As the University of Toronto strives for excellence in teaching and research, we work to strengthen key financial pillars on which that vision is built.
Vision
To be one of the world’s leading university investment managers.
Mission
To produce strong investment results over the long term, advancing the University of Toronto’s goals for its portfolios through skilled investment management, leadership in responsible investing and prudent risk management.
Our Approach
Since UTAM’s inception in 2000, we have provided professional investment management services to protect and grow the University of Toronto’s financial assets.
As we manage U of T’s Endowment and short-term working capital funds, we draw upon our proven processes and deep investment expertise. At the same time, we collaborate closely with U of T’s senior leadership, the expert advisors of the University’s Investment Committee, our carefully selected investment managers and strategic partners, and other key stakeholders, benefiting from their insights and experience as we manage the University’s assets to achieve its risk and return objectives.
Responsible Investing
UTAM is committed to responsible investing, which we define as the incorporation of environmental, social and governance (ESG) factors into investment decision-making processes, active ownership – through proxy voting and engagement – and disclosure.
We pursue a responsible investing approach because we believe that material ESG factors can have a significant impact on investment returns. By integrating ESG considerations into our investment activities, we believe we can make better-informed decisions and ultimately achieve better outcomes for the portfolios we manage on behalf of the University.
Our approach to integrating ESG factors into our investment process is complemented by our commitment to reducing the carbon emissions associated with the investments in the Endowment portfolio.
Investments
Endowment Portfolio
The strategic asset allocation of the Endowment portfolio is represented by the benchmark Reference Portfolio, which has long-term risk and return attributes consistent with the objectives of this portfolio.
The Reference Portfolio serves as the starting point for all of UTAM’s active investment decisions for the Endowment. As we implement our investment strategy, the Reference Portfolio provides us with an objective gauge for measuring the risk and value added of our active investment activities.
Expendable Funds Investment Pool (EFIP)
The EFIP portfolio is comprised of a Short-Term Portfolio and a Medium-Term Portfolio. Each of these portfolios has independent, investable benchmarks that are used to assess UTAM’s active investment strategies. The weightings of the Short-Term and Medium-Term portfolios reflect the University’s long-term risk and return objectives for EFIP.
Performance
We are focused on investing for the long-term. Our most important performance objectives are (1) to meet the University’s long-term target rates of return and (2) to add value to the Endowment portfolio by outperforming its benchmark Reference Portfolio while adhering to all constraints, including a formal risk budget.
Endowment Portfolio
Over the 10-year period ending in 2021, the Endowment portfolio returned 10.2%. This return exceeded the University’s target return of 5.8% and the benchmark Reference Portfolio return of 8.7%.
Expendable Funds Investment Pool (EFIP)
Over the 10-year period ending in 2021, the EFIP portfolio returned 1.9%. This return exceeded the EFIP benchmark returns of 1.6%.
Reports
2020 Annual Report:
NEXT
Our 2020 Annual Report includes details about investment performance, as well as the strengths that continue to make UTAM a resilient organization, have helped us navigate the global pandemic, and have set us up well for the future.
2020 Responsible Investing Report:
NOW
The report includes a detailed explanation of our practice of considering the potential ESG impact of every investment decision. We describe the continuing evolution of responsible investing practice – not only in our decision-making, but also in active ownership, reporting and disclosure. Although the report is of 2020 activities, we have included many significant developments that took place in 2021 that will inform our responsible investing practice now, and for the next decade and beyond.
News
UTAM Renews Support for CDP’s Science-Based Targets Campaign
For the third year running, UTAM is a signatory to CDP’s Science-Based Targets Campaign. The campaign coordinates global asset owners and major corporate buyers to call on companies to set…
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