ONE JIB

Regular Board Meeting

Minutes

Meeting #:	2020-03
Date:	Tuesday, June 23, 2020 at 9:00 A.m. - 5:00 P.m.
Location:	Zoom Virtual Meeting

Members Present:

• Board Chair Hughes
• Board Vice-Chair James
• A. Basdeo
• J. Dowty
• H. Franken
• J. Giles
• M. Melinyshyn
• S. Rettie

Others Present:

• J. Dezell, Co-President/Co-CEO, ONE Investment
• D. Herridge, Co-President/Co-CEO, ONE Investment
• H. Douglas, WeirFoulds LLP, Legal Counsel
• E. Foo, Chief Compliance Officer, ONE Investment
• S. Han, WeirFoulds LLP, Legal Counsel
• D. Kelly, Board Secretary
• C. Macdonald, Manager of Investments, ONE Investment
• K. Taylor, Chief Investment Officer, ONE Investment

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1.

Chair's Welcome

Board Chair Hughes welcomed all to the third ONE JIB meeting.

2.

Disclosures of Pecuniary Interest

There were no disclosures of pecuniary interest.

3.

Minutes of Previous Meetings

3.a

Business Arising from Minutes

There were three items from the May 19 and May 20, 2020 meetings that will be addressed by items on this agenda regarding the work of the Nominating Committee to fill the vacant Treasurer position on this Board, additional analysis on benchmarks for the Global Bond fund and HISA, and a sensitivity analysis for the equity weights which will be discussed later in this agenda.

3.b

Approval of Minutes

• Moved by Board Member Basdeo

  THAT the minutes of the May 19, 2020 ONE JIB meeting be approved as circulated.

  Carried
• Moved by Board Vice-Chair James

  THAT the minutes of the May 20, 2020 ONE JIB meeting be approved as circulated.

  Carried

4.

Board Committee Reports

4.a

Nominating Committee

• Moved by Board Member Rettie

  THAT the Board adopt the recommendation of the Nominating Committee contained in its report dated June 9, 2020 and appoint Mike Melinyshyn, Chief Financial Officer, Town of Innisfil,  as a Board Member for the term ending April 1, 2021.

  Carried

5.

Delegations

There were no delegations.

6.

Strategy and Policy

6.a

Benchmark for Prudent Investor Funds

Keith Taylor, Chief Investment Officer, ONE Investment, made a presentation on the benchmark for prudent investor funds report.

• Moved by Board Member Franken

  THAT the Board adopt recommendation number 1.1 in the report (June 23, 2020) from Keith Taylor, Chief Investment Officer, to approve the benchmarks set out in the report for the Prudent Investor investment options.

  Carried
• Moved by Board Member Giles

  THAT the Board adopt recommendation 1.2 of the report (June 23, 2020) from Keith Taylor, Chief Investment Officer, that ONE Investment is authorized and instructed to continue to review and monitor the approved benchmarks and their use by ONE JIB, including with respect to fees and costs. If a modification is warranted, ONE Investment will so advise ONE JIB.

  Carried

6.b

Sensitivity Analysis

Keith Taylor, Chief Investment Officer, ONE Investment, made a presentation on the sensitivity analysis for investment allocations.

• Moved by Board Member Rettie

  THAT the Board adopt the recommendation in the report (June 23, 2020) from Keith Taylor, Chief Investment Officer, and receive the report for information.

  Carried

7.

Investment Oversight

7.a

Investment Plans

7.a.1

Town of Bracebridge

Keith Taylor, Chief Investment Officer, ONE Investment, made a presentation on the Town of Bracebridge’s Investment Plan.

• Moved by Board Vice-Chair James

  THAT Section 7.3 of Bracebridge’s and each of the other Founding Municipalities’ Investment Plans approved by ONE JIB be amended to provide that:

  1. ONE JIB does not intend that derivatives be used in the investment of Long-Term Funds for speculative purposes or to apply leverage to the portfolios;
  2. where the Long-Term Funds are invested in underlying funds, the External Portfolio Managers may use derivatives in the management of the underlying funds, provided that notice has been given to ONE Investment and ONE JIB of the proposed derivative use and intended purpose; and
  3. derivatives may be used for the investment of Long-Term Funds where they are fully covered by a backing asset (e.g. for currency or other hedging, to change portfolio duration or in covered call strategies).
  Carried
• Moved by Board Member Rettie

  THAT the Board adopt recommendation 1 in the report (June 23, 2020) from Keith Taylor, Chief Investment Officer and Colin Macdonald, Manager of Investments, and approve the Town of Bracebridge's Investment Plan (Attachment 1), as amended (section 7.3).

  Carried
• Moved by Board Member Franken

  THAT the Board adopt recommendations 2, 3 and 4 in the report (June 23, 2020) from Keith Taylor, Chief Investment Officer and Colin Macdonald, Manager of Investments, as follows:

  2. The Chief Investment Officer notify the Board of any in-year changes to Bracebridge’s Investment Policy Statement and any related implications for the Investment Plan

  3. The Chief Investment Officer review the Investment Plan in Q1, 2021 and present a revised Investment Plan for approval by Q2 2021, and

  4. The Chief Investment Officer develop a performance report for Bracebridge Council for the Board’s consideration by Q1, 2021.

  Carried
• Moved by Board Vice-Chair James

  Transition Plans

  THAT the Board directs ONE Investment staff to work with Founding Municipalities to make appropriate adjustments to the transition plans in Appendix D of the Founding Municipalities’ Investment Plans to ensure that the values committed to Prudent Investor are met on or before the  settlement date. Further that ONE Investment staff report to the ONE JIB at its next meeting on the transition.

  Carried
• Moved by Board Member Giles

  THAT the Board recess for approximately 10 minutes.

   

  The Board recessed at 10:34 a.m. and reconvened at 10:47 a.m.

  Carried

7.a.2

Town of Huntsville

Keith Taylor, Chief Investment Officer, ONE Investment, made a presentation on the Town of Huntsville’s Investment Plan.

It was noted that the Town has  amended its Municipal Client Questionnaire and updated its MNRI amount.

• Moved by Board Vice-Chair James

  THAT the Board adopt recommendation 1 in the report (June 23, 2020) from Keith Taylor, Chief Investment Officer and Colin Macdonald, Manager of Investments, and approve the Town of Huntsville's Investment Plan (Attachment 1), as amended (section 7.3).

  Carried
• Moved by Board Member Rettie

  THAT the Board adopt recommendations 2, 3 and 4 and 5 in the report (June 23, 2020) from Keith Taylor, Chief Investment Officer and Colin Macdonald, Manager of Investments, as follows:

  2. The Board receive Huntsville’s revised Municipal Client Questionnaire for information (Attachment 2)

  3. The Chief Investment Officer notify the Board of any in-year changes to Huntsville’s Investment Policy Statement and any related implications for the Investment Plan

  4. The Chief Investment Officer review the Investment Plan in Q1, 2021 and present a revised Investment Plan for approval by Q2 2021, and

  5. The Chief Investment Officer develop a performance report for Huntsville Council for the Board’s consideration by Q1, 2021.

  Carried

7.a.3

Town of Innisfil

Keith Taylor, Chief Investment Officer, ONE Investment, made a presentation on the Town of Innisfil’s Investment Plan.

• Moved by Board Member Melinyshyn

  THAT the Board adopt recommendation 1 in the report (June 23, 2020) from Keith Taylor, Chief Investment Officer and Colin Macdonald, Manager of Investments, and approve the Town of Innisfil's Investment Plan (Attachment 1), as amended (section 7.3).

  Carried
• Moved by Board Member Franken

  THAT the Board adopt recommendations 2, 3 and 4 in the report (June 23, 2020) from Keith Taylor, Chief Investment Officer and Colin Macdonald, Manager of Investments, as follows:

  2. The Chief Investment Officer notify the Board of any in-year changes to Innisfil’s Investment Policy Statement and any related implications for the Investment Plan

  3. The Chief Investment Officer review the Investment Plan in Q1, 2021 and present a revised Investment Plan for approval by Q2 2021, and

  4. The Chief Investment Officer develop a performance report for Innisfil Council for the Board’s consideration by Q1, 2021.

  Carried

7.a.4

City of Kenora

Keith Taylor, Chief Investment Officer, ONE Investment, made a presentation on the City of Kenora’s Investment Plan.

• Moved by Board Member Melinyshyn

  THAT the Board adopt recommendation 1 in the report (June 23, 2020) from Keith Taylor, Chief Investment Officer and Colin Macdonald, Manager of Investments, and approve the City of Kenora's Investment Plan (Attachment 1), as amended (section 7.3).

  Carried
• Moved by Board Member Basdeo

  THAT the Board adopt recommendations 2, 3 and 4 in the report (June 23, 2020) from Keith Taylor, Chief Investment Officer and Colin Macdonald, Manager of Investments, as follows:

  2. The Chief Investment Officer notify the Board of any in-year changes to Kenora’s Investment Policy Statement and any related implications for the Investment Plan

  3. The Chief Investment Officer review the Investment Plan in Q1, 2021 and present a revised Investment Plan for approval by Q2 2021, and

  4. The Chief Investment Officer develop a performance report for Kenora Council for the Board’s consideration by Q1, 2021.

  Carried

7.a.5

District of Muskoka

Keith Taylor, Chief Investment Officer, ONE Investment, made a presentation on the District of Muskoka’s Investment Plan.

• Moved by Board Vice-Chair James

  THAT the Board adopt recommendation 1 in the report (June 23, 2020) from Keith Taylor, Chief Investment Officer and Colin Macdonald, Manager of Investments, and approve the District of Muskoka's Investment Plan (Attachment 1), as amended (section 7.3).

  Carried
• Moved by Board Member Giles

  That the Board adopt recommendations 2, 3 and 4 in the report (June 23, 2020) from Keith Taylor, Chief Investment Officer and Colin Macdonald, Manager of Investments, as follows:

  2. The Chief Investment Officer notify the Board of any in-year changes to Muskoka’s Investment Policy Statement and any related implications for the Investment Plan

  3. The Chief Investment Officer review the Investment Plan in Q1, 2021 and present a revised Investment Plan for approval by Q2 2021, and

  4. The Chief Investment Officer develop a performance report for Muskoka Council for the Board’s consideration by Q1, 2021.

  Carried

7.a.6

Town of Whitby

Keith Taylor, Chief Investment Officer, ONE Investment, made a presentation on the Town of Whitby’s Investment Plan.

• Moved by Board Member Rettie

  THAT the Board adopt recommendation 1 in the report (June 23, 2020) from Keith Taylor, Chief Investment Officer and Colin Macdonald, Manager of Investments, and approve the Town of Whitby's Investment Plan (Attachment 1), as amended (section 7.3).

  Carried
• Moved by Board Member Melinyshyn

  That the Board adopt recommendations 2, 3 and 4 in the report (June 23, 2020) from Keith Taylor, Chief Investment Officer and Colin Macdonald, Manager of Investments, as follows:

  2. The Chief Investment Officer notify the Board of any in-year changes to Whitby’s Investment Policy Statement and any related implications for the Investment Plan

  3. The Chief Investment Officer review the Investment Plan in Q1, 2021 and present a revised Investment Plan for approval by Q2 2021, and

  4. The Chief Investment Officer develop a performance report for Whitby Council for the Board’s consideration by Q1, 2021.

  Carried

8.

Other Business

There was no other business.

9.

Meeting Outcomes

Board Chair Hughes outlined the meeting outcomes from today's meeting:

1. Welcomed new Board Member, Mike Melinyshyn.

2. Approved Benchmarks for Prudent Investor Funds.

3. Received the Sensitivity Analysis report.

4. Approved Investment Plans as amended for all Founding Municipalities.

10.

Authorizing Motion

• Moved by Board Member Basdeo

  THAT the appropriate staff of ONE JIB and ONE Investment be given the authority to do all things necessary, including executing any documents,  to give effect to the Board’s decisions today.

  Carried

11.

Adjournment

• Moved by Board Member Giles

  THAT the Board adjourn its meeting.
  
  The meeting adjourned at 12:01 p.m.

  Carried

12.

Next Meeting - July 14, 2020 (9:00 a.m.)