New Products Committee

Regular Committee Meeting

Report

Meeting #:

2023-001

Date:

Wednesday, June 21, 2023 at 10:00 A.m. - 12:00 P.m.

Location:

AMO Office

200 University Avenue - Suite 801, Toronto, ON M5H 3C6

Members Present:

• Board Chair B. Hughes
• Board Vice-Chair G. James
• J. Dowty
• J. Giles
• J. Pittini
• P. Judson
• S. Han, WeirFoulds LLP, Legal Counse
• H. Douglas, WeirFoulds LLP, Legal Counsel

Others Present:

• J. Dezell, Co-President/Co-CEO, ONE Investment
• D. Herridge, Co-President/Co-CEO, ONE Investment
• D. Kelly, Board Secretary
• C. Macdonald, Manager of Investments, ONE Investment
• K. Taylor, Chief Investment Officer, ONE Investment
• J. Song, Board Coordinator, ONE Investment
• J. Hess, Manager of Investments, ONE Investment

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1.

Land Acknowledgement

We recognize that our work as ONE JIB 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 peoples whose presence continues to enrich our communities.

2.

Disclosures of Pecuniary Interest

There were no disclosures of pecuniary interest.

3.

Investment Oversight

3.a

New Products Committee Workplan

Keith Taylor, Chief Investment Officer, ONE Investment, made a presentation on the New Products Committee Workplan report.

• Moved by Board Chair Hughes

  THAT the Committee recommends replacement of Recommendation 3 in the staff report dated June 21, 2023, with the following:

  3 (a) Direct ONE Investment staff to implement the approved changes to HISA and the mandate of the One Canadian Government Bond Fund expeditiously.

  (b) Direct ONE Investment staff to arrange a date with MFS for the implementation of the revised mandate for the ONE Canadian Government Bond Fund, including integration of HISA into the ONE Canadian Government Bond Fund, no later than September 30, 2023, and report back on implementation to the ONE JIB meeting of September 6, 2023.

  (c) Provide that:

  1. 1. Reference to HISA in the Investment Plans be deemed to be references to the Canadian Government Bond Fund
     2. Reference to the Canadian Government Bond Fund in the Investment Plans be deemed to be references to the revised mandate of the Canadian Government Bond Fund
     3. The "Criteria" table describing the revised mandate for the Canadian Government Bond Fund be amended by deleting references to "corporate obligations" and "Canadian chartered banks" in the "Permitted Securities" part of the table in all relevant documents, to ensure consistency with the approved mandate."

  (d) Amend the Workplan in Recommendation 1 accordingly. 

  Carried
• Moved by P. Judson

  THAT the Committee receive the presentation and adopt the recommendations in the report, as amended to read as follows:

  The Committee recommends that ONE JIB:

  1. Approve the workplan in Appendix A

  2. Authorize the New Products Committee to work with ONE Investment to continue developing the Large Municipality Offering. 

  3. The staff report dated June 21, 2023, be replaced with the following:

  3 (a) Direct ONE Investment staff to implement the approved changes to HISA and the mandate of the One Canadian Government Bond Fund expeditiously.

  (b) Direct ONE Investment staff to arrange a date with MFS for the implementation of the revised mandate for the ONE Canadian Government Bond Fund, including integration of HISA into the ONE Canadian Government Bond Fund, no later than September 30, 2023, and report back on implementation to the ONE JIB meeting of September 6, 2023.

  (c) Provide that:

  1. 1. 1. Reference to HISA in the Investment Plans be deemed to be references to the Canadian Government Bond Fund
        2. Reference to the Canadian Government Bond Fund in the Investment Plans be deemed to be references to the revised mandate of the Canadian Government Bond Fund
        3. The "Criteria" table describing the revised mandate for the Canadian Government Bond Fund be amended by deleting references to "corporate obligations" and "Canadian chartered banks" in the "Permitted Securities" part of the table in all relevant documents, to ensure consistency with the approved mandate."

  (d) Amend the Workplan in Recommendation 1 accordingly. 

  4. Defer reorienting the mandate of the Canadian Corporate Bond Fund until the Large Municipality Offering is fully designed.

  5. Direct staff to bring forward reports to the Committee to implement key elements of the workplan including:

  1. 1. 1. Changes to the ONE JIB Outcomes Framework
        2. Changes to asset allocations for the Outcomes
        3. An implementation and transition plan
        4. A summary report on ONE JIB's overall investment strategy for the existing Prudent Investment Offering
  Carried

3.b

Outsourced Chief Investment Officer Partner and Large Municipality Offering

Judy Dezell, Co-President/Co-CEO of ONE Investment, made a presentation on the Outsourced Chief Investment Officer Partner and Large Municipality Offering report.

• Moved by Board Member Giles

  THAT the Committee receive the presentation and adopt the recommendation to receive the report.

  Carried

4.

Closed Session

• Moved by J. Pittini

  THAT the Committee moved into the closed session for the purpose of receiving confidential commercial or financial information that, if disclosed, could significantly prejudice the Board's competitive position or interfere significantly with contractual negotiations, under the authority of section 239 (2) (i) of the Municipal Act.

   

  The Committee convened in closed session at 10:54 a.m.

  Carried

4.a

Report - Outsourced Chief Investment Officer Partner Presentation

4.b

Presentation - Outsourced Chief Investment Officer Partner

5.

Reconvene in Public Session

• Moved by Board Member Giles

  THAT the Committee resume in public session.

   

  The Committee reconvened in open session at 12:04 p.m.

  Carried
• Moved by J. Pittini

  THAT the Committee receive the confidential report and the confidential presentation relating to the Outsourced Chief Investment Officer and Large Municipality Offering.

  Carried

6.

Other Business

There was no other business.

7.

Adjournment

THAT the committee adjourn the meeting.

• Moved by Board Member Giles

  The meeting adjourned at 12:06 p.m.

  Carried