Item - 2019.EX11.15

The Executive Committee recommends that:  

1.  City Council receive the report (November 27, 2019) from the Chief Financial Officer and Treasurer for information.

The purpose of this report is to provide the following information:

1.  Performance of the Funds for 2018, and the first half of 2019

2.  General Market Update and Benchmark Performance

The City's General Group of Funds (General Fund) that holds the City's working capital and the amounts designated for the City's reserves and reserve funds earned:

- $156.5 million in 2018 (2.7 percent rate of return);
- $39.4 million in the first quarter of 2019 (3.0 percent annualized rate of return);
- $122.5 million in the second quarter of 2019 (8.5 percent annualized rate of return);
- $161.9 million earned year-to-date as at June 30, 2019 (5.8 percent annualized rate of return).
 

The City's Sinking Fund portfolio that holds funds for future debt repayments earned:

- $54.1 million in 2018 (3.2 percent rate of return);
- $12.3 million in the first quarter of 2019 (3.1 percent annualized rate of return);
- $39.9 million in the second quarter of 2019 (9.4 percent annualized rate of return);
- $52.2 million earned year-to-date as at June 30, 2019 (6.3 percent annualized rate of return).
 

Since January 1, 2018, the City's long-term investments have been managed by the Toronto Investment Board under a new Council adopted Investment Policy which is based on the prudent investor standard. As of May 1, 2019, seventy percent of the Sinking Fund and the Long Term Fund have been managed by four external fixed income managers selected by the Toronto Investment Board. As at June 30, 2019, agreements with the global equity fund managers were being negotiated, and the process of selecting real asset fund managers was on-going.