2025 Resolution: Explore Opportunities for Better Risk-Adjusted, Longer-term Investment Returns 

Taxpayers expect municipalities to look after communities by both providing critical daily services, and planning for a vibrant future.

This means that municipalities have to set aside reserves to cover longer-term maintenance, upgrades and expansion of municipal infrastructure as well as for unexpected emergencies. Every dollar earned on investments is one less that a municipality has to get out of property taxes.

By setting aside and investing reserves wisely, municipal governments can generate investment revenue that will reduce the burden on property taxpayers. 

The Prudent Investor regime is a key opportunity for municipalities. Under Prudent Investor there are broader investment powers and risk is assessed at the portfolio level. It allows municipalities to create portfolios that help maximize growth potential, while managing overall investment risk. 

This approach helps build a diversified, well-balanced investment portfolio focused on stronger longer term, risk-adjusted returns. Portfolios will hold dissimilar assets, with different characteristics that respond differently to market events. Bonds and equities tend to have low correlations, making them the cornerstone of most balanced investment portfolios.

ONE Investment’s Prudent Investment Program offers an independent and highly qualified Joint Investment Board to manage long-term investments according to each municipality’s risk profile and goals. 

ONE’s program has been expanding. There are more municipalities participating and more investment products to choose from to meet the diverse needs of Ontario’s municipal governments.

We would be happy to chat with you about the Prudent Investor options under Section 418(1) of the Municipal Act.  Please email Marie Wong Takishita, to book an introduction, or visit us at the upcoming 2025 ROMA Conference tradeshow on January 19 and 20.