History & Mandate

The University of Toronto Asset Management Corporation (UTAM) was established on April 25, 2000 by the Governing Council of the University of Toronto as a separately incorporated investment management organization governed by its own Board of Directors.

Timeline

The following timeline shows significant events in UTAM’s history and highlights our focus on good governance, risk management, transparency and responsible investing.

2000
2005
2008
2010
2011
2012
2013
2016
2018

UTAM established

Registered with the Ontario Securities Commission

Daren Smith joined UTAM in November 2008

The Investment Advisory Committee is formed to provide advice and guidance to UTAM management

Appointed its first Chief Risk Officer

Implemented a comprehensive risk system

Implemented a detailed performance attribution system

  • Daren Smith appointed as President and Chief Investment Officer
  • Value added to the Pension and Endowment portfolios over a five-year period exceeds $500 million for the first time
  • Became a signatory to the PRI and committed to responsible investing
  • The expert external Investment Committee replaced the Investment Advisory Committee
  • UTAM relaunched its website and annual report in an effort to improve transparency and communications with stakeholders

UTAM’s assets under management on behalf of the university reached $10 billion


Mandate

UTAM’s sole activity is to manage the invested assets of the University of Toronto, prudently and in accordance with our client’s directions. We work in close collaboration with the university to ensure that we fully understand its investment objectives along with all other considerations, and this is reflected in our management activities.

UTAM takes direction from U of T’s administration and its governance bodies. UTAM staff meet regularly with the UTAM Board, the university administration, the Investment Committee (which reports directly to the President of the university), and various university governance bodies.

UTAM manages three portfolios on behalf of the university. These are their mandates:


1. The Long Term Capital Appreciation Pool(LTCAP or Endowment)

The Endowment primarily represents certain of the university’s endowment funds. The change in assets of this pool is largely the net result of endowment contributions, withdrawals made to fund endowment projects, and investment income earned on invested assets. At December 31, 2018 the assets in this pool were valued at $2.9 billion, unchanged from 2017.

The investment mandate of LTCAP is outlined in the University Funds Investment Policy, which is available on the U of T Governing Council website.


2. The Expendable Funds Investment Pool(EFIP)

EFIP (also referred to as the short-term working capital portfolio) consists of the university’s expendable funds that are pooled for investment purposes over the short and medium term. The nature of these assets, which primarily represent the university’s working capital, means that the total assets in EFIP can fluctuate significantly over time and during any single year. The change in assets of EFIP reflects the combined effect of many factors, such as student tuition fees, university expenses for salaries, expenses for maintaining facilities, government grants, and investment income earned on invested assets. At December 31, 2018 the assets in this pool were valued at $2.2 billion (2017: $2.0 billion).

The investment mandate of EFIP is outlined in the University Funds Investment Policy, which is available on the U of T Governing Council website.


3. The University of Toronto Master Trust(Pension Fund or Pension)

The University of Toronto Master Trust consists of the assets of the University of Toronto Pension Plan. The change in assets of the Pension Fund is primarily the net result of employer and employee pension contributions, pension payments to retirees and investment income earned on invested assets. At December 31, 2018 the assets in this trust were valued at $4.9 billion (2017: $5.0 billion).

The investment mandate of the University of Toronto Master Trust is outlined in the Statement of Investment Policies and Procedures, which is available on the U of T Financial Services website.