Item - 2020.IB7.5

The Toronto Investment Board:

1.  Received the report prepared by the investment consultant (Aon) contained in Confidential Attachment 1 to the report (June 24, 2020) from the Director, Capital Markets for information.

2. Directed that Confidential Attachment 1 to the report (June 24, 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.

The Toronto Investment Board recessed its public session to meet in closed session to consider this Item, as it involves the security of property belonging to the City or one of its agencies or corporations.

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 for the Real Estate portion of the Real Assets category. 

At its December 2019 meeting, the Board 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).  That amendment to the Investment Policy has not yet been adopted by City Council at the time of writing this report.

The process, analysis, and the list of firms considered are provided in the confidential attachment.  These documents are confidential as they contain commercial and financial information supplied by the investment consultant to the Board in confidence, which if disclosed could reasonably be expected to prejudice significantly the competitive position or other negotiations the Board may have in selecting the investment managers.

It is recommended that staff, subject to the Council-approved Investment Policy being adopted to include North American/Global Core Real Estate investment manager mandates, proceed with interviews of the investment managers included in Confidential Attachment 1 and report back to the Board the staff recommendations for the Real Estate category.