Written By Olena Riznyk
LUCAN BIDDULPH – Jason Hagan, Program Manager with One Investment, and Keith Taylor, the organization’s Chief Investment Officer, presented council with an overview of Ontario’s prudent investor framework during the June 2nd council meeting.
The presentation provided background information on a municipal investment model that allows municipalities to invest certain long-term funds beyond the investment options traditionally permitted under Ontario’s “legal list” rules. Council later received the presentation for information.
Hagan explained that One Investment is a not-for-profit organization focused on serving Ontario municipalities and broader public-sector organizations. The organization is jointly owned by Local Authority Services, the business services arm of the Association of Municipalities of Ontario (AMO), and CHUMS, a subsidiary of the Municipal Finance Officers’ Association of Ontario. About 200 municipalities and public-sector entities currently invest through One Investment, while 21 municipalities participate in its prudent investment program.
Under the traditional legal-list approach, municipalities are limited to a prescribed list of eligible Canadian investments. The prudent investor model, introduced through changes to the Municipal Act in 2019, allows municipalities to invest more broadly, provided investments are made with the care, skill and judgment expected of a prudent investor.
Hagan said the approach offers broader diversification and independent oversight through a joint investment board. He noted that municipalities choosing the model must meet legislative requirements, including obtaining professional advice and investing long-term funds through an independent investment board or joint investment board.
The One Joint Investment Board currently oversees approximately $2.8 billion in assets on behalf of participating municipalities. Members include communities ranging from Durham Region and Thunder Bay to smaller municipalities such as Aylmer and Central Frontenac.
Much of the discussion focused on how municipalities determine which funds are considered long-term investments. Under the prudent investor model, council would define “money not required immediately” through an investment policy, while shorter-term funds would remain under the treasurer’s control and continue to follow existing legal-list rules.
Council members questioned the presenters about fees, investment risk, governance, access to funds during emergencies and the independence of the joint investment board.
Taylor said fees vary depending on the investment mix but are designed to remain competitive for municipal investors. He also noted that municipalities retain access to their funds if circumstances change, although investment values can fluctuate with market conditions.
During discussion, staff confirmed the township does not currently have an investment policy and that its investments are currently limited to options permitted under existing legislation.
