Item - 2018.IB4.5

The Toronto Investment Board:

1.  Adopted the Investment Plan described in Attachment 1 to the report (March 20, 2018) from the Acting Executive Director, Corporate Finance with the following revision:

a.  Delete references to real assets in the Transition Plan and in the Investment Management Structure.

2.  Directed the Acting Executive Director, Corporate Finance to review the investment management structure in the Investment Plan compared to the asset mix outlined in the Council-approved Investment Policy to ensure compliance and present the results of this review at the next Toronto Investment Board meeting on May 30, 2018.

Bryan White, Partner, Nathan LaPierre, Association Partner, and Erwan Pirou, Associate Partner, Aon, gave a presentation on Investment Plan Considerations.

This report recommends an Investment Plan for the Toronto Investment Board's ("the Board") consideration that would replace the interim Investment Plan adopted in November 2017. The proposed plan responds to amendments to Ontario Regulation 610/06 made by the Province through Ontario Regulation 360/15 ("the Regulation"), under the City of Toronto Act, 2006 that requires the City to invest its general and sinking funds through an Investment Board commencing January 1, 2018.

The Regulation requires that City Council adopt an Investment Policy and that the Toronto Investment Board adopt an Investment Plan in accordance with the Council-approved Investment Policy.

The Plan will define the methods and means that the Toronto Investment Board will use to manage the City's investment portfolios and set out the Toronto Investment Board's projections of the proportions of the City's portfolio to be invested in each type of security selected by the Toronto Investment Board, all within the parameters of the Policy.

The Toronto Investment Board has hired an Investment Consultant (Aon) to work with staff to draft a detailed and comprehensive Investment Plan and the hiring of external managers.  In addition, at the Toronto Investment Board meeting of February 5, 2018, there was a request to review the asset mix, common terminology to be used, along with a recommended Investment Management Structure.