UTAM’s 2021 Annual Report to stakeholders details the performance of the Endowment and short-term working capital investments managed on behalf of the University of Toronto, along with other highlights from the past year. Under the theme “Investing in Tomorrow,” the report connects UTAM’s long-term investment record to our broader purpose: helping one of the world’s leading universities achieve its goals. As Chuck O’Reilly, UTAM President and Chief Investment Officer, sums up in his introductory message, “We never lose sight of what effective investment strategies ultimately enable: sustaining the academic excellence and globally significant scholarship of Canada’s largest university.”

Continued strong returns

In 2021, we saw strong performance across the assets under UTAM’s management.*

The Endowment portfolio delivered a return of 14.9%, outperforming the benchmark Reference Portfolio by 4.7%. Importantly, over the 10-year period ending December 31, 2021, the Endowment portfolio returned 10.2% per annum, compared to the Reference Portfolio return of 8.7% per annum.

The Expendable Funds Investment Pool (EFIP), which comprises short-term working capital assets of the University, returned 0.0% in 2021, outperforming its benchmark return by 0.4%. Over the past 10 years, EFIP returned 1.9% per annum compared to its benchmark return of 1.6%.

“While performance was strong in 2021, we focus on the long term and are particularly proud of the track record we’ve generated,” Chuck says. “Over the past year, we were able to remain focused, implementing our investment processes in a disciplined manner – despite the continued disruption of the pandemic. It’s a testament to the dedication, knowledge, skill and experience of the team we’ve worked hard to assemble.”

Committed to investing responsibly

UTAM’s focus on tomorrow is reinforced by our leadership in responsible investing. The annual report highlights new sustainability commitments for the Endowment portfolio, announced by U of T President Meric Gertler in October 2021. We will divest the portfolio from direct investments in fossil fuel companies within 12 months of the announcement and from indirect investments by 2030 or sooner. UTAM is committed to achieving net zero carbon emissions associated with the Endowment portfolio no later than 2050. And by 2025, at least 10% of the portfolio will be allocated to sustainable and low-carbon investments.

Looking beyond the numbers

Like other asset owners and managers, UTAM measures progress by the quantifiable results from the portfolios we manage. But in working to sustain and enhance the value of the University’s funds, we’re also supporting its efforts to advance education, scholarship and research.

Our annual report profiles a selection of students, professors and programs that have benefited from donor-supported endowments. Bursary recipient Avery Lam-Hong, for example, describes how the University’s support “has been critical to helping me continue my dream of a medical career;” the bursary also allows him to devote time to volunteering and community service.

The report also includes a conversation with David Palmer, U of T’s Vice-President, Advancement, who connects the dots between the University’s successful donor engagement efforts and the support UTAM provides: “Donors want to know that their contributions will make a difference today and will continue to advance learning and scholarship in the future. This is where we point to UTAM.”

As U of T launches Defy Gravity, the largest university fundraising and alumni engagement campaign in Canadian history, David underlines the importance of UTAM’s record of “accessible information and transparent reporting,” and in particular our leadership in responsible investing: “We’re inviting donors to join us in advancing the frontiers of knowledge, igniting innovation and creating lifechanging opportunities for students of diverse backgrounds with a shared hope for the future. Because investing in them is, as the theme of UTAM’s annual report suggests, investing in tomorrow.”

Read and download the 2021 Annual Report

*On July 1, 2021, the University of Toronto’s pension assets became part of the combined holdings governed by the University Pension Plan Ontario (UPP), a new entity jointly sponsored by U of T and two other Ontario universities. Therefore, although we managed the pension assets for the full year, as they no longer belong to U of T, we do not report on their investment performance or other results.