Item - 2022.IB16.3

The Toronto Investment Board:

1. After review by external legal counsel, authorized the Chair or the Vice Chair of the Investment Board, to execute amended agreements for the Fiera Capital Common Contractual Fund on behalf of the Investment Board.

This report provides the Toronto Investment Board with an update regarding activities involving the investment managers and related parties. It includes changes to the investment manager mandates, contracts, and funding along with other related items.

Fiera Capital has provided notification (Attachment 1) of a proposed management structure change for the Fiera Capital Common Contractual Fund (CCF Fund), one of the Board's investment managers for the global equity mandate. The proposal seeks to eliminate Fiera Capital IoM Limited, the current investment manager of the CCF Fund, and replace them with Fiera Capital Corporation. The change essentially streamlines the framework by removing one entity from the management structure. Staff has retained external legal advice to review the documentation and provide an opinion on whether the proposed changes have legal, tax, or other implications on the Board's investment.

The procurement of an Environmental, Social, and Governance data service provider approved by the Board was delayed due to an issue related to the City's vendor policy. City staff and the prospective vendor have now resolved most of the issues. A legal review of the licensing agreement and contract is now being completed.

The Board is approaching the time when it will be fully invested, and other Request for Proposals should be completed, it is estimated that a review and Request for Proposal for a custodian for the Long-Term Fund and the Sinking Fund investment portfolios could take place in the first half of 2023. 

An update of the current funding status of Long-Term Fund  and Sinking Fund is provided in Attachment 2 to this report for the Board's review.