Toronto Investment Board
The full agenda, as filed
All 11 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.
IB15.1received
Audit of Toronto Water: Stormwater and Wastewater Contract Management
City Council on November 12 and 13, 2025, adopted Item AU10.3 and, in so doing, has requested the heads of City Divisions, Agencies and Corporations to review the issues and recommendations included in the report (October 22, 2025) from the Audit Committee and consider the relevance to their respective organizations for implementation.
The Toronto Investment Board: 1. Received this item for information.
IB15.2received
10-Year Circular Economy Road Map
City Council on November 12 and 13, 2025, adopted Item IE25.1 as amended and, in so doing, has requested the City's Agencies and Corporations to review the report of the Executive Director, Environment, Climate and Forestry and the General Manager, Solid Waste Management Services, dated October 15, 2025, titled "10-Year Circular Economy Road Map," including all attachments, along with City Council's directions, and adopt similar actions where possible.
The Toronto Investment Board: 1. Received this item for information.
IB15.3adopted
Integrity Commissioner’s 2026 Municipal Election Interpretation Bulletin
As the city prepares to enter an election period, it is important that we are reminded about the political activity rules, which apply to political activity at the municipal, provincial or federal level. The Office of the Integrity Commissioner Toronto has provided the attached bulletin to inform us about the upcoming Toronto election dates, what the responsibility of the Toronto Investment Board is generally with respect to political positions and considerations that members should be aware of if they plan to be politically active at any level. Please review the report and contact the Office of the Integrity Commissioner with any questions. Contact information is included in the report.
The Toronto Investment Board: 1. Received the Integrity Commissioner's 2026 Municipal Election Interpretation Bulletin for information.
Staff recommendation as filed
That the Toronto Investment Board: 1. Receive the Integrity Commissioner's 2026 Municipal Election Interpretation Bulletin for information.
IB15.4adopted
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 2025. 2. Investment Policy and Plan Compliance check for the fourth quarter and full year of 2025.
The Toronto Investment Board: 1. Received this item for information.
Staff recommendation as filed
The Director, Capital Markets recommends that: 1. Toronto Investment Board receive this report for information.
IB15.5received
Presentations from Investment Managers
Presentations will be given by the following Investment Managers: - Legal & General Investment Management - Pier 21 Asset Management Inc. and C WorldWide Asset Management
The Toronto Investment Board: 1. Received this item for information.
IB15.6adopted
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, 2025. 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 to the report (March 1, 2026) 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 to this report (March 1, 2026) remain confidential in its entirety, as it contains information that involves the security of property belonging to the City and the Toronto Investment Board.
IB15.7adopted
This report provides the Toronto Investment Board (Board) with a general update regarding investment managers and other related activities. It includes changes to the investment manager mandates, contracts, and most recent up-to-date fund balances. Following a presentation from CBRE at the previous Board meeting regarding the proposed modernization of the CBRE Global Alpha Fund documentation, the investment consultant (Aon) has provided a review of these changes as described in Confidential Attachment 1. In addition, city staff received a positive external legal review of these changes. Subsequently, the changes proposed by CBRE have now been adopted and have been filed with the regulatory authorities. The investment consultant (Aon) has also provided three additional Flash Reports regarding personnel changes at the external investment management firms of Legal & General Investment Management (LGIM), UBS Asset Management (UBS), and Addenda. These three reports are contained in Attachment 1, Attachment 2, and Attachment 3 respectively. The report also provides the most recent fund balances and asset mix for the Long-Term Fund and Sinking Fund as at January 31, 2026 (Attachment 4).
The Toronto Investment Board: 1. Directed that the confidential information contained in Confidential Attachment 1 to the report (March 1, 2026) 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.
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 to this report (March 1, 2026) 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.
IB15.8adopted
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. The 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, 2025 were submitted to MSCI in February 2026. 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, 4 and 5.
The Toronto Investment Board: 1. Directed that the confidential information contained in Confidential Attachment 1, Confidential Attachment 2, Confidential Attachment 3, Confidential Attachment 4 and Confidential Attachment 5 to the report (February 26, 2026) 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.
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, Confidential Attachment 4 and Confidential Attachment 5 to this report (February 26, 2026) 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.
IB15.9received
Review of the Global Equity Mandates - Revisiting the Implementation Rationale
The purpose of this report is to provide the Toronto Investment Board (Board) with a review of the global equity mandates and explain the rationale underlying the selection of investment managers for this asset class. A presentation by the investment consultant (Aon) provides background and decision making of the Board in 2018 and in 2024. More recently, the Board has questioned the need for "Active" global equity managers versus a broad approach on having "Passive only" mandates given the performance of active managers against their benchmarks. The investment consultant (Aon) has provided an update to their presentation from 2024 that provides a rationale for having a "balanced" approach to this decision (Attachment 1). In addition, Aon has provided a research paper entitled "Passively Becoming Active" (Attachment 2) which provides a statistical information on recent performance of passive and active investment managers and their benchmarks.
The Toronto Investment Board: 1. Received this item for information.
Staff recommendation as filed
The Director, Capital Markets recommends that: 1. Toronto Investment Board receive this report for information.
IB15.10adopted
Review of the Passive Global Equity Mandate - Factoring Methodology
The current passive global equity mandate used in the City of Toronto's Long Term Fund (LTF) and the Sinking Fund (SF) uses a four-factor model to screen out certain undesirable equities. While this model has been adequate, there has been some recent drawbacks and underperformance versus established benchmarks. The investment consultant (Aon) under their Aon Factoring Service (AFS) has been reviewing the factors in these current models and developing a new model they believe is an enhancement of the current mandate. Confidential Attachment 1 provides a presentation by AFS and a recommendation to transition to a new mandate that will strengthen long term outcomes. Confidential Attachment 2 and Confidential Attachment 3 provides information on the specifics of the new mandate should the Toronto Investment Board (Board) adopt the recommendation from AFS to make this transition.
The Toronto Investment Board: 1. Awarded the contract for investment management services to the firm set out in Confidential Attachment 2 to the report (March 6, 2026) and in accordance with the allocation of the transaction outlined in Confidential Attachment 3 to the report (March 6, 2026). 2. Authorized the Chief Financial Officer and Treasurer, in consultation with the City Solicitor, to negotiate and execute an agreement with the firm selected as investment manager set out in Confidential Attachment 2 to the report (March 6, 2026), on terms satisfactory to City Solicitor and the Chief Financial Officer and Treasurer, and authorize the Chair or the Vice Chair of the Toronto Investment Board to execute such agreement on behalf of the Toronto Investment Board. 3. Authorized the public release of name of the successful firm upon finalizing an agreement with the investment manager identified in Confidential Attachment 2 to the report (March 6, 2026). 4. Directed that the confidential information contained in Confidential Attachment 1 to the report (March 6, 2026) and Confidential Attachment 3 to the report (March 6, 2026) 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.
Staff recommendation as filed
The Director, Capital Markets recommends that: 1. The Toronto Investment Board award the contract for investment management services to the firm set out in Confidential Attachment 2 to the report (March 6, 2026) and in accordance with the allocation of the transaction outlined in Confidential Attachment 3 to the report (March 6, 2026). 2. The Toronto Investment Board authorize the Chief Financial Officer and Treasurer, in consultation with the City Solicitor, to negotiate and execute an agreement with the firm selected as investment manager set out in Confidential Attachment 2 to the report (March 6, 2026), on terms satisfactory to City Solicitor and the Chief Financial Officer and Treasurer, and authorize the Chair or the Vice Chair of the Toronto Investment Board to execute such agreement on behalf of the Toronto Investment Board. 3. The Toronto Investment Board authorize the public release of name of the successful firm upon finalizing an agreement with the investment manager identified in Confidential Attachment 2 to the report (March 6, 2026). 4. The Toronto Investment Board direct that the confidential information contained in Confidential Attachment 1 to the report (March 6, 2026) and Confidential Attachment 3 to the report (March 6, 2026) 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.
IB15.11deferred
Real Assets Update - Infrastructure
The purpose of this report is to update the Toronto Investment Board (Board) on the progress to date regarding the search for external investment managers for the Infrastructure portion of the Real Assets category. At its December 2025 meeting, the Board received a presentation from the investment consultant (Aon) entitled "Investing Infrastructure Education " which outlined the rationale to consider Infrastructure investments. In addition, the Board also requested the investment consultant (Aon), in consultation with the Director, Capital Markets, to proceed with a manager search and evaluation for the infrastructure asset class, within the guidelines of the Council-approved Investment Policy. The process, analysis, and the list of firms considered are provided in Confidential Attachment 1. These documents are confidential as they contain commercial and financial information supplied by the investment consultant to the Board in confidence, which if disclosed could reasonably be expected to prejudice significantly the competitive position or other negotiations the Board may have in selecting the investment managers. It is recommended that the Board select a short list of potential investment managers from the listing provided in Confidential Attachment 1. Following this, City staff will proceed with pre-screening, interviews, and evaluation of the selected short list of investment managers and report back to the Board the staff recommendations for the infrastructure category.
The Toronto Investment Board: 1. Deferred consideration of this item until the June 22, 2026 meeting of the Toronto Investment Board.
Staff recommendation as filed
The Director, Capital Markets recommends that: 1. The Toronto Investment Board receive the report prepared by the investment consultant (Aon) contained in Confidential Attachment 1 to this report (March 1, 2026) for information. 2. The Toronto Investment Board direct that the confidential information contained in Confidential Attachment 1 to this report (March 1, 2026) 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. 3. The Toronto Investment Board request the Director, Capital Markets, in consultation with the investment consultant (Aon), to proceed with a pre-screening, interviews, and evaluation for the selected short list of infrastructure investment managers, and to report back with recommendations at the June 22, 2026 meeting of the Toronto Investment Board.