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Investment

This section provides an overview of the University’s investment and provides information on the two investment pools: LTCAP and EFIP.

Investment Management and Oversight

Investment Pools

Role of Departmental Administrators

 

Investment Management and Oversight

The University funds are invested in accordance with the University Funds Investment Policy. This policy sets the investment return objectives as well as risk tolerance for each of the investment pools.

Investment strategy and activity is managed by the University of Toronto Asset Management Corporation (UTAM) as an agent for the University, in accordance with the University’s investment policy. UTAM is an investment management subsidiary wholly owned by the University and governed a Board of Directors. The UTAM Board is responsible for the oversight and direction of UTAM. UTAM reports on the investments under management to the Unversity Administration and to the Business Board of the University of Toronto.

While the University establishes the return and risk parameters for its investment pools, UTAM develops and executes appropriate investment strategies, and recommends the policy asset mix, based on these parameters. The policy asset mix is periodically subject to a comprehensive review in conjunction with the requirements of the University’s funds.

 

Investment Pools

University funds are mainly invested in two major investment pools, with the exception of a few trust funds which by external restrictions are precluded from being pooled for investment purposes, and therefore are invested outside these pools.

  • LTCAP (Long-Term Capital Appreciation Pool) – This section provides detailed information regarding the LTCAP, which is a unitized investment pool consisting of the University’s endowed trust funds or other funds of a permanent or long-term nature. The LTCAP represents the pooling of invested assets accumulated by, or donated to, the University for endowed purposes.
  • EFIP (Expendable Funds Investment Pool) – This section discusses the policies related to the EFIP, which represents all of the University’s expendable funds, which are pooled for investment purposes until the funds are required for expenditure.

 

Role of Departmental Administrators

Investment income earned on the University’s expendable funds, which are invested from the time they are received until they are required for expenditure, represents an important source of revenue for the University. Judicious cash management practices contribute to maximizing this source of income. Accordingly, departmental administrators should:

Last revision September 2010