Our Approach

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 Reference Portfolio

The primary driver of investment returns over a long period of time is the 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.

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Selecting Investment Managers

Once the Reference Portfolio has been determined, our job is to thoughtfully implement our strategy using the Reference Portfolio as an objective gauge for measuring the risk and value added of our investment activities.

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 – and we’re constantly looking for ways to improve that collaborative process.

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Managing Investment Risk

UTAM’s comprehensive risk framework takes into account a broad spectrum of potential investment risks, from counterparty concentration and liquidity needs to environmental, social and governance (ESG) factors, including climate change. The dedicated team of investment risk practitioners led by our Chief Risk Officer weighs all formal constraints in ensuring that investment decisions reflect the University of Toronto’s risk appetite and long-term expectations for its Pension, Endowment and short-term working capital (EFIP) assets.

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Responsible Investing

UTAM’s formalized approach to responsible investing is consistent with our fiduciary duty and complements our overall investment strategy for the university’s Pension, Endowment and short-term working capital assets. By considering the relevant ESG dimensions of potential investments, we believe that we’re able to make better-informed decisions and achieve superior results over the long term.

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Investments

The strategic asset allocation of the Pension and Endowment portfolios is represented by the benchmark Reference Portfolio, which has risk and return attributes consistent with the objectives of these portfolios.

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