Item - 2019.IB4.3
Tracking Status
- This item was considered by Toronto Investment Board on September 25, 2019 and was adopted with amendments.
IB4.3 - 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. Authorized the Chief Financial Officer and Treasurer, in consultation with the City Solicitor, to continue to negotiate agreements with the firms originally selected as investment managers, 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.
2. In respect of the global equity mandates, authorized the Chief Financial Officer and Treasurer, in consultation with the City Solicitor, to continue negotiations until October 4, 2019 with the previously approved firm identified in Confidential Attachment 1 to the report (September 11, 2019) from the Executive Director, Corporate Finance, and if such negotiations fail, to discontinue such negotiations, and to start negotiations with a firm(s) to be recommended by Aon Hewitt and to authorize the Chair or Vice-Chair of the Investment Board to execute such agreements on behalf of the Investment Board and to report back to the Toronto Investment Board for their information at its meeting on December 13, 2019.
3. Authorized the release of names of the successful firms upon finalizing agreements with the investment managers, identified in Confidential Attachment 1 to the report (September 11, 2019) from the Executive Director, Corporate Finance.
4. Directed that the balance of Confidential Attachment 1 to the report (September 11, 2019) from the Executive Director, Corporate Finance remain confidential, 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 session to meet in closed session to consider this item, as it relates 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 regards to the selection of investment managers since the last meeting of the Toronto Investment Board (the Board) on June 12, 2019.
The confidential attachment provides 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-137455.pdf
Confidential Attachment 1 - Global Equity Manager Review
Motions
3:02 p.m. - That the Toronto Investment Board recess its public session to meet in closed session to consider this item, as it relates to the security of property belonging to the City of Toronto or the Toronto Investment Board.
That Recommendation 2 be amended so that it now reads as follows:
2. 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 continue negotiations until October 4, 2019 with the previously approved firm identified in Confidential Attachment 1 and if such negotiations fail, to discontinue such negotiations, and to start negotiations with a firm(s) to be recommended by Aon Hewitt the firm identified as the second recommended firm in Confidential Attachment 1 and to authorize the Chair or Vice-Chair of the Investment Board to execute such agreements on behalf of the Investment Board and to report back to the Toronto Investment Board for their information at its meeting on December 13, 2019.
Chair John Crocker, on a Point of Privilege, stated that he had advised the Board at its June 2019 meeting that he was the director and shareholder of a corporation that was 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 did not participate in the Investment Manager and Investment Plan Update matter. Chair John Crocker further stated that since the acquisition of the corporation concluded, the Integrity Commissioner has subsequently advised that he is now able to participate in the matter.