Toronto Investment Board
The full agenda, as filed
All 5 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.
IB13.1received
Presentations from Investment Managers
Presentations from Investment Managers will be given by: a. Fiera Global Equity Fund (Global Equity) b. Fiera Harris/Oakmark Fund (Global Equity)
The Toronto Investment Board received the item for information.
IB13.2adopted
Sinking Fund and Long Term Fund - Performance and Compliance Update for the Second Quarter of 2021
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 performance of the Sinking Fund and Long Term Fund for the second quarter of 2021. 2. Investment Policy and Plan Compliance certificates and reports for the second quarter of 2021.
The Toronto Investment Board received the report (August 24, 2021) from the Director, Capital Markets for information.
Staff recommendation as filed
The Director, Capital Markets recommends that: 1. The Toronto Investment Board receive this report for information.
IB13.3adopted
Investment Manager and Other Updates
This report provides the Toronto Investment Board with an update with regards to activities involving the investment managers and related parties. It includes changes to the investment manager mandates, contracts, and funding along with other related items. The first item involves the Fiera Global Equity Fund which the Board contracted and funded in February 2020. Fiera Capital Corporation (Fiera) announced that it has agreed to establish a sub-advisory partnership with StonePine Asset Management (StonePine) who will now manage this fund. StonePine was created by portfolio manager Nadim Rizk and his global equities team who are currently managing the fund under the Fiera banner. The same people and strategies will continue to be used to manage the Fiera Global Equity Fund and this is viewed as more of an administrative change. Further details about this matter can be found in the "Flash Report" by the investment consultant (Aon) contained in Attachment 1 of this report. The Board's contract with Fiera ultimately remains the same. Written consent is required to appoint StonePine as the sub-advisor. Staff recommend that the Board provide consent to Fiera to appoint StonePine as the sub-advisor to the Fiera Global Equity Fund. Secondly, since the last meeting of the Board, Sinking Fund contributions of $192.8 million were transferred to fixed income investment managers for the purposes of rebalancing. An update of the current funding status of Long-Term Fund and Sinking Fund is also provided in Attachment 2 to this report. Finally, the City's auditors (KPMG LLP) found no exceptions to note from the Investment Policy compliance audit procedures conducted for the year ended December 31, 2020.
The Toronto Investment Board authorized the Chair or Vice-Chair of the Toronto Investment Board to sign the necessary documentation to appoint StonePine Asset Management as sub-advisor to the Fiera Global Equity Fund as requested by Fiera Capital Corporation.
Staff recommendation as filed
The Director, Capital Markets recommends that: 1. The Toronto Investment Board authorize the Chair or Vice-Chair of the Toronto Investment Board to sign the necessary documentation to appoint StonePine Asset Management as sub-advisor to the Fiera Global Equity Fund as requested by Fiera Capital Corporation.
IB13.4adopted
At its meeting on June 2, 2021, the Toronto Investment Board requested the Investment Consultant (Aon), in consultation with City staff, to proceed with a manager search and evaluation for the Real Asset category. Capital Markets staff is working with Aon in completing a search for investment managers Real Estate sub-category. This report provides a status update on the investment manager selection process. After a thorough search based on selection criteria, Aon provided a short-list of investment managers to be evaluated that is detailed in Confidential Attachment 1. Capital Markets staff, with the assistance of Aon, will interview and evaluate the short-listed group of investment manager candidates. A recommendation will then be provided for the Board's consideration at a meeting following the completion of the interview and evaluation process.
The Toronto Investment Board directed that Confidential Attachment 1 to the report (August 20, 2021) from the Director, Capital Markets remain confidential in its entirety, as it pertains to the security of property belonging to the City or one of its agencies or corporations.
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 or one of its agencies or corporations.
IB13.5adopted
Environmental, Social, and Governance Reporting Update
The Toronto Investment Board authorized a Request for Proposal for a third-party Environmental, Social, and Governance information provider at its meeting on October 7, 2020. This report provides an update to secure the services of an information provider. An invitational Request for Proposal was developed and issued during Q1 2021. Receipt of bid submissions closed on April 12, 2021. Unfortunately the process was unsuccessful and the iRFP was officially closed and cancelled on June 3, 2021. Confidential Attachment 1 provides a listing of the information providers that were sent the invitational Request for Proposal and their individual responses. The next option is to conduct a non-competitive procurement given the results of the invitational Request for Proposal. During August 2020, several of the City's current investment managers were surveyed to gather information on the most prominent and preferred Environmental, Social, and Governance information service providers, which also would present the least conflict with the City's current investment processes. The results of the survey are detailed in Confidential Attachment 2. City staff will move forward and conduct a non-competitive procurement for the services from the Environmental, Social, and Governance information provider that was identified by a majority investment managers in Confidential Attachment 2. Should an agreement not be reached with the recommended firm identified in Confidential Attachment 2, the second recommended firm identified in the attachment should be used as an alternative.
The Toronto Investment Board: 1. Authorized the Director, Capital Markets, to initiate a non-competitive procurement to retain the recommended third-party information provider identified in Confidential Attachment 2 to the report (August 20, 2021) from the Director, Capital Markets and in the alternative to retain the second recommended third-party information provider identified in Confidential Attachment 2 to the report (August 20, 2021) from the Director, Capital Markets to provide metrics in the area of assessing Environmental, Social, and Governance performance which would facilitate a response to the City Council request to the Toronto Investment Board and the Chief Financial Officer and Treasurer to develop a process to monitor and report on whether or not external investment firms hired by the City are compliant with the terms of the Investment Policy with respect to Environmental, Social, and Governance factors. 2. Authorized the Chair or Vice-Chair of the Investment Board to execute an agreement with the recommended provider in Part 1, above, on behalf of the Investment Board. 3. Directed that Confidential Attachments 1 and 2 to the report (August 20, 2021) from the Director, Capital Markets remain confidential in their entirety, as they pertain to the security of property belonging to the City or one of its agencies or corporations.
Staff recommendation as filed
The Director, Capital Markets recommends that: 1. The Toronto Investment Board authorize the Director, Capital Markets, to initiate a non-competitive procurement to retain the recommended third-party information provider identified in Confidential Attachment 2, and in the alternative to retain the second recommended third-party information provider identified in Confidential Attachment 2, to provide metrics in the area of assessing Environmental, Social, and Governance (ESG) performance which would facilitate a response to the City Council request to the Toronto Investment Board and the Chief Financial Officer and Treasurer to develop a process to monitor and report on whether or not external investment firms hired by the City are compliant with the terms of the Investment Policy with respect to ESG factors, and authorize the Chair or Vice-Chair of the Investment Board to execute an agreement with the recommended provider on behalf of the Investment Board. 2. The Toronto Investment Board direct that the confidential information contained in Confidential Attachment 1 and Confidential Attachment 2 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.