Item - 2020.TA6.9

The Board of Directors of the Toronto Atmospheric Fund:

1.  Directed that the confidential information contained in Confidential Attachment 1 to the report (May 4, 2020) from the Vice President, Impact Investing remain confidential in its entirety, as it is about a plan to be applied to any negotiations carried on or to be carried on by or on behalf of the Board of Directors of the Toronto Atmospheric Fund.

The Vice President, Impact Investing gave an overview on Direct Investment Risk Analysis Approach and Stress Test.

The Board of Directors of the Toronto Atmospheric Fund recessed its public meeting to meet in closed session to consider the item as it is about a plan to be applied to any negotiations carried on or to be carried on by or on behalf of the Board of Directors of the Toronto Atmospheric Fund.

Toronto Atmospheric Fund (TAF) currently has twelve investments in its Direct Investment portfolio and two investments in Private (pooled) Equities, totalling approximately $8 million. TAF also operates two financing lines for ESPAs, totalling $8 million. An additional $8.8 million has been approved but not advanced for five Direct Investments and one Private (pooled) Equity Fund. 

Given the change in business circumstances due to the COVID-19 crisis, staff stress tested each of these using risk weighting matrix and identified reserve percentages for each risk category (Confidential Attachment 1). This will be improved as appropriate in consultation with the Investment Committee and used to continue monitoring the portfolio. There are no areas of immediate concern.

Staff will update and present the analysis in advance of each quarterly Investment Committee meeting, and any negative change will be brought immediately to the attention of the Investment Committee (or Direct Investment Subcommittee once that is established). Any new investment proposed for approval will include analysis of the COVID-19 implications.