ONE JIB

Regular Board Meeting

Minutes

Meeting #:

2024-003

Date:

Wednesday, September 04, 2024 at 10:00 A.m. - 2:00 P.m.

Location:

AMO Office

155 University Avenue - Suite 800, Toronto, ON M5H 3B7

Members Present:

• Board Chair B. Hughes
• Board Vice-Chair G. James
• J. Dowty
• C. Dyer
• H. Franken
• J. Giles
• D. Leckman
• M. Melinyshyn
• S. Pountney
• S. Rettie
• N. Taylor
• C. Tessier

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
• J. Hagan, Program Manager, ONE Investment
• D. Kelly, Board Secretary
• C. Macdonald, Manager of Investments, ONE Investment
• J. Song, Board Coordinator, ONE Investment
• M. Takishita, Client Services Representative
• K. Taylor, Chief Investment Officer, ONE Investment

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1.

Land Acknowledgement

Board Chair Hughes welcomed the three new board members to the meeting:

Nancy Taylor, Commissioner of Finance and Treasurer, The Regional Municipality of Durham,

Craig Dyer, recently retired Commissioner of Corporate Services and Chief Financial Officer for the Regional Municipality of Waterloo, and

Deborah Leckman, senior investment professional with over 30 years experience in the pension fund and retail wealth industries

Board Chair Hughes made the following statement on behalf of the Board:

We recognize that our work as ONE Joint Investment Board and the work of municipalities, take place on traditional Indigenous territories across Ontario. We recognize and respect the history, languages, and cultures of the First Nations, Metis, Inuit and all Indigenous people whose presence continues to enrich our communities.

2.

Disclosures of Pecuniary Interest

There was no disclosures of pecuniary ineterest.

3.

Minutes of Previous Meeting

3.a

Approval of May 29, 2024 ONE JIB Meeting Minutes

• Moved by Board Member Pountney

  THAT the Minutes of the May 29, 2024, ONE JIB Meeting be approved as circulated.

  Carried

3.b

Business Arising from May 29, 2024 ONE JIB Meeting Minutes

There was no business arising from the May 29, 2024, ONE JIB Minutes.

4.

Communications

4.a

ONE Investment Annual Report 2023

• Moved by Board Member Rettie

  THAT the Board receive the communication from Judy Dezell, Co-President/Co-CEO ONE Investment and the attached ONE Investment Annual Report 2023.  

  Carried

5.

Delegations

There were no delegations.

6.

Board Committee Reports

There were no Board Committee Reports.

7.

Consent Items

• Moved by Board Member Dyer

  THAT the Board adopt consent items 7.a, 7.b, 7.c, 7.d, 7.e, and 7.f and the recommendations contained in the related staff reports, as follows:

7.a

Audit Committee Update – Q3 2024 (2024-040)

Recommendation: Receive the Report

7.b

Board Governance Self-Evaluation Fall 2024 (2024-050)

Recommendation: Receive the Report

7.c

Municipal Performance Reports Q2 2024 (2024-053)

Recommendation: Receive the Report

7.d

Compliance Report Asset Class and Target Weight Allocations Q2 2024 (2024-041)

Recommendation: Receive the Report

7.e

Strategic Plan Reporting Tool – Q2 2024 Progress (2024-052)

Recommendation: Receive the Report

7.f

Global Fixed Income Manager - Presentation by Manulife (only staff report is consent) (2024-049)

• Recommendation: Receive the Report

  Carried

8.

Investment Oversight

8.a

Presentation - Fund Manager - Manulife

Mark Bischoff, Managing Director, Relationship Management, Charles Tomes, Associate Portfolio Manager and Sherri Tilley, Client Portfolio Manager, Manulife Investment Management, made a presentation on Manulife’s Fixed-Income Strategy.

• Moved by Board Member Leckman

  THAT the Board receive the presentation from the Manulife Investment Management representatives.

  Carried

8.b

Investment Plan Implementation Report Q3 2024 (2024-054)

Keith Taylor, Chief Investment Officer, ONE Investment, Martin Leclair, CFA: Vice President and Portfolio Manager, Paul Purcell, CFA: Managing Director and Portfolio Manager, and Dylan Rae, Portfolio Manager, Phillips, Hager & North (PH&N) Investment Services, made a presentation on the Investment Plan Implementation Report Q3 2024.

• Moved by Board Member Giles

  THAT the Board adopt recommendation 3 in the report, as amended to read as follows:

  3. Authorize the Chair and Vice Chair to approve practicable changes that may be required before the next Board meeting in keeping with the spirit and the risk profile of the Transition Plan and Investment Plan.
  Carried
• Moved by Board Member Franken

  THAT the Board receive the presentation and adopt the following recommendations in the report:

  1. Receive the report detailing the implementation of the first tranche of Durham’s Investment Plan.
  2. Approve the recommended amendments to Durham’s Transition Plan detailed in the attachment to this report.
  Carried
• Moved by Board Member Giles

  That the Board recess for 15 minutes.

   

  Carried
• The Board recessed at 11:20 a.m. and reconvened at 11:35 a.m.

8.c

Town of Aurora’s Investment Plan (2024-042)

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

• Moved by Board Member Tessier

  THAT the Board receive the presentation and adopt the following recommendations in the report:

  1. Receive the Town of Aurora’s Investment Policy Statement (Attachment 1).
  2. Receive the Town of Aurora’s Municipal Client Questionnaire (Attachment 2).
  3. Approve the Town of Aurora’s proposed Investment Plan (Attachment 3).
  Carried

8.d

Town of Huntsville’s Investment Plan (2024-043)

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

• Moved by Board Member Rettie

  THAT the Board receive the presentation and adopt the following recommendations in the report:

  1. Receive the Town of Huntsville’s Investment Policy Statement (Attachment 1).
  2. Receive the Town of Huntsville’s Municipal Client Questionnaire (Attachment 2).
  3. Approve the Town of Huntsville’s proposed Investment Plan (Attachment 3).
  Carried

8.e

Town of Innisfil's 2024 Investment Plan (2024-046)

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

• Moved by Board Member Pountney

  THAT the Board receive the presentation and adopt the following recommendations in the report:

  1. Receive the Town of Innisfil’s Investment Policy Statement (Attachment 1).
  2. Receive the Town of Innisfil’s Municipal Client Questionnaire (Attachment 2).
  3. Approve the Town of Innisfil’s proposed Investment Plan (Attachment 3) that includes a $5 million MNRI contribution that will be invested in the Target Date 3-5 Year Outcome.
  Carried

8.f

District Municipality of Muskoka’s Investment Plan (2024-045)

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

• Moved by Board Member Melinyshyn

  THAT the Board receive the presentation and adopt the following recommendations:

  1. Receive the District Municipality of Muskoka’s Investment Policy Statement (Attachment 1).
  2. Receive the District Municipality of Muskoka’s Municipal Client Questionnaire (Attachment 2).
  3. Approve the District Municipality of Muskoka’s proposed Investment Plan including the CIO executing an in-year drawdown of up to $5 million (Attachment 3).
  Carried

8.g

City of Thunder Bay’s Investment Plan (2024-044)

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

• Moved by Board Member Dyer

  THAT the Board receive the presentation and adopt the following recommendations in the report:

  1. Receive the City of Thunder Bay’s Investment Policy Statement (Attachment 1).
  2. Receive the City of Thunder Bay’s Municipal Client Questionnaire (Attachment 2).
  3. Approve the City of Thunder Bay’s proposed Investment Plan (Attachment 3).
  Carried

8.h

Fund Manager Performance Report Q2 2024 (2024-056)

Keith Taylor, Chief Investment Officer, ONE Investment, made a presentation on the Fund Manager Performance Report Q2 2024.

• Moved by Board Member Giles

  THAT the Board receive the presentation and adopt the following recommendations in the report:

  1. The Board confirm that its members have reviewed the Fund Manager Performance Reports for Q2 2024 provided in the Resource Library, and
  2. Receive the report.
  Carried
• Moved by Board Member Franken

  THAT the Board recess for lunch.

  Carried
• The Board recessed at 12:30 p.m. and reconvened at 1:19 p.m.

9.

Governance and Administrative Matters

9.a

ONE JIB Meeting Dates 2025-2026 (2024-055)

• Moved by Board Member Pountney

  THAT the Board adopt the following recommendation in the report:

  1. Approve the 2025 and 2026 ONE JIB schedule of meetings as follows:

  February 27, 2025

  May 29, 2025

  September 4, 2025

  November 25, 2025

  February 26, 2026

  May 28, 2026

  September 3, 2026

  November 24, 2026

  Carried

9.b

Transition to OCIO Business Model (2024-038)

Judy Dezell, Co-President/Co-CEO, ONE Investment, Martin Leclair, CFA: Vice President and Portfolio Manager, and Paul Purcell, CFA: Managing Director and Portfolio Manager, from Phillips, Hager & North (PH&N) Investment Services, made presentations on the Transition to the OCIO Business Model.

• Moved by Board Member Giles

  THAT the Board receive the presentations and adopt the following recommendation in the report:

  1. Direct ONE Investment to bring a business transition plan to ONE JIB’s next meeting for approval
  Carried

9.c

Template Review – Investment Plan, Investment Policy Statement and Municipal Client Questionnaire (2024-039)

Jennifer Hess, Manager of Investment Services, MFOA, made a presentation on the report on the Template Review - Investment Plan, Investment Policy Statement and Municipal Client Questionnaire

• Moved by Board Member Taylor

  THAT the Board receive the presentation and adopt the following recommendations in the report:

  1. Approve the Investment Plan template included as Attachment 1 of this report, and authorize staff to adjust the template to accommodate individual municipal circumstances, if needed;
  2. Approve the Investment Policy Statement template included as Attachment 3 of this report;
  3. Approve the Municipal Client Questionnaire template included as Attachment 4 of this report.
  Carried

9.d

2025 Pre-Budget Consultation (2024-048)

• Moved by Board Member Melinyshyn

  THAT the Board adopt the following recommendations in the report:

  1. Approve the following 2025 pre-budget recommendations:
     1. Support the continuing rollout of the OCIO Offering, including custom solutions for large participating municipalities and the transitioning of current participating municipalities to the OCIO Offering
     2. Nurture and grow the pipeline of municipalities looking to become prudent investors.
     3. Provide strong staff support from ONE Investment, including development of a comprehensive data strategy to inform staff analysis for board reports and future strategic plans.
     4. Support a strong governance framework and practices by ONE JIB.
  2. Forward the recommendations to the ONE Investment Board for its consideration.
  Carried

9.e

ONE JIB Member Survey by Haddad & Associates (2024-047)

• Moved by Board Member Rettie

  THAT the Board adopt the following recommendation in the report:

  1. Receive the report from Haddad & Associates Inc. on ONE JIB governance.
  Carried

10.

Strategy and Policy

10.a

ONE JIB In-Kind Securities Policy (2024-025)

Judy Dezell, Co-President/Co-CEO, ONE Investment, made a presentation on the ONE JIB In-Kind Securities Policy.

• Moved by Board Member Leckman

  That the Board receive the presentation and adopt the following recommendation in the report:

  1. Approve the ONE JIB In-Kind Securities Policy.

   

  Carried

10.b

Municipal Insights Report – Q3 2024 (2024-057)

• Moved by Board Member Melinyshyn

  THAT the Board adopt the recommendation to receive the report.

  Carried

11.

Closed Session

• Moved by Board Member Pountney

  THAT the Board move into closed session for the purposes holding an education session under section 239 (3.1) of the Municipal Act.

  Carried
• The Board convened in closed session at 2:38 p.m.

11.a

Education Session under s. 239 (3.1) of the Municipal Act

12.

Reconvene in Public Session

• Moved by Board Member Franken

  THAT the Board reconvene in public session.

  Carried
• The Board reconvened in public session at 3:15 p.m.
• Moved by Board Member Tessier

  THAT the Board receive the confidential presentation.

  Carried

13.

Other Business

There was no other business.

14.

Meeting Outcomes

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

• Received the ONE Investment Annual Report 2023
• Approved six Consent items and the recommendations contained in the related staff reports. The consent items related to:
  • the recent activities of the ONE Investment Audit Committee
  • the board governance self-evaluation for fall 2024
  • Municipal Performance Reports for Q2 2024
  • The quarterly Compliance report on Asset Class and Target Weight Allocations for Q2 2024
  • A Strategic Plan progress report forQ2 2024
  • The staff report on the Global Fixed Income Manager presentation by Manulife
• Received and approved the report detailing the implementation of the first tranche of Durham’s Investment Plan and amendments to Durham’s transition plan, with a minor amendment.
• Received a presentation from Manulife on its fixed-income strategy
• Received and approved the investment policy, MCQ and proposed investment plans of for the Town of Aurora, Town of Huntsville, Town of Innisfil, District Municipality of Muskoka, and City of Thunder Bay.
• Received the fund manager performance report for Q2 2024.
• Approved the 2025 and 2026 ONE JIB Meeting Dates.
• Directed ONE Investment to bring a business transformation plan to ONE JIB’s next meeting on the transition to the OCIO business model.
• Approved revised templates for an investment plan, investment policy statement and municipal client questionnaire.
• Approved the 2025 pre-budget consultation submission
• Received the report from Haddad & Associates on ONE JIB governance.
• Approved the ONE JIB in-kind securities policy
• Received the Q2 municipal insights report.

15.

Authorizing Motion

• Moved by Board Member Leckman

  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

16.

Adjournment

• Moved by Board Member Dowty

  THAT the Board adjourn its meeting.

  Carried
• The meeting adjourned at 3:18 p.m.

17.

Regular Meeting

17.a

Regular Meeting - November 27, 2024 (10:00 am - 3:00 pm)