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.
IB7.1amended
Election of Vice Chair of the Toronto Investment Board
A vacancy in the office of Vice Chair occurred when Mary Robinson's term of office on the Board came to an end effective May 23, 2024. In accordance with Section 22(2) of the Toronto Investment Board's procedural By-law, the Board shall elect a Vice Chair from among its members at its first meeting following the appointment of the Chair by City Council.
The Toronto Investment Board: 1. Elected Terry Carr as Vice Chair of the Toronto Investment Board for a term of office until a successor is appointed.
IB7.2received
Presentations from Investment Managers
Presentations will be given by the following Investment Managers: - Connor, Clark and Lunn Investment Management - Leith Wheeler Investment Council Ltd.
The Toronto Investment Board received the item for information.
IB7.3adopted
Sinking Fund and Long Term Fund - Performance and Compliance Update for the First Quarter of 2024
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 first quarter of 2024. 2. Investment Policy and Plan Compliance check for the first quarter of 2024.
The Toronto Investment Board received the report (June 3, 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.
IB7.4adopted
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. Final documentation will be available in the next few weeks and staff are recommending the Board authorize the Chair or Vice Chair execute the necessary documentation once the external review is completed. City staff continue to transfer funds from the Short-Term Fund (managed internally) and into the Long-Term Fund (managed by the Board) as well as re-balancing of the Sinking Fund. A summary of the transfers 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.
The Toronto Investment Board: 1. Authorized, after review by the external legal counsel and tax advisor, the Chair or the Vice Chair of the Investment Board to execute the necessary documentation for the Fiera Capital Common Contractual Fund on behalf of the Investment Board.
Staff recommendation as filed
The Director, Capital Markets recommends that: 1. The Toronto Investment Board, after review by the external legal counsel and tax advisor, authorize the Chair or the Vice Chair of the Investment Board to execute the necessary documentation for the Fiera Capital Common Contractual Fund on behalf of the Investment Board.
IB7.5adopted
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 necessary reviews, negotiations and documentation has been completed with one investment manager in this category. At this stage we can publicly disclose the name of the new Global Real Estate manager as UBS Asset Management (Canada). Negotiations and documentation are near completion with a second investment manager which will be publicly identified when finalized. The updated Investment Plan will be provided to the Board by the investment consultant (Aon) once both investment managers documentation is completed and can be identified.
The Toronto Investment Board received the report (June 6, 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.
IB7.6adopted
Environmental, Social, and Governance Reporting Update
The Toronto Investment Board (Board) engaged MSCI Inc. (MSCI) and its subsidiary MSCI ESG Research LLC as its Environmental, Social and Governance (ESG) Ratings service provider. The agreement was in response to City Council's request to the Toronto Investment Board (Board) and the Chief Financial Officer and Treasurer (CFO&T) 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). 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 March 31, 2024 were submitted to MSCI in May 2024. 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 (June 6, 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.