Finance Committee

Minutes of the Finance Committee Meeting

21 February 2022 @10:00

Virtual via MS Teams

ATTENDED:  Doug Gaetz – Chair and 1st National Vice-President, Cosimo Crupi – Co-Chair and RVP-Northern and Eastern Ontario, Jérôme Martel– Co-Chair and RVP-Quebec, Glen Murphy – Presidents’ Representative, Sydney Local 80004, Liam Merrigan – UTE Staff and Advisor.

1. Investments

Howard Greenberg from CIBC Wood Gundy discussed the current market conditions and reviewed the performance of UTE’s investments indicating that the large investment equities account, with approx. $8.6m, has averaged a 4.95% return since the start.  The smaller bond manager account, with approx. $4.9m, has averaged a 3.5% return since the start.

Howard recommended reducing potential long term bond exposure given the interest rates are slated to rise soon.  Approx. $1m would be immediately moved out of the bond manager account and into the bigger account and invested in short term bonds.  Depending on the market performance, another $3m would most likely also need to be moved later in March to account for the changing markets.  The Committee accepted Howard’s recommendation for the investment changes.

The Committee discussed the possibility of putting $2m into some 2-3 year GICs but given the low rates offered on the GICs, the Committee went with Howard Greenberg’s recommendation of placing the money into, 60% Lysander Deep Value Fixed Income Fund, and 40% to the Canoe Defensive Equity Fund.

The Committee indicated that they would like to reconvene in a month or two to review the performance of the changes and of the new $2m investment.