Grand Manan Already Feeling the Impact of Impending Bank Closure

At the Village of Grand Manan Council Meeting for April 2022, Councillor Greg Russell discussed the village's investments with ScotiaMcLeod, which is part of Scotiabank's wealth management division. 

"When I met with ScotiaMcLeod last year, they came up with a proposal for a committee and a policy to cover our assets and how we handle our assets," said Councillor Russell. ""I think we can do a little better with our assets in terms of the ones we don't use from day to day. We just got a reply today from Matt McKenna today. Right now we are not covering inflation. We are in fixed income with all of our assets right now. Their recommendation is to go from 100 fixed income to 60 fixed income in 40 equities.

He says they believe this asset allocation balances the investment risk while allowing the village a greater probability of earning a better long-term rate of return. Of course, it's still up in the air if by next fall if we are still with Scotia McLeod or Scotiabank, that's still to be determined."

The Village of Grand Manan is notably set to lose its only bank in August of 2022, forcing islanders to have to travel three hours round trip to St. George to do business at the nearest banking facility. The closure of the island's only bank will impact not only council but also local businesses as well as having a yet to be determined affect on the tourism season. New Brunswick Southwest MP John Williamson has made a point of addressing his concerns over the bank closure in Parliament in an attempt to save the institution before its impending closure in late summer. 

"We could make the moves Scotia McLeod is suggesting today or move on with another investment team this fall," said Councillor Russell. "I will make a motion that the village contact Scotia McLeod and get our investments put in the portfolios as to their recommendations, which are all medium risk recommendations."
Councillor Russell's motion was seconded by Councillor Leighton. 

"Let's leave it where it is and see where we end up banking wise come August," said Mayor Bonnie Morse.