Item - 2019.IB3.3
Tracking Status
- This item was considered by Toronto Investment Board on June 12, 2019 and was adopted with amendments.
IB3.3 - Investment Manager and Investment Plan Update
- Decision Type:
- ACTION
- Status:
- Amended
- Wards:
- All
Confidential Attachment - The security of property belonging to the City of Toronto or the Toronto Investment Board
Board Decision
The Toronto Investment Board:
1. Approved the updated Investment Plan as outlined in Attachment 1 to the report (May 30, 2019) from the Executive Director, Corporate Finance.
2. In respect of the global equity mandates, authorized the Chief Financial Officer and Treasurer, in consultation with the City Solicitor, to discontinue agreement negotiations with the firm recommended in Confidential Attachment 2 to the report (May 30, 2019) from the Executive Director, Corporate Finance, should the terms be unsatisfactory to the City Solicitor and the Chief Financial Officer and Treasurer, and to start negotiations with the firm identified as the second recommended firm in Confidential Attachment 2 to the report (May 30, 2019) from the Executive Director, Corporate Finance as a replacement for the original firm selected, and should negotiations with that second firm be unsuccessful, the portion of the funds allocated to this firm be divided at the discretion of the Chief Financial Officer and Treasurer, in consultation with the investment consultant to the three original firms that have reached a successful agreement on the global equity mandates, and to authorize the Chair or Vice-Chair of the Investment Board to execute such agreements on behalf of the Investment Board.
4. Authorized the public release of names of the successful firms upon finalizing agreements with the investment managers, identified in Confidential Attachments 1 and 2 to the report (May 30, 2019) from the Executive Director, Corporate Finance.
5. Directed that the remainder of the confidential information contained in Confidential Attachments 1 and 2 to the report (May 30, 2019) from the Executive Director, Corporate Finance 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.
Decision Advice and Other Information
The Toronto Investment Board recessed its public meeting to meet in closed session to consider the item as it pertains to the security of property belonging to the City of Toronto or the Toronto Investment Board.
Origin
Summary
This report provides an update on the actions taken by Corporate Finance staff with regard to the selection of investment managers since the last meeting of the Toronto Investment Board (the "Board") on April 11, 2019.
An update to the Investment Plan is provided given the contract negotiations with the Fixed Income investment managers is now complete.
The confidential attachments outline details regarding the negotiations with the Global Equity investment managers and recommends a course of action.
Background Information
https://www.toronto.ca/legdocs/mmis/2019/ib/bgrd/backgroundfile-134125.pdf
Attachment 1 - Updated Investment Plan
https://www.toronto.ca/legdocs/mmis/2019/ib/bgrd/backgroundfile-134145.pdf
(June 12, 2019) Revised Confidential Attachment 1 - Summary of Documentation Process for Global Equity
Confidential Attachment 2 - Global Equity Manager Review
(May 29, 2019) Report from the Executive Director, Corporate Finance on Investment Manager and Investment Plan Update - Notice of Pending Report
https://www.toronto.ca/legdocs/mmis/2019/ib/bgrd/backgroundfile-133656.pdf
Motions
2:51 p.m. - That the Board recess its public meeting to meet in closed session to consider Item IB3.3 as it pertains to the security of property belonging to the City of Toronto or the Toronto Investment Board.
That:
1. Recommendation 2 be deleted.
2. That Recommendation 3 be amended so that it now reads as follows:
3. In respect of the global equity mandates, the Toronto Investment Board authorize the Chief Financial Officer and Treasurer, in consultation with the City Solicitor, to discontinue agreement negotiations with the firm recommended in Confidential Attachment 2, should the terms be unsatisfactory to the City Solicitor and the Chief Financial Officer and Treasurer, and to start negotiations with the firm identified as the second recommended firm in Confidential Attachment 2 as a replacement for the original firm selected, and should negotiations with that second firm be unsuccessful, the portion of the funds allocated to this firm be divided on a pro-rata basis at the discretion of the Chief Financial Officer and Treasurer, in consultation with the investment consultant to the three original firms that have reached a successful agreement on the global equity mandates, and to authorize the Chair or Vice-Chair of the Investment Board to execute such agreements on behalf of the Investment Board.
Vote (Amend Item) Jun-12-2019
| Result: Carried | Majority Required |
|---|---|
| Total members that voted Yes: 4 | Members that voted Yes are Matthew Flynn, Tanya Lai, Sharon Ranson, Mary Robinson |
| Total members that voted No: 0 | Members that voted No are |
| Total members that were Absent: 3 | Members that were absent are John Crocker (Chair), Pamela Steer, Heather Taylor |
Vote (Adopt Item as Amended) Jun-12-2019
| Result: Carried | Majority Required |
|---|---|
| Total members that voted Yes: 4 | Members that voted Yes are Matthew Flynn, Tanya Lai, Sharon Ranson, Mary Robinson |
| Total members that voted No: 0 | Members that voted No are |
| Total members that were Absent: 3 | Members that were absent are John Crocker (Chair), Pamela Steer, Heather Taylor |
Chair John Crocker, on a Point of Privilege, stated that he is the director and shareholder of a corporation currently the target of an acquisition by one of the Toronto Investment Board's investment managers and on the basis of advice from the Integrity Commissioner, out of an abundance of caution, he would not participate in the matter. The Chair stated that his disclosure is not made pursuant to the Municipal Conflict of Interest Act and primarily to adhere to his obligations in the Code of Conduct for Members of Local Boards. He further stated that he would continue to seek the advice of the Integrity Commissioner as the acquisition transaction evolves.