Item - 2026.IB17.6

The Director, Capital Markets and Treasury recommends that:

1. The Toronto Investment Board approve the infrastructure investment manager allocation set out in Confidential Attachment 1.

2. The Toronto Investment Board authorize the Chief Financial Officer and Treasurer, in consultation with the City Solicitor, to negotiate agreements with the firms selected as investment managers, on terms satisfactory to the City Solicitor and the Chief Financial Officer and Treasurer, and authorize the Chair or Vice Chair of the Toronto Investment Board to execute such agreements on behalf of the Toronto Investment Board.

3. The Toronto Investment Board authorize the public release of the names of the successful firms upon finalization of agreements with the investment managers identified in Confidential Attachment 1.

4. The Toronto Investment Board direct that the confidential information contained in Confidential Attachment 1 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 purpose of this report is to provide the Toronto Investment Board (Board) with the results of the infrastructure investment manager evaluation process and the recommended investment manager allocation developed by City staff in collaboration with the City's investment consultant, Aon Solutions Canada Inc. (Aon), for the Infrastructure sub-category of the Real Assets allocation.

At its June 22, 2026 meeting, the Board considered the results of Aon's review of the open-ended infrastructure manager universe and selected a shortlist of investment managers for further evaluation. The Board requested that the Director, Capital Markets and Treasury, in consultation with Aon, proceed with pre-screening, interviews and evaluation of the selected managers and report back with recommendations at the September 25, 2026 meeting.

Following the Board's direction, City staff and Aon completed the evaluation process. Finalist interviews were conducted on August 10 and 11, 2026 with five infrastructure investment managers. The managers were assessed across their relative strength in a range of criteria, including organizational strength, investment team, investment process and strategy, responsible investment practices, liquidity framework, track record and performance, and fees and investment terms. Based on the results of the evaluation, two managers are being recommended as providing the strongest overall strategic fit with the City's funds long-term investment objectives.

There are no additional financial impacts on the City's operating or capital budgets resulting from the adoption of the recommendations in this report. Funding for investment consulting services and investment management fees are available within the Toronto Investment Board's approved budget.