Item - 2026.IB15.9

The Toronto Investment Board:

1. Received this item for information.

The Director, Capital Markets gave a verbal update on the Review of the Global Equity Mandates - Revisiting the Implementation Rationale.

Fauzia Babar and Brian White gave a verbal update on behalf of Aon Consulting.

The purpose of this report is to provide the Toronto Investment Board (Board) with a review of the global equity mandates and explain the rationale underlying the selection of investment managers for this asset class.

A presentation by the investment consultant (Aon) provides background and decision making of the Board in 2018 and in 2024.

More recently, the Board has questioned the need for "Active" global equity managers versus a broad approach on having "Passive only" mandates given the performance of active managers against their benchmarks.  The investment consultant (Aon) has provided an update to their presentation from 2024 that provides a rationale for having a "balanced" approach to this decision (Attachment 1).

In addition, Aon has provided a research paper entitled "Passively Becoming Active" (Attachment 2) which provides a statistical information on recent performance of passive and active investment managers and their benchmarks.