Performance

Our focus is on long-term performance, and our primary objectives are to meet or exceed the university’s target rates of return for all three portfolios and outperform the benchmark Reference Portfolio for the Pension and Endowment portfolios.

We are pleased to report that over the 10-year period ending in 2018, our active management approach has exceeded the university’s target returns for all three portfolios, and we have outperformed the Reference Portfolio in the Pension and Endowment portfolios. We continue to believe that we have the right systems, processes, governance and – most importantly – talented people in place to continue delivering long-term value to the university.

 10-Year Annualized Returns
PensionEndowment
Actual Net Return7.8%7.9%
Reference Portfolio Return6.7%6.7%
University Target Return5.7%5.7%

UTAM’S 10-Year Value Added as of 2018

$403 million

Pension

$265 million

Endowment

$668 million

Pension + Endowment

1.1%

Annualized Outperformance, Pension

1.2%

Annualized Outperformance, Endowment

Over the last 10 years, UTAM has outperformed the Reference Portfolio benchmark in the Pension and Endowment portfolios by over 1% annualized, equating to over $650 million in value added for both portfolios combined.


2018 Calendar Year Performance

2018 Annual Report

Our 2018 Annual Report contains a detailed analysis of performance during the year and an in-depth look at how we bring together the many building blocks of our investing approach.


2018 Mid-Year Performance Update

2018 Mid-Year Update

Performance Review

On October 9, 2018, UTAM presented its semi-annual update on investment performance to the University of Toronto’s Business Board. Daren Smith, UTAM’s President and Chief Investment Officer, reported that the Pension and Endowment portfolios managed by UTAM gained 2.2% net of all investment-related fees and expenses during the first six months of 2018. This return was 0.9% lower than the university’s target return of 3.1% (inflation + 4% per year) but 0.6% higher than the benchmark Reference Portfolio return.


Performance Update to U of T’s Business Board

2018 Year-End Update

Performance Review

On April 23, 2019, UTAM presented its 2018 investment results to the University of Toronto’s Business Board. Daren Smith, UTAM’s President and Chief Investment Officer, reported that the Pension and Endowment portfolios managed by UTAM returned -1.6% and -1.5%, respectively, during calendar year 2018, net of all investment-related fees and expenses. UTAM outperformed the Reference Portfolio benchmark by 0.7% for Pension, equating to $36 million in value added, and 0.8% for Endowment, equating to $23 million in value added. 

Annual Performance for the Last 10 Years: 2009 to 2018

 2018201720162015201420132012201120102009
Pension
 University Target Return36.0%5.8%5.5%5.6%5.6%5.2%4.9%6.3%6.3%5.3%
 Actual Return1-1.6%12.4%7.1%7.4%12.7%15.1%9.3%1.2%9.5%5.4%
 Reference Portfolio Return2-2.3%11.4%7.2%3.2%9.7%12.4%8.7%0.8%9.4%7.0%
UTAM Value Added40.7%1.0%-0.1%4.3%3.0%2.7%0.6%0.4%0.1%-1.6%
Endowment (LTCAP)
 University Target Return3  6.0%5.8%5.5%5.6%5.6%5.2%4.9%6.3%6.3%5.3%
 Actual Return1-1.5%12.4%7.1%7.7%12.9%15.3%9.2%1.2%9.3%6.2%
 Reference Portfolio Return2 -2.3%11.4%7.2%3.2%9.7%12.4%8.3%0.7%9.4%7.9%
UTAM Value Added40.8%0.9%-0.1%4.5%3.2%2.9%0.9%0.4%-0.1%-1.7%
EFIP
 University Target Return5  2.3%0.8%0.9%1.5%1.5%1.7%1.5%2.4%1.4%1.8%
 Actual Return2.1%1.5%1.6%1.5%2.0%1.6%1.6%2.5%2.2%2.4%
Actual Minus Target-0.2%0.8%0.7%-0.1%0.5%-0.2%0.1%0.1%0.7%0.5%
(*) All values in the table have been rounded to the nearest 0.10%. UTAM Value Added uses Actual, Reference and Target Returns before rounding and then rounds to the nearest 0.10%.
1 Includes returns for private market investments from January 1, 2007.
2 The Reference Portfolio was adopted by Endowment in March 2012 and by Pension in May 2012. Benchmark/Policy Portfolio used for prior periods.
3 Consumer Price Index (CPI) + 4%.
4 Actual Return minus Reference Portfolio Return.
5 One-year Canadian T-bill index plus 50 basis points.

Portfolio Market Values for the Last 10 YearsAt December 31 in Billions: 2009 to 2018

Portfolio2018201720162015201420132012201120102009
Pension$4.9$5.0$4.4$4.1$3.8$3.2$2.8$2.5$2.3$2.2
Endowment (LTCAP)$2.9$2.9$2.6$2.4$2.3$2.1$1.9$1.8$1.8$1.6
EFIP$2.2$2.0$1.8$1.5$1.4$1.2$1.2$1.0$0.9$0.8
Total$10.0$9.9$8.8$8.1$7.4$6.6$5.8$5.3$5.0$4.6
(*) Totals may not add due to rounding.