Investing
UTAM focuses exclusively on investing university-owned assets. Our approach is based on serving our client as a strategic and disciplined manager, realizing the highest possible returns while respecting our client’s risk tolerance, policy constraints and guiding values.
The funds we manage
1. The Long Term Capital Appreciation Pool
(LTCAP or Endowment)
The Endowment primarily represents certain of the University’s endowment funds. The size of this portfolio changes in value with contributions, investment gains/losses, fees and expenses, and the annual withdrawals to fund Endowment-supported initiatives. At December 31, 2023, the assets in this pool were valued at $4.2 billion (2022: $3.8 billion).
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 have significant fluctuations over time and during any single year. Factors that affect these fluctuations include student tuition fees, staff and faculty salaries, facilities maintenance costs, government grants, fees and expenses, and investment gains/losses. At December 31, 2023, the assets in this pool were valued at $3.9 billion (2022: $3.9 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.
Investment Beliefs
Our investment beliefs provide a clear and transparent framework for how we work to achieve our client’s investment objectives. Our investment beliefs influence our views on capital markets, our investment and risk management processes, the managers we choose to partner with, and our overall approach to managing client assets.
Investment Impact
Driving the Innovation Economy
Prof. Dan Breznitz, the Munk Chair of Innovation Studies, has earned global recognition for showing how innovation transforms rapid-growth industries and entire communities.
The Reference Portfolio
The primary driver of investment returns over a long period of time is strategic asset allocation. At UTAM, our strategic asset allocation is represented by the Reference Portfolio, which is established with the goal of meeting our client’s long-term risk and return objectives. The Reference Portfolio consists of 60% public equity exposure and 40% fixed income exposure.
Investment Impact
Nurturing Successful Careers
Established at the University of Toronto Mississauga (UTM) in 2011, the Pynn Family Paleontology Award helps outstanding undergraduate students in financial need pursue studies of fossilized animals and plants – for donor Bruce Pynn, a key early step in his subsequent health-care career.
Our Commitment to Responsible Investing
As we invest the University of Toronto’s assets for the long term, UTAM integrates environmental, social and governance (ESG) factors into various aspects of our investment and risk management, including decision-making, manager selection, stewardship activities (through engagement, proxy voting and advocacy) and reporting and disclosure.
Selecting Investment Managers
A core strength that we believe sets UTAM apart is our thoughtful, systematic approach to evaluating and selecting external investment managers. We follow a clear and repeatable process of identifying, assessing and monitoring the practices and performance of the investment managers we choose to work with.
Climate Commitments
UTAM is committed to divesting from investments in fossil fuel companies, investing in sustainable and low-carbon strategies, and to achieving net zero emissions in the Endowment portfolio. UTAM has also established interim targets with respect to emissions, engagement and transition financing.
PRI Principles: Scorecard & Actions
Since 2016, UTAM has been a signatory to the Principles for Responsible Investment (PRI), an investor initiative and leading proponent of responsible investing.
The PRI publishes scorecards for its signatories to assess progress in implementing responsible investing practices over time, across asset classes and in comparison to peers at national and global levels. The PRI also publishes detailed assessment and transparency reports, available in the Reports section of our website.
UN-convened Net-Zero Asset Owner Alliance
In 2021, UTAM, on behalf of the University, joined the United Nations–convened Net-Zero Asset Owner Alliance — making U of T the first university in the world to become a member. The Alliance is a member-led initiative of institutional investors committed to transitioning their investment portfolios to net zero GHG emissions by 2050.
Current Investment Managers
Our ability to identify best-in-class third-party investment managers is a primary driver of the Endowment’s performance relative to the Reference Portfolio. View our roster of the external investment managers engaged by UTAM with more than $1 million (in aggregate) invested on behalf of UTAM’s client portfolios.