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Good morning, everyone. We are. About to start our second

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meeting of the one joint investor board this year. And

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before we get to the begin, I want to introduce

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our new board member, Nickel Pinkfall, where's Nicholas? He's right

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there. It's been called Mr. Commissioner of Finance and Regional

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Treasurer at the Recomicity of Durham. So welcome. Thank you

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for being a member of the Board. We're looking forward

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to working with you. Thank you very much. And also

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we have an intern with us. Andrea, I don't know

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injury's last name, but Andy is over here. So you

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might find a moment during our breaks and lunch to

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say hello to Nicole and to Andrea. Gonna start with

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Atlantic acknowledgement, as we always do. We recognize that our

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work has the one joint investment board and the work

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of municipalities take place on traditional indigenous territories across Ontario.

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We recognize and we respect the history languages and cultures

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of the First Nations, matey Inuit and all indigenous peoples

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whose presence continues to enrich all of our communities across

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Ontario. Are there any members of one jib who have

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a conflict to declare due to a monetary interest on

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any item on today's agenda. Looking around, I see none.

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So I think we will continue. We're on to item

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three on your agendas, minutes of the previous meeting. So

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could I have a motive of February 26, 2026 when

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Jiv meeting be approved at circulated. Board member, Fraser makes

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that motion. All in favor, please raise your hands. Any

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opposed. That carries. I should say also, I think board

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member Dowdi is joining us by phone. So you don't

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see her on the screen. But I think she is

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attending. Is there any business arising from the minutes of

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the February 26. Meeting. Seeing any will carry on. So

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now we're on communication. So we have before us the

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2025, 2026 annual report of the integrity commissioner from John

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Mascarin, who's our very commissioner. And I'm happy to note

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that our integrity commissioner once again is indicated there are

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minimal activities to report this year. He's also stated that

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during his six years as integrity committee, sure, they have

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not received any complaints for investigation under the code of

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conduct or applications for inquiries under the municipal conflict of

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interest act. So that is very good. It means that

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board members are behaving. In a respectful way. And with

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integrity. So that is great. Any discussion on the report

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from the Integrity Commissioner. Not seeing any people are comfortable.

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All right. Then could I have a motion to receive

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the 2025, 2026 annual report of the Integrity Commissioner. And

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also thank Mr. Masker and for his services. Board member

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really makes that motion. I'll in favor, please raise your

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hands. Any pose. That carries. No committee reports today. We

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do have some delegations. So we're on item six on

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your agenda. Two delegations today. The municipality of Lampton Shores

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and the town of Nutic Techumseth have indicated their wish

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to join us as participating municipalities. So we're going to

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hear from Lamped Insurance first and then new to Kamsith.

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Rebecca Clothier, Director of Financial Services. We'll be making the

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presentation on behalf of Lampton Shores. She'll tell us about

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some of the interesting facts and financial challenges that Lampton

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chores is dealing with. So can we let Ms. Clovey

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are into the meeting, please?

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There we are. Welcome. Ms. Claudier, thank you for being

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with us today. We're very much looking forward to hearing

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from you. We're glad that Lampton Shores wants to join

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the one joint investor board. To your presentation. So I'll

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turn the floor over to you. Great. Thank you. So

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good morning and thank you for the opportunity to spend

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a few minutes introducing you to lamped and shores. My

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name is Rebecca Claudier and I'm the director of financial

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services. My goal today is to give you a quick

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sense of who we are, where we are and what

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makes our municipality unique. I'll keep it brief, but I

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hope by the end that you'll have a real feel

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for who lamped inshores really is. Lampton Shores is located

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in the northeast Lampton County at along the beautiful shores

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of Lake Huron. I often describe it as the gem

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of Flampton County with our stunning lake here on sunsets,

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our vibrant small towns and our rich agricultural roots. One

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of our biggest strengths is our location. We're close enough

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to large centers like Sarnia and London to be connected,

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but we still offer many of the benefits of smaller

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communities, the rural landscapes, and waterfront living. I also want

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to recognize that the chippewas of kettle and stony point

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First nations are located within the Lampton Shores area and

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are important neighbors and partners and form part of the

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identity of our region. Lampton shores is also a growing

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community. This slide shows an estimated 2026 population of just

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over 13, 000 people that is spread out across, uh,

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just over 300 square kilometers. Our growth reflects the appeal

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of the area. People are drawn here for the natural

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amenities, the quality of life, the smaller community feel, and

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the ability to stay connected with larger regional centers. Our

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age profile is also important. We serve families working age

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residents and a significant older adult population. So when we

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plan services, we're thinking about recreation roads, health access, housing

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accessibility and community connection. Lampton shores is not a one

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- center municipality where a collection of communities and each

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one brings something different to the overall identity of the

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municipality. Grand bend is probably the best known with its

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beaches, restaurants, events, and world - class sunsets. Forest is

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our largest town and an important service and commercial hub

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to the greater community. Then vered is home to our

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municipal office and has strong rural roots. Arcona is known

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for the rock glen conservation area and its fossil history.

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Port Frank's offers acquired her waterfront and Marina setting at

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the mouth of the Assauble River. And Iperwash is a

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residential beach community with a long lake here on shoreline.

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Together, these communities give lamped inshores a lot of depth.

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We are rule, waterfront, residential, commercial, and tourism focused all

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at the same time. Tourism is one of the most

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important parts of our local economy and community identity. In

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the summer months, our population grows significantly as visitors, seasonal

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residents, campers, and cottagers come to the area. What makes

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Lampton Shore special is that the draw is not just

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one attraction. It is the grand - bend beach, the

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provincial, uh, the pinary provincial park, Epperwash and Itch Beach,

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Port Franks and its beach. The rock Glenn Conservation Area,

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local trails, arts and cultural, farmers markets, restaurants, theaters, and

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many community events. That visitor economy supports local businesses and

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jobs, but it also means that municipality has to plan

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carefully. Parking, washrooms, beaches, parks, bylaw services, emergency planning, roads,

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waste collection and customer service all become much more complex

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during this peak season. Graham Ben Beach parking generates over

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a million dollars in just the summer months, which helps

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us pay for a lot of the tourism related features

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at the beach.

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One of the things we're special, we are especially proud

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of is our blue flag status. Graham Ben Beach, Graham

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Ben Marina and the Port Franks Marina have all been

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recognized under the blue flag program. The blue flag is

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an international eco - certification. So it's more than a

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nice symbol on a flag. It means that the site

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must meet standards for water quality, environmental education, environmental management,

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safety and services. For residents and visitors, that means clean

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water, accessible facilities, safety standards, and a strong focus on

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protecting the shoreline and ecosystem. For the municipality, it is

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a reminder that our natural assets are also our responsibilities.

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We want people to enjoy Lake Huron, but we also

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need to manage those spaces carefully and sustainably. When people

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think of Lampton Shores, they often think of beaches and

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tourism first, but agriculture is just as important to our

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identity. We have productive farmland, greenhouse operations, orchards, farm markets,

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and specialty crops that contribute to the character and strength

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of our local community. The bog areas near Graham Bend,

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Bazengquit, and Thedford support specialty crops such as potatoes, celery,

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and cooking onions, along with traditional field crops, such as

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corn, soya beans, and winter wheat. Looking more broadly at

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lampton county, agriculture and agri - businesses are a major

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part of our economic sector. In 2021, Lampton County had

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more than 2, 100 farms and over 550, 000 acres

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operated by farmers. With almost 730 million dollars in agricultural

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sales. Lampton County is also significant producer, soya beans, wheat,

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and sugar beets. So when we talk about lampton shores,

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we're not only talking about the shoreline and visitors were

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also talking about productive farmland, agricultural history, local food, and

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a rural economy that continues to shape who we are.

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So thank you for this opportunity. And if you've had

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any questions, I'd be happy to answer them. Questions. Uh,

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comment actually. Thank you for that presentation, Rebecca. It was

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good. I just wanted to share with you that before

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I knew that Lampton Shores was joining the one. I

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had, um, booked a trip with my outdoor club to

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the pioneering. So we're going in June for, uh, five

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days in the pinery. And then when I read the

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presentation, I thought, you know what, we're going to stay

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another few days and check out the area. So I

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just thought I'd share that with you. I'm so happy

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to hear that. And you will absolutely love your time

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at the pioneery. It is a beautiful provincial park. One

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other municipal Scott that Rebecca shared with us. And I

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think you might find interesting is their employment numbers double

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in the summer. They have to hire, they hire significant

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students mostly in the parking department to manage the tourism.

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But, uh, so the stops, he's a significant increase straight

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in the summer months. Yes, that's correct. We have 51

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full time staff members on a regular basis, which, um,

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escalates to 100 in the summer. So between lifeguards, uh,

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harbor attendance, beach cleaners, gardeners and everything else that's associated

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with, uh, managing all the tourism. Board member. Oh, yes.

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Uh, thank you. Um, Rebecca, I wonder if you could,

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um, say a few words about what you think are

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the most significant financial challenges facing your municipality, let's say

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over the next term of council. Well, uh, over the

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next term of council, um, I think that they're going

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to have to, uh, look at the assets that we

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have and the, the funding gap that we have for

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the future replacement of those assets. Um, that's one of

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the reasons why we are joining, um, one investment with

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our investments. So similar to many other municipalities in the

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province, we need to raise additional funds to ensure that

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we have the funding necessary to the replace our assets,

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uh, when they come do. I think it's also going

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to be necessary to reevaluate, uh, some of our services,

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uh, as I mentioned, Lampton shores has a number of

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municipalities and what that means is that we are the

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formation, uh, we were formed by the combination of five

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municipalities into one. So, you know, as, as time goes

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on, uh, it is necessary to reevaluate some of those

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services like five fire departments and look at ways of

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streamlining costs in order to ensure that we have that

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sustainability. Um, managing the tourism of course and all the

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assets that are associated with that ensuring user fees, uh,

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that are in place such as the parking that I

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referred to our sufficient, to, um, to cover the costs

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of providing those extra services. Uh, we don't want the

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cost of, of tourism to fall on our rate pairs

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because it's something that they wouldn't be able to bear.

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It's about being able to collect those costs, uh, from

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the residents that come with us. Um, also at our

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last council meeting, council has decided to build a new

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community center in grand binds. So finding, uh, funding for

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that is also going to be, uh, a priority for

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the next council when they come in. Great. Thank you.

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Sounds like you have a lot on your plate. Any

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other questions or comments. The only comment I would offer

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is a side commit is some, um, lamped inshores. It's

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great for bird watching too. And we're going to is

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that way you're going? Partly. All right. Then, uh. Could

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I have a motion to receive the presentation from his

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clothing or on behalf of the municipality of Lampton shores.

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Let's see. Remember when right van Kessel makes a motion

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all in favor, please raise your hands. Any of those.

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So, uh, thank you for joining us today. You are

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more than welcome to stay. There are two more items

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on the agenda that are related to land and shores

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and will consider them shortly after we hear from the

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town of newed to Kamsa. So I don't know what

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your schedule's like, but if you want to stay, you're

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welcome. That's great. Thank you very much. All right. Now

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we have Allison Gallant. And, um, then you got that.

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From the municipality of new to Comsa talking with some

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of the comfort characteristics and financial challenges. So can we

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please let them into the.

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Okay. Okay. Well, we will continue on then. And we'll

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come back to them. So we have a report. Do

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we have any ETA. Okay. Well, we, we have kind

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of do another report. I think. So let's move on

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to item seven on your agenda. And our first report

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is the request from Lampton Shores front of young Georgina

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and newed to Kamsa to join the one joint investment

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board. Any questions on this report. Any discussion. Comfortable.

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So, uh, could I have a motion that the board

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accept the municipality doors, the township of front of young,

241
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the town of Georgina. And the town of newed to

242
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Kamsat has participated in municipalities with one jib. And number

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two in this motion authorized the chair and board secretary

244
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to execute the one Jib agreements on behalf of one

245
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jib with the municipality of Lampton chores. The township up

246
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front of Young, the town of Georgina and the town

247
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of new to Kamsa. Board member Giles makes that motion.

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I'll in favor. Please raise your hands. Any opposed. That

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carries. Great. So. Yeah. She's here. Okay. We'll do another

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one. We'll just keep going. We've got a lot on

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our agenda. So we might as well just keep. It.

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Oh, they're here. Okay. Great. So they both here. Okay.

253
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Anyone else joining us. Sorry. I was going to say,

254
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I think I met for new tech. Okay. Great. Well,

255
00:18:22,297 --> 00:18:25,897
welcome. I'll let you introduce yourself because I can't see

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a name on the screen. It's probably bad. You're not

257
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my part. But. Is it tenure? Okay. So, um, welcome,

258
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Ms. Cadet. Glad to see you here. And we're looking

259
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forward to hearing about new to compass. So, um, over

260
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to you. Thank you. I'm happy to be here. We're

261
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happy to be here speaking on behalf of my team

262
00:18:46,897 --> 00:18:50,537
here. Thanks for having us. So just a quick presentation

263
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about who we are. You take home cis. So our

264
00:18:54,097 --> 00:18:58,097
main communities are the towns of Alistair in Tottenham. We

265
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do have a large rural network as well. Sorry. I

266
00:19:01,097 --> 00:19:03,497
was still speaking to the cover page, but we're all

267
00:19:03,537 --> 00:19:08,340
good. Um, we were amalgamated in 1991 from several smaller

268
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communities, uh, unfortunately there was already a town of Ticumsis.

269
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So we chose new to commsis, which has been just

270
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as confusing. We get their mail, they get ours. We

271
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consider ourselves to be small town charm with vibrant rural

272
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urban lifestyle. You'll see throughout this presentation that we are

273
00:19:29,001 --> 00:19:32,400
poised for growth, uh, largely do in part two, our

274
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location and proximity to the GTA and the greater Toronto

275
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horseshoe area. Currently as of the last census, we were

276
00:19:42,145 --> 00:19:46,945
about 44, 000 residents, uh, the growth plan that's currently

277
00:19:46,966 --> 00:19:52,065
before our council does see us grow into about 80,

278
00:19:52,086 --> 00:19:58,225
000 people by 2051. With that said, the province did,

279
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uh, ask us to hold off on our quotes plan.

280
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And while they've recently approved it still at around 80,

281
00:20:04,785 --> 00:20:09,265
81, 000 people, they have identified different areas than we

282
00:20:09,265 --> 00:20:12,465
would have envisioned for ourselves in terms of growth, which

283
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is going to start to connect those rural areas that

284
00:20:15,126 --> 00:20:18,531
I was talking about. Because a lot of that development

285
00:20:18,552 --> 00:20:23,091
is actually in between the communities as opposed to neuron,

286
00:20:23,091 --> 00:20:26,691
largest center, which is Alistair. In addition, you'll hear throughout

287
00:20:26,712 --> 00:20:30,531
this presentation that they have suggested there should be additional

288
00:20:30,872 --> 00:20:33,731
growth. And so there's some, some large numbers coming at

289
00:20:33,771 --> 00:20:38,197
us. We consider ourselves strategically located. We're about an hour

290
00:20:38,458 --> 00:20:42,757
north of Toronto. We are very close to hiring 400

291
00:20:43,018 --> 00:20:46,357
pardon me. And the soon to be constructed Bradford bypass,

292
00:20:46,357 --> 00:20:48,037
which is going to be a little bit south of

293
00:20:48,037 --> 00:20:51,557
here, but nonetheless, we'll bring a lot of traffic. Simpler

294
00:20:51,898 --> 00:20:55,077
access, if you will, then the eastern part of the

295
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province. We're considered a major employment hub for our area

296
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in Cinical County. We have about 2, 500 businesses and

297
00:21:01,755 --> 00:21:06,635
21, 000 droughts. Uh, the census indicated there's a strong

298
00:21:06,675 --> 00:21:09,035
quality of life here. It's an affordable place to live

299
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or at least it's still somewhat affordable. Uh, and we're

300
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known for our safety record. It's also a very passionate

301
00:21:18,282 --> 00:21:21,821
town. There's a lot of long - term residents. At

302
00:21:21,821 --> 00:21:24,101
least still see a lot of those grassroots festivals that

303
00:21:24,122 --> 00:21:26,741
are occurring year over year. There's a lot of engagement

304
00:21:26,922 --> 00:21:30,021
by the public, um, volunteerism. And we have a large

305
00:21:30,362 --> 00:21:34,901
cultural aspect as well. It's real sea on the following

306
00:21:34,941 --> 00:21:38,741
slide with some significant, uh, folks having come out in

307
00:21:38,741 --> 00:21:42,847
this area. Next slide, please. So a bit of a

308
00:21:42,847 --> 00:21:46,687
community snapshot about us. I will read it to you.

309
00:21:46,687 --> 00:21:50,287
Obviously you guys can read yourselves, but we are about

310
00:21:50,788 --> 00:21:54,287
90, 000 dollars in terms of a median house field

311
00:21:54,628 --> 00:21:56,687
income. What you can see on the chart on the

312
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right, puts us in a pretty strategic position for relative

313
00:22:03,407 --> 00:22:10,464
to other populations per se comparative to us. Uh, we

314
00:22:10,485 --> 00:22:17,120
do have. You'll see 30 percent of our house. So

315
00:22:17,120 --> 00:22:19,400
we do expect to see that rise of course as

316
00:22:19,440 --> 00:22:22,680
the cost of housing continues to increase, but we're also

317
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hoping that some of those pressures can be relieved with

318
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some of the growth that we have coming. In the

319
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2021 census, we were actually seventh in Canada in terms

320
00:22:34,301 --> 00:22:38,501
of population growth. And we do actually project that that

321
00:22:38,541 --> 00:22:41,941
is going to continue. We are dealing with again, some

322
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growth directives from the province. We're currently dealing with some

323
00:22:45,562 --> 00:22:48,261
constraints. As there are many municipalities in terms of how

324
00:22:48,301 --> 00:22:52,501
to, uh, fund that infrastructure with a long - term,

325
00:22:52,501 --> 00:22:56,421
we need some additional capacity in water and some of

326
00:22:56,421 --> 00:22:58,821
the things that we have to work out, but we'll

327
00:22:58,842 --> 00:23:04,259
get there. Next slide, please. Number 65 percent of our

328
00:23:04,280 --> 00:23:07,139
labor force lives outside of need to come site, although

329
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we are considered a strong employment hub. We are surrounded

330
00:23:10,859 --> 00:23:14,339
by some fairly rural communities. And so we do actually

331
00:23:14,520 --> 00:23:17,219
see where a lot of our Lego force, uh, does

332
00:23:17,259 --> 00:23:20,019
have to come in. We also have some very technical

333
00:23:20,520 --> 00:23:23,299
businesses. So the very large hand out of water plant

334
00:23:23,299 --> 00:23:26,179
here, uh, and, you know, to get the skilled trades

335
00:23:26,360 --> 00:23:28,659
that they need, some of those folks do have to

336
00:23:28,760 --> 00:23:30,979
come in right now from outside of me to come

337
00:23:31,320 --> 00:23:33,679
to one of the things we are hoping for. And

338
00:23:33,679 --> 00:23:36,819
we're trying to contract skilled trade center here to town

339
00:23:37,000 --> 00:23:40,499
so that we can actually grow some of those and

340
00:23:40,539 --> 00:23:43,379
employees with paranopali that would then work in our local

341
00:23:43,480 --> 00:23:48,820
businesses. We have a large trans candidate trail about almost

342
00:23:49,001 --> 00:23:53,540
27 kilometers of that. Again, large parkland coverage as well.

343
00:23:55,576 --> 00:23:58,755
Their top languages other than English here in our community

344
00:23:59,176 --> 00:24:03,395
of cinch Italian and Spanish Portuguese. I mentioned earlier there's

345
00:24:03,395 --> 00:24:07,475
a lot of Rashford's festivals that continue year over year.

346
00:24:07,475 --> 00:24:11,619
And there's always new ones coming up as well. There's

347
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a large focus right now on recreation in our community,

348
00:24:15,299 --> 00:24:20,219
but we already have just over 2000 recreation registrants. We

349
00:24:20,219 --> 00:24:24,019
have a lot actually registrants from, uh, neighboring municipalities as

350
00:24:24,019 --> 00:24:26,179
well since, as I mentioned, we are one of the

351
00:24:26,200 --> 00:24:30,958
larger centers in Simple County. And we have a large

352
00:24:31,219 --> 00:24:34,798
drop in participants. So 30, over 30, 000 people dropping

353
00:24:34,979 --> 00:24:39,148
in nearly for our programs. Uh, talked about it a

354
00:24:39,148 --> 00:24:42,828
little bit earlier. Something we'll noticeable things notable things about

355
00:24:42,849 --> 00:24:46,308
us. So Alice is known as the potato capital. We

356
00:24:46,308 --> 00:24:51,252
do annually have our potato vestibule every year. Beaten our

357
00:24:51,252 --> 00:24:54,372
other community is home to the honey and garden festival

358
00:24:54,713 --> 00:24:58,052
and that stems largely from DA Jones, a residence who

359
00:24:58,092 --> 00:25:01,392
was known as the king of Canada and brought, uh,

360
00:25:01,753 --> 00:25:05,012
be keeping to the area. We are also the birthplace

361
00:25:05,052 --> 00:25:10,532
of the surf projects, or Frederick painting, uh, who co

362
00:25:10,572 --> 00:25:13,732
- discovered insulin and want to win an Nobel prize

363
00:25:13,732 --> 00:25:17,892
for that. So we have a large heritage, bending heritage

364
00:25:18,633 --> 00:25:21,092
site here, which was donated by the family, which we

365
00:25:21,193 --> 00:25:24,132
are just about to take over operations. So we've already

366
00:25:24,132 --> 00:25:26,532
owned it, but we're now going to actually assume operation

367
00:25:26,873 --> 00:25:31,677
as well. That was, uh, contracted a previously. Next slide.

368
00:25:31,677 --> 00:25:38,034
Thank you. So from 2021, uh, back, you can see

369
00:25:38,034 --> 00:25:42,894
that there has been gross. However, not to the extent

370
00:25:42,915 --> 00:25:46,414
that we're projected. So we had an initial housing growth

371
00:25:46,454 --> 00:25:50,814
of 6, 400. We needed 64 additional bones. Uh, as

372
00:25:50,814 --> 00:25:53,934
requested by the province, we're now actually seeing a much

373
00:25:54,035 --> 00:25:59,694
bigger figure, particularly if their projects of interest. So in

374
00:25:59,694 --> 00:26:03,534
addition to the 80, 500 people that we ourselves envisioned,

375
00:26:03,534 --> 00:26:05,214
we would grow to in order to meet that housing

376
00:26:05,395 --> 00:26:10,494
target. The province has also identified within single candidate 32

377
00:26:10,595 --> 00:26:15,457
additional projects. 10 of which they said are very important.

378
00:26:15,457 --> 00:26:18,737
Uh, and six of those are either in new to

379
00:26:18,758 --> 00:26:22,788
come sit or right on the border. Well, they haven't

380
00:26:22,889 --> 00:26:27,348
given population figures with that additional, those additional 10 projects

381
00:26:28,089 --> 00:26:31,908
looking at our average household occupancy. That would be a

382
00:26:31,948 --> 00:26:38,308
very CS growing to a bit 150, 000 people in

383
00:26:38,348 --> 00:26:46,126
2051. So in the official plan, so the 80, 590

384
00:26:46,307 --> 00:26:52,644
population, we do need an additional 498. Hectors for community

385
00:26:52,745 --> 00:26:57,764
lands and 173 fund plant. And we would see ourselves

386
00:26:57,865 --> 00:27:02,164
employing approximately 31, 000 people by 2051, which is very

387
00:27:02,204 --> 00:27:05,130
large compared to the number eSA on a year. Slide.

388
00:27:06,622 --> 00:27:10,601
So as I mentioned, they do have 10 other projects,

389
00:27:10,601 --> 00:27:12,921
32 really, but 10 that they've narrowed down and said

390
00:27:12,961 --> 00:27:16,521
are very important and that they're actually currently seeking public

391
00:27:16,702 --> 00:27:21,737
feedback on. That does add another two, almost 3, 000

392
00:27:21,777 --> 00:27:27,203
hectares of land, crossing those housing and employment lands. Uh,

393
00:27:27,464 --> 00:27:31,123
an additional 30, 000 homes being considered. So when I

394
00:27:31,123 --> 00:27:34,243
mentioned our initial target of 6, 400 and now we're

395
00:27:34,243 --> 00:27:37,523
talking about 30, 000, so that's a big step up.

396
00:27:38,718 --> 00:27:43,257
And then about an approximately 980 additional jobs. The one

397
00:27:43,297 --> 00:27:45,177
other thing I will point out on this slide is

398
00:27:45,438 --> 00:27:48,537
our population by age. So that is also change in

399
00:27:48,577 --> 00:27:51,177
our demographic is changing. We had a lot of very

400
00:27:51,217 --> 00:27:54,197
long - term residents kind of grew up born and

401
00:27:54,197 --> 00:27:56,857
raised in the area and state. We're now actually seeing

402
00:27:57,038 --> 00:27:59,817
where we are at growth node people are moving in.

403
00:27:59,817 --> 00:28:03,417
And so we're now in that 62. 96 range between

404
00:28:03,758 --> 00:28:12,201
15 and 64. Which we roughly consider a age. Just

405
00:28:12,241 --> 00:28:15,961
wanted to talk briefly about a newer initiative. So again,

406
00:28:16,062 --> 00:28:18,921
here in neutral comes with, we have Honda as one

407
00:28:18,921 --> 00:28:22,581
of our major employers. We know throughout the province, the

408
00:28:22,581 --> 00:28:26,041
province has a big push on protecting our automotive sector

409
00:28:26,081 --> 00:28:29,561
at the moment. So here at home, this single automairs

410
00:28:29,662 --> 00:28:33,081
group, the starter formed and led by our own mayor

411
00:28:33,121 --> 00:28:36,441
here, knew to come this in our cuffs. Uh, and

412
00:28:36,702 --> 00:28:40,321
their latest initiative is the Canada North vehicles concept. So

413
00:28:40,321 --> 00:28:43,481
this is barely new. It was just unveiled last week.

414
00:28:43,582 --> 00:28:46,608
Yeah. And it looks, but you should start hearing more

415
00:28:46,629 --> 00:28:52,008
about this. Essentially, we want to brand Canadian vehicles. So

416
00:28:52,549 --> 00:28:57,808
other countries are known for European luxury cars, for example.

417
00:28:57,808 --> 00:29:02,848
We want people to know Canada vehicles. Vote for rugged

418
00:29:02,949 --> 00:29:07,968
terrain, harsh weather conditions, uh, and so they've devised this

419
00:29:07,989 --> 00:29:13,968
logo as well as a campaign to promote the Canada

420
00:29:13,989 --> 00:29:16,528
North, which we envisioned seeing on vehicles in the future

421
00:29:16,709 --> 00:29:20,528
to identify that they weren't built here in Canada, manufactured

422
00:29:20,549 --> 00:29:22,768
here in Canada. And we also foresee that this could

423
00:29:22,808 --> 00:29:30,523
also apply to automatics. Next slide, please. That ends our

424
00:29:30,563 --> 00:29:35,678
presentation. Unless anyone has any questions for me. Questions for

425
00:29:35,699 --> 00:29:41,714
Ms. Codette. What a member Fraser. Thank you. And thank

426
00:29:41,714 --> 00:29:45,874
you for the presentation. Uh, talked about Honda a little

427
00:29:45,874 --> 00:29:48,834
bit. How much of the employment in the area comes

428
00:29:48,874 --> 00:29:51,514
from Honda? And I'm wondering, I believe they sort of

429
00:29:51,575 --> 00:29:56,114
have our backpedaling on their plans to expand for vehicles

430
00:29:56,375 --> 00:29:58,754
in that area. So I'm wondering how that impacts some

431
00:29:58,794 --> 00:30:01,290
of the numbers that you just shared with us. Yeah.

432
00:30:01,330 --> 00:30:04,090
Great question. Thank you so that Honda is one of

433
00:30:04,090 --> 00:30:08,570
our major employers, the biggest in the community in fact.

434
00:30:08,570 --> 00:30:13,050
You are correct. They had envisioned building next year at

435
00:30:13,090 --> 00:30:17,290
EV battery plant. They haven't canceled those plans, but they

436
00:30:17,311 --> 00:30:21,130
have recently. So they first they deferred to a later

437
00:30:21,170 --> 00:30:27,530
date. They've now recently announced that they are indefinitely deferring

438
00:30:27,530 --> 00:30:31,130
it. So it's not canceled. Uh, they do still plan

439
00:30:31,231 --> 00:30:34,410
to meet their commitment to use those lands for some

440
00:30:34,431 --> 00:30:37,050
purpose. They're just not sure that it would be for

441
00:30:37,151 --> 00:30:40,330
electrification. Perhaps it might be hybrid. Perhaps it might be

442
00:30:40,431 --> 00:30:44,570
something else. Uh, as I alluded to in the presentation,

443
00:30:44,671 --> 00:30:47,530
the Canada North vehicles are part of that stems from

444
00:30:47,631 --> 00:30:53,883
our desire to support Honda. And that partnership. We also

445
00:30:57,184 --> 00:31:03,323
are looking at ways to help Honda, if you will.

446
00:31:03,323 --> 00:31:05,803
So I won't get into the details, but you know,

447
00:31:05,803 --> 00:31:08,363
things like DC credits and things like that. Um, so

448
00:31:08,403 --> 00:31:12,763
we do foresee the endoskilled trades, the skill trade center

449
00:31:12,784 --> 00:31:15,003
that I, that I mentioned as well. So we do

450
00:31:15,003 --> 00:31:17,323
still have a commitment from Honda that there will be

451
00:31:17,344 --> 00:31:19,403
growth. We just don't know what that looks like just

452
00:31:19,403 --> 00:31:26,248
yet or when that might have come. To questions board

453
00:31:26,288 --> 00:31:30,248
when we're ready. Tani, you mentioned, um, at the outset

454
00:31:30,269 --> 00:31:34,488
that, uh, the municipality was formed through amalgamation of a

455
00:31:34,488 --> 00:31:39,448
few smaller municipalities. Are you struggling with multiple community centers,

456
00:31:39,448 --> 00:31:41,608
multiple fire halls, those sorts of things? Have you done

457
00:31:41,709 --> 00:31:44,728
master planning to, to kind of have a future plan

458
00:31:44,829 --> 00:31:50,963
for consolidation or efficiency of services. Another excellent question. And

459
00:31:51,004 --> 00:31:56,503
I think you've been through this before, absolutely. Uh, it's

460
00:31:56,524 --> 00:32:00,103
gotten much better, but people are still very tied to

461
00:32:00,143 --> 00:32:03,223
their community. We have a couple of memorial arenas that

462
00:32:03,804 --> 00:32:06,343
were, you know, either built by or dedicated to some

463
00:32:06,383 --> 00:32:09,863
of our veterans. So there's an emotional attachment to them.

464
00:32:09,863 --> 00:32:13,303
Although at this point in time, they're in need of

465
00:32:13,343 --> 00:32:18,563
repairs and we are talking about those strategic decisions, you

466
00:32:18,563 --> 00:32:20,743
know, do we, you know, how do we manage three

467
00:32:20,764 --> 00:32:24,743
rec centers? Everybody wants a pool, pick a ball is

468
00:32:24,743 --> 00:32:29,063
the latest that everybody wants pickleball courts. Um, so that

469
00:32:29,063 --> 00:32:37,601
is a real challenge. But remember, I, Tanya, can you

470
00:32:37,601 --> 00:32:41,841
say a little bit about, um, about what you see

471
00:32:41,862 --> 00:32:46,061
as some of the more significant financial challenges affecting, uh,

472
00:32:46,262 --> 00:32:50,541
the town in addition to obviously the growth that, um,

473
00:32:50,742 --> 00:32:54,559
anticipating over the next number of years. Certainly. Thank you.

474
00:32:55,642 --> 00:33:01,621
For that question obviously, notwithstanding growth, which we have to

475
00:33:01,621 --> 00:33:03,621
figure out, you know, how we're going to front end

476
00:33:03,722 --> 00:33:05,381
pay for some of that so that we can manage

477
00:33:05,882 --> 00:33:08,581
those that population as it arises in those houses as

478
00:33:08,581 --> 00:33:13,701
they come online. Like many municipalities will now newer in

479
00:33:13,722 --> 00:33:16,901
looking at our asset management plans. Even looking at our

480
00:33:17,082 --> 00:33:20,901
existing assets, there is an infrastructure gap over the long

481
00:33:20,922 --> 00:33:26,197
term. So we're looking at, and of course, we know

482
00:33:26,197 --> 00:33:30,097
the province is now putting some restrictions in on, you

483
00:33:30,097 --> 00:33:33,317
know, how DCs can be applied when DCs can be

484
00:33:33,338 --> 00:33:38,677
applied, stormwater fees is another one, you know, they're now

485
00:33:38,677 --> 00:33:42,837
talking about how publicly managed forests and agricultural lands can't

486
00:33:42,858 --> 00:33:46,437
actually be, you know, have a stormwater fee automated speed

487
00:33:46,477 --> 00:33:49,717
enforcement cameras, whereas a revenue tool that has been removed.

488
00:33:51,500 --> 00:33:56,199
So, um, you know, I think like many municipalities were

489
00:33:56,199 --> 00:33:58,919
now faced with some tough decisions on how we find

490
00:33:58,940 --> 00:34:03,962
existing infrastructure. Much less the growth that we need and

491
00:34:03,962 --> 00:34:06,522
the infrastructure that we need, particularly given as I mentioned

492
00:34:06,543 --> 00:34:09,642
earlier that the province has directed us that our growth

493
00:34:09,983 --> 00:34:13,602
is not necessarily centered around somewhere like Alistair, where we

494
00:34:13,602 --> 00:34:16,042
already have infrastructure. It's out in what we would now

495
00:34:16,063 --> 00:34:19,882
consider a rural lands. So they're currently had servicing to

496
00:34:19,882 --> 00:34:26,434
them in all cases. Great. Thank you. Welcome. How long

497
00:34:26,474 --> 00:34:28,661
the same lines I just like to follow up. On.

498
00:34:28,661 --> 00:34:32,780
Remember Dyer's question. So how have you given any thought

499
00:34:32,881 --> 00:34:36,680
to how you manage the risk that the growth, the

500
00:34:36,680 --> 00:34:41,180
province's envisioning will not materialize at least at the rate

501
00:34:41,220 --> 00:34:43,804
that they are thinking. When you may have to put

502
00:34:44,065 --> 00:34:48,684
infrastructure in the ground in anticipation of that growth actually

503
00:34:48,945 --> 00:34:51,484
happening, but it may not happen for quite some time

504
00:34:51,665 --> 00:34:56,104
war and all. Great question. Yeah. That is something that's

505
00:34:56,525 --> 00:35:00,564
before our council at the moment. There's been a lot

506
00:35:00,845 --> 00:35:03,384
of debate. Certainly I don't, I don't want to speak

507
00:35:03,565 --> 00:35:06,904
on behalf of them, but they haven't actually approved the

508
00:35:07,085 --> 00:35:10,024
growth plan as presented by the province just yet. They're

509
00:35:10,064 --> 00:35:13,304
actually planning to go back to the province to outline

510
00:35:13,344 --> 00:35:16,024
some of the risks with that that we see as

511
00:35:16,024 --> 00:35:21,624
well as some of the, uh, constraints in terms of,

512
00:35:21,624 --> 00:35:23,624
you know, what they're envisioning for us versus how we

513
00:35:23,645 --> 00:35:28,974
projected, we could reasonably grow. Um, we have been lucky

514
00:35:28,974 --> 00:35:32,654
enough to receive some funding of late, uh, but we

515
00:35:32,755 --> 00:35:34,314
certainly are going back to them and saying, you know,

516
00:35:34,355 --> 00:35:36,734
with, with some of the funding challenges that we already

517
00:35:36,835 --> 00:35:39,934
had, those that will actually come with the projected growth

518
00:35:40,755 --> 00:35:43,054
and some of the restrictions that were now actually seen

519
00:35:43,075 --> 00:35:45,214
for the providence and some of those larger grant programs

520
00:35:45,254 --> 00:35:49,854
that are concluding. We are looking for provincial support as

521
00:35:49,854 --> 00:35:53,302
well. Um, or I should say we, but counsel is

522
00:35:53,323 --> 00:35:55,862
looking for some provincial support as well and how we

523
00:35:55,883 --> 00:36:02,850
accomplish that. Thank you. Any other questions. Uh, the only

524
00:36:02,890 --> 00:36:05,010
other comment I would offer is I think that Canada

525
00:36:05,111 --> 00:36:09,250
North, uh, labeling on, on fires is a great idea.

526
00:36:09,250 --> 00:36:13,250
Um, I know it's a challenge. If you're looking for

527
00:36:13,271 --> 00:36:15,970
a car and you want to buy a card that's

528
00:36:15,970 --> 00:36:19,070
built in Canada, which my wife and I do, um,

529
00:36:20,391 --> 00:36:23,970
is a challenge when manufacturers are making the same vehicle

530
00:36:24,391 --> 00:36:29,795
in different locations. Absolutely. So it would be helpful to

531
00:36:29,835 --> 00:36:34,515
have some sort of label that's like Canada North that

532
00:36:34,616 --> 00:36:40,510
was clear that that car was built in Canada. So

533
00:36:40,531 --> 00:36:45,630
thank you. Great idea. Uh, thank you. Honda Civic was

534
00:36:45,630 --> 00:36:50,270
built in Alistair. Yes. Yes. Absolutely. And that was a

535
00:36:50,270 --> 00:36:54,590
benefit when I was looking for a car. As a

536
00:36:54,590 --> 00:36:56,910
point of interest, uh, the province has put out a

537
00:36:56,910 --> 00:37:01,150
directive about buying Ontario fleet. Their identification is that the

538
00:37:01,411 --> 00:37:04,510
VIN starts with a two. So we want something a

539
00:37:04,510 --> 00:37:06,670
little bit more visual than that. But if you're looking

540
00:37:06,931 --> 00:37:09,470
for Ontario made vehicle, you look for a bin that

541
00:37:09,510 --> 00:37:14,529
starts with a two marketing person. If you didn't hear

542
00:37:14,710 --> 00:37:21,489
vice chair James comment, she said not a marketing person.

543
00:37:21,489 --> 00:37:23,569
Could I have a motion to receive the presentation from

544
00:37:24,230 --> 00:37:26,129
Ms. Goded on behalf of the town of new to

545
00:37:26,169 --> 00:37:30,712
comfort. Spoig member Franken makes that motion. Oh, in favor,

546
00:37:30,712 --> 00:37:34,470
please raise your hands. Any opposed that carries. So thank

547
00:37:34,470 --> 00:37:36,470
you very much for joining us today. Thank you for

548
00:37:36,510 --> 00:37:40,630
the presentation. You are more than welcome to stay. We've,

549
00:37:40,630 --> 00:37:44,790
uh, already accepted new dicampset as a member of one

550
00:37:44,971 --> 00:37:49,064
jib. And we'll be dealing with their investment plan. I

551
00:37:49,064 --> 00:37:50,224
think four items from now. So if you want to

552
00:37:50,245 --> 00:37:51,744
stay, you're welcome to, but if you have other things

553
00:37:52,085 --> 00:37:54,864
you need to do, that's also fine. Whatever works for

554
00:37:54,864 --> 00:37:58,640
you is good. Wonderful. Thank you everyone for having us

555
00:37:58,661 --> 00:38:03,201
today. All right. Thank you. Okay. So, um, board members,

556
00:38:03,201 --> 00:38:05,921
we've dealt with item 7a. So we're now on to

557
00:38:06,742 --> 00:38:11,260
a series of investment plans starting with item 7b. First

558
00:38:11,260 --> 00:38:19,489
one is the township of the front of young. Any

559
00:38:19,590 --> 00:38:24,886
questions on their investment plan. Member Franken, my notes on

560
00:38:24,926 --> 00:38:30,444
my phone. There was a section on section three that

561
00:38:30,465 --> 00:38:33,404
said that alternatives were allowed, but that it was not

562
00:38:33,425 --> 00:38:37,164
recommended to do this because the lack of experience or

563
00:38:37,164 --> 00:38:43,909
exposure to. Complex investments. Great question. I just wanted to

564
00:38:43,909 --> 00:38:48,614
understand that. Great question, Mr. Taylor. Well, broadly speaking with,

565
00:38:48,614 --> 00:38:53,894
uh, municipalities, we've always worked for the process of prawl

566
00:38:54,235 --> 00:38:56,214
law run. We want to make sure that our investors

567
00:38:56,715 --> 00:38:59,574
know what they're getting into. They have experience in the

568
00:38:59,614 --> 00:39:02,923
type of investments. We're getting them into. Front of young

569
00:39:02,963 --> 00:39:07,323
is coming from bank accounts and GICs, um, although council

570
00:39:07,363 --> 00:39:10,363
may have actually, uh, approved an IPS that had permitted

571
00:39:10,864 --> 00:39:13,803
envy, the document. I don't have any confidence that they

572
00:39:13,803 --> 00:39:17,563
have. They're, they're aware of the details of it. I'd

573
00:39:17,563 --> 00:39:21,403
rather with the, uh, the municipality and the treasure to

574
00:39:21,443 --> 00:39:23,323
make sure that they're aware of what they're getting into.

575
00:39:24,267 --> 00:39:26,726
Um, the number of municipalities based on, on what they

576
00:39:26,726 --> 00:39:30,806
have in their MCQ, the investment variety is appropriate for,

577
00:39:30,907 --> 00:39:36,713
for long term, uh, investments like alternative investments. Um, I

578
00:39:36,753 --> 00:39:38,953
don't think there's any particular rush. And I want to

579
00:39:38,993 --> 00:39:42,233
make sure that it's an informed decision. So it is

580
00:39:42,273 --> 00:39:46,823
a judgment call. There are certain municipalities where I think

581
00:39:47,084 --> 00:39:51,783
it's a slam dunk in these circumstances. I'd rather them

582
00:39:51,804 --> 00:39:54,503
get comfortable and we get comfortable with them. I mean,

583
00:39:55,244 --> 00:39:58,423
one is the liquidity issue. And the other is that

584
00:39:58,423 --> 00:40:05,303
there's actually very punitive. They need to draw them on

585
00:40:05,303 --> 00:40:09,863
you down or change allocation, uh, with the alternative investments.

586
00:40:10,866 --> 00:40:13,165
The brake feuds are about five percent in the first

587
00:40:13,346 --> 00:40:17,325
year and deplinding by one percent every year. So I

588
00:40:17,325 --> 00:40:19,405
want to make sure that they're comfortable. I want to

589
00:40:19,405 --> 00:40:21,725
make sure that I'm comfortable, that they are aware of

590
00:40:21,765 --> 00:40:25,433
the circumstances. And the say we can't put alternative investments

591
00:40:26,174 --> 00:40:32,434
in the portfolio at a later date. Thanks for that.

592
00:40:32,434 --> 00:40:35,714
Um, so my question then is because this one with

593
00:40:35,754 --> 00:40:38,974
such a very long time horizon. I think it was

594
00:40:39,095 --> 00:40:42,674
30 plus years and then very low risk of withdrawal.

595
00:40:42,674 --> 00:40:44,994
I just am curious or would like to hear board

596
00:40:45,015 --> 00:40:48,535
member feedback on. I appreciate the point. But if ever

597
00:40:48,556 --> 00:40:51,815
there was a one to have altered like the seems

598
00:40:51,916 --> 00:40:54,855
except for the experience issue and the concern, this seems

599
00:40:54,855 --> 00:40:57,015
like it would be the one. So what is our

600
00:40:58,156 --> 00:41:02,695
role or our, uh, view, if somebody seems to fit

601
00:41:02,716 --> 00:41:05,735
squarely in that, but there's a concern at them in

602
00:41:05,735 --> 00:41:09,655
a municipality's not, uh, we're the ones making the decision

603
00:41:09,836 --> 00:41:12,615
ultimately. Right. So just wanted to hear some feedback on

604
00:41:12,615 --> 00:41:17,095
that. So, um, vice chair Jameson had the same issue.

605
00:41:17,095 --> 00:41:22,055
That gender review. So if the board feels, um, it

606
00:41:22,095 --> 00:41:25,575
would be appropriate to include alternative investments in their investment

607
00:41:25,575 --> 00:41:28,135
plan. We can just amend the investment plan at this

608
00:41:28,236 --> 00:41:34,407
meeting. Motion to that effect. But board member dyer. Yeah.

609
00:41:34,407 --> 00:41:36,807
So I had, I had the exact same, uh, comment

610
00:41:37,068 --> 00:41:41,127
as a board member, board member Franken. And I guess

611
00:41:41,228 --> 00:41:43,767
there's a couple of aspects to it. So the first

612
00:41:43,807 --> 00:41:46,807
is, and it supplies to, I think front of young

613
00:41:46,908 --> 00:41:49,607
Georgina and new compsy new to come see who have

614
00:41:49,647 --> 00:41:54,900
all have policies that allow for alternatives. But as, as

615
00:41:55,001 --> 00:42:00,368
recommended, the plan would not include them. And so, so

616
00:42:00,949 --> 00:42:02,848
I guess I think a couple of things. The first

617
00:42:02,888 --> 00:42:07,248
is that, um, I think we should try to approve

618
00:42:07,589 --> 00:42:12,298
a plan that is consistent with the policy. That's not

619
00:42:12,338 --> 00:42:15,978
to say that we have to or should jump into

620
00:42:16,639 --> 00:42:24,873
investing in, um, alternatives right away. But it gives the

621
00:42:24,974 --> 00:42:29,433
staff team and our OCIO, the opportunity to take advantage

622
00:42:29,473 --> 00:42:36,822
of those, uh, investments, um, in the moment. Right? Because

623
00:42:36,862 --> 00:42:39,928
if I, if I understand it right, if the. Staff

624
00:42:39,949 --> 00:42:43,688
would have to come back to this board to amend

625
00:42:43,709 --> 00:42:48,488
the policy in order to actually invest in something that's

626
00:42:48,528 --> 00:42:51,471
already in the policy. No, that happened. Taking sense. Not

627
00:42:51,471 --> 00:42:55,411
quite. You'd have to amend the investor plan. Sorry. I

628
00:42:55,512 --> 00:42:58,021
misspoke. Yes. We have to amend the plan. Which we

629
00:42:58,021 --> 00:43:01,661
could do today if you want. Right. So I would

630
00:43:01,682 --> 00:43:07,181
recommend, I would propose that we amend the three plans

631
00:43:07,442 --> 00:43:16,848
today. Where their policy allows for, um, uh, foreign alternatives.

632
00:43:16,848 --> 00:43:19,968
Again, it's not to say that that action would be

633
00:43:20,069 --> 00:43:23,568
taken right away. It just gives, it just gives the,

634
00:43:23,568 --> 00:43:26,048
the staff team and the OCIO, the opportunity to take

635
00:43:26,149 --> 00:43:32,727
advantage of those opportunities. Does that make sense? That's not

636
00:43:32,727 --> 00:43:35,767
how it works. The, uh, the OCIO will respond to

637
00:43:35,788 --> 00:43:38,167
what is approved by the one chip. If you approve

638
00:43:38,428 --> 00:43:42,282
alternative investments, they get. Sort of, just for clarity. Okay.

639
00:43:42,282 --> 00:43:44,922
Thank you. That's helpful. So I think board member Dyer,

640
00:43:44,922 --> 00:43:48,342
what we would do if the board, um, wishes. And

641
00:43:48,342 --> 00:43:50,522
if you want to make a motion to this effect,

642
00:43:50,522 --> 00:43:52,682
uh, we would deal with them one by one. Fair

643
00:43:52,682 --> 00:43:55,722
enough. And, uh, what we do in this case is

644
00:43:55,903 --> 00:44:00,042
we amend recommendation number three to be model G plus

645
00:44:00,463 --> 00:44:04,704
rather than Model G. Yes. That's what I would propose.

646
00:44:05,833 --> 00:44:09,354
Okay. So you're making that amendment. Yeah. All right. So

647
00:44:10,015 --> 00:44:18,943
commentary on that. Board member. I would prefer see something

648
00:44:18,983 --> 00:44:22,863
from staff to say that the municipality is aware of

649
00:44:22,903 --> 00:44:27,263
what they're getting into and that they are comfortable that.

650
00:44:28,849 --> 00:44:32,188
People, that the whoever's responsible to municipal level is comfortable

651
00:44:32,369 --> 00:44:37,214
with that investment before COVID. They put forward a plan

652
00:44:37,795 --> 00:44:40,461
which allows them to do it. I'm not sure that

653
00:44:40,501 --> 00:44:42,861
we should go ahead and do it without being comfortable

654
00:44:43,122 --> 00:44:45,741
that they are aware of what it is they are

655
00:44:45,741 --> 00:44:50,397
actually getting into. Just give a follow up. When we

656
00:44:50,397 --> 00:44:53,557
do discuss the investment plan, the proposed investment plan with

657
00:44:53,738 --> 00:44:56,277
municipality. We also talk about the risk that are on

658
00:44:56,378 --> 00:45:01,841
roll. Obviously it's the, uh, the Jibs view and the

659
00:45:01,881 --> 00:45:06,641
recommendation that is most important here. But yeah, the, the

660
00:45:07,382 --> 00:45:10,081
model that's in the plan here has been discussed with

661
00:45:10,102 --> 00:45:15,970
the municipality. Discussion and understanding or not necessarily the same

662
00:45:16,071 --> 00:45:19,477
thing. Uh, I mean, if you're telling me that you

663
00:45:19,517 --> 00:45:22,597
have a reason to believe that it's, it sounds like

664
00:45:24,858 --> 00:45:27,397
you have reasonably that they're not totally aware of what

665
00:45:27,498 --> 00:45:31,934
the investments are and their risks are. Um, I would,

666
00:45:31,934 --> 00:45:35,374
I'd like to hear you say that, yes, we've explained

667
00:45:35,414 --> 00:45:39,690
it. They're educated. They're ready to go. Don't think they

668
00:45:39,690 --> 00:45:43,638
are. Yeah. That's what that's what I was in a

669
00:45:43,638 --> 00:45:46,118
judgment call. I mean, like on paper. Yeah. You look

670
00:45:46,118 --> 00:45:49,238
at the other reserves. Absolutely. This is a slam dunk.

671
00:45:49,238 --> 00:45:53,496
This is suitable. Um, I don't think there's any rush.

672
00:45:54,304 --> 00:45:56,283
We can certainly get them in next year. I'd like

673
00:45:56,283 --> 00:46:00,163
to have that conversation within this palette. You know, for

674
00:46:00,163 --> 00:46:02,683
a number of these new guys, it's a bit of

675
00:46:02,723 --> 00:46:04,523
a leap from where they are to where they're going.

676
00:46:05,516 --> 00:46:07,815
Um, it may be the direction they need to go.

677
00:46:07,815 --> 00:46:10,695
And please, please note that I talk about alternative investments

678
00:46:11,036 --> 00:46:15,975
with every municipality. If they haven't permitted it in the

679
00:46:16,015 --> 00:46:19,655
IPS, I will mention, you know, your circumstances are such

680
00:46:19,695 --> 00:46:22,433
that I think it is appropriate. Uh, but I think

681
00:46:22,454 --> 00:46:24,513
that, that, you know, for some of these, uh, these

682
00:46:24,553 --> 00:46:27,713
new guys, the level of maturity, uh, the knowledge of

683
00:46:27,814 --> 00:46:31,953
investments, um, you know, Crawl run, that's really a very

684
00:46:32,134 --> 00:46:35,255
simplistic way of putting it. But yeah, it is absolutely

685
00:46:35,436 --> 00:46:38,295
suitable, but I'm not sure about the conflict level and

686
00:46:38,396 --> 00:46:42,295
full understanding. Well, remember Fraser sort of following up on

687
00:46:42,556 --> 00:46:46,615
board member Giles question. Um, did you, um, and just

688
00:46:46,615 --> 00:46:49,335
to clarify, did you talk to them about G plus

689
00:46:49,836 --> 00:46:52,695
in terms of a portfolio with an alternative in it

690
00:46:52,796 --> 00:46:54,615
in terms of your discussion with them in terms of

691
00:46:54,655 --> 00:46:59,678
arriving at the recommendation of G. Um, I had suggested

692
00:47:00,499 --> 00:47:03,918
G in other circumstances that we have had new municipalities

693
00:47:04,019 --> 00:47:07,998
that went straight into alternative investments. Uh, and I praise

694
00:47:08,339 --> 00:47:12,078
the treasurer's knowledge. Such a thing knew exactly what they

695
00:47:12,118 --> 00:47:16,316
were getting into. Um, I wasn't there with, with, with

696
00:47:16,316 --> 00:47:20,764
some of these, these other new guys. Thank you. Board

697
00:47:20,804 --> 00:47:26,311
member ready. So agree with board member Frank and on

698
00:47:27,132 --> 00:47:32,311
this project is perfect for this allocation of fines to

699
00:47:32,311 --> 00:47:35,911
a long - term obligation. I think what we need

700
00:47:36,012 --> 00:47:39,511
to also consider though is the fragility of the environment

701
00:47:40,092 --> 00:47:43,191
that municipalities are working in right now. If something else

702
00:47:43,212 --> 00:47:46,791
comes up or some other revenue tool disappears, will they

703
00:47:46,791 --> 00:47:49,991
have to change? And the long - term nature of

704
00:47:50,412 --> 00:47:54,231
alts, uh, and the, you know, sophistication of a municipality

705
00:47:54,271 --> 00:47:57,791
of this size. I understand those staff constraints. I think

706
00:47:58,092 --> 00:48:02,158
I like the approach. I'm going to be saying the

707
00:48:02,158 --> 00:48:06,238
opposite when we get to Georgina, but I think for

708
00:48:06,339 --> 00:48:10,238
this one, this, I like the recommendations. So I'll be

709
00:48:10,238 --> 00:48:15,946
voting against the. Um, I remember Lechman. So I'm, I'm

710
00:48:15,946 --> 00:48:20,026
mindful of the board's role versus management's role or staff's

711
00:48:20,066 --> 00:48:24,186
role in getting involved in some of these, well, I'll,

712
00:48:24,186 --> 00:48:26,426
I see the point. I'm just mindful of the fact

713
00:48:26,466 --> 00:48:30,586
that our job is to sort of prove the models.

714
00:48:30,586 --> 00:48:34,666
And the accountability responsibilities left with the chief investment officer,

715
00:48:34,666 --> 00:48:37,946
which I think he should have some discretion. I also

716
00:48:37,986 --> 00:48:41,626
support this cause it's a leap from GIC to launcher

717
00:48:42,047 --> 00:48:45,466
assets. Um, in a year, they come up for a

718
00:48:45,466 --> 00:48:49,436
review, maybe a different story. But I also think we

719
00:48:49,436 --> 00:48:52,556
have to be mindful of, unless it's something egregious, it's

720
00:48:52,556 --> 00:48:56,476
not our job to, to be in the leads on

721
00:48:56,657 --> 00:49:00,476
some of these issues. So, um, maybe on the next

722
00:49:00,497 --> 00:49:03,116
one, it's different. Um, I think this can go either

723
00:49:03,156 --> 00:49:09,620
way. So I defer to management. Anyone else. Remember with

724
00:49:09,721 --> 00:49:13,280
cleanline fan castle. So in this one in particular, with

725
00:49:13,320 --> 00:49:16,480
it being, uh, relating to the investment for the landfill

726
00:49:16,741 --> 00:49:20,720
closure funds. So it talks about the annual review from

727
00:49:20,821 --> 00:49:24,480
their auditors and you have discussions with them like, what

728
00:49:24,480 --> 00:49:26,880
if there is a loss on some of the investments

729
00:49:26,901 --> 00:49:28,720
and how they would manage that. And if you could

730
00:49:28,720 --> 00:49:32,083
share that with us. Yes. So we did, we did

731
00:49:32,083 --> 00:49:35,283
talk with the, um, we did talk with the treasure.

732
00:49:35,323 --> 00:49:36,803
That was my one of the questions. Right. What happens

733
00:49:36,843 --> 00:49:38,643
if it goes down the loss? It really is right

734
00:49:38,643 --> 00:49:41,523
now. If you look at what their financial statements are,

735
00:49:41,523 --> 00:49:43,603
what it says and what the reserve was, there were

736
00:49:43,603 --> 00:49:45,450
already was a bit of a gap. Um, so they've

737
00:49:45,490 --> 00:49:47,850
identified the gap in their financials, but it's not an

738
00:49:47,850 --> 00:49:50,090
automatic top up. They are still continuing to put money

739
00:49:50,130 --> 00:49:53,050
in each and every year. Um, and the hope is

740
00:49:53,090 --> 00:49:56,570
eventually to close that gap. And then to stop using,

741
00:49:56,570 --> 00:50:00,010
um, taxpayers, dollars to make the annual contribution would be

742
00:50:00,050 --> 00:50:04,950
the ideal portion, the ideal goal in some percentage, um,

743
00:50:04,950 --> 00:50:06,850
but yeah, they don't have to, doesn't it doesn't have

744
00:50:06,850 --> 00:50:11,222
to be an automatic payment if the market dip. Going

745
00:50:11,222 --> 00:50:13,862
to more directly. Uh, we talk about risk with every

746
00:50:13,902 --> 00:50:18,010
client we meet. We will remind them that that dialing

747
00:50:18,050 --> 00:50:21,210
up the, uh, the equity exposure increases the probability of

748
00:50:21,311 --> 00:50:23,791
short - term losses. We want to make sure that

749
00:50:23,812 --> 00:50:26,290
they know what they're getting into. So we understand this

750
00:50:26,290 --> 00:50:29,890
is very much a long - term view. Yes. But

751
00:50:30,951 --> 00:50:36,570
do it's always, right. To deciding which portfolio, it's a

752
00:50:36,570 --> 00:50:39,690
bit of our art and science. The numbers are the

753
00:50:39,730 --> 00:50:42,170
more the science, but then there's the art, the field,

754
00:50:42,170 --> 00:50:44,170
the knowledge of the treasure, their understanding of what's going

755
00:50:44,170 --> 00:50:48,570
on. So really all three parties, after we met with

756
00:50:48,671 --> 00:50:52,570
this municipality myself, Keith and Phn, all basically came out

757
00:50:52,570 --> 00:50:55,130
and said, alt's not right away. It is a goal

758
00:50:55,311 --> 00:50:59,130
in a couple of years, but let's stepping up this,

759
00:50:59,130 --> 00:51:01,930
uh, let's get them stepping up into their, their comfort

760
00:51:01,951 --> 00:51:03,871
level. First. And I do think this is a good

761
00:51:04,212 --> 00:51:07,791
candidate for alternatives, but I do appreciate the, the views

762
00:51:07,812 --> 00:51:11,631
from staff and that we move into that in the

763
00:51:11,631 --> 00:51:17,912
future, but maybe not this time. Okay. So, Mr. James.

764
00:51:19,456 --> 00:51:23,735
Comment, I guess, just from a pure investment standpoint, the

765
00:51:23,735 --> 00:51:25,675
addition of alts would seem to be the most prudent

766
00:51:25,675 --> 00:51:27,035
thing. Again, you've got to match it up to what

767
00:51:27,075 --> 00:51:29,835
they're doing. But just from the investment side, it actually

768
00:51:29,856 --> 00:51:35,491
reduces risk. Um, and I would question their understanding. To

769
00:51:35,491 --> 00:51:39,091
me, municipality probably understands infrastructure and real estate more than

770
00:51:39,131 --> 00:51:44,771
they do emerging markets equity. So I guess my question

771
00:51:44,811 --> 00:51:49,171
is, and I'm understanding that maybe the reason to do

772
00:51:49,211 --> 00:51:52,057
it a little more slowly. My question would then be

773
00:51:52,398 --> 00:51:57,946
what are staff's plans to educate. Our municipalities so that

774
00:51:57,946 --> 00:52:00,826
they are ready as opposed to just, if we feel

775
00:52:01,327 --> 00:52:03,146
sometime in the future, they are, we'll pull the trigger

776
00:52:03,567 --> 00:52:06,106
then. Like we really should be educating them on this

777
00:52:06,527 --> 00:52:09,867
because it is a risk reduction. It will be a

778
00:52:09,867 --> 00:52:13,067
conversation next year. This year, there's a lot of hurdles

779
00:52:13,067 --> 00:52:17,164
to get over with the documentation. Uh, understanding of their

780
00:52:17,164 --> 00:52:20,364
circumstances, understanding of how things work at the one jib,

781
00:52:20,364 --> 00:52:25,156
understanding of equities in the sort. Um, it's an ongoing

782
00:52:25,196 --> 00:52:28,676
conversation. I, I assure you the next year we'll, we'll

783
00:52:28,937 --> 00:52:32,756
deal, we'll make another assessment. And we'll just be discussing

784
00:52:32,857 --> 00:52:36,436
it with the treasure. And, uh, making sure that they,

785
00:52:36,457 --> 00:52:40,916
they and their counsel understand the adulterer investments are a

786
00:52:40,916 --> 00:52:43,536
little bit different than the rest of their portfolio. And

787
00:52:43,536 --> 00:52:46,436
the idea is to get them into the core portfolio,

788
00:52:46,436 --> 00:52:49,076
get the other growth of what, uh, what PI offers.

789
00:52:49,902 --> 00:52:56,594
We can always revisit that. One of the opportunities that

790
00:52:56,594 --> 00:53:00,514
we have is we actually hold quarterly participating municipality meetings.

791
00:53:00,514 --> 00:53:02,514
And I think that would be a great venue just

792
00:53:02,554 --> 00:53:06,594
to remind people and doing education session about, uh, the

793
00:53:07,335 --> 00:53:11,554
illiquidity of alts and how that, uh, impacts their portfolio

794
00:53:12,375 --> 00:53:14,434
as well as how that would be reflected in the

795
00:53:14,434 --> 00:53:17,714
investment policy statements. Keep in mind, these are template documents

796
00:53:17,754 --> 00:53:19,474
that go to council and we always have to keep

797
00:53:19,514 --> 00:53:21,634
that in the back of our mind, uh, making sure

798
00:53:21,634 --> 00:53:24,594
that people understand clearly both at the council and at

799
00:53:24,594 --> 00:53:27,634
the staff level and municipalities about what they're approving. We've

800
00:53:27,674 --> 00:53:31,074
actually booked PHN to come and speak to Ms. Pallisa

801
00:53:31,175 --> 00:53:34,329
at their September meeting. So the September meeting will include

802
00:53:34,350 --> 00:53:37,849
an education session on alts. Yeah. I think it's, it's

803
00:53:37,849 --> 00:53:41,209
messaging because we shouldn't be focusing on each individual investment

804
00:53:41,209 --> 00:53:44,233
separately. Like we are looking at the totality. So if

805
00:53:45,054 --> 00:53:47,273
we're sort of missing an understanding of one of those

806
00:53:47,294 --> 00:53:50,713
pieces, um, it sounds like you've got some plans to

807
00:53:50,753 --> 00:53:52,833
address that. And I would also ask, I'm not sure

808
00:53:52,833 --> 00:53:55,193
who to ask, but, uh, I think it would be

809
00:53:55,233 --> 00:53:58,233
good to have pH in income to Jiv and talk

810
00:53:58,233 --> 00:54:00,473
about those two strategies too. So that we're sure we

811
00:54:00,494 --> 00:54:03,853
understand. Uh, what they are. Cause I don't think we've,

812
00:54:03,893 --> 00:54:07,678
we've reviewed those in detail. We're going to confident position.

813
00:54:08,889 --> 00:54:11,440
Where they give us more reserves next year. Let me

814
00:54:11,461 --> 00:54:14,560
move them into an allocation where alts are not, not,

815
00:54:14,560 --> 00:54:17,897
not in there. And they need to sell. So and

816
00:54:17,897 --> 00:54:20,377
I don't have enough, uh, detail about the, uh, the

817
00:54:20,417 --> 00:54:23,697
stability of what their money not quality is going to

818
00:54:23,697 --> 00:54:27,027
be in the future. To. Yeah. So I think it's

819
00:54:27,027 --> 00:54:29,267
just premature. That's all. So I'm going to call for

820
00:54:29,307 --> 00:54:30,867
a vote in a second. I'm just going to offer

821
00:54:31,048 --> 00:54:35,223
one comment first though. So we have, um, a couple

822
00:54:35,223 --> 00:54:39,303
of things at play here. We have an approved investment

823
00:54:39,964 --> 00:54:46,225
policy statement. Proved by council. So, um, we're required to

824
00:54:46,966 --> 00:54:49,505
pay a lot of attention. Factor investment plans have to

825
00:54:49,766 --> 00:54:54,785
conform. So in these municipal cases, board membered I pointed

826
00:54:54,825 --> 00:55:02,776
out. So they are an option. And it's up to

827
00:55:02,816 --> 00:55:06,216
us as a board to decide whether alts are appropriate

828
00:55:06,957 --> 00:55:09,816
given that the council has said okay to alts. It's

829
00:55:09,816 --> 00:55:12,456
up to us to decide whether they are appropriate given

830
00:55:12,496 --> 00:55:17,496
the municipality circumstances. And to me, the fact that a

831
00:55:17,496 --> 00:55:23,096
treasure or a municipal staff are uncomfortable, um, or inexperienced,

832
00:55:23,096 --> 00:55:26,976
if council has already approved the investment policy statement, to

833
00:55:26,976 --> 00:55:29,176
me, that doesn't get a lot of weight. It's really

834
00:55:29,197 --> 00:55:33,041
up to the board's judgment. Rather than putting a lot

835
00:55:33,041 --> 00:55:35,981
of emphasis on what municipal staff are saying. It's up

836
00:55:35,981 --> 00:55:38,421
to the board's judgment to decide whether alts are appropriate

837
00:55:38,602 --> 00:55:41,461
in their circumstances. So I'm just going to offer that

838
00:55:41,461 --> 00:55:43,141
comment and then I'll call for the vote on the

839
00:55:43,162 --> 00:55:47,804
amendment. So board member Dyer has, um, put forward an

840
00:55:47,804 --> 00:55:50,764
amendment to approve the township in front of young's proposed

841
00:55:50,865 --> 00:55:54,844
investment plan to be invested in Model G plus. That's

842
00:55:54,844 --> 00:55:57,404
the amendment. So all those in favor, please raise your

843
00:55:57,444 --> 00:56:03,975
hands. So I'm going to count here. One, two, three,

844
00:56:03,975 --> 00:56:13,345
four, five. Posed. One, two, three, four, five. Okay. Dennis,

845
00:56:13,345 --> 00:56:19,585
what do I do now? We have Jennifer online. Yeah.

846
00:56:19,606 --> 00:56:26,097
Did board member. Say, sorry I had to unmute. I

847
00:56:26,097 --> 00:56:28,777
had to admit myself. I would vote against the amendment

848
00:56:28,817 --> 00:56:33,544
for the G plus. Okay. So the amendment fails. In

849
00:56:33,584 --> 00:56:36,184
a close phone. All right. So now we'll go to

850
00:56:36,285 --> 00:56:41,464
the, um, all the recommendations. So if there's no further

851
00:56:41,464 --> 00:56:43,704
discussion, can I have a motion to adopt the recommendations

852
00:56:43,965 --> 00:56:47,011
and the report as follow. Number one, receive the township

853
00:56:47,011 --> 00:56:50,051
of front of young's invested policy statement, which is attachment

854
00:56:50,152 --> 00:56:52,851
one. Number two, receive the township up front of Young's

855
00:56:52,891 --> 00:56:57,077
municipal client questionnaire, which is attachment too. And number three,

856
00:56:57,098 --> 00:57:00,277
approve the front of the angst proposed investment plan to

857
00:57:00,277 --> 00:57:03,237
be invested in model G. All those in favor, please

858
00:57:03,258 --> 00:57:06,560
raise your hands. Mr. Make that more. Oh, sorry. Yeah.

859
00:57:06,560 --> 00:57:08,480
We need some, we need someone to make the most

860
00:57:08,581 --> 00:57:11,680
thanks to us. Board member ready makes the motion. I'll

861
00:57:11,680 --> 00:57:15,170
in favor. Please raise your hands. Any opposed. All right.

862
00:57:15,210 --> 00:57:18,915
Thanks, Karen. So a good discussion. Um, so now we're

863
00:57:18,955 --> 00:57:21,955
on to town of Arduino's investment plan. So I'm sure

864
00:57:22,456 --> 00:57:25,075
there are comments on this report given some of the

865
00:57:25,096 --> 00:57:29,315
discussion that has happened already. So open the floor to

866
00:57:29,656 --> 00:57:36,524
flesh into discussion. I remember ready since you said you

867
00:57:36,524 --> 00:57:43,964
were going to switch position. Uh, so, uh, and I

868
00:57:43,964 --> 00:57:45,804
don't know if I'm positioned to make an event yet,

869
00:57:45,804 --> 00:57:47,644
but I will say that to me, this one is

870
00:57:47,665 --> 00:57:53,807
different. Larger municipality, uh, they've stated that, uh, they're one

871
00:57:53,847 --> 00:57:57,487
to three year investments, which aren't under our purviewer in

872
00:57:57,588 --> 00:58:01,407
excess around 30 million dollars. To me, there's more flexibility

873
00:58:01,508 --> 00:58:06,767
there. They've provided an allowance for alt. I would be,

874
00:58:06,767 --> 00:58:10,767
um, interested in keys, the discussion with them was a

875
00:58:10,767 --> 00:58:13,487
little more evolved than front of young. And if we're

876
00:58:13,487 --> 00:58:17,522
in a different position. I have less confidence in the

877
00:58:17,623 --> 00:58:20,402
investments horizon for the reserves here than they are for

878
00:58:20,423 --> 00:58:23,992
for front of you. He could easily be a much

879
00:58:24,013 --> 00:58:27,013
shorter than, than what we have here. If it had

880
00:58:27,053 --> 00:58:30,593
reserve next year that could dilute the investment horizon, um,

881
00:58:30,714 --> 00:58:33,973
I can't nail this one down. I mean, for the

882
00:58:33,973 --> 00:58:38,533
investments horizon front of young, suitability is definitely there for

883
00:58:38,634 --> 00:58:42,213
these numbers. I just can't do that. So it kind

884
00:58:42,213 --> 00:58:47,413
of plays into the reason for being reluctant to introduce

885
00:58:47,514 --> 00:58:56,628
them at this time. Anyone else. We exhausted this topic.

886
00:58:56,628 --> 00:58:59,434
Boy remember, probably. Yeah. I think I just took my

887
00:58:59,434 --> 00:59:02,854
reason for voting against on the previous is simply, um,

888
00:59:02,854 --> 00:59:07,914
I think board member Leckman and vice chair. James makes

889
00:59:07,935 --> 00:59:11,674
a really good point, which is one to a certain

890
00:59:11,674 --> 00:59:15,226
degree. We're relying on the input from the CIO. The

891
00:59:15,226 --> 00:59:17,162
meetings that they're having. And the second piece is the

892
00:59:17,202 --> 00:59:19,802
education side, which there needs to be a pathway to

893
00:59:19,802 --> 00:59:21,882
say, how do we actually get them from where they

894
00:59:21,882 --> 00:59:26,442
are today to be comfortable? Um, and just sort of

895
00:59:26,442 --> 00:59:30,493
the practical example I'll use is private credit. Right? So

896
00:59:30,914 --> 00:59:33,373
the one thing about talking about liquidity was some of

897
00:59:33,373 --> 00:59:35,293
these investments. And then the other thing when you actually

898
00:59:35,333 --> 00:59:38,413
have gating implemented, which we've seen in private credit over

899
00:59:38,453 --> 00:59:41,533
the last few months, right. And understanding that difference, because

900
00:59:41,533 --> 00:59:44,824
it does happen from time to time. And people who

901
00:59:44,864 --> 00:59:48,984
are comfortable in theory with illiquidity often have a very

902
00:59:49,245 --> 00:59:55,264
different reaction when gating is actually implemented. So I think

903
00:59:55,365 --> 01:00:00,224
it's the two pieces judgment and then the pathway to,

904
01:00:00,224 --> 01:00:02,544
you know, getting the education in that the municipality needs

905
01:00:02,584 --> 01:00:09,832
to get comfortable, excuse me. Anyone else. Ford member Franco,

906
01:00:09,933 --> 01:00:12,472
I'm just like, uh, chair queues about your comment about,

907
01:00:12,472 --> 01:00:17,512
you know, the council has approved, uh, the alt. And,

908
01:00:17,512 --> 01:00:20,152
you know, I'd almost rather that the template goes to

909
01:00:20,173 --> 01:00:23,672
counsel without that in if the feeling that there's an

910
01:00:23,672 --> 01:00:26,872
uncomfortableness of, uh, the staff not being ready, then have

911
01:00:26,872 --> 01:00:30,683
it in there. And then, then we apply the judgment

912
01:00:30,864 --> 01:00:33,643
that they're not ready. So we're going to ignore what

913
01:00:33,824 --> 01:00:36,341
council approved. I don't know. It's just, it's just a

914
01:00:36,341 --> 01:00:39,461
thought. It's just that disconnect to me between like what

915
01:00:39,501 --> 01:00:42,482
the council has said they're willing to do. And what

916
01:00:42,503 --> 01:00:45,982
we're then saying. And I fully support the agreements, you

917
01:00:45,982 --> 01:00:48,482
know, baby steps and all that. Like I don't have

918
01:00:48,583 --> 01:00:52,202
an issue with that. It's just more the optics, I

919
01:00:52,202 --> 01:00:55,202
guess, of council versus what we're saying here and what's

920
01:00:55,202 --> 01:00:58,002
our role as a gym to make the ultimate decider.

921
01:00:58,002 --> 01:01:02,082
So, so, so staff take the investment policy statement to

922
01:01:02,082 --> 01:01:07,143
counsel. Right. So if I were a staff member and

923
01:01:07,143 --> 01:01:10,343
I was uncomfortable with alts, I would say that to

924
01:01:10,343 --> 01:01:15,143
council. So it's to me, it's weird that council has

925
01:01:15,244 --> 01:01:19,763
approved an investment policy statement that includes alts and, uh,

926
01:01:19,804 --> 01:01:22,023
we're saying that staff are uncomfortable with. If they were

927
01:01:22,063 --> 01:01:26,450
uncomfortable, they should have recommended against it. Right. That's board

928
01:01:26,450 --> 01:01:28,130
member ready. I will maybe just add a little color

929
01:01:28,231 --> 01:01:34,130
to that conversation. Because to me, the investment policy statement

930
01:01:34,231 --> 01:01:38,850
that councils approve, uh, set in place a framework for

931
01:01:39,111 --> 01:01:44,290
the gym who council seizes the professionals to make decisions

932
01:01:44,551 --> 01:01:47,810
within that framework. That doesn't mean use them because we

933
01:01:47,810 --> 01:01:50,530
said they're available. It means they're available if you guys

934
01:01:50,791 --> 01:01:54,690
think as professionals you should use them. Councils aren't professionals

935
01:01:54,791 --> 01:01:58,610
at this. That's why this got delegated to an investment.

936
01:01:58,610 --> 01:02:01,890
So I think we should feel comfortable being flexible within

937
01:02:01,930 --> 01:02:08,691
that policy framework. Absolutely. Good comment. Anyone else. On this.

938
01:02:10,702 --> 01:02:14,641
Okay. So, um, I see no one proposing amendment. So

939
01:02:14,641 --> 01:02:16,561
I'm just going to call the question. So could I

940
01:02:16,561 --> 01:02:19,121
have a motion to adopt the recommendations and the report

941
01:02:19,142 --> 01:02:21,921
as follows? Number one, receive the town of Georgina's investment

942
01:02:21,961 --> 01:02:24,961
policy statement attachment one. Number two, receive the town of

943
01:02:24,982 --> 01:02:29,041
Jordanius municipal client questionnaire attachment to. And number three approved

944
01:02:29,081 --> 01:02:31,521
the town of Jardim's proposed investment plan to be invested

945
01:02:31,542 --> 01:02:35,379
in Moto G. Attachment three. We would like to make

946
01:02:35,480 --> 01:02:38,259
that motion board member poteni makes that motion on favor.

947
01:02:38,259 --> 01:02:43,138
Please raise your hands. Any opposed that carries. All right.

948
01:02:43,319 --> 01:02:45,378
So now we're on to the municipality of Lampton Shores

949
01:02:45,479 --> 01:02:49,505
investment plan. Any questions or discussion on this one.

950
01:02:58,823 --> 01:03:03,566
Are either comfortable or exhausted. I'm not sure where. All

951
01:03:03,566 --> 01:03:07,486
right. So, um, if the discussion then could I have

952
01:03:07,526 --> 01:03:10,206
a motion to adopt the recommendation the report as follows.

953
01:03:10,206 --> 01:03:13,326
Number one receive the municipality of lampton shores and vessel

954
01:03:13,366 --> 01:03:17,326
policy statement, which is attachment one. Number two received municipality

955
01:03:17,427 --> 01:03:21,466
lamped insurance municipal client questionnaire, which is attachment to. And

956
01:03:21,466 --> 01:03:24,766
number three approved the municipality of lamp insurance proposed investment

957
01:03:24,806 --> 01:03:26,926
plan to be invested in Model G. We're doing a

958
01:03:26,926 --> 01:03:31,340
lot on Model G. Board member Fraser makes that motion.

959
01:03:31,340 --> 01:03:36,600
All in favor, please raise your hands. Mary's. Okay. So

960
01:03:36,640 --> 01:03:38,680
now we're on to the town of new to Kumseth

961
01:03:38,720 --> 01:03:46,267
investment plan. Any questions or comments on this one. I

962
01:03:46,307 --> 01:03:48,827
think we're in the same place we were with the

963
01:03:48,827 --> 01:03:51,547
previous one. All right. So I could have a motion

964
01:03:51,587 --> 01:03:54,267
to adopt the recommendations in the report as follows. Number

965
01:03:54,267 --> 01:03:56,587
one received the town of new to come sith invested

966
01:03:56,587 --> 01:04:00,027
policy statement, which is attachment one. Number two received the

967
01:04:00,128 --> 01:04:03,867
town of ninth to Comseth Municipal client questionnaire, which is

968
01:04:03,888 --> 01:04:06,747
attachment too. And number three approve the town of new

969
01:04:06,768 --> 01:04:08,987
to come sit proposed investment plan to be invested in

970
01:04:09,088 --> 01:04:13,511
Model E. So a different one. Different model this time.

971
01:04:13,551 --> 01:04:18,540
Okay. Uh, with someone like to make that motion. Board

972
01:04:18,540 --> 01:04:20,620
member Giles makes that motion all in favor, please raise

973
01:04:20,660 --> 01:04:26,475
your hands. On that cherry. Okay. Great. So maybe what

974
01:04:26,515 --> 01:04:28,955
we'll do is we'll do the, um, consent items and

975
01:04:28,955 --> 01:04:34,020
take a break how sad. So there's six items listed

976
01:04:34,060 --> 01:04:38,448
on the agenda as items receiving by consent. The first

977
01:04:38,448 --> 01:04:40,848
one is the risk on an audit committee update for

978
01:04:41,349 --> 01:04:45,504
Q2 2026. Um, the second one is the municipal performance

979
01:04:45,544 --> 01:04:51,303
reports for Q1. Third one is the compliance report asset

980
01:04:51,343 --> 01:04:55,022
class and target weight allocations for Q1. Fourth is strategic

981
01:04:55,123 --> 01:04:59,770
plan Q1 progress update. Fifth is the investment plan implementation

982
01:04:59,791 --> 01:05:03,988
report for Q1. And the sixth is the municipal insight

983
01:05:04,089 --> 01:05:08,879
support. Q2 version of that. Would any members of the

984
01:05:08,879 --> 01:05:11,039
board like to hold or pull any of these consent

985
01:05:11,039 --> 01:05:15,092
items for questions or discussion. Uh, board member Giles, which

986
01:05:15,092 --> 01:05:18,212
one? 8D, the strategic plan. I just had a comment

987
01:05:18,553 --> 01:05:21,092
today. Okay. Well, if it's just a comment, go ahead.

988
01:05:22,073 --> 01:05:26,292
Uh, I made this one before, but the, uh, focus

989
01:05:26,473 --> 01:05:29,812
on growth of assets under management again needs to be

990
01:05:29,913 --> 01:05:34,372
split between the net contributions in the municipalities and the

991
01:05:34,372 --> 01:05:38,056
market effect of those assets. If the market goes up

992
01:05:38,157 --> 01:05:42,696
20 percent and you're assets under management goes up 20,

993
01:05:42,696 --> 01:05:44,296
you're Mike patch yourself in the back and saying you're

994
01:05:44,336 --> 01:05:47,215
having a great year. But it wouldn't necessarily be the

995
01:05:47,215 --> 01:05:54,203
case. And I think also, um, we were working on

996
01:05:54,224 --> 01:05:57,483
the strategic plan when we're thinking about adding new municipalities

997
01:05:57,483 --> 01:05:59,803
as well. Yeah. So you need to break it up

998
01:06:00,624 --> 01:06:04,363
in the set. So staff can take that under advisement.

999
01:06:04,363 --> 01:06:09,385
Um, any other. So board member Fraser. Either eight C

1000
01:06:09,385 --> 01:06:12,425
or eight E. I think it's both the same moment

1001
01:06:12,526 --> 01:06:14,745
or same question. I can tell what this is going

1002
01:06:14,745 --> 01:06:17,785
to be. Go ahead. I just wanted to ask staff

1003
01:06:17,886 --> 01:06:20,825
maybe to elaborate on the issues with respect to the,

1004
01:06:20,825 --> 01:06:25,065
uh, transition is Quinty West where they're placed in April.

1005
01:06:25,721 --> 01:06:28,740
Um, so you have providers and comments in the book

1006
01:06:28,780 --> 01:06:31,780
process. We just want to ask you to elaborate a

1007
01:06:31,780 --> 01:06:33,860
bit on that. Oh, that's good. It's good to surface

1008
01:06:33,860 --> 01:06:36,580
it at the board meeting. Who would like to comment

1009
01:06:36,601 --> 01:06:40,260
on that? Sure. Uh, I'd be glad to. Um, typically

1010
01:06:40,601 --> 01:06:44,260
one there is the cash movements, uh, when the cash

1011
01:06:44,260 --> 01:06:47,520
arrives, things automatically get deployed. In this particular case, the

1012
01:06:47,520 --> 01:06:51,168
buzzed no cash in or out. With plenty west, uh,

1013
01:06:51,369 --> 01:06:55,988
investment plan update. So it's trade we're not implemented on

1014
01:06:56,028 --> 01:07:00,049
the same timeline. Honestly, I believe it should have been

1015
01:07:00,049 --> 01:07:05,740
done more promptly. We will make sure that, uh, you

1016
01:07:05,740 --> 01:07:08,700
know, the follow - up meetings immediately after the Jamaican,

1017
01:07:08,700 --> 01:07:11,100
the way, the way it works is that pH and,

1018
01:07:11,100 --> 01:07:14,380
um, responds to approved investment plans, uh, but we need

1019
01:07:14,401 --> 01:07:17,020
something in place to make sure that even if there

1020
01:07:17,041 --> 01:07:22,824
isn't cash moving, they still, uh, implement. In their case,

1021
01:07:22,864 --> 01:07:25,944
what would have needed to be done is that the

1022
01:07:26,045 --> 01:07:29,544
allocation chain would have need to be updated in their

1023
01:07:29,565 --> 01:07:33,984
portfolio management system, Charles River. And, uh, then they'd be

1024
01:07:33,984 --> 01:07:37,784
automatically triggered that they're out of compliance and that a

1025
01:07:37,965 --> 01:07:41,519
rebalance was required. Uh, that did not happen. Uh, we

1026
01:07:41,620 --> 01:07:46,479
did not on the modeling spreadsheets that we have for

1027
01:07:46,519 --> 01:07:51,519
that. It was also not done. So it was backpedaling.

1028
01:07:52,653 --> 01:07:57,432
Um, as noted, it had a positive impact on performance,

1029
01:07:57,432 --> 01:08:00,640
which doesn't really help very much. Uh, I think we

1030
01:08:00,680 --> 01:08:05,942
can do better. Thank you. Uh, I think Mr. Taylor,

1031
01:08:05,942 --> 01:08:09,942
if I remember correctly PHN also offered staff turnover as

1032
01:08:09,963 --> 01:08:14,742
a factor in this, I wouldn't pin it on that.

1033
01:08:14,742 --> 01:08:19,285
This, this regardless of that. Um, it requires better monitoring

1034
01:08:19,706 --> 01:08:22,885
and then follow up with due to ensure it doesn't

1035
01:08:22,906 --> 01:08:28,871
happen. So you've put a new process in place to

1036
01:08:28,911 --> 01:08:30,871
make sure. That's good. I would remember like when I

1037
01:08:30,871 --> 01:08:36,551
think you had, it's something it's similar in your commentary

1038
01:08:36,812 --> 01:08:43,199
just on trading supplementation report. So these are all simply

1039
01:08:43,460 --> 01:08:46,159
sewing one fund and buying the other fund in the

1040
01:08:46,159 --> 01:08:50,079
rebalancing. And also in the switch from the international to

1041
01:08:50,180 --> 01:08:55,903
the other international. So what's, what's the question? Is it

1042
01:08:55,943 --> 01:08:59,633
just a matter of buying and selling units. And it's

1043
01:08:59,633 --> 01:09:04,358
unsult simultaneously. As best as can be possible. In this

1044
01:09:04,358 --> 01:09:11,038
case, Yahweh simultaneously. If it's less liquid, some moving parts.

1045
01:09:11,038 --> 01:09:13,838
So that kind of commentary is what's important, not just

1046
01:09:13,838 --> 01:09:16,478
the facts that you put in here. It's that it's

1047
01:09:16,518 --> 01:09:19,838
at the editorial commentary. You talk about was trading implemented

1048
01:09:19,859 --> 01:09:24,318
effectively where their transaction cost there aren't or whatever. I

1049
01:09:24,318 --> 01:09:27,998
mean, it's more the execution commentary we need as opposed

1050
01:09:28,038 --> 01:09:31,358
to just saying this is what happened. I think would

1051
01:09:31,699 --> 01:09:34,478
be it's much that's what's useful to me. Not just

1052
01:09:34,499 --> 01:09:41,743
saying we switch from this one to this fund. Possible.

1053
01:09:42,438 --> 01:09:44,977
Okay. So staff can take that comment on your advice.

1054
01:09:45,017 --> 01:09:48,139
Thank you for that. Any anything else on the consent

1055
01:09:48,139 --> 01:09:57,206
items. Then could I have a motion to adopt consent

1056
01:09:57,246 --> 01:10:00,726
items 8A 8B 8C 8D 80 and 8F. And the

1057
01:10:00,726 --> 01:10:03,366
recommendations contain in the related staff reports all of which

1058
01:10:03,406 --> 01:10:08,498
are to receive the report. I don't want to smack

1059
01:10:08,538 --> 01:10:13,138
that motion. There we are. Ford member Dyer makes that

1060
01:10:13,178 --> 01:10:17,191
motion. I don't think the please raise your hands. Any

1061
01:10:17,212 --> 01:10:23,321
opposed. So these six items are now completed. I think

1062
01:10:23,582 --> 01:10:28,012
it's probably a good time for a break. So if

1063
01:10:28,052 --> 01:10:32,332
someone would need a motion. Yeah. So how about a

1064
01:10:32,372 --> 01:10:34,939
motion for a 10 minute break. So vice chair James

1065
01:10:34,960 --> 01:10:40,172
makes that motion on favor. So any opposed carries. Okay.

1066
01:10:40,172 --> 01:10:41,852
So we'll take a 10 minute break and then we'll

1067
01:10:41,892 --> 01:10:44,412
come back and do some more before latch. Thank you

1068
01:10:44,593 --> 01:10:46,092
everyone. Good discussion.

1069
01:21:20,592 --> 01:21:30,560
So I'll say that again. We're green. All right,

1070
01:21:30,560 --> 01:21:34,480
so we're on item 9a on your agendas, the external

1071
01:21:34,501 --> 01:21:38,240
investment manager oversight report for Q1. Any questions on the

1072
01:21:38,240 --> 01:21:43,180
support. I wanna look at, all right. And could I

1073
01:21:43,180 --> 01:21:45,980
have a motion to adopt the recommendation of received report?

1074
01:21:45,980 --> 01:21:48,460
So do you make that motion, please, board member of

1075
01:21:48,460 --> 01:21:50,300
Putin makes that motion all in favor? Please raise your

1076
01:21:50,300 --> 01:21:56,156
hands. Any opposed. Thank you, that carries. So now we

1077
01:21:56,156 --> 01:22:01,642
are on to a regular presentation from PHNN. So Mark

1078
01:22:01,682 --> 01:22:06,870
LeClaire is at the podium. Well, thank you. Thanks. And

1079
01:22:06,870 --> 01:22:10,717
thanks for having us. So in the matter of time

1080
01:22:11,138 --> 01:22:14,397
we have, I'm gonna go fairly quickly over the first

1081
01:22:14,498 --> 01:22:19,287
part of the presentation, which is the standard slides. If

1082
01:22:19,287 --> 01:22:21,607
I go correctly, it doesn't mean don't ask any question.

1083
01:22:21,607 --> 01:22:23,207
If I go quickly, it's not because I wanna hide

1084
01:22:23,207 --> 01:22:31,146
something. So, but it was a fairly quiet. Quarter, performance

1085
01:22:31,146 --> 01:22:33,466
is good. So, but I will make a point on

1086
01:22:33,487 --> 01:22:37,626
each slide. We do have a special guest today with

1087
01:22:37,666 --> 01:22:42,906
us. Melanie Adams, who is our managing director and head

1088
01:22:42,946 --> 01:22:46,426
of responsible investment, that's going to be a very important

1089
01:22:46,527 --> 01:22:49,546
conversation. We certainly want to hurt to have the spotlight

1090
01:22:49,567 --> 01:22:53,558
today. She heads up a team of 18 people. Based

1091
01:22:53,558 --> 01:22:58,525
in London, Toronto, and Vancouver. Her team does work in

1092
01:22:58,525 --> 01:23:02,765
the background, right behind the scenes, but they are influential.

1093
01:23:02,765 --> 01:23:04,925
They have an impact on every single fund that we

1094
01:23:04,925 --> 01:23:08,368
have on the one - jip platforms. Certainly looking forward

1095
01:23:08,389 --> 01:23:12,288
to this conversation. Moving on to the next page, please.

1096
01:23:13,361 --> 01:23:17,420
Yes, thank you. We do have a new member joining

1097
01:23:17,601 --> 01:23:21,980
the one team at PHNN following Dylan's departure. And given

1098
01:23:22,001 --> 01:23:26,700
the strategic importance of this relationship, we really wanted to

1099
01:23:26,740 --> 01:23:31,260
find an exceptional talent to replace a dillon. And Catherine

1100
01:23:31,281 --> 01:23:34,380
said, yes. And so welcome, Catherine. Catherine has been with

1101
01:23:34,481 --> 01:23:39,243
PhNN for 14 years. She's an IPM, an institutional portfolio

1102
01:23:39,283 --> 01:23:42,443
manager. And she's a quant expert. Uh, she works closely

1103
01:23:42,544 --> 01:23:46,923
with a cube team, which is quite useful considering the

1104
01:23:47,424 --> 01:23:50,523
important exposure that we have to that team. Uh, some

1105
01:23:50,544 --> 01:23:54,283
of you have met her in person at the Phoenix

1106
01:23:54,323 --> 01:23:58,443
event in April and we'll be, uh, she will be

1107
01:23:58,443 --> 01:24:01,463
here on every game. Um, so thank you, Catherine, for

1108
01:24:01,463 --> 01:24:06,730
being here. On the next page, the multiple model portfolio,

1109
01:24:06,730 --> 01:24:13,335
please. Thank you. So, uh, just two models very quickly

1110
01:24:13,356 --> 01:24:17,973
here. Very pleased to see that more, uh, municipalities are

1111
01:24:18,013 --> 01:24:22,453
adopting real estate infrastructure. Those private assets, um, they are

1112
01:24:22,554 --> 01:24:26,053
important for long - term performance. Um, you know, in

1113
01:24:26,053 --> 01:24:30,293
terms of inflation protection, low correlation, low correlation to public,

1114
01:24:30,293 --> 01:24:33,573
uh, assets, very steady income. So this is an important

1115
01:24:33,594 --> 01:24:35,333
asset class. So we're quite pleased to see some of

1116
01:24:35,333 --> 01:24:38,613
them are willing and to invest in those, in those

1117
01:24:38,653 --> 01:24:42,053
strategies. We did pass along, um, the details on how

1118
01:24:42,874 --> 01:24:47,413
these two funds are priced. You should have this along

1119
01:24:47,514 --> 01:24:51,253
with your package. Um, happy to circle back on that.

1120
01:24:51,253 --> 01:24:54,573
If there's any question now secondly the annual review. So

1121
01:24:54,573 --> 01:25:01,018
these portfolio force are reviewed annually. And approved annually at

1122
01:25:01,018 --> 01:25:03,178
least annually by the board. And so we have started

1123
01:25:03,359 --> 01:25:06,618
the process of reviewing this internally. So we are working

1124
01:25:06,658 --> 01:25:10,138
with new capital market assumptions. We have a few ideas.

1125
01:25:10,138 --> 01:25:12,218
So stay tuned. We are going to come forward with

1126
01:25:12,258 --> 01:25:15,530
some, some ideas. And more data in the coming weeks.

1127
01:25:16,892 --> 01:25:23,096
Now on the next page, please. Thank you. Um, just

1128
01:25:23,136 --> 01:25:26,376
to summarize this page, you know, we came into 2026

1129
01:25:26,557 --> 01:25:31,576
with, uh, US economy in a companies that there were

1130
01:25:31,576 --> 01:25:34,696
some, some major tailwinds, um, you know, think about the

1131
01:25:34,797 --> 01:25:40,116
massive AI CAP expending, uh, their regulation tax got, um,

1132
01:25:40,157 --> 01:25:43,976
so we got in 2026 with, uh, very, very strong

1133
01:25:44,237 --> 01:25:48,216
earnings. And that's a very positive. That helped the market,

1134
01:25:48,216 --> 01:25:51,016
you know, that helps support the market. That made the

1135
01:25:51,016 --> 01:25:56,116
market quite, I would say resilient. Um, interface of, uh,

1136
01:25:56,157 --> 01:25:58,936
what happened in the Middle East, the War in Ireland.

1137
01:25:59,295 --> 01:26:02,954
So the Warren Iran created a bit of a chaos

1138
01:26:03,375 --> 01:26:06,934
and volatility, uncertainty. Um, it, it certainly created a bit

1139
01:26:06,934 --> 01:26:10,854
of a commodity price shock inflation up. And so, you

1140
01:26:10,854 --> 01:26:14,074
know, you have central banks essentially going from a commodity

1141
01:26:14,495 --> 01:26:17,514
stance to a restrictive sense. So really this is what

1142
01:26:17,775 --> 01:26:20,954
happened in Q1 that needs to be, that needs to

1143
01:26:20,954 --> 01:26:23,994
be monitored. So we should expect a higher risk premium

1144
01:26:25,135 --> 01:26:30,439
on risk assets for some time. From a performance perspective

1145
01:26:30,700 --> 01:26:34,199
on that page here, um, just want to very briefly

1146
01:26:34,460 --> 01:26:36,839
touch on three asset classes. The first one short term

1147
01:26:36,860 --> 01:26:40,999
bonds. Performing well, it's doing their job. Uh, it's a

1148
01:26:41,039 --> 01:26:44,879
defensive holding. Played its role in Q1. In Q1, we

1149
01:26:44,940 --> 01:26:48,119
saw the short term rates coming up. So that's putting

1150
01:26:48,140 --> 01:26:51,319
a bit of pressure, uh, on, on the asset class.

1151
01:26:51,319 --> 01:26:55,904
But overall, a good performance. The Canadian equity, uh, still

1152
01:26:55,944 --> 01:26:59,424
outperforming. It's still one of the best equity markets in

1153
01:26:59,424 --> 01:27:05,234
the world. Uh, the, the oil and commodity, uh, price

1154
01:27:05,274 --> 01:27:09,554
shock. It's actually benefiting Canada given, given, given, given the

1155
01:27:09,575 --> 01:27:11,474
companies that we have here. And the same could be

1156
01:27:11,514 --> 01:27:14,914
said to some emerging economies. So Canada has been, has

1157
01:27:14,954 --> 01:27:19,222
been fairly quite well in that situation. Um, from a

1158
01:27:19,323 --> 01:27:22,102
credit perspectives of third line, so this is the third

1159
01:27:22,102 --> 01:27:25,702
largest exposure in the platform, global multi asset credit, which

1160
01:27:25,702 --> 01:27:28,982
is the blue bay total return credit fund. Um, when

1161
01:27:29,022 --> 01:27:32,182
you look at credit and fixing income and investment grade

1162
01:27:32,222 --> 01:27:35,382
bonds, if you look at the compression of spreads over

1163
01:27:35,563 --> 01:27:40,102
the last few years, um, we're, we're back. The threads

1164
01:27:40,142 --> 01:27:43,302
are, are back to what they were in tune 2007.

1165
01:27:43,302 --> 01:27:45,942
So it's, it's quite expensive. I mean, it's supported that

1166
01:27:45,982 --> 01:27:50,402
good earnings. Um, but in given, it's so expensive. Um,

1167
01:27:50,603 --> 01:27:53,982
given the market shock that we had in Q1, we

1168
01:27:53,982 --> 01:27:56,262
saw the spreads coming off a little bit. And so

1169
01:27:56,302 --> 01:27:58,582
that's the reason why you had a bit of a

1170
01:27:58,622 --> 01:28:03,110
negative performance there. Fill on to the next phase, please.

1171
01:28:06,594 --> 01:28:11,453
So these are all the model portfolios. Um, despite volatility,

1172
01:28:11,493 --> 01:28:15,993
lots of uncertainty, those model portfolios, they did protect, uh,

1173
01:28:16,274 --> 01:28:19,213
armed as felt these assets quite well, uh, for convenience.

1174
01:28:19,213 --> 01:28:22,093
We added the expected returns and volatility just to give

1175
01:28:22,093 --> 01:28:24,493
you a bit of context on when we built those

1176
01:28:24,834 --> 01:28:29,133
models, um, using the capital market assumption of last year,

1177
01:28:29,133 --> 01:28:31,453
um, this is what you should expect. I mean, I

1178
01:28:31,474 --> 01:28:34,173
remind everybody that the expected return here is a 10

1179
01:28:34,194 --> 01:28:37,933
year expected annualized return and volatility is a one year

1180
01:28:38,034 --> 01:28:40,973
volatility. The point here is when you look at the

1181
01:28:41,154 --> 01:28:44,413
volatility and the performance for these models, you know, you

1182
01:28:44,453 --> 01:28:47,453
have much stronger returns with much less volatility. And I

1183
01:28:47,474 --> 01:28:50,653
made that point of the last meeting. So is sustainable.

1184
01:28:50,653 --> 01:28:53,813
Perhaps it is, but maybe it's not. So it's, I

1185
01:28:53,813 --> 01:28:56,813
think it's, it's fair to say we could expect 2026.

1186
01:28:56,813 --> 01:29:00,856
Maybe it's a year where we start reverting. Next slide,

1187
01:29:00,856 --> 01:29:05,954
please. Yes. Comment on the underperformance versus the reference portfolios?

1188
01:29:05,975 --> 01:29:11,290
Yes. Insignificant. It's significant because the reference portfolio is, um,

1189
01:29:12,131 --> 01:29:15,470
it's made up of can equities and universe bonds. That's

1190
01:29:15,470 --> 01:29:20,270
the proxy we're using. And can iniquities has been the

1191
01:29:20,771 --> 01:29:23,310
by far this equity performance. So the fact that we

1192
01:29:23,350 --> 01:29:26,350
are well diversified over such a period of time when

1193
01:29:26,611 --> 01:29:29,870
a candidate market is outperforming so much, that's creating the

1194
01:29:30,131 --> 01:29:37,755
underperformance in every single folios. Simply the Canadian equity mark?

1195
01:29:37,755 --> 01:29:45,361
Yes. Follow the question on that. Have you actually done

1196
01:29:45,401 --> 01:29:50,683
the attribution analysis to identify how much of that. Is

1197
01:29:50,784 --> 01:29:52,683
to, uh, we have done the attribution. I don't have

1198
01:29:52,683 --> 01:29:54,683
the numbers with me, but I'm happy to circulate that.

1199
01:29:58,040 --> 01:30:00,819
Staff and put it in the resource slide. Yes. Of

1200
01:30:00,819 --> 01:30:05,562
course. On the next page commercial mortgage. Yes. Okay. So,

1201
01:30:05,562 --> 01:30:08,682
um, it's, it's still a fairly slow market, um, but

1202
01:30:08,783 --> 01:30:14,362
we've seen a reasonable flow of deal in the Q1,

1203
01:30:14,362 --> 01:30:20,442
we review just about three billion in deals. And our

1204
01:30:20,463 --> 01:30:24,506
ratio is about 10 percent that we actually fund. Which

1205
01:30:24,607 --> 01:30:27,946
happened in Q1. Um, and out of this 300 million

1206
01:30:28,047 --> 01:30:31,626
that we funded about 100 million was allocated to one

1207
01:30:31,626 --> 01:30:36,026
investment. Um, so, um, the queue is, is, is, is

1208
01:30:36,066 --> 01:30:39,586
moving on. Um, slowly but surely, uh, but we do

1209
01:30:39,647 --> 01:30:42,346
expect that the pace will pick up and we expect

1210
01:30:42,367 --> 01:30:45,146
that the queue here that you see should be gone

1211
01:30:45,807 --> 01:30:54,531
in about six to 12 months. Now regarding the front

1212
01:30:54,571 --> 01:31:00,918
performance on the next few pages. Well, um, nothing much

1213
01:31:00,939 --> 01:31:03,798
to say here in terms of fixed income, it's strong

1214
01:31:03,838 --> 01:31:07,158
relative performance across the board. I would say, uh, entering

1215
01:31:07,259 --> 01:31:10,678
the very quickly entering the, uh, we were short duration

1216
01:31:11,019 --> 01:31:14,678
generally speaking, entering the, the quarter. We are now long

1217
01:31:14,718 --> 01:31:17,718
durations likely long duration, uh, and we are being very

1218
01:31:18,139 --> 01:31:21,478
defensive on, on investment grade, uh, we, this is not

1219
01:31:21,518 --> 01:31:23,238
a place where we are willing to take too much

1220
01:31:23,238 --> 01:31:29,008
risk. On the next page equities still, it's a very

1221
01:31:29,008 --> 01:31:32,768
tough market for active managers, but you know, generally speaking,

1222
01:31:32,789 --> 01:31:36,048
the funds are doing okay. Happy to have some, some,

1223
01:31:36,069 --> 01:31:39,488
some, some, some style diversification when you look at quant

1224
01:31:39,509 --> 01:31:43,623
versus fundamental. That's been very healthy. Um, the one place

1225
01:31:43,663 --> 01:31:48,503
where I want to comment is the RBC international equity

1226
01:31:48,543 --> 01:31:50,343
fund. This is still a fun. That's on our watch

1227
01:31:50,364 --> 01:31:52,343
list, but there's been a change in leadership in the

1228
01:31:52,383 --> 01:31:57,945
fund. Uh, and that's effective April 30th of this year.

1229
01:31:57,945 --> 01:32:01,346
So it's very recent. Um, so we have co -

1230
01:32:01,346 --> 01:32:04,466
leadership. You have met with David Lambert in queue four,

1231
01:32:04,466 --> 01:32:06,226
uh, David is still the co - head of the

1232
01:32:06,266 --> 01:32:08,946
fund. He's still managing her up. But in Asia, we

1233
01:32:09,047 --> 01:32:12,970
changed the leadership. Um, the attribution when we look at

1234
01:32:13,471 --> 01:32:16,410
the fund and how it performed, the real, the real

1235
01:32:16,450 --> 01:32:22,015
problem was a Japanese stock selection. And so that fund

1236
01:32:22,036 --> 01:32:26,315
had a strong underperformance in its Japanese carve out. And

1237
01:32:26,315 --> 01:32:31,775
so the person that's replacing, uh, the cohead, um, she

1238
01:32:31,775 --> 01:32:35,935
is the current manager for the RBC Japanese equity fund

1239
01:32:36,356 --> 01:32:41,055
and are outperformances about five percent So she's currently realigning

1240
01:32:41,076 --> 01:32:45,115
the portfolio around her own, um, ideas and themes. And

1241
01:32:45,115 --> 01:32:47,675
so, um, we certainly hope that it's going to, uh,

1242
01:32:47,675 --> 01:32:55,817
improve performance, uh, short to medium term. And that is

1243
01:32:56,478 --> 01:33:00,457
pretty much it. Uh, we have low vol after, well,

1244
01:33:00,457 --> 01:33:04,937
we have, uh, emerging market on the next page, nothing

1245
01:33:04,937 --> 01:33:09,177
here to comment really. Um, and low vol, I'm highlighting

1246
01:33:09,358 --> 01:33:12,857
the five years here because low volatility, the goal of

1247
01:33:13,198 --> 01:33:17,337
these strategies is to, um, have a performance that's similar

1248
01:33:17,358 --> 01:33:20,937
to the broad market over a full cycle, but with

1249
01:33:21,918 --> 01:33:24,377
much less volatility. And this is what we are seeing

1250
01:33:24,958 --> 01:33:27,497
over five years, which you've been argued as a full

1251
01:33:27,537 --> 01:33:30,857
cycle, similar performance. And when you look at the volatility

1252
01:33:31,038 --> 01:33:35,250
numbers down, it's much older. Um, and as you can

1253
01:33:35,290 --> 01:33:39,010
see, just three months, um, the US has now been

1254
01:33:39,671 --> 01:33:42,670
a good market in the first three months of the

1255
01:33:42,670 --> 01:33:45,970
year, but the significant outperformance from, uh, the fund that

1256
01:33:45,970 --> 01:33:48,130
you were invested in. And that's exactly what we expect

1257
01:33:48,151 --> 01:33:55,763
during time of stress. We'll stop here. Moving on to

1258
01:33:55,944 --> 01:33:58,883
the next page, maybe Melanie. I think it's time to

1259
01:33:58,883 --> 01:34:04,804
have now in here. So as I said, Melanie joined,

1260
01:34:04,804 --> 01:34:09,124
uh, RBC on 2014. She's managing director at a responsible

1261
01:34:09,225 --> 01:34:14,974
investment. Um, big team. Ask any question. This is an

1262
01:34:15,014 --> 01:34:20,334
important component of asset management, very influential, uh, and critical

1263
01:34:20,435 --> 01:34:24,634
to RBC GAM, Melanie. What I'll for do, please, um,

1264
01:34:24,755 --> 01:34:27,854
please dig the stage. Okay. Just before. Oh, yes. Um,

1265
01:34:27,875 --> 01:34:30,494
any questions for Mr. Leclerc before we move on to

1266
01:34:30,755 --> 01:34:36,354
Ms. Adams. Oh, people are comfortable. Okay. So welcome, Ms.

1267
01:34:36,394 --> 01:34:39,578
Adams. We're looking forward to this. Thank you very much.

1268
01:34:39,578 --> 01:34:41,498
Thanks so much for having me. And thank you everyone

1269
01:34:41,538 --> 01:34:44,618
for your interest in the responsible investment space. It's been

1270
01:34:45,439 --> 01:34:47,898
a space where we've seen a lot of change over

1271
01:34:47,938 --> 01:34:50,378
the last few years. So please feel free as I'm

1272
01:34:50,479 --> 01:34:53,578
speaking to interrupt me and ask questions as we go.

1273
01:34:53,578 --> 01:34:55,178
That might, uh, make it easier, but also I'll make

1274
01:34:55,178 --> 01:34:58,058
sure to save some time at the, for questions at

1275
01:34:58,098 --> 01:35:03,139
that time. So if we could, um, who's controlling the

1276
01:35:03,139 --> 01:35:05,699
deck, if we could go to the first slide on

1277
01:35:05,739 --> 01:35:10,822
the deck. Thank you. So is Marty mentioned responsible investment

1278
01:35:10,862 --> 01:35:14,182
is a priority for asset game. The reason it's a

1279
01:35:14,222 --> 01:35:17,862
priority is we believe that we can help our risk

1280
01:35:17,883 --> 01:35:20,262
return profile over the long time. If we're looking at

1281
01:35:20,363 --> 01:35:23,942
environmental, social and governance factors as part of the process.

1282
01:35:24,827 --> 01:35:28,886
The RI team is, as Marty mentioned as well, primarily

1283
01:35:28,987 --> 01:35:32,486
based in London and Toronto, we do have members in

1284
01:35:32,587 --> 01:35:36,246
Vancouver and Minneapolis as well. Our role is set out

1285
01:35:36,246 --> 01:35:38,606
on here. We developed the strategies across the firm. We

1286
01:35:38,667 --> 01:35:43,206
develop our policies, how we think about different ESG factors,

1287
01:35:43,206 --> 01:35:45,926
doing the deep research for the investment teams. But a

1288
01:35:45,926 --> 01:35:48,566
big part are sort of red and butter is the

1289
01:35:48,587 --> 01:35:50,646
second pillar that you see there, which is supporting the

1290
01:35:50,667 --> 01:35:53,926
investment teams. We are on the investment platform. My boss

1291
01:35:53,926 --> 01:35:57,686
is do CECADWEL, our CIO. And what we're primarily tasked

1292
01:35:57,686 --> 01:35:59,606
with is helping the investment teams think through these issues

1293
01:35:59,707 --> 01:36:02,806
and how they integrate it as part of their investment

1294
01:36:02,907 --> 01:36:05,883
process. We also do the proxy voting on behalf of

1295
01:36:05,923 --> 01:36:08,323
the firm. So for all of our equity portfolios, we

1296
01:36:08,323 --> 01:36:11,483
have a centralized function. We work very closely with the

1297
01:36:11,584 --> 01:36:14,363
investment team. Sometimes you hear that maybe proxy voting at

1298
01:36:14,363 --> 01:36:17,083
the AGMs is separate. For us, it's a really important

1299
01:36:17,104 --> 01:36:19,803
part of our fiduciary duty to our clients, but we

1300
01:36:19,803 --> 01:36:22,803
also want to have that deep expertise. We want to

1301
01:36:22,803 --> 01:36:24,723
talk to the investment teams closely and we want to

1302
01:36:24,784 --> 01:36:28,283
execute our, our votes in a consistent manner across our

1303
01:36:28,384 --> 01:36:33,686
portfolios. Uh, we are involved in industry initiatives. We are

1304
01:36:33,707 --> 01:36:37,126
involved in engagements. For example, climate engagement candidates and organization

1305
01:36:37,307 --> 01:36:41,046
that we're a part of. And we also, you know,

1306
01:36:41,307 --> 01:36:43,446
we also do a lot of work with clients as

1307
01:36:43,446 --> 01:36:46,006
well to make sure that we're out there conveying how

1308
01:36:46,046 --> 01:36:48,086
we think about these issues to our, to our clients.

1309
01:36:49,156 --> 01:36:52,273
We can go to the next slide. So this is

1310
01:36:52,294 --> 01:36:54,833
our approach responsible investment. This is a document the policy

1311
01:36:55,094 --> 01:36:57,633
that governs how we think about these at a firm

1312
01:36:57,673 --> 01:37:00,673
level. We think about it in three different pillars. First

1313
01:37:00,713 --> 01:37:03,313
of all, is the ESG integration. This is the bread

1314
01:37:03,313 --> 01:37:05,953
and butter that I spoke to on the previous slide.

1315
01:37:05,953 --> 01:37:08,673
It's about looking at the investment teams, how they're thinking

1316
01:37:08,673 --> 01:37:12,513
about ESG factors, where they're exposed, you know, merging markets

1317
01:37:12,534 --> 01:37:16,033
has different considerations than Canadian equities, for example, how are

1318
01:37:16,033 --> 01:37:19,882
we thinking about. Um, and helping the teams do that.

1319
01:37:19,882 --> 01:37:22,442
So they're making the right decisions. We don't interfere with

1320
01:37:22,482 --> 01:37:25,802
the investment process or the investment decision making process. That

1321
01:37:25,903 --> 01:37:28,922
is entirely, uh, up to the investment teams, but we

1322
01:37:28,962 --> 01:37:31,082
help them think about some of these research and some

1323
01:37:31,082 --> 01:37:34,466
of these deeper issues. Active stewardship is the second pillar.

1324
01:37:34,466 --> 01:37:36,066
This is two components of this and I'll get into

1325
01:37:36,167 --> 01:37:38,446
them in a little more detail. One is engagement. How

1326
01:37:38,446 --> 01:37:40,786
we meet with the boards and senior management of the

1327
01:37:40,826 --> 01:37:43,746
companies in which we're invested. And secondly, the proxy voting

1328
01:37:43,746 --> 01:37:45,506
that I just spoke to a moment ago and how

1329
01:37:45,506 --> 01:37:47,626
we think about different issues and how we're going to

1330
01:37:47,687 --> 01:37:50,146
vote our proxies. For example, how we break down CEO

1331
01:37:50,407 --> 01:37:52,926
compensation? When do we think that it's appropriate? When are

1332
01:37:52,926 --> 01:37:55,346
we going to vote against the say on pay ballot

1333
01:37:55,386 --> 01:37:58,528
item. And then the final pillar and how we think

1334
01:37:58,528 --> 01:38:01,808
about this is, is our client driven solutions and reporting.

1335
01:38:01,808 --> 01:38:03,888
This is both making sure that we have the funds

1336
01:38:04,149 --> 01:38:06,268
and the mandates that our clients are looking for, but

1337
01:38:06,268 --> 01:38:08,048
also that we're speaking to our clients that we're putting

1338
01:38:08,069 --> 01:38:10,368
out the insight pieces that clients are looking for that

1339
01:38:10,469 --> 01:38:13,328
we're meeting with, with clients and explaining and talking about

1340
01:38:13,509 --> 01:38:17,560
some of these different issues. At the bottom of the

1341
01:38:17,560 --> 01:38:19,720
slide, we know systemic ESG factors. This is something that

1342
01:38:19,760 --> 01:38:22,200
we've seen change quite a lot in the last few

1343
01:38:22,221 --> 01:38:25,720
years. We've had climate change as one of the first

1344
01:38:27,021 --> 01:38:28,840
systemic issues. Well, I won't say first, actually, I think

1345
01:38:28,880 --> 01:38:30,840
the first is governance. Governance has been around for a

1346
01:38:30,840 --> 01:38:34,360
very long time. That's a, you know, across the board.

1347
01:38:34,360 --> 01:38:36,520
But we have seen climate change become really, really important

1348
01:38:37,021 --> 01:38:38,920
in a big topic of conversation. And we're seeing human

1349
01:38:38,941 --> 01:38:41,560
rights become a really big topic of conversation. And of

1350
01:38:41,560 --> 01:38:44,340
course now we're seeing AI come into the fold, uh,

1351
01:38:44,340 --> 01:38:50,124
in the responsible investment space. On the next slide. So

1352
01:38:50,625 --> 01:38:53,244
I've talked about this very briefly. Um, I, I know

1353
01:38:53,244 --> 01:38:56,044
that there's a number of different portfolios, but when we

1354
01:38:56,145 --> 01:39:00,524
think about, um, how we integrate ESG across our investment

1355
01:39:00,524 --> 01:39:03,484
teams, the investment teams all have their own processes. They

1356
01:39:03,484 --> 01:39:04,724
have their own way of doing that. And this is

1357
01:39:04,724 --> 01:39:08,204
what allows them to deliver the performance that they are

1358
01:39:08,204 --> 01:39:10,604
able to deliver for their clients. But what we do

1359
01:39:10,644 --> 01:39:13,004
is we help look at the overall process. What are

1360
01:39:13,004 --> 01:39:15,164
the research inputs? What are the data inputs? How do

1361
01:39:15,164 --> 01:39:17,324
these feed in? How are we thinking about engagements and

1362
01:39:17,364 --> 01:39:19,724
how is that being fed into the process? How are

1363
01:39:19,724 --> 01:39:22,924
we thinking about proxy voting communicating that, uh, as part

1364
01:39:22,924 --> 01:39:25,084
of the engagement process and as part of the investment

1365
01:39:25,124 --> 01:39:28,204
making decision process. And so that all comes together in

1366
01:39:28,204 --> 01:39:31,084
how we think about our different portfolios. And I'll give

1367
01:39:31,084 --> 01:39:33,404
a couple of examples. So I'll, I'll, maybe on the

1368
01:39:33,404 --> 01:39:36,767
next slide, this sets out the three. Ways we think

1369
01:39:36,767 --> 01:39:38,927
about ESG integration, which first of all, I said it's

1370
01:39:38,927 --> 01:39:41,887
investment led. The investment teams drive this. We help them,

1371
01:39:41,887 --> 01:39:44,607
but they, they drive how they think about their process.

1372
01:39:44,607 --> 01:39:47,487
We focus on materiality. So climate change, if it's not

1373
01:39:47,588 --> 01:39:50,207
material, we're not focusing on that as part of the

1374
01:39:50,247 --> 01:39:52,907
investment process. Climate change is material actually for a lot

1375
01:39:52,907 --> 01:39:56,207
of issuers, but there are other ESG factors that are

1376
01:39:56,247 --> 01:39:57,967
not. So we are going to focus our time on

1377
01:39:57,967 --> 01:40:01,247
the ones that have the most material impact. And then

1378
01:40:01,268 --> 01:40:05,647
finally continuously improves and innovates. I always think of and

1379
01:40:05,647 --> 01:40:06,767
my team as sort of a little bit of an

1380
01:40:06,788 --> 01:40:09,647
innovation hub around the firm and how we're thinking about

1381
01:40:09,668 --> 01:40:12,047
this partly because we see the trends coming. We see

1382
01:40:12,228 --> 01:40:14,447
with, you know, we see what's coming down. We can

1383
01:40:14,447 --> 01:40:17,007
see, you know, we're talking about water usage and data

1384
01:40:17,028 --> 01:40:19,567
centers and AI, for example, we're talking about, we see

1385
01:40:19,567 --> 01:40:22,127
these wars globally. What are the human rights impacts and

1386
01:40:22,148 --> 01:40:24,287
how should we be thinking about this? So we, we

1387
01:40:24,327 --> 01:40:26,527
do tend to, to be on the, on the leading

1388
01:40:26,567 --> 01:40:29,087
edge. And we have a lot of, um, skill sets

1389
01:40:29,087 --> 01:40:31,647
on the team. And as we do across the firm,

1390
01:40:31,647 --> 01:40:34,927
all the investment teams have data and technical skills right

1391
01:40:34,967 --> 01:40:37,247
within the team. We do as well on the responsible

1392
01:40:37,287 --> 01:40:39,887
investment team, but we also have climate expertise on the

1393
01:40:39,887 --> 01:40:42,607
team. We have governance expertise on the team. We have

1394
01:40:42,647 --> 01:40:47,567
very, very high AI usage on the responsible investment team.

1395
01:40:47,567 --> 01:40:49,327
So we're always looking at ways to, to do better

1396
01:40:50,148 --> 01:40:52,785
and keep on the leading edge in this space. But

1397
01:40:52,825 --> 01:40:54,465
on the next slide, I thought I would, I would

1398
01:40:54,465 --> 01:40:55,985
give a little bit of an example of how we

1399
01:40:56,006 --> 01:40:58,945
think about some of these in climate change, of course,

1400
01:40:58,966 --> 01:41:02,065
is a systemic factor that we started looking at in

1401
01:41:02,065 --> 01:41:05,105
great detail really in 2019. Um, when we first rolled

1402
01:41:05,105 --> 01:41:08,065
out the climate dashboards for all of the investment teams,

1403
01:41:08,065 --> 01:41:11,345
this is a sample. It's actually, um, a web -

1404
01:41:11,345 --> 01:41:14,425
based tool that is a little bit more interactive. So

1405
01:41:14,425 --> 01:41:16,545
this is just a little snapshot of what it looks

1406
01:41:16,646 --> 01:41:19,665
at. So one of our investment go in and they

1407
01:41:19,705 --> 01:41:21,745
can see under the carbon emissions, they can see the

1408
01:41:21,745 --> 01:41:24,865
finance emissions. They can see the weighted average carbon intensity

1409
01:41:25,766 --> 01:41:28,545
trends. Um, they can see the top holdings that have

1410
01:41:28,585 --> 01:41:32,585
the highest emissions, um, they can see the transition. So

1411
01:41:32,585 --> 01:41:34,385
it's not always about the risk. Sometimes it's about the

1412
01:41:34,385 --> 01:41:38,025
opportunity where the green opportunities within the portfolio. You can

1413
01:41:38,025 --> 01:41:41,465
see net zero alignment. Um, if there are targets, we

1414
01:41:41,465 --> 01:41:43,345
can see that within the portfolio and we can also

1415
01:41:43,366 --> 01:41:46,105
do scenario analysis. And so we, we do this. We

1416
01:41:46,105 --> 01:41:49,105
also every year we put out our own climate report

1417
01:41:49,286 --> 01:41:51,105
where we look at this at the firm level and

1418
01:41:51,105 --> 01:41:53,185
we disclose all of our metrics to the extent that

1419
01:41:53,286 --> 01:41:55,985
data is available to be fully transparent and what we're

1420
01:41:55,985 --> 01:42:00,626
seeing in our portfolios. The next slide is just another

1421
01:42:00,727 --> 01:42:05,828
quick. Overview on the systemic risk of governance. I just,

1422
01:42:05,828 --> 01:42:07,748
especially now with what we're seeing in the US, we're

1423
01:42:07,748 --> 01:42:12,625
seeing a lot of shareholder rights. Issues that are emerging.

1424
01:42:12,625 --> 01:42:14,225
And I'll give one very, very quick example, which is

1425
01:42:14,265 --> 01:42:17,265
the SEC is not opining now. It used to be

1426
01:42:17,265 --> 01:42:20,705
that companies would file with the SEC if they wanted

1427
01:42:20,745 --> 01:42:24,865
to remove a ballot item from, from their AGM, from

1428
01:42:24,865 --> 01:42:27,345
the ballot. And the SEC would provide an opinion on

1429
01:42:27,366 --> 01:42:29,425
whether it was appropriate for them to not include that

1430
01:42:29,926 --> 01:42:34,184
on, um, on the ballot. The SEC has said they

1431
01:42:34,224 --> 01:42:39,024
are not providing that opinion anymore. So what's interesting about

1432
01:42:39,045 --> 01:42:41,184
this is that they're not providing the opinion doesn't mean

1433
01:42:41,184 --> 01:42:43,504
it's right or wrong to the company to do it.

1434
01:42:43,544 --> 01:42:45,824
What we're doing now, we're seeing that. We view that

1435
01:42:45,824 --> 01:42:47,504
as a little bit problematic because what we're seeing now

1436
01:42:47,605 --> 01:42:49,824
are more issuers in the US or moving items from

1437
01:42:49,845 --> 01:42:51,904
the ballot where we don't think that's appropriate. We would

1438
01:42:51,904 --> 01:42:53,344
like to have a vote on it. And we might

1439
01:42:53,344 --> 01:42:56,944
not have voted against management. We might not agree with

1440
01:42:56,965 --> 01:43:00,129
that ballot item. But it's the concept that it should

1441
01:43:00,169 --> 01:43:01,969
go on the ballot. We are a shareholder and we

1442
01:43:01,969 --> 01:43:03,489
would like to have a vote. We would like to

1443
01:43:03,489 --> 01:43:06,129
have a say on these particular items. And one thing

1444
01:43:06,129 --> 01:43:08,689
we did see this past proxy voting season is a

1445
01:43:08,689 --> 01:43:10,349
number of companies who did not put items on the

1446
01:43:10,349 --> 01:43:12,269
ballot that we thought we should have voted on. And

1447
01:43:12,269 --> 01:43:15,569
so how we opted to proceed was to vote against

1448
01:43:16,150 --> 01:43:19,249
one of the directors on the company to say we

1449
01:43:19,249 --> 01:43:21,489
didn't think that that was an appropriate exercise of this

1450
01:43:21,670 --> 01:43:23,569
right here. And so, you know, we didn't do that

1451
01:43:23,670 --> 01:43:25,969
in every circumstance, but we were going, we have gone

1452
01:43:25,969 --> 01:43:29,569
through every day. The SEC website because it's still listed

1453
01:43:29,750 --> 01:43:33,009
the ones that they have not put on the ballot.

1454
01:43:33,009 --> 01:43:34,909
The SEC just does not provide an opinion letter. And

1455
01:43:34,909 --> 01:43:37,569
so that's how we're addressing that, but the type of

1456
01:43:37,609 --> 01:43:40,129
activity happening in the states right now, um, that we're

1457
01:43:40,129 --> 01:43:43,329
following. And that's an example of, of governance. And as

1458
01:43:43,329 --> 01:43:45,809
a shareholder, making sure that we continue to have our

1459
01:43:45,910 --> 01:43:49,288
rights in this regard. So I do vote against one

1460
01:43:49,309 --> 01:43:52,488
director or sometimes it's multiple. It depends on first of

1461
01:43:52,488 --> 01:43:55,208
all, it depends on which directors are up for election.

1462
01:43:55,208 --> 01:43:57,268
Sometimes it's a stagger board. Sometimes it's, it's all, but

1463
01:43:57,268 --> 01:44:00,088
usually we won't vote against every single director on that

1464
01:44:00,269 --> 01:44:02,888
one issue. We will vote against perhaps the chair of

1465
01:44:02,888 --> 01:44:06,834
the governance. Or if there's a depending on what they're

1466
01:44:06,874 --> 01:44:09,954
removing from, from, from the ballot, it might be a

1467
01:44:09,954 --> 01:44:12,274
little bit more targeted, but typically be one or two

1468
01:44:12,274 --> 01:44:16,932
directors. I'm impactful. Do they care? Does do others do

1469
01:44:16,972 --> 01:44:19,892
the same thing? Cause to me, it's nice, nice to

1470
01:44:19,892 --> 01:44:25,252
do, but it's irrelevant to them. Right. Yeah. And absolutely.

1471
01:44:25,252 --> 01:44:27,012
And that's a great point. In Canada, we are a

1472
01:44:27,012 --> 01:44:30,532
large shareholder. So our vote is, is very impactful in

1473
01:44:30,532 --> 01:44:32,452
the US. You know, if we look at a large

1474
01:44:32,452 --> 01:44:35,412
company like Amazon, we're much smaller shareholder. And so if

1475
01:44:35,412 --> 01:44:38,052
we're voting against a particular director, the impact might not

1476
01:44:38,092 --> 01:44:41,732
be as big. But I will say directors really care

1477
01:44:41,913 --> 01:44:43,892
about their votes and they want to get as close

1478
01:44:43,892 --> 01:44:46,932
to, you know, 100 percent as possible. So I think

1479
01:44:47,033 --> 01:44:50,532
even a small delta for a director can be meaningful.

1480
01:44:50,532 --> 01:44:53,332
And typically, we will follow up and we will let

1481
01:44:53,332 --> 01:44:55,652
them know why. So that it's very, very clear that

1482
01:44:55,753 --> 01:44:58,212
this was the particular issue. And we do the same

1483
01:44:58,233 --> 01:45:01,692
on diversity as well in some of our organizations. If

1484
01:45:01,692 --> 01:45:05,152
we think that they're board diversity levels are not, um,

1485
01:45:05,433 --> 01:45:07,092
where they should be. And in particular, we look at

1486
01:45:07,132 --> 01:45:10,292
gender. We will look at the governance committee, uh, chair

1487
01:45:10,873 --> 01:45:12,212
and talk to them. But we want to make sure

1488
01:45:12,212 --> 01:45:15,332
they understand where our concerns are. So that's where engagement

1489
01:45:15,513 --> 01:45:19,244
becomes really, really important. Right. Just to follow up. So

1490
01:45:19,244 --> 01:45:21,764
does CCGG do this like as a group? Cause aren't

1491
01:45:21,804 --> 01:45:24,644
you more, more, um, meaningful if you're a group of

1492
01:45:24,644 --> 01:45:27,284
people doing the same thing? Or do you consult with

1493
01:45:27,284 --> 01:45:29,684
your peers on this or at all? Yeah. And so

1494
01:45:29,705 --> 01:45:32,564
CCGG is we are a member of CCGG. I'm on

1495
01:45:32,564 --> 01:45:34,484
the policy committee and somebody on my team is on

1496
01:45:34,524 --> 01:45:38,244
the environmental and social committee. And CCGG does do collaborative

1497
01:45:38,345 --> 01:45:40,884
engagements. We participate in them. I've done a number of

1498
01:45:40,884 --> 01:45:44,484
them with CCGG. We do about 1500 engagements a year.

1499
01:45:44,825 --> 01:45:49,204
So our numbers are vastly higher than what you could

1500
01:45:49,244 --> 01:45:52,644
do as a, as an organization. And when, and when

1501
01:45:52,644 --> 01:45:55,284
you do a collaborative organization, you representing the interests and

1502
01:45:55,284 --> 01:45:57,084
the views of everybody when we do one - on

1503
01:45:57,084 --> 01:45:59,124
- one engagement, we can really focus in on what

1504
01:45:59,385 --> 01:46:03,724
concerns us as a shareholder at that particular company. We

1505
01:46:03,724 --> 01:46:07,044
don't, uh, I would say the RI team, we will

1506
01:46:07,044 --> 01:46:11,124
do some engagements, but, but they're always in full communication

1507
01:46:11,305 --> 01:46:14,724
with the investment teams. And so usually it's us with

1508
01:46:14,764 --> 01:46:17,924
the investment teams, uh, sometimes we will do some collaborative

1509
01:46:17,924 --> 01:46:21,044
engagements like climate engagement Canada. For example, with other investors

1510
01:46:21,305 --> 01:46:24,164
and investment teams may not be aware, we're fully communicating

1511
01:46:24,265 --> 01:46:28,164
with them. What's happening, um, what's being addressed and what

1512
01:46:28,204 --> 01:46:31,364
was the outcome of it. So very, very close work

1513
01:46:31,404 --> 01:46:35,839
together. You can go to the next slide. So this

1514
01:46:35,839 --> 01:46:38,559
is active stewardship and we've spoken a little bit about

1515
01:46:38,740 --> 01:46:41,279
this. I did, I did speak to proxy voting engagement.

1516
01:46:41,279 --> 01:46:43,759
So these are the two different categories. Let's touch on

1517
01:46:43,780 --> 01:46:46,868
proxy voting. First, which is the way we vote our

1518
01:46:46,889 --> 01:46:48,948
proxies is, as I said before, we worked very closely

1519
01:46:48,988 --> 01:46:51,348
with the investment teams. We do have our own custom

1520
01:46:51,348 --> 01:46:54,628
guidelines, how we view things. For example, we want a

1521
01:46:54,628 --> 01:46:57,268
separate CEO and chair. We want the independent. We want

1522
01:46:57,308 --> 01:46:59,268
two thirds of the board to be independent. So we

1523
01:46:59,268 --> 01:47:03,348
have guidelines. We may override our own guidelines. If we

1524
01:47:03,348 --> 01:47:07,108
want to override our own guidelines, we have an independent,

1525
01:47:07,108 --> 01:47:09,308
sorry, I shouldn't say independent. We're all within GAM. We

1526
01:47:09,308 --> 01:47:11,348
have a, it's independent of the investment teams. We have

1527
01:47:11,388 --> 01:47:14,628
a committee set up. That's the CIO myself and three

1528
01:47:14,628 --> 01:47:17,508
others who are not on an investment team. And we

1529
01:47:17,508 --> 01:47:20,388
vote on whether we can, we should override a particular

1530
01:47:21,369 --> 01:47:24,768
matter. For example, if we are, um, looking at, uh,

1531
01:47:25,049 --> 01:47:29,108
CEO chair separation, we might allow an override for that

1532
01:47:29,129 --> 01:47:31,188
if the sunset clause in place. And it's the founder

1533
01:47:31,228 --> 01:47:32,868
of the company. And so we think that there's some

1534
01:47:32,908 --> 01:47:35,828
value in keeping this structure for a certain number of

1535
01:47:35,868 --> 01:47:37,908
years. And so we look at all of the circumstances

1536
01:47:38,569 --> 01:47:42,068
around it. And then we derive at our decision. And

1537
01:47:42,068 --> 01:47:45,008
then engagement, I've spoken to engagement, but we do, um,

1538
01:47:45,369 --> 01:47:47,168
quite, quite a bit of engagement around the firm. And

1539
01:47:47,168 --> 01:47:48,948
I will get into that in a little more detail.

1540
01:47:48,948 --> 01:47:52,143
If we could just go to the next slide. This

1541
01:47:52,324 --> 01:47:56,063
isn't, this is our engagement. It's 1500 engagements last year.

1542
01:47:56,063 --> 01:47:57,983
This is just where we're, you know, we're talking about

1543
01:47:58,004 --> 01:48:00,703
ESG, the investment teams a lot more. And so it's

1544
01:48:00,724 --> 01:48:04,863
a very, very important part of our process. Typically what

1545
01:48:04,863 --> 01:48:06,863
we're looking for is more information from the company. We

1546
01:48:07,044 --> 01:48:09,183
want to understand how they're thinking about some of these

1547
01:48:09,284 --> 01:48:12,463
issues. Or we're encouraging them to put this publicly out

1548
01:48:12,463 --> 01:48:15,023
there. And we've seen with Bill C59, we saw a

1549
01:48:15,023 --> 01:48:17,423
lot of companies looking at pulling back on some of

1550
01:48:17,463 --> 01:48:20,303
their disclosures and what this meant for them. And we're

1551
01:48:20,343 --> 01:48:22,783
always thinking about these different factors and within the company's

1552
01:48:22,823 --> 01:48:24,383
best interest. Because ultimately at the end of the day,

1553
01:48:24,383 --> 01:48:26,143
we are a shareholder. We want the company to do

1554
01:48:26,164 --> 01:48:33,551
well. You can go to the next slide. I've spoken

1555
01:48:33,551 --> 01:48:35,311
about this a little bit again, when we think about

1556
01:48:35,332 --> 01:48:38,751
our guidelines, which are publicly available on our website, when

1557
01:48:38,751 --> 01:48:41,151
we vote against a shareholder proposal, I will often get

1558
01:48:41,191 --> 01:48:42,831
a lot of questions. Well, this is in line with

1559
01:48:43,652 --> 01:48:48,751
your philosophy. You know, you're asking for a climate strategy

1560
01:48:49,092 --> 01:48:52,111
plan, for example. Well, why did you vote against it?

1561
01:48:52,151 --> 01:48:54,991
Well, we might vote against it if the language of

1562
01:48:55,172 --> 01:48:58,591
the ballot item is really prescriptive. It's telling how management,

1563
01:48:58,591 --> 01:49:02,271
how to do it. Um, or they're already doing it,

1564
01:49:02,271 --> 01:49:04,111
even though we agree with this, we think they're already

1565
01:49:04,111 --> 01:49:05,871
doing a good job. And we think it's confusing for

1566
01:49:05,871 --> 01:49:09,071
the company if we vote for this, um, because they

1567
01:49:09,071 --> 01:49:10,431
will reach out to us and say, why did you

1568
01:49:10,431 --> 01:49:12,271
vote for this? We're already doing this. Where's the gap

1569
01:49:12,372 --> 01:49:14,351
and what we're doing? And, you know, there is no

1570
01:49:14,391 --> 01:49:16,511
gap. We think we're fine with that. We don't think

1571
01:49:16,511 --> 01:49:20,431
the benefit or it's too burdensome. If it's too prescriptive,

1572
01:49:20,431 --> 01:49:24,671
but also if they're asking for something that's outside in

1573
01:49:24,671 --> 01:49:28,031
terms of the cost or the resource requirements, uh, relative

1574
01:49:28,031 --> 01:49:31,289
to the value. We can go to the next slide,

1575
01:49:31,289 --> 01:49:38,184
please. These are a statistics. And we put them up

1576
01:49:38,184 --> 01:49:41,304
there and, uh, sometimes ask, are we comfortable? Do we

1577
01:49:41,304 --> 01:49:44,884
like these statistics. Um, and the answer is it's hard

1578
01:49:44,884 --> 01:49:47,284
to know. I am very comfortable with these. And the

1579
01:49:47,284 --> 01:49:49,524
reason I am comfortable with them is I think if

1580
01:49:49,524 --> 01:49:52,524
we voted against management, all of the time, then we

1581
01:49:52,524 --> 01:49:54,404
would have to ask ourselves, why are we invested in

1582
01:49:54,404 --> 01:49:56,724
this company? Why don't we believe in management? I mean,

1583
01:49:56,764 --> 01:49:59,444
it's really important as a shareholder that we believe in,

1584
01:49:59,465 --> 01:50:02,404
in where management is headed, but sometimes we will vote

1585
01:50:02,444 --> 01:50:04,724
against management because sometimes things come up and we view

1586
01:50:04,764 --> 01:50:09,404
things differently. In the US, it's much higher. That is

1587
01:50:09,404 --> 01:50:13,684
typically due to CEO compensation where CEOs are paid much,

1588
01:50:13,684 --> 01:50:15,764
um, higher in the US than they are elsewhere in

1589
01:50:15,764 --> 01:50:21,761
the world. And next slide. And then this is the

1590
01:50:21,761 --> 01:50:23,681
last slide and this just shows the initiatives were involved

1591
01:50:23,702 --> 01:50:28,641
in CCGG was mentioned. Um, PRI responsible investment association is

1592
01:50:28,641 --> 01:50:31,281
in Canada. I chair the board of that organization. When

1593
01:50:31,281 --> 01:50:33,321
we are involved, we try to be very involved. We

1594
01:50:33,321 --> 01:50:36,401
like to have, um, an influential voice in, in this

1595
01:50:36,441 --> 01:50:39,544
space that we're helping guide where it's going. And not,

1596
01:50:39,544 --> 01:50:40,904
you know, with that, those are the end of my

1597
01:50:41,245 --> 01:50:46,837
slides, but I'm happy to take any questions. Board member,

1598
01:50:46,837 --> 01:50:50,197
penin. I've got a few questions. Um, you mentioned CEO

1599
01:50:50,298 --> 01:50:54,517
compensation as one issues where you may vote against management.

1600
01:50:54,517 --> 01:50:58,797
Is there any other issues that come up, I guess

1601
01:50:59,498 --> 01:51:01,877
for something you would want to vote against? I guess

1602
01:51:01,898 --> 01:51:05,717
management. Yes. Um, CEO compensation is one or we vote

1603
01:51:05,757 --> 01:51:11,213
against, we'll vote against the say on pay. In particular,

1604
01:51:11,213 --> 01:51:14,013
um, we vote against board members. For example, if we

1605
01:51:14,013 --> 01:51:15,833
don't think that they have enough gender diversity on the

1606
01:51:15,833 --> 01:51:18,013
board, that might be one reason. We might vote against

1607
01:51:18,194 --> 01:51:21,933
board members if we think that they're independents is not

1608
01:51:22,674 --> 01:51:24,813
where it should be. And typically it's two thirds is

1609
01:51:24,853 --> 01:51:28,333
what we would require in every, in some emerging markets,

1610
01:51:28,333 --> 01:51:31,693
that might differ, uh, and the requirements in some jurisdictions

1611
01:51:31,714 --> 01:51:38,173
like the UK where you're looking at 50 percent, the

1612
01:51:38,213 --> 01:51:41,693
norms relative to that, but generally speaking, we're looking for,

1613
01:51:41,693 --> 01:51:45,853
uh, two thirds, which independence. We might vote against the

1614
01:51:45,853 --> 01:51:50,013
director, as I mentioned before, if they have removed something

1615
01:51:50,034 --> 01:51:54,758
that we think would be appropriately on the ballot. Those

1616
01:51:54,798 --> 01:51:56,518
are sort of, I would say, oh, the separation of

1617
01:51:56,699 --> 01:52:00,358
chair and CEO, typically we like to see that separation.

1618
01:52:00,358 --> 01:52:01,798
We think, you know, when it's together, there's not that

1619
01:52:01,899 --> 01:52:05,878
independence, but we will make some accommodation for that if

1620
01:52:05,918 --> 01:52:08,438
it's a company where the founder is acting in that

1621
01:52:08,459 --> 01:52:11,078
role. And we think the value to that. We might,

1622
01:52:11,078 --> 01:52:12,998
but we do look for a sunset clause and those

1623
01:52:12,998 --> 01:52:15,478
circumstances. So those are the kinds of things we see.

1624
01:52:15,478 --> 01:52:17,958
Sometimes the auditor, the 10 year of the auditor might

1625
01:52:17,998 --> 01:52:20,438
come up. There might be some independence questions around the

1626
01:52:20,539 --> 01:52:23,883
auditor that we would look at as well. Um. Those

1627
01:52:23,923 --> 01:52:28,023
are generally speaking when we would vote against directors. Now

1628
01:52:28,023 --> 01:52:32,203
we do that is separate from the other part of

1629
01:52:32,224 --> 01:52:35,543
the ballot where we have all the shareholder proposals. And

1630
01:52:35,543 --> 01:52:37,563
those ones we might vote again, or we might vote

1631
01:52:37,744 --> 01:52:40,123
in favor of. And those are very specific. And a

1632
01:52:40,123 --> 01:52:42,023
lot of those have to do with G factors. For

1633
01:52:42,023 --> 01:52:45,723
example, you know, the asking for the company to produce,

1634
01:52:45,723 --> 01:52:49,563
uh, report on its human rights impacts. And sometimes they'll

1635
01:52:49,603 --> 01:52:53,063
say within a year, um, or covering this or, you

1636
01:52:53,063 --> 01:52:54,843
know, and that's where we get a little bit prescriptive.

1637
01:52:54,843 --> 01:52:56,323
And that's what sometimes we might say, well, actually, we

1638
01:52:56,384 --> 01:52:59,143
don't think that time frame is very reasonable. We're not

1639
01:52:59,184 --> 01:53:01,003
going to vote in favor of that. Or sometimes it

1640
01:53:01,043 --> 01:53:04,523
might just say something that's, that's broadly aligned with you.

1641
01:53:04,725 --> 01:53:07,584
And then so that's sort of the two sections that

1642
01:53:07,624 --> 01:53:11,744
we would see typically on the, on the ballot. Okay.

1643
01:53:11,765 --> 01:53:16,624
Um, seeing any, how is, how is viewpoints on ESG

1644
01:53:16,805 --> 01:53:19,824
trending like over the last 10 years? And does it

1645
01:53:19,845 --> 01:53:23,104
differ between what you're seeing in the Canadian market versus

1646
01:53:23,144 --> 01:53:28,928
the US market versus hidden much. They're much more engaged

1647
01:53:29,029 --> 01:53:31,488
in European markets on some of these factors than what

1648
01:53:31,528 --> 01:53:37,027
we see in North America, at least traditionally. Yes. Absolutely.

1649
01:53:37,128 --> 01:53:39,587
And actually that's where it's been very helpful to have

1650
01:53:40,328 --> 01:53:43,187
team and team members in the different jurisdictions. I mean,

1651
01:53:43,227 --> 01:53:46,227
to have their feed on the ground, um, Europe has,

1652
01:53:46,248 --> 01:53:50,127
has traditionally been further ahead, um, but I wouldn't, you

1653
01:53:50,127 --> 01:53:53,427
know, I'm always careful when I say that because when

1654
01:53:53,448 --> 01:53:55,347
I say further ahead, they've had a lot more regulation

1655
01:53:55,928 --> 01:53:58,707
in this space and they're more prescriptive in their regulation

1656
01:53:59,208 --> 01:54:01,587
and what the view is in terms of what is

1657
01:54:01,587 --> 01:54:03,987
good and what is bad in the ESG space and

1658
01:54:03,987 --> 01:54:06,467
what is acceptable if you have, for example, an ESG

1659
01:54:06,488 --> 01:54:08,707
labeled product or an ESG labeled fund. And we have

1660
01:54:08,707 --> 01:54:10,227
a lot more disclosures that we have to do in

1661
01:54:10,248 --> 01:54:14,387
Europe around our ESG factors in our funds under the

1662
01:54:14,427 --> 01:54:18,707
SFDR regulation. Um, but I always don't want to take

1663
01:54:18,707 --> 01:54:21,727
away from other jurisdictions that are doing a lot. The

1664
01:54:21,727 --> 01:54:23,427
US has gone in a different direction. And so the

1665
01:54:23,768 --> 01:54:29,747
US in itself is really split. And as shareholder rights

1666
01:54:29,848 --> 01:54:31,987
have become a big issue that we're focusing on in

1667
01:54:31,987 --> 01:54:35,427
the US, the not talk of climate change issues at

1668
01:54:35,427 --> 01:54:38,067
the federal level. But at the state level, there's a

1669
01:54:38,067 --> 01:54:43,587
lot of activity happening on climate change readiness. And so,

1670
01:54:43,587 --> 01:54:44,787
and, and the US, I would say if we're talking

1671
01:54:44,787 --> 01:54:48,067
about just regulation, no regulation is the way it's going.

1672
01:54:48,067 --> 01:54:49,987
In fact, now companies not getting an opinion letter from

1673
01:54:49,987 --> 01:54:53,507
the SEC. It's sort of in line with, but I

1674
01:54:53,507 --> 01:54:55,907
will say Europe's pulling back from the regulation and it's

1675
01:54:55,907 --> 01:54:58,387
pulling back from the prescriptiveness because I think it's just

1676
01:54:58,427 --> 01:55:02,467
been so onerous for asset managers and asset owners and,

1677
01:55:02,467 --> 01:55:05,667
and companies to make all of these disclosures that the

1678
01:55:06,568 --> 01:55:08,467
pullback and just a little bit of a sense check

1679
01:55:08,507 --> 01:55:10,947
of, is this, is this helping people? This is helping

1680
01:55:11,048 --> 01:55:14,387
investors, um, understand these issues better. So we are seeing

1681
01:55:14,427 --> 01:55:17,347
that in Europe, but I think sentiment remains the same.

1682
01:55:17,347 --> 01:55:19,827
Um, so a little bit is more about how it's

1683
01:55:19,928 --> 01:55:23,427
being spoken of. And Canada always is, is a little

1684
01:55:23,427 --> 01:55:26,707
bit in the middle. Um, I would say we are

1685
01:55:26,747 --> 01:55:30,672
influenced by our neighbor to the south. But I think,

1686
01:55:30,672 --> 01:55:32,472
and we don't have the same regulation as Europe. So

1687
01:55:32,472 --> 01:55:34,112
we're not quite as far as Europe, but there was

1688
01:55:34,112 --> 01:55:37,272
a lot of discussion about enhanced disclosures in Canada. I

1689
01:55:37,272 --> 01:55:39,792
think Canada always is just a very practical, you know,

1690
01:55:39,973 --> 01:55:43,072
what do investors want. Let's be really practical in making

1691
01:55:43,093 --> 01:55:45,152
sure they get those disclosures in a way that's not

1692
01:55:45,253 --> 01:55:48,112
too onerous or too prescriptive or too prescriptive. So that's

1693
01:55:48,373 --> 01:55:50,432
where, you know, clients in Canada are still asking for

1694
01:55:50,432 --> 01:55:53,312
it. They still want to understand these issues, but it's

1695
01:55:53,333 --> 01:55:56,672
not, you know, at the same level of, of detail,

1696
01:55:56,672 --> 01:55:59,562
maybe that in the past, we've seen in Europe. But

1697
01:55:59,562 --> 01:56:01,402
it is a, it is a, you know, I used

1698
01:56:01,402 --> 01:56:03,162
to say the pendulum is swinging back, but it's sort

1699
01:56:03,162 --> 01:56:08,618
of swinging everywhere right now. I remember ready. Actually, my

1700
01:56:08,618 --> 01:56:12,955
question was addressed. Oh, okay. Thanks. One more. Do you

1701
01:56:12,955 --> 01:56:15,455
have more? Okay. Board member company, sure. I have to

1702
01:56:15,495 --> 01:56:18,095
ask. So just because it's, it's kind of in spot

1703
01:56:18,135 --> 01:56:21,095
right now. The greenwashing case with purpose. I don't know

1704
01:56:21,095 --> 01:56:24,481
if. Comments or anything you would want to say about

1705
01:56:24,582 --> 01:56:27,881
that. No, I mean, it's a very relevant case. I

1706
01:56:27,881 --> 01:56:31,281
would just say, um, it probably won't comment on the

1707
01:56:31,281 --> 01:56:33,441
details of that particular case because I, and I also

1708
01:56:33,441 --> 01:56:35,521
don't know the details of that particular case, but I

1709
01:56:35,561 --> 01:56:38,081
would just maybe comment on how we've thought about it.

1710
01:56:38,081 --> 01:56:41,521
And we've certainly been, you know, very in depth with

1711
01:56:42,182 --> 01:56:45,121
as a regulations have changed. How are we wording certain

1712
01:56:45,222 --> 01:56:48,641
things? Are we still being clear and transparent for investors?

1713
01:56:48,641 --> 01:56:53,761
And we've always tried to strive for clear transparency and

1714
01:56:53,761 --> 01:56:56,881
not over promising. We've never used, and in fact, when

1715
01:56:56,902 --> 01:57:00,081
I, when I, you know, seven years ago, it used

1716
01:57:00,081 --> 01:57:03,761
to be a kind of a hot thing, a hot,

1717
01:57:03,782 --> 01:57:06,081
a little bit contentious with myself in marketing where they

1718
01:57:06,081 --> 01:57:09,041
would want to put out stronger marketing language around this.

1719
01:57:09,041 --> 01:57:11,441
And we would say, no, um, pull it back in

1720
01:57:11,481 --> 01:57:13,521
a little bit because we want to be really clear.

1721
01:57:13,521 --> 01:57:17,201
We always say that it is, we strive for better

1722
01:57:17,382 --> 01:57:20,881
risk and return over the long run. But there's really

1723
01:57:20,881 --> 01:57:22,881
like the studies around this. It's, it's hard to sort

1724
01:57:22,881 --> 01:57:25,201
of put your finger on exactly how will this play

1725
01:57:25,241 --> 01:57:27,201
out, but we do deeply believe it is part of

1726
01:57:27,201 --> 01:57:29,681
our philosophy that if we are looking at these material

1727
01:57:29,721 --> 01:57:34,801
factors, how can it not impact your long, um, performance?

1728
01:57:34,801 --> 01:57:37,521
So I'll just maybe without commenting on that particular case,

1729
01:57:37,521 --> 01:57:40,001
just say that we try to be as transparent and

1730
01:57:40,041 --> 01:57:42,561
clear as possible and not make any, you know, any

1731
01:57:42,561 --> 01:57:44,961
promises or commitments that we're not, that we're not doing.

1732
01:57:48,523 --> 01:57:55,499
Else. I remember jobs. Just, and this is something just

1733
01:57:55,499 --> 01:57:58,139
came up again in the media with the SpaceX thing

1734
01:57:58,400 --> 01:58:01,899
and musk having control and voting shares as opposed to

1735
01:58:01,939 --> 01:58:05,200
other shares of being offered. Are you seeing more or

1736
01:58:05,200 --> 01:58:07,360
less of those structures and what's your view on them.

1737
01:58:08,437 --> 01:58:10,896
We like to have one vote per share. We think

1738
01:58:10,896 --> 01:58:13,216
that that's, you know, in terms of governance practice, that's

1739
01:58:13,216 --> 01:58:16,256
the way it should, it should be. We don't like,

1740
01:58:16,256 --> 01:58:19,296
um, to have different structures where we have tiered levels

1741
01:58:19,296 --> 01:58:22,496
of shares. We do understand that when companies first go

1742
01:58:22,536 --> 01:58:26,896
public, you need some incentive. And so you can't entirely

1743
01:58:26,997 --> 01:58:29,696
get away from some of these structures. There is a

1744
01:58:29,696 --> 01:58:32,016
reason that they're in place. We do want more companies

1745
01:58:32,357 --> 01:58:35,376
coming to the public markets. That's, you know, that's where

1746
01:58:35,376 --> 01:58:37,056
we are. Uh, and so we don't want to completely

1747
01:58:38,197 --> 01:58:42,016
that. And founders put a lot of their own time

1748
01:58:42,197 --> 01:58:44,736
and resource. There's a lot that goes into the research

1749
01:58:44,837 --> 01:58:47,616
and development. And so you want people to be compensated

1750
01:58:47,717 --> 01:58:51,456
for those efforts. But we do want to see that,

1751
01:58:51,496 --> 01:58:53,776
that roll off. And we do want one vote per

1752
01:58:53,816 --> 01:58:56,816
share as a shareholder. It gives us more, um, more

1753
01:58:56,856 --> 01:58:59,136
influence on what we want to see with the company.

1754
01:59:00,457 --> 01:59:02,016
And we do see it, you know, I mean, you

1755
01:59:02,016 --> 01:59:03,396
see it more, you see a lot in the tech

1756
01:59:03,436 --> 01:59:06,276
space, you know, and you've given Elon Musk as an

1757
01:59:06,316 --> 01:59:08,436
example where a lot of money can go into some

1758
01:59:08,436 --> 01:59:10,276
of the research and development and they want to be

1759
01:59:10,377 --> 01:59:12,836
compensated. And so what does that look like? And can

1760
01:59:12,836 --> 01:59:15,076
you have a sunset clause on some of these shares?

1761
01:59:15,076 --> 01:59:16,916
Uh, because we do find ourselves trapped in some of

1762
01:59:16,916 --> 01:59:19,396
these interesting situations where we have a vote, but it

1763
01:59:19,396 --> 01:59:24,676
really is not meaningful because, you know, it's, it's, it's,

1764
01:59:24,676 --> 01:59:26,436
you know, somebody else has much more of a stake

1765
01:59:26,436 --> 01:59:31,963
in it. Board member Fraser. Thank you. Um, thank you

1766
01:59:31,963 --> 01:59:35,403
for the presentation. Just a quick question. Uh, you provided

1767
01:59:35,443 --> 01:59:38,763
sort of example of the ESG snapshot sort of addresses.

1768
01:59:38,763 --> 01:59:41,443
But how is this used within the firm? Both of

1769
01:59:41,443 --> 01:59:43,723
the investment manager level and maybe that the committee level.

1770
01:59:44,516 --> 01:59:47,615
It is used by the investment teams. And so this

1771
01:59:47,636 --> 01:59:50,255
is a particular snapshot where they're thinking about an investment

1772
01:59:50,356 --> 01:59:52,815
or looking at their portfolio. They can pull it up

1773
01:59:52,836 --> 01:59:56,335
and they can get the relevant ESG metrics and information

1774
01:59:56,356 --> 01:59:58,335
that they need similar to the climate snapshot if they

1775
01:59:58,335 --> 02:00:01,215
wanted to look at what are their emissions. Same idea,

1776
02:00:01,215 --> 02:00:04,095
but it's a little bit more broadly speaking around ESG.

1777
02:00:05,609 --> 02:00:08,308
My firm. It's an aggregation of all the firms of

1778
02:00:08,409 --> 02:00:11,508
them holdings within the portfolio. By fun. Yes. By fund.

1779
02:00:11,457 --> 02:00:14,076
Yeah. And is there sort of a senior committee then

1780
02:00:14,257 --> 02:00:16,956
sort of monitors the investment managers to find out if

1781
02:00:17,057 --> 02:00:21,721
they're really offside benchmark. With effectively, let's say the ESG

1782
02:00:21,761 --> 02:00:25,081
score? Well with not none of our mandates are a

1783
02:00:25,081 --> 02:00:28,041
portfolios have that as a target. Their performance is the

1784
02:00:28,142 --> 02:00:31,081
target and none of them have any restrictions except for

1785
02:00:31,081 --> 02:00:33,881
the vision funds where you cannot be, they cannot be

1786
02:00:33,982 --> 02:00:40,761
invested in certain, um, industries or certain product level developments,

1787
02:00:40,761 --> 02:00:43,241
but we don't have one group that looks at everything,

1788
02:00:43,241 --> 02:00:46,601
but we do have, several mechanisms in place. So one

1789
02:00:46,601 --> 02:00:48,441
is we were closely with the risk team and we

1790
02:00:48,481 --> 02:00:52,281
do, uh, semi annual semi annual report that looks at

1791
02:00:52,321 --> 02:00:55,321
all of our high risk industries, our high risk countries.

1792
02:00:55,321 --> 02:00:58,441
And we, we lay it all out for the CIO,

1793
02:00:58,441 --> 02:01:00,841
but also it goes into the head of risk for

1794
02:01:00,881 --> 02:01:03,161
all the wealth management at RBC to show where we

1795
02:01:03,201 --> 02:01:07,241
are in some of these particular industries. There are some,

1796
02:01:07,241 --> 02:01:08,521
but we don't go through at a fun level and

1797
02:01:08,521 --> 02:01:11,321
say this, this particular holding is really high in its

1798
02:01:11,361 --> 02:01:15,801
emissions. But we have, for example, climate engagement plan where

1799
02:01:15,801 --> 02:01:19,001
we, we have looked at our top 40 highest emitting

1800
02:01:20,382 --> 02:01:23,241
companies and how we've engaged with them and how we've,

1801
02:01:23,241 --> 02:01:25,881
we've discussed this with them and whether we have any

1802
02:01:25,902 --> 02:01:29,641
concerns. So it's more on these, you know, this level.

1803
02:01:29,641 --> 02:01:31,801
I would say probably the semi annual report that we

1804
02:01:31,801 --> 02:01:35,321
do is the most comprehensive, but on a fun level,

1805
02:01:35,321 --> 02:01:38,441
that's, that's more done by the investment teams as well

1806
02:01:38,481 --> 02:01:40,441
as the RA team together, but more on a ad

1807
02:01:40,481 --> 02:01:43,313
hoc basis. Thank you. Thank you. I just want to

1808
02:01:43,313 --> 02:01:46,233
check in with board member Deed. I board member, daddy,

1809
02:01:46,233 --> 02:01:47,833
I can't see you ask green, but I know you

1810
02:01:47,873 --> 02:01:50,633
know a lot about this issue. So I just want

1811
02:01:50,633 --> 02:01:52,153
to check in to see if you had any questions.

1812
02:01:53,583 --> 02:01:57,162
Oh, thank you for, no, I'm fine. Thank you, Chair

1813
02:01:57,263 --> 02:02:06,951
Hughes. Yep. Okay. Thanks. Anyone else. Then, um, thank you

1814
02:02:06,972 --> 02:02:10,791
very much, Ms. Adams. Great presentation and you could tell

1815
02:02:11,052 --> 02:02:14,847
the global of interest from all the questions. And now

1816
02:02:14,887 --> 02:02:19,113
can I have a motion to receive the presentation. What

1817
02:02:19,153 --> 02:02:21,193
more like when makes that motion on favor, please raise

1818
02:02:21,233 --> 02:02:25,872
your hands. When you posed. It, that carries. All right.

1819
02:02:25,912 --> 02:02:28,706
Thank you very much. Thank you so much. So now

1820
02:02:29,047 --> 02:02:32,226
we are at. I think this would be a good

1821
02:02:32,266 --> 02:02:36,466
time to break for lunch. So let's allow 45 minutes

1822
02:02:36,466 --> 02:02:44,583
for lunch, let's say. A closed session. We're hoping to

1823
02:02:44,623 --> 02:02:46,343
start around one. So we have a couple of reports

1824
02:02:46,444 --> 02:02:51,189
to do first before that. So, uh, if someone was

1825
02:02:51,189 --> 02:02:54,469
to offer motion, thank you for numerogyles offers a motion

1826
02:02:54,570 --> 02:02:57,669
to break for lunch. All in favor, please raise your

1827
02:02:57,669 --> 02:03:02,328
hands and you posed. At Jerry. Okay. So we'll start

1828
02:03:02,328 --> 02:03:09,996
for 40. And then it's going to say 1250. Back

1829
02:03:10,036 --> 02:03:13,516
at 1250 everybody. Big lunch is ready for us. I

1830
02:03:13,556 --> 02:03:20,956
would in the lobby area out there. And you'll.

1831
02:51:02,989 --> 02:51:09,307
Thank you. For ready to start again everyone.

1832
02:51:23,293 --> 02:51:26,312
So board members, we are on item number nine C

1833
02:51:26,352 --> 02:51:30,792
now, which is the 2026 investment plan reviewed for a

1834
02:51:30,832 --> 02:51:34,312
number of municipalities. Aurora Clarington Central Front in that Huntsville

1835
02:51:34,413 --> 02:51:37,861
and innocence six of them. Any questions on these investment

1836
02:51:38,042 --> 02:51:47,969
plans. People are comfortable. The only comment

1837
02:51:48,009 --> 02:51:51,869
I would make, I just wanted to command staff. The

1838
02:51:51,869 --> 02:51:55,569
format of the report, it's very helpful to do a

1839
02:51:55,569 --> 02:51:58,689
whole bunch of investment plans this way. So thank you.

1840
02:52:05,012 --> 02:52:10,348
For a good approach to. All right, could I have

1841
02:52:10,388 --> 02:52:13,548
a motion to adopt the following recommendations in the report?

1842
02:52:13,548 --> 02:52:16,988
So number one, receive the investment policy statement and municipal

1843
02:52:17,089 --> 02:52:20,988
client questionnaires from the following participating municipality, summarized in the

1844
02:52:21,169 --> 02:52:24,748
table that you see in your agendas. So for town

1845
02:52:24,769 --> 02:52:27,548
of worm, you study of clarity. So maybe I'll just

1846
02:52:27,548 --> 02:52:31,748
mention the MNRI values for each of them. Time of

1847
02:52:31,748 --> 02:52:39,388
Aurora, 58, 144, 864 dollars, municipality of clinic to 23,

1848
02:52:39,409 --> 02:52:46,428
968, 461 dollars, township of central frontnack, 3, 784, 080

1849
02:52:46,468 --> 02:52:55,150
dollars. 68, 575, 864 dollars.

1850
02:52:56,671 --> 02:52:59,050
And then number two, approve the following investment plans, which

1851
02:52:59,050 --> 02:53:02,650
are summarized in the table before. And again, I will

1852
02:53:02,690 --> 02:53:08,410
just mention the model. So town of Aurora, which is

1853
02:53:08,991 --> 02:53:12,410
invested in model E, municipality of Clarington, invested in mono

1854
02:53:12,591 --> 02:53:19,850
G plus. So that's with although township of central front

1855
02:53:20,191 --> 02:53:26,935
neck. Tonight, console, Mahmoudi, town of Innisville Model C. So

1856
02:53:26,935 --> 02:53:32,326
I'm going to let them make that motion. Board member.

1857
02:53:32,326 --> 02:53:33,926
I like them to make that motion. I'll in favor,

1858
02:53:33,926 --> 02:53:39,342
please raise your hands. Can you posed that carries? Just

1859
02:53:39,382 --> 02:53:43,010
a question. Doesn't change the vote or anything. In terms

1860
02:53:43,010 --> 02:53:47,330
of, as we grow, and the more and more on

1861
02:53:47,351 --> 02:53:50,290
the list grows, what is the, how do you check

1862
02:53:50,330 --> 02:53:55,261
for consistency among plans. Sorry, what was the question? It's

1863
02:53:55,261 --> 02:53:59,261
just like, we, you know, when we look at plans,

1864
02:53:59,261 --> 02:54:01,101
we sort of like, do we take the weighted average

1865
02:54:01,362 --> 02:54:08,209
of the charity schedule. Or new requirement for money versus

1866
02:54:08,230 --> 02:54:11,529
the weight? So that, you know, if you're looking, if

1867
02:54:11,529 --> 02:54:13,809
you do it, you know that these are generally in

1868
02:54:13,809 --> 02:54:17,129
the same range. They're in this plan. And then if

1869
02:54:17,129 --> 02:54:20,049
there's any deviation, which there should be, or may not

1870
02:54:20,049 --> 02:54:22,929
be, but you can document this as why they're not

1871
02:54:23,190 --> 02:54:26,049
sort of in line. So that someone who has a

1872
02:54:26,070 --> 02:54:28,849
weighted average of seven years is in a model F

1873
02:54:29,270 --> 02:54:32,529
than someone within weighted average of 25 years is in

1874
02:54:32,550 --> 02:54:36,369
model G. You know what I mean? Like that. Because

1875
02:54:36,369 --> 02:54:38,449
soon the list will be 20 long that you're looking

1876
02:54:38,489 --> 02:54:44,465
at, you know, as you become more successful. Without having

1877
02:54:44,486 --> 02:54:48,945
to look at individuals. You need to have a consistency,

1878
02:54:48,945 --> 02:54:51,185
I think. Make sure that those models. I think that

1879
02:54:51,366 --> 02:54:57,265
it's the time horizons are the first determinant of models.

1880
02:54:57,265 --> 02:54:59,505
And then the adjustments. So do you have a plan

1881
02:54:59,526 --> 02:55:05,745
to make sure you're consistent as this plan grows? That

1882
02:55:05,766 --> 02:55:09,451
absolutely ensures that. We start with the old outcome framework,

1883
02:55:09,451 --> 02:55:11,791
which gives a starting point. We figure out what the,

1884
02:55:11,791 --> 02:55:16,831
uh, the outcome framework would have suggested as a consolidated,

1885
02:55:16,831 --> 02:55:21,851
um, allocation. And then I, I take, um, actually, uh,

1886
02:55:22,052 --> 02:55:24,991
target date bonus, external target tape bonds to give an

1887
02:55:25,031 --> 02:55:28,431
indication of what would be appropriate based on different investment

1888
02:55:28,471 --> 02:55:30,431
horizons. And I just line them up on the graph

1889
02:55:30,692 --> 02:55:33,471
and I can say that that floor from this investment

1890
02:55:33,471 --> 02:55:36,351
horizon, if the average is seven, it should be this

1891
02:55:36,692 --> 02:55:41,871
allocation. And, um, I mean, it's very succinct. And then

1892
02:55:41,871 --> 02:55:44,751
I'll have, uh, notes in there that would qualify when

1893
02:55:44,772 --> 02:55:48,251
we're off the line. So I absolutely have that. Um,

1894
02:55:48,251 --> 02:55:50,991
I think it would be instructive, uh, somewhere down the

1895
02:55:50,991 --> 02:55:53,691
line that we have in educational session. So I can

1896
02:55:53,691 --> 02:55:56,511
go through, uh, the things that I look at and

1897
02:55:56,551 --> 02:56:01,071
the double checks. And so you, you have confidence that,

1898
02:56:01,071 --> 02:56:04,031
that I'm just not picking numbers out of the air,

1899
02:56:04,031 --> 02:56:06,511
uh, G sounds like a good number. Let's put them

1900
02:56:06,551 --> 02:56:11,149
in G. No, there is a process there. Absolutely. And

1901
02:56:11,250 --> 02:56:14,349
I also do, I mean, there is some qualitative, it's

1902
02:56:14,349 --> 02:56:17,229
not just the numbers. The quality of the numbers is

1903
02:56:17,330 --> 02:56:22,189
also factored in there. Um, the, the detail that the,

1904
02:56:22,189 --> 02:56:26,799
the treasurer's provide us. And, um, that will also factor

1905
02:56:26,839 --> 02:56:30,639
in some people might say that, you know, it's gotten

1906
02:56:30,660 --> 02:56:35,217
eight year horizon based on what they have. And do

1907
02:56:35,217 --> 02:56:39,377
I have faith in their numbers? They seem, are they,

1908
02:56:39,377 --> 02:56:42,980
are they, um. Are they putting their thumb on the

1909
02:56:43,020 --> 02:56:47,380
scale to be more conservative with their numbers than, than,

1910
02:56:47,420 --> 02:56:51,140
than reality is. I try to make some qualifications in

1911
02:56:51,321 --> 02:56:54,100
there. But yeah, so we're not strictly putting the numbers

1912
02:56:54,140 --> 02:56:57,045
and putting them on the line. Um, there is, um,

1913
02:56:57,166 --> 02:57:00,345
some level of evaluation. And it's that there is a

1914
02:57:00,385 --> 02:57:09,306
qualitative factor. They get measured in. Member. I'm sorry. I

1915
02:57:09,306 --> 02:57:10,986
was too slow in putting my hand up when you

1916
02:57:10,986 --> 02:57:13,946
asked her questions previously. Um, just a quick point of

1917
02:57:13,946 --> 02:57:20,650
clarification. Um, in the municipal client questionnaire, uh, questionnaires, Clarenrington

1918
02:57:20,831 --> 02:57:25,130
and inniceville both answered yes to question 5. 6, which

1919
02:57:25,130 --> 02:57:29,050
is, does your current municipal forecast include any large or

1920
02:57:29,071 --> 02:57:32,730
unusual capital expenditures? And I'm just wondering if staff have

1921
02:57:33,151 --> 02:57:38,890
any insight as to what those unusual or large capital

1922
02:57:38,930 --> 02:57:43,178
expenditures are. So for Clarington, uh, their counsel's a bit

1923
02:57:43,178 --> 02:57:49,605
on a spending spree. They've got various building expansions and

1924
02:57:49,605 --> 02:57:54,665
new community brink center proposed. So in a lot of

1925
02:57:54,665 --> 02:57:58,565
that money is falling into MNRI, but is, um, is

1926
02:57:58,666 --> 02:58:01,765
either in progress or is starting to become in progress.

1927
02:58:01,765 --> 02:58:07,125
So there's got significant growth going on and go to.

1928
02:58:07,125 --> 02:58:11,605
And they're managing based on their structure. They've got multiple

1929
02:58:13,466 --> 02:58:16,245
downtown course. Right. So there it's not just one municipality.

1930
02:58:16,245 --> 02:58:18,645
It's a bunch of municipalities that came together to pick

1931
02:58:18,645 --> 02:58:25,355
up there. Uh, Ined spille is again, undergrowth very similar.

1932
02:58:25,355 --> 02:58:30,475
So growth related expansion projects. Um, orbit project is it

1933
02:58:30,515 --> 02:58:32,795
did one. I mean, we were there last September and

1934
02:58:32,896 --> 02:58:36,795
we, uh, they told us about all the third body

1935
02:58:36,835 --> 02:58:39,115
be spending. That is why their investment horizon, if anything

1936
02:58:39,216 --> 02:58:42,395
is growing shorter because they have, they gave us a

1937
02:58:42,395 --> 02:58:45,275
good lump of money when they joined the one ship.

1938
02:58:45,275 --> 02:58:46,635
And now it's coming clear that they're going to need

1939
02:58:46,635 --> 02:58:49,095
some of that to build, uh, some of the, uh,

1940
02:58:49,536 --> 02:58:57,761
deepest structure. That within it fills this matter of when

1941
02:58:57,801 --> 02:58:59,981
will they actually need to draw down those funds, but

1942
02:58:59,981 --> 02:59:04,578
they cannot yet clarify. But yeah, that was, that's helpful.

1943
02:59:05,110 --> 02:59:08,988
Thank you. Yeah, I think within us, an issue around

1944
02:59:09,028 --> 02:59:11,508
the timing of a ghost station related to orbital. Is

1945
02:59:11,508 --> 02:59:15,228
that right? Yeah. So, um, it could be longer, could

1946
02:59:15,228 --> 02:59:18,845
be shorter. When they actually need to spend money. Um,

1947
02:59:18,845 --> 02:59:20,945
the only other thing I want to add to the

1948
02:59:20,985 --> 02:59:25,585
commentary just following up on board member Leckman's point is,

1949
02:59:25,585 --> 02:59:29,905
um, I think, uh, this report, Mr. Taylor, had the

1950
02:59:29,905 --> 02:59:32,705
best explanation yet of the process. So thank you for

1951
02:59:32,745 --> 02:59:38,642
that. That was good. So now we're on to item

1952
02:59:38,682 --> 02:59:43,706
9D. And I think it would be more appropriate for

1953
02:59:43,746 --> 02:59:46,746
us to consider this item after the closed session given

1954
02:59:46,746 --> 02:59:50,539
the recommendation. So I'm going to ask for a motion

1955
02:59:50,539 --> 02:59:53,339
to defer consideration of this item until after the post

1956
02:59:53,379 --> 02:59:57,751
session. Some like to make that motion. Lots of people

1957
02:59:57,772 --> 03:00:01,031
are volunteering. Let's say board member ready makes that motion.

1958
03:00:01,031 --> 03:00:05,033
All in favor, please raise your hands. There's okay. Thank

1959
03:00:05,033 --> 03:00:10,023
you. I think that makes a lot more sense. Um,

1960
03:00:10,023 --> 03:00:13,943
now let's move to vitamin 10 A, which should not

1961
03:00:13,983 --> 03:00:22,263
be too difficult. Uh, this is proposing that we moved

1962
03:00:22,263 --> 03:00:26,343
the agenda date for the date for the September meeting.

1963
03:00:28,451 --> 03:00:32,910
So any concerns or problems that people have.

1964
03:00:38,673 --> 03:00:40,892
So there's no further discussion. And could I have a

1965
03:00:40,892 --> 03:00:43,772
motion that the board of Dr. Recognition report to reschedule

1966
03:00:43,812 --> 03:00:48,526
its meetings currently set for Thursday, September 3rd, 2026. Thursday,

1967
03:00:48,526 --> 03:00:54,206
September 10th, 2026 at the MO offices begin the attend

1968
03:00:54,227 --> 03:00:58,982
as we usually did. So I'll make that motion. Tracer

1969
03:00:58,982 --> 03:01:01,762
makes that motion on favor. Please raise your hands. Any

1970
03:01:01,803 --> 03:01:06,754
opposed that carries. Great. You don't have any reports under

1971
03:01:06,855 --> 03:01:09,796
strategy. A policy today. So I think we are now

1972
03:01:09,836 --> 03:01:14,623
ready for a close session. Okay. We have three items

1973
03:01:15,124 --> 03:01:18,863
listed for our closed session discussion. The first relates to

1974
03:01:19,444 --> 03:01:23,903
confidential presentation from Echler Limited that contains commercial or financial

1975
03:01:23,924 --> 03:01:29,903
information that belongs to the board under subsection 239 to

1976
03:01:31,684 --> 03:01:36,943
subsections 239 21 J. That's two I and J of

1977
03:01:36,943 --> 03:01:41,103
the misspal act. And we have two education sessions under

1978
03:01:41,124 --> 03:01:44,543
section 239 3. 1 of the act. And they relate

1979
03:01:44,543 --> 03:01:47,583
to educating board members on syncing funds and providing an

1980
03:01:47,623 --> 03:01:50,223
update on municipalities that are in the pipeline to join

1981
03:01:50,223 --> 03:01:52,827
the prudent investor program. And there are a few which

1982
03:01:52,867 --> 03:01:55,307
is encouraging. So can I have a motion to move

1983
03:01:55,328 --> 03:02:03,512
into closed session for the purpose of receiving confidence. To

1984
03:02:03,613 --> 03:02:07,032
move into closed session for the purpose of receiving commercial

1985
03:02:07,072 --> 03:02:11,432
or financial under subsections 239 to INJ at the missile

1986
03:02:11,693 --> 03:02:14,872
act and holding education sessions on syncing funds and a

1987
03:02:14,912 --> 03:02:18,552
pipeline update under section 239 3. 1 after miss will

1988
03:02:18,552 --> 03:02:28,338
act board member PIMCO makes that motion. Okay. Carries. Okay.

1989
03:02:28,439 --> 03:02:30,578
So we're going to have a brief recess as we

1990
03:02:30,578 --> 03:02:34,098
transition to the closed session. If anybody said quick break

1991
03:02:35,079 --> 03:02:39,618
the time now and, uh, daddy, we'll need to move

1992
03:02:39,618 --> 03:02:42,658
over to this front. Oh, maybe not if she's on

1993
03:02:42,698 --> 03:02:47,675
the phone. But anyway, I will. Okay. Thanks. We're moving

1994
03:02:47,696 --> 03:02:50,338
into closed session now. And then we'll come back to

1995
03:02:50,378 --> 03:02:52,818
make public motions follow in the closed session. Okay. So

1996
03:02:53,799 --> 03:02:56,098
quick transition. And then we'll get going.

1997
05:24:51,057 --> 05:24:53,596
Okay, okay. So could I have a motion that the

1998
05:24:53,636 --> 05:24:57,235
board received the confidential presentation from the closed session. And

1999
05:24:57,256 --> 05:25:00,675
from the closed education session that relate to items 12A,

2000
05:25:00,675 --> 05:25:06,714
12B and 12C on the agenda. Vice Chair James makes

2001
05:25:06,754 --> 05:25:09,594
that motion all in favor. Please raise your hands. Any

2002
05:25:09,634 --> 05:25:13,534
opposed that carries. And now we're moving back to agenda

2003
05:25:13,574 --> 05:25:19,340
item 9D. So if there's no discussion on the report,

2004
05:25:19,340 --> 05:25:21,260
that's on discussioning closed. Could I have a motion to

2005
05:25:21,281 --> 05:25:24,380
adopt the following recommendation? The report approved the continuation of

2006
05:25:25,121 --> 05:25:30,220
pH and then institutional as the external investment manager. Board

2007
05:25:30,241 --> 05:25:32,380
member John makes that motion. I'll in favor. Please raise

2008
05:25:32,380 --> 05:25:40,133
your hands. Any opposed. Tered. No other business from board

2009
05:25:40,173 --> 05:25:44,356
members or staff. I can include the meeting lookups in

2010
05:25:44,396 --> 05:25:50,555
a minute of me saying them all. Sure. Okay. So

2011
05:25:50,576 --> 05:25:55,660
I'm going to skip the meeting outcomes. For now. And

2012
05:25:55,921 --> 05:25:57,260
so it doesn't include it in the minutes. All right.

2013
05:25:57,260 --> 05:26:02,867
So media outcomes will be included in the minutes. And

2014
05:26:03,128 --> 05:26:05,027
I have a motion that the appropriate staff of one

2015
05:26:05,067 --> 05:26:06,947
jib and one investment be given the authority to do

2016
05:26:07,128 --> 05:26:10,147
all things necessary, including executing and documents to give effect

2017
05:26:10,168 --> 05:26:15,622
to the board's decisions today. I remember really makes that

2018
05:26:15,622 --> 05:26:18,779
motion on favorite. Please lose your hands. On your pose.

2019
05:26:20,178 --> 05:26:25,963
Bacterias. And I have a motion to adjourn. I remember

2020
05:26:26,304 --> 05:26:28,763
we might. Kessel makes that motion. I'll in favor of

2021
05:26:28,763 --> 05:26:32,843
these raise your hands. You that carries our next meeting

2022
05:26:32,944 --> 05:26:35,883
is on September 10th, 2026 at 10 a. m. here

2023
05:26:35,923 --> 05:26:39,482
at the MO office. Thank you everyone. Have a great

2024
05:26:39,503 --> 05:26:42,922
summer and the board stands adjourned off.