Item - 2019.IB5.6

Tracking Status

This item was considered by Toronto Investment Board on December 4, 2019 and was adopted without amendment.

IB5.6 - Real Assets Allocation Update

Decision Type:: ACTION

Status:: Adopted

Wards:: All

Board Decision

The Toronto Investment Board:

1. Requested that the Council-approved Investment Policy be amended to change the geographical scope of the both Real Estate and Infrastructure sub-categories to North American/Global Core (from Canadian Core and Global Core respectively).

Origin

(November 15, 2019) Report from the Executive Director, Corporate Finance

Summary

This report provides an update to the Toronto Investment Board ("Board") regarding the transition of the portfolio to the real assets category of the new asset mix established in the Council-approved Investment Policy (Attachment 1). Real assets will be included in both the Long Term Fund (LTF) and the Sinking Fund (SF). This category is comprised of two sub-categories: Real Estate and Infrastructure.

Aon has provided a memorandum entitled "Real Assets Roadmap" as an attachment to this report (Attachment 2).

This report also recommends that the Council-approved Investment Policy be amended to change the geographical scope of both Real Estate and Infrastructure investments to a "North American/Global Core" focus, from solely a "Canadian Core" and "Global Core" focus respectively.

Background Information

(November 15, 2019) Report from the Executive Director, Corporate Finance on Real Assets Allocation Update
https://www.toronto.ca/legdocs/mmis/2019/ib/bgrd/backgroundfile-140447.pdf
Attachment 1 - Council-approved Investment Policy
https://www.toronto.ca/legdocs/mmis/2019/ib/bgrd/backgroundfile-140448.pdf
Attachment 2 - Memorandum from Aon - Real Assets Roadmap
https://www.toronto.ca/legdocs/mmis/2019/ib/bgrd/backgroundfile-140449.pdf

Motions

Motion to Adopt Item moved by Pamela Steer (Carried)