Item - 2026.IB15.10

The Toronto Investment Board:

1. Awarded the contract for investment management services to the firm set out in Confidential Attachment 2 to the report (March 6, 2026) and in accordance with the allocation of the transaction outlined in Confidential Attachment 3 to the report (March 6, 2026).

2. Authorized the Chief Financial Officer and Treasurer, in consultation with the City Solicitor, to negotiate and execute an agreement with the firm selected as investment manager set out in Confidential Attachment 2 to the report (March 6, 2026), on terms satisfactory to City Solicitor and the Chief Financial Officer and Treasurer, and authorize the Chair or the Vice Chair of the Toronto Investment Board to execute such agreement on behalf of the Toronto Investment Board.

3. Authorized the public release of name of the successful firm upon finalizing an agreement with the investment manager identified in Confidential Attachment 2 to the report (March 6, 2026).

4. Directed that the confidential information contained in Confidential Attachment 1 to the report (March 6, 2026) and Confidential Attachment 3 to the report (March 6, 2026) 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 relates to the security of property belonging to the City of Toronto and the Toronto Investment Board.

The current passive global equity mandate used in the City of Toronto's Long Term Fund (LTF) and the Sinking Fund (SF) uses a four-factor model to screen out certain undesirable equities. While this model has been adequate, there has been some recent drawbacks and underperformance versus established benchmarks.

The investment consultant (Aon) under their Aon Factoring Service (AFS) has been reviewing the factors in these current models and developing a new model they believe is an enhancement of the current mandate. Confidential Attachment 1 provides a presentation by AFS and a recommendation to transition to a new mandate that will strengthen long term outcomes.

Confidential Attachment 2 and Confidential Attachment 3 provides information on the specifics of the new mandate should the Toronto Investment Board (Board) adopt the recommendation from AFS to make this transition.