Toronto Investment Board
The full agenda, as filed
All 6 items in the clerk’s order. Each carries the city’s own words: the staff recommendation, what the body decided, and its status. Nothing below is written by us.
IB10.1received
Policy Framework - City Response to Demonstrations
City Council on December 17 and 18, 2024, adopted Item CC24.2 as amended and, in so doing, has: 1. Adopted the Policy Framework - City Response to Demonstrations in Attachment 1 to the report (December 10, 2024) from the City Manager and direct the City Manager to update the Framework as necessary to ensure the Framework remains current and responsive to the City's needs and priorities. 2. Requested City agencies and corporations to refer to the Policy Framework - City Response to Demonstrations in Attachment 1 to the report (December 10, 2024) from the City Manager as a model and align applicable policies and procedures to be consistent with the City's approach where appropriate.
The Toronto Investment Board: 1. Received the item for information.
IB10.2adopted
As required by the City's Investment Policy, the purpose of this report is to provide the Toronto Investment Board (Board) with the following: 1. The Sinking Fund and Long Term Fund performance for the fourth quarter and full year of 2024. 2. Investment Policy and Plan Compliance check for the fourth quarter and full year of 2024.
The Toronto Investment Board: 1. Received this report for information.
Staff recommendation as filed
The Director, Capital Markets recommends that: 1. Toronto Investment Board receive this report for information.
IB10.3received
Presentations from Investment Managers
Presentations will be given by the following Investment Managers: - Addenda Capital (Fixed Income - LDI for the Sinking Fund) - Fiera Capital (Fixed Income - LDI for the Sinking Fund)
The Toronto Investment Board: 1. Received the item for information.
IB10.4adopted
Investment Manager and Other Updates
This report provides the Toronto Investment Board (Board) with an update regarding activities involving investment managers and related parties. It includes changes to the investment manager mandates, contracts, and funding along with other related items. Further to the confidential information provided at the Board's last meeting with respect to the changes at CBRE Global Alpha Fund, Aon has provided a Flash Report from the Townsend Group (which is part of the Aon group of companies). The report is a summary of recent personnel changes at CBRE Investment Management with Townsend continuing to recommend the CBRE real estate funds as a "buy". This includes the CBRE Global Alpha Fund which has been contracted by the Board. Further details are listed in Attachment 1. Global equity partner Pier 21 Asset Management had a significant event occur with the passing of their founder David M. Star. A Business Continuity Plan had been developed and details can be found in Attachment 2. It is important to note that Pier 21 represents the investment management firm C WorldWide (CWW) in Canada and that the funds invested by the Board continue to be held and managed by CWW. City staff have met with the new president and CEO of Pier 21 and expect no changes to service going forward. City staff continue to re-balance the Sinking Fund and transfer funds for debt repayment at maturity. In addition, funding for CBRE, a manager in the Real Assets category was completed. A summary of the transfers completed after October 31, 2024, are outlined in this report. An update of the current funding status of Long-Term Fund (LTF) and Sinking Fund (SF) as at January 31, 2025, is provided in Attachment 3 of this report.
The Toronto Investment Board: 1. Received this report for information.
Staff recommendation as filed
The Director, Capital Markets recommends that: 1. Toronto Investment Board receive this report for information.
IB10.5adopted
Environmental, Social, and Governance Reporting Update
The Toronto Investment Board (Board) engaged MSCI Inc. (MSCI) and its subsidiary MSCI ESG Research LLC as its ESG Ratings Service provider. The agreement was in response to City Council's request to the Toronto Investment Board and the Chief Financial Officer and Treasurer to monitor and report on the performance of the external investment firms hired by the Board with respect to ESG factors according to the Investment Policy. In addition, the agreement includes the MSCI Carbon Portfolio Analytics reporting package that is part of MSCI's Climate Lab Enterprise, a comprehensive set of climate data and analytics. Carbon Portfolio Analytics reporting from MSCI ESG Research helps investors understand, measure and manage carbon risk at the portfolio, sector and company level. Both MSCI products are being provided on a managed service basis whereby City staff provide portfolio information to MSCI via secured channels and MSCI generate reports on a portfolio and consolidated basis for the Long-Term Fund (LTF) and Sinking Fund (SF). Benchmark index information is also provided for comparison. The information from MSCI is proprietary and confidential. There are a number of identifiable individual companies and governments in their detailed reports. The agreement with MSCI allows for the viewing and use of the information on a confidential basis by a limited number of City staff, the Board and City Council. The contract does allow for the public use of general consolidated information on a limited basis. Portfolio holdings as at December 31, 2024 were submitted to MSCI in February 2025. Results were received as at the date of this report. Summary data is provided in this report as well as in Confidential Attachments 1, 2, 3 and 4. Further investigation into the MSCI ESG ratings fluctuations is recommended. The Board's investment consultant Aon Solutions Canada Inc. ("Aon") provides a service which may enhance the information currently provided. City staff will review the proposed service with Aon to understand the usefulness and additional costs of the ESG information. A report back to the Board will be presented at the next meeting.
The Toronto Investment Board: 1. Directed that the confidential information contained in Confidential Attachment 1, Confidential Attachment 2, Confidential Attachment 3, and Confidential Attachment 4 remain confidential in its entirety, as it contains information that involves the security of property belonging to the City or one of its agencies or corporations. 2. Directed that the Director, Capital Markets investigate and review further Environmental, Social, and Governance ratings solutions and enhancements under the terms of the current contract with Aon Solutions Canada and report back to the Toronto Investment Board at the next meeting with an outline of the additional information to be provided, terms of service, additional costs, and any other relevant details.
Staff recommendation as filed
The Director, Capital Markets recommends that: 1. The Toronto Investment Board direct that the confidential information contained in Confidential Attachment 1, Confidential Attachment 2, Confidential Attachment 3, and Confidential Attachment 4 remain confidential in its entirety, as it contains information that involves the security of property belonging to the City or one of its agencies or corporations. 2. The Toronto Investment Board direct that the Director, Capital Markets investigate and review further Environmental, Social, and Governance ratings solutions and enhancements under the terms of the current contract with Aon Solutions Canada and report back to the Toronto Investment Board at the next meeting with an outline of the additional information to be provided, terms of service, additional costs, and any other relevant details.
IB10.6adopted
Investment Manager Fees Update
This report provides an annual update of the Investment Manager fees paid by the Toronto Investment Board ("Board") for the year ending December 31, 2024. The confidential attachment to this report provides a summary of the fees. All fees are in-line and in accordance with the amounts contracted with each Investment Manager.
The Toronto Investment Board: 1. Directed that the confidential information contained in Confidential Attachment 1 remain confidential in its entirety, as it contains information that involves the security of property belonging to the City and the Toronto Investment Board.
Staff recommendation as filed
The Director, Capital Markets recommends that: 1. The Toronto Investment Board direct that the confidential information contained in Confidential Attachment 1 remain confidential in its entirety, as it contains information that involves the security of property belonging to the City and the Toronto Investment Board.