Toronto Investment Board
The full agenda, as filed
All 8 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.
IB5.1received
Presentations from Investment Managers
Presentations will be given by the following Investment Managers: - Pier 21/C Worldwide (Global Equity) - Legal and General Investment Management (Global Equity)
The Toronto Investment Board received the presentations for information.
IB5.2adopted
Sinking Fund and Long Term Fund - Performance and Compliance Update for the Third Quarter of 2023
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 third quarter of 2023. 2. Investment Policy and Plan Compliance certificates and reports for the third quarter of 2023.
The Toronto Investment Board received the report (November 20, 2023) 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.
IB5.3adopted
Investment Manager and Other Updates
This report provides the Toronto Investment Board ("Board") with an update regarding activities involving the investment managers and related parties. It includes changes to the investment manager mandates, contracts, and funding along with other related items. Further to the announcement earlier this year regarding the Fiera Capital Corporation ("Fiera") decision to close the Fiera Global Equity Common Contractual Fund ("Fiera CCF"), several options have been proposed. An evaluation of these options by the investment consultant, external legal counsel, tax advisors, and City staff is currently underway. After a meeting with Fiera, it was agreed that Fiera will cover all the fixed costs for Fiera Common Contractual Fund ("Fiera CCF") while the next course of action is decided. The review of the various options is near completion with a focus on a single option now being considered. City staff are also reviewing a transfer between the Short-Term Fund (managed internally) and the Long-Term Fund (managed by the Board). While details have yet to be finalized, a plan to distribute the cash is outlined in this report. An update of the current funding status of Long-Term Fund ("LTF") and Sinking Fund ("SF") is provided in Attachment 1 to this report for the Board's review.
The Toronto Investment Board received the report (November 23, 2023) from the Director, Capital Markets, for information.
Staff recommendation as filed
The Director, Capital Markets recommends that the Toronto Investment Board receive this report for information.
IB5.4adopted
The purpose of this report is to update the Toronto Investment Board ("Board") on the progress to date regarding the hiring of external investment managers in the Real Assets category.
The Toronto Investment Board received the report (November 24, 2023) from the Director, Capital Markets, for information.
Staff recommendation as filed
The Director, Capital Markets recommends that the Toronto Investment Board receive this report for information.
IB5.5adopted
Environmental, Social, and Governance Reporting Update
The Toronto Investment Board (Board) has engaged MSCI Inc. (MSCI) and its subsidiary MSCI ESG Research LLC as the ESG Ratings Service provider in April 2023. 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 as hired by the Board with respect to ESG factors as per the terms of the Investment Policy. In addition, the agreement also includes the MSCI Carbon Portfolio Analytics reporting package that is part of MSCI's Climate Lab Enterprise. Carbon Portfolio Analytics reporting from MSCI ESG Research helps investors understand, measure and manage carbon risk at the portfolio, sector, and company level. Both of these MSCI products are provided on a managed service basis. This requires City staff to upload the portfolio information to MSCI via a secured portal and then MSCI will generate reports on each portfolio as well as on a consolidated basis for both the Long-Term Fund (LTF) and the Sinking Fund (SF). Comparison information against a benchmark index is also provided. 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 September 30, 2023 were submitted to MSCI in November due to some technical difficulties with our custodian. Preliminary results were received were received as at the date of this report. Staff are still reviewing the materials however some preliminary consolidated data is provided in this report as well as in Confidential Attachments 1, 2, 3, and 4.
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 to the report (November 24, 2023) from the Director, Capital Markets, remain confidential in their entirety, as they contain 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, 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.
IB5.6adopted
Personal Trading Policy - Toronto Investment Board
The Toronto Investment Board (Board) is required to review the Personal Trading Policy every two years. The Policy was last reviewed in 2021 and is due for review. There are no changes recommended by staff to the Policy at this time. As such, it is recommended that the Board adopt the Personal Trading Policy as described in Attachment 1 to this report. Board members will also be asked to sign the Annual Compliance Statement (Attachment 2) of this report once the policy is adopted.
The Toronto Investment Board: 1. Adopted the Personal Trading Policy for Board Members as described in Attachment 1 to the report (November 22, 2023) from the Director, Capital Markets.
Staff recommendation as filed
The Director, Capital Markets recommends that: 1. The Toronto Investment Board adopt the Personal Trading Policy for Board Members as described in Attachment 1 to this report.
IB5.7adopted
Proposed 2024 Schedule of Toronto Investment Board Meetings
In accordance with Section 25 of the Toronto Investment Board Procedures By-law, regular meetings of the Board are determined by the Board and a schedule of those meetings shall be publicly available by the first Board meeting in each calendar year. The Toronto Investment Board's meetings will be held as hybrid meetings with members participating in person and remotely. On October 11 and 12 2023, City Council approved the 2024 annual schedule of meetings for City Council and its Committees. The meeting schedule is available on the City of Toronto's website at www.toronto.ca/council.
The Toronto Investment Board: 1. Approved the following meeting dates for 2024: - Wednesday, April 3 - 9:30 a.m. - Thursday, June 20 - 9:30 a.m. - Wednesday, September 25 - 9:30 a.m. - Thursday, December 12 - 9:30 a.m.
Staff recommendation as filed
That the Toronto Investment Board approve the following meeting dates for 2024: - Wednesday, April 3 - 9:30 a.m. - Thursday, June 20 - 9:30 a.m. - Wednesday, September 25 - 9:30 a.m. - Thursday, December 12 - 9:30 a.m.
IB5.8adopted
Making Electronic Participation Permanent for the Toronto Investment Board
The purpose of this report is to recommend that the Toronto Investment Board make amendments to By-law 1-2018 to make electronic participation a permanent option for meetings. At its meeting of March 29, 30 and 31, 2023, City Council adopted Item EX3.7, and in so doing has authorized local boards governed by the City of Toronto Act, 2006, to amend their own rules of procedure to permit electronic participation by board members and the public, and to change the time required to achieve quorum from 15 minutes to 30 minutes, and authorize such boards to continue to meet electronically in accordance with the previously adopted electronic participation rules past the May 9, 2023 deadline until they can meet to consider procedural amendments.
The Toronto Investment Board: 1. Amended By-Law 1-2018 to: a. permit electronic participation in all meetings; and b. allow 30 minutes instead of 15 minutes to achieve quorum. 2. Adopted the draft bill in Attachment 1 to the report (December 11, 2023) from the City Clerk to implement Part 1.
Staff recommendation as filed
The City Clerk recommends that the Toronto Investment Board: 1. Amend By-Law 1-2018 to: a. Permit electronic participation in all meetings; and b. Allow 30 minutes instead of 15 minutes to achieve quorum. 2. Adopt the draft bill in Attachment 1 to the report (December 11, 2023) from the City Clerk to implement Recommendation 1.