Item - 2021.TA13.4

The Board of Directors of the Toronto Atmospheric Fund:

1.  Approved the updated Statement of Investment Objectives and Principles (SIOP), substantially in the form presented in Attachment 1 to the report (June 24, 2021) from the Chief Executive Officer, Toronto Atmospheric Fund.

 
2.  Directed Toronto Atmospheric Fund (TAF) staff to continue working with City staff to finalize the SIOP to both parties’ satisfaction, and to review the final SIOP with the Chair Parminder Sandhu and Director Kim Marshall, Chair of the Investment Committee, to their satisfaction prior to submission to City Council.
 

3.  Requested, via the Chief Financial Officer and Treasurer, City Council approval of TAF’s Statement of Investment Objectives and Principles.

4.  Established a Direct Investment Committee composed of at least four and no more than eight members, or such other number as the Board may fix by resolution from time to time. Quorum shall be a majority of the number of members. The Direct Investment Committee shall have the duties set out in terms of reference established by resolution of the Board from time to time.

5.  Amended Toronto Atmospheric Fund By-law No. 1 by:

a. deleting "Loan Committee" in section 6.2;

b. deleting section 6.4 in its entirety; and

c. adding "Direct Investment Committee" to the list of standing committees in section 6.2.”

d. adding a new Section 6.4 describing the composition and duties of the Direct Investment Committee as set out in Part 4 above.

6.  Requested, via the City Manager, City Council approval for the amendment of  Toronto Atmospheric Fund By-Law #1 above.

7.  Established the terms of reference of the Direct Investment Committee as follows:

The Direct Investment Committee shall have the following duties, among others, some of which were previously fulfilled by the Investment Committee:

a. considering applications for financing of Direct Investments as defined in the Statement of Investment Objectives and Principles including loans, debentures, mortgages, performance contract financing, purchase order financing, options, securities, and loan guarantees, but not including Grants;

b. recommending investments to the Board along with any terms and conditions that are relevant and may be necessary in keeping with prudent investing;

c. overseeing that the conditions of investment established by the Board are duly implemented before investments are advanced;

d. receiving and reviewing information about the performance of investments made by the Corporation;

e. advising the Board on the performance of investments against relevant benchmarks and their compliance with the investment policy

f. performing such other functions as the Board may assign to it from time to time.

The Chief Executive Officer, Toronto Atmospheric Fund gave a presentation on Statement of Investment Objectives and Principles (SIOP) Amendment Discussion Guide.

An update of Toronto Atmospheric Fund’s Statement of Investment Objectives and Principles (SIOP) is presented in substantively completed form for Board approval, to be finalized with the City of Toronto before seeking Council approval.

The purpose of this report is to recommend that the Board establish a Direct Investment Committee and discontinue the Loans Committee.