Toronto Investment Board
The full agenda, as filed
All 7 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.
IB6.1adopted
Enabling Remote Electronic Participation in Toronto Investment Board Meetings During an Emergency
The purpose of this report is to recommend amendments to the procedures by-law of the Toronto Investment Board to allow electronic participation by members of the Board in meetings held during an emergency declared to exist in all or part of the City under section 4 or 7.0.1 of the Emergency Management and Civil Protection Act.
The Toronto Investment Board: 1. Amended By-law 1-2018 and adopted the draft Bill in Attachment 1 to the report (June 26, 2020) from the City Clerk to provide that during an emergency declared to exist in all or part of the City under section 4 or 7.0.1 of the Emergency Management and Civil Protection Act: a. a member of the Board or its Committees may participate in a meeting by electronic means and will be counted in determining whether or not a quorum of members is present at any point in time; and b. a member of the Board or its Committees may participate electronically in a meeting that is closed to the public.
Staff recommendation as filed
The City Clerk recommends that the Toronto Investment Board: 1. Amend By-law 1-2018 and adopt the draft bill in Attachment 1 to provide that during an emergency declared to exist in all or part of the City under section 4 or 7.0.1 of the Emergency Management and Civil Protection Act: a. a member of the Board or its Committees may participate in a meeting by electronic means and will be counted in determining whether or not a quorum of members is present at any point in time; and b. a member of the Board or its Committees may participate electronically in a meeting that is closed to the public.
IB7.1withdrawn
Enabling Remote Electronic Participation in Toronto Investment Board Meetings During an Emergency
The purpose of this report is to recommend amendments to the procedures by-law of the Toronto Investment Board to allow electronic participation by members of the Board in meetings held during an emergency declared to exist in all or part of the City under section 4 or 7.0.1 of the Emergency Management and Civil Protection Act.
Item IB7.1 was withdrawn from the Agenda.
Staff recommendation as filed
The City Clerk recommends that the Toronto Investment Board: 1. Amend By-law 1-2018 and adopt the draft bill in Attachment 1 to provide that during an emergency declared to exist in all or part of the City under section 4 or 7.0.1 of the Emergency Management and Civil Protection Act: a. a member of the Board or its Committees may participate in a meeting by electronic means and will be counted in determining whether or not a quorum of members is present at any point in time; and b. a member of the Board or its Committees may participate electronically in a meeting that is closed to the public.
IB7.2received
Presentations from Investment Managers
Presentations from Investment Managers will be given by: a. Fiera Global Equity; b. Addenda Fixed Income (LDI); and c. Fiera Fixed Income (LDI)
The Toronto Investment Board received the item for information.
IB7.3adopted
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 2019 and the first quarter of 2020. 2. Investment Policy and Plan Compliance certificates and reports for 2019 and the first quarter of 2020
The Toronto Investment Board received the report (June 23, 2020) from the Director, Capital Markets for information.
Staff recommendation as filed
The Director, Capital Markets recommends that: 1. Toronto Investment Board receive this report for information.
IB7.4adopted
Investment Manager and Investment Plan Update
This report provides an update on the actions taken by Capital Markets staff with regard to the selection of investment managers since the last meeting of the Toronto Investment Board (the "Board") on December 4, 2019. An updated Investment Plan with the name of a new global equity investment manager (Fiera Capital Corporation) is included for review and adoption. The confidential attachment provides details regarding the negotiations with the global equity investment managers. This report also recommends the Board delegate authority to the Chief Financial Officer and Treasurer (or designate) to approve the payment of invoices for services completed for the Board. This will include but not be limited to invoices from the investment managers and investment consultant in accordance with the terms of their respective contracts. The Chief Financial Officer and Treasurer will provide a report annually to the Board on such approved invoices, or more frequently as requested.
The Toronto Investment Board: 1. Adopted the updated Investment Plan as provided in Attachment 1 to the report (June 24, 2020) from the Director, Capital Markets. 2. Authorized the Chief Financial Officer and Treasurer, in consultation with the City Solicitor, to restart the negotiation of agreements with the firm originally selected as an investment manager and identified in Confidential Attachment 1 to the report (June 24, 2020) from the Director, Capital Markets, on terms satisfactory to the City Solicitor and the Chief Financial Officer and Treasurer, and authorized the Chair or Vice-Chair of the Investment Board to execute such agreements on behalf of the Investment Board. 3. Authorized the release of the name of the successful firm upon finalizing agreements with the investment manager identified in Confidential Attachment 1 to the report (June 24, 2020) from the Director, Capital Markets and directed that the balance of Confidential Attachment 1 to the report (June 24, 2020) from the Director, Capital Markets remain confidential as it contains information that involves the security of property belonging to the City or one of its agencies or corporations. 4. Delegated authority to authorize the Chief Financial Officer and Treasurer, or designate, to review and approve for payment, invoices received for services provided to the Toronto Investment Board in respect of the investment of the City funds that have been delegated to the Toronto Investment Board, including invoices from the investment managers and investment consulting services, and requested the Chief Financial Officer and Treasurer to provide a report annually to the Toronto Investment Board on such approved invoices, or more frequently as requested.
Staff recommendation as filed
The Director, Capital Markets recommends that: 1. The Toronto Investment Board adopt the updated Investment Plan as provided in Attachment 1 of this report; 2. The Toronto Investment Board authorize the Chief Financial Officer and Treasurer, in consultation with the City Solicitor, to restart the negotiation of agreements with the firm originally selected as an investment manager and identified in Confidential Attachment 1, on terms satisfactory to the City Solicitor and the Chief Financial Officer and Treasurer, and authorize the Chair or Vice-Chair of the Investment Board to execute such agreements on behalf of the Investment Board; 3. The Toronto Investment Board authorize the release of name of the successful firm upon finalizing agreements with the investment manager, identified in Confidential Attachment 1 of this report and the Toronto Investment Board direct that the balance of Confidential Attachment 1 to this report remain confidential as it contains information that involves the security of property belonging to the City or one of its agencies or corporations; 4. The Toronto Investment Board delegate authority to authorize the Chief Financial Officer and Treasurer, or her designate, to review and approve for payment, invoices received for services provided to the Board in respect of the investment of the City funds that have been delegated to the Board, including invoices from the investment managers, and investment consulting services, and request the Chief Financial Officer and Treasurer to provide a report annually to the Board on such approved invoices, or more frequently as requested.
IB7.5adopted
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 Real Estate portion of the Real Assets category. At its December 2019 meeting, the Board requested that the Council-approved Investment Policy be amended to change the geographical scope of the both Real Estate and Infrastructure sub-categories to North American/Global Core (from Canadian Core and Global Core respectively). That amendment to the Investment Policy has not yet been adopted by City Council at the time of writing this report. The process, analysis, and the list of firms considered are provided in the confidential attachment. 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 staff, subject to the Council-approved Investment Policy being adopted to include North American/Global Core Real Estate investment manager mandates, proceed with interviews of the investment managers included in Confidential Attachment 1 and report back to the Board the staff recommendations for the Real Estate category.
The Toronto Investment Board: 1. Received the report prepared by the investment consultant (Aon) contained in Confidential Attachment 1 to the report (June 24, 2020) from the Director, Capital Markets for information. 2. Directed that Confidential Attachment 1 to the report (June 24, 2020) from the Director, Capital Markets 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 subject to changes to the Council-approved Investment Policy to allow Global/North American Core Real Estate mandates: 1. The Toronto Investment Board receive the report prepared by the investment consultant (Aon) contained in Confidential Attachment 1 for information; 2. 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.
IB7.6received
City Council on June 29 and 30, 2020 considered Item EX14.2 headed "Investment Policy Update", in so doing, has forwarded the City Council's decision to the Toronto Investment Board for information, which is as follows: 1. City Council approve the following amendments to the City Council-approved Investment Policy (Policy) and adopt the amended Policy as shown in Attachment 1 to the report (January 21, 2020) from the Chief Financial Officer and Treasurer: a. the Investment Beliefs (Section 2.2) be enhanced to include recognition of Environment, Social and Governance factors as material to risk/return outcomes; b. the Environmental, Social, and Governance Factors (Section 6.6) be strengthened by having investment managers consider the United Nations' 17 sustainable development goals which includes climate change, and that these investment managers have a process that integrates Environment, Social and Governance in the analysis and on-going review of the assets under management; c. Long Term Fund and Sinking Fund Long Term Constraints (Section 3.2 (b)) to add a subsection named "Investments in Pooled Funds, Mutual Funds, and other similar products", to allow the Chief Financial Officer and Treasurer, at the Chief Financial Officer and Treasurer's discretion, to accept minor variations of the City's Investment Policy when compared to the standard terms in the policies of these funds; d. Asset Mix Guidelines (Section 2.4 (b)) and Real Asset Portfolio Constraints (Section 3.2 (b)(iii)) such that references in the Real Assets sub-category to "Canadian Core" and "Global Core" be replaced with "North American/Global Core"; and e. references to the Chief Financial Officer be updated to reflect the current title of Chief Financial Officer and Treasurer. 2. City Council request 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 governing Environmental, Social, and Governance Factors and that the information and data regarding climate change risk from these reviews be reported to City Council semi-annually. 3. City Council request the Toronto Investment Board to incorporate Environmental, Social and Governance factors into its investment decision-making through its due diligence processes when choosing Investment Managers. 4. City Council request the Chief Financial Officer and Treasurer and the Toronto Investment Board, when considering any changes to the Investment Policy, to consider and incorporate internationally-recognized best practices for Environmental, Social and Governance.
The Toronto Investment Board received the item for information.