The City of Edmonton is in a leading position when it comes to managing its investment portfolio and program. The City’s investment program has strong accountability and oversight matched with diversified expertise, which has allowed the program to offer significant added value to the City over time.
An important part of the City’s investment program is the Ed Tel Endowment Fund. The Ed Tel Endowment Fund has grown from $465 million, when it was first started in 1995, to $768 million at the end of 2014. During that time period the fund has also paid $636 million in dividends to the City.
Since inception, the Ed Tel Endowment Fund has earned a compound annual rate of return of 8.4%, which is higher than the benchmark return of 7.4%. This innovative municipal revenue stream has been made possible because of sound decisions in the Investment Program’s accountability framework, oversight, and policy.
It is important for Edmontonians to know about the investment revenue stream because it reduces taxes and diversifies the City’s revenue base, contributing to financial sustainability.
The City’s current Investment Policy and Procedures C212D outlines the City’s asset allocation policies, investment principles and guidelines, and risk management controls. These elements allow for continuous improvement within the investment program and help achieve the goal of Ensuring Edmonton's Financial Sustainability. As such, The Way We Finance will not recommend any further changes to the existing Investment Policy.
Excerpts from Municipal Government Act (MGA) related to municipal investment: