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.
IB6.1received
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 received the item for information.
IB6.2adopted
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 performance of the Sinking Fund and Long Term Fund for the fourth quarter and full year of 2023. 2. Investment Policy and Plan Compliance check for the fourth quarter and full year of 2023.
The Toronto Investment Board received the report (March 19, 2024) 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.
IB6.3adopted
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 in early 2023 regarding the Fiera Capital Corporation ("Fiera") decision to close the Fiera Global Equity Common Contractual Fund ("Fiera CCF"), several options have now been proposed and considered. Currently, a single solution continues to be reviewed by the investment consultant, external legal and tax advisors along with City staff and is near completion. A recommendation and course of action will follow when the review is complete. Fiera will continue to cover all the fixed costs for Fiera Common Contractual Fund ("Fiera CCF") until the transition to the new solution is completed. City staff have started the transfers between the Short-Term Fund (managed internally) and the Long-Term Fund (managed by the Board) as well as re-balancing of the Sinking Fund. A summary of the transfers are 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. Recent organization changes at Addenda Capital and Connor, Clark, and Lunn are provided in Attachment 2 and 3 respectively to this report.
The Toronto Investment Board received the report (March 19, 2024) 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.
IB6.4adopted
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 (March 16, 2024) 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.
IB6.5adopted
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, 2023 were submitted to MSCI in February 2024. Preliminary results were received 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.
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 (March 16, 2024) 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: 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.
IB6.6adopted
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, 2023. 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 8, 2024) from the Director, Capital Markets 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.