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.
IB8.1adopted
One-Year Extension of Electronic Meeting Rules
At its meeting of July 28 and 29, 2020, City Council adopted Item EX15.21, and in so doing has authorized its local boards to extend or adopt remote electronic meeting rules for a period of one year following the later of the termination of the Provincial emergency and the termination of the municipal emergency related to the issue of COVID-19.
The Toronto Investment Board: 1. Amended By-law 1-2018 and adopted the draft bill in Attachment 1 to the report (September 25, 2020) from the City Clerk to extend the remote electronic participation rules for a period ending one year following the termination of the COVID-19 emergency declaration under section 4 of the Emergency Management and Civil Protection Act.
Staff recommendation as filed
The City Clerk recommends that: 1. The Toronto Investment Board amend By-law 1-2018 and adopt the draft bill in Attachment 1 to extend the remote electronic participation rules for a period ending one year following the termination of the COVID-19 emergency declaration under section 4 of the Emergency Management and Civil Protection Act.
IB9.1received
Presentations from Investment Managers
Presentations from Investment Managers will be given by: a. Leith Wheeler Investment Counsel Limited b. Connor, Clark and Lunn Investment Management Limited
The Toronto Investment Board received the item for information.
IB9.2adopted
Sinking Fund and Long Term Fund - Performance and Compliance Update for the Second Quarter of 2020
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 second quarter of 2020. 2. Investment Policy and Plan Compliance certificates and reports for the second quarter of 2020.
The Toronto Investment Board received the report (September 21, 2020) 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.
IB9.3amended
This report provides an update on the actions taken with regards to the selection of investment managers since the last meeting of the Toronto Investment Board (the "Board") on July 8, 2020. Negotiations to hire the final global equity manager are near completion. A recent rebalancing of the Sinking Fund was completed using cash contributions received. The fund was rebalanced in accordance to the Investment Policy and the Investment Plan. Details of the rebalancing are provided in this report. Provided in Attachment 1 to this report is the Current Funding Status of the Long-Term Fund (LTF) and the Sinking Fund (SF) as at September 15, 2020. This document shows the current asset allocation of the funds.
The Toronto Investment Board requested the Director, Capital Markets to review the custodial agreement and report back with an update.
Staff recommendation as filed
The Director, Capital Markets recommends that: 1. The Toronto Investment Board receive this report for information.
IB9.4adopted
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 and current market conditions in the Real Assets category.
The Toronto Investment Board received the report (September 21, 2020) 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.
IB9.5adopted
Environmental, Social, and Governance Update
This report provides initial Environmental, Social, and Governance (ESG) scoring information from Bloomberg for current portfolios as previously requested by the Toronto Investment Board ("Board"). Initial interviews with all of the investment management firms were also completed to discuss their ESG process and the various tools and resources used. The report points out some of the issues surrounding ESG scoring. One complicating factor is the information provided on Bloomberg has no ESG scores for government bonds which is an issue given the holdings of the City's portfolios. Several of the investment management firms also pointed out the shortfalls of using ESG ratings from a single third party provider. Most investment managers preferred to examine source data and other qualitative factors to produce an overall assessment. Although there are shortfalls in the information, it is recommended that a process to procure the services of a third-party ESG information provider that will adequately cover the holdings of the City's portfolios. This information should not only include overall scores or ratings for ESG, but should also include detailed information with regard to climate change (e.g. carbon metrics) along with additional metrics on social and governance issues. In addition, the report reviews the United Nations Principles for Responsible Investment (UNPRI) assessment completed on each investment manager contracted by the Board.
The Toronto Investment Board: 1. Authorized the Director, Capital Markets to initiate a Request for Proposal (RFP) for a third-party information provider that could provide metrics in the area of assessing Environmental, Social, and Governance (ESG) performance which would facilitate a response to the City Council request to 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 with respect to ESG factors. 2. Be provided with the results of the Request for Proposal (RFP) and a recommendation for contract award to the successful third-party Environmental, Social, and Governance (ESG) information provider. 3. Directed that Confidential Attachment 1 to the report (September 23, 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: 1. The Toronto Investment Board authorize the Director, Capital Markets to initiate a Request for Proposal (RFP) for a third-party information provider that could provide metrics in the area of assessing Environmental, Social, and Governance (ESG) performance which would facilitate a response to the City Council request to 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 with respect to ESG factors. 2. The Toronto Investment Board be provided with the results of the RFP and a recommendation for contract award to the successful third-party ESG information provider. 3. 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.