Pearl Lorentzen

Local Journalism Initiative Reporter

An Edmonton-based company presented to the M.D. of Opportunity council on July 23 to see if they might be interested in switching investment providers. At the council meeting, council and the finance department asked some questions, but no decisions were made.

Wyatt Lynds gave the presentation. He is an associate portfolio manager for Qube Investment Management Inc.

Qube currently controls over $400 million, he said. It has provided investment advice across Western Canada for over 24 years. It is expanding to municipal government clients, with Lynds presenting to quite a few this summer.

Town of Spirit River has worked with Qube for about a year and is willing to act as a reference, said Lynds. Another municipality has just signed on.

The Municipal Government Act (MGA) limits how municipalities can invest, so there are only two or three major providers.

Qube did a survey of 20 municipalities, added Lynds; some (but not Opportunity) had average losses over the last three or four years.

If the M.D. goes with Qube, said Lynds, the priorities would be to protect the principal investment, outperform inflation, and create a tailored investment strategy that reflects the M.D.’s risk tolerance, cash needs, and investment goals.

The MGA requires municipalities to protect their initial investment, added Lynds. “Surprisingly, that’s a big issue.”

He didn’t say how this is an issue, but presumably in finding places to invest.

Lynds brought in a sample portfolio based on Opportunity’s investment policy. This included short-term and long-term investments. This projected a 3.56 to 3.57 increase.

Considering the current investment climate, Lynds said, “mid-threes is quite substantial.”

Qube is also Alberta-based, added Lynds. Most other investment options for municipalities are based out of Toronto.

Reeve Marcel Auger asked if Qube investors would have the workforce to deal with the extra work if the M.D. signed on.

We’re well under our limit, said Lynds.

Ryan Musch, director of finance, mentioned that traditionally municipalities invest with banks, because of the security this provides.

Qube uses National Bank Independent Network as custodian, said Lynds, so it can provide the safety of a bank, but the flexibility of a boutique firm.