotia Wealth Management, outlined the types of investments allowed under the Municipal Government Act (MGA) and explained what that means for county investments.
“There is a lot of pressure on you to manage public funds,” said Gray. “It is one thing to invest in a portfolio that has risk associated with it when it’s your personal money and the only person affected is yourself. You look in the mirror and decide whether you are comfortable with that. It is a very different scenario when you are doing it with public money. You have that burden on you in any decision made in these chambers.”
Wheatland County’s investments are traditionally placed in guaranteed income certificates which is considered a low-risk way to invest.
“We are kind of handcuffed; the Municipal Government Act, with good intention, is trying to protect public money that has come in from taxpayers. So, there are a lot of restrictions around it,” said Gray.
They pointed out some ways of maximizing returns within the confines of the MGA.
Haralson did a historical summary of market trends and compared those trends to the current markets. The current Bank of Canada rate is low but volatile, as it goes up and down depending on various local and international situations. Gray predicts the bank rate will climb in the next five years. They also summarized the investment practises used by other municipalities for Wheatland County council’s information.
Their complete and detailed investment presentation can be seen on the July 2 YouTube video feed for Wheatland County.