Investments
TMU maintains separate portfolios for its operating cash and endowment funds given the different uses and duration of the funds.
The university’s operating cash consists of tuition fees, government grants, research grants, investment income, debt proceeds, donations, ancillary revenues and all other university revenues used towards the operating needs of the university.
Operating cash is defined as expendable in these instances. These funds generally have a short time horizon as the funds ensure that the university’s daily cash requirements are met. If surplus cash is available, they are invested on a short-term basis with the objective of earning additional returns beyond the university’s interest-bearing bank account returns.
A portion of funds may have a longer time horizon such as proceeds from debt issuance. These funds are managed according to the liquidity requirements that coincide with capital project requirements. Find more in TMU’s Investment Policy for Expendable Funds.
The university’s endowment fund portfolio consists of donor-endowed funds with the objective of obtaining long-term investment returns to support spending commitments, including student awards and research chairs.
These funds are defined as non-expendable with the objective of managing the portfolio to provide the financial resources required to preserve the value of the original endowment in perpetuity, as well as to provide stable annual investment returns to fund related spending commitments.
Find more in TMU’s Investment Policy for Non-Expendable Funds.
TMU’s investments are managed by investment managers in pooled funds.
The table below provides a summary of TMU’s investment portfolios and links investment managers to their United Nations Principles for Responsible Investment (UNPRI) signatory profiles. Investment information can be found in the university’s audited financial statements.
Investment type |
Investment manager |
Fund name |
UNPRI signatory status |
Balanced |
|||
Cash and cash equivalents |
|||
Balanced |
Canadian Dollars JF Money Market Fund C$ US dollars JF Bond Fund JF Canadian Equity Fund JF US Equity Fund JF International Pooled Fund C$ |
||
Fixed income |
Philips, Hager & North Investment Management Ltd. (external link) |
Philips, Hager & North Investment Management Ltd. (external link) |
TMU’s commitment to responsible investing
The university places a strong emphasis on its fiduciary responsibilities and governance of its funds, and ensuring that investments in the funds are aligned with and support our values as articulated in the university's strategic vision. This commitment is incorporated within TMU’s Investment Policy for Non-Expendable Funds.
TMU selects best-in-class investment managers who believe in engagement as a means to drive change and protect and enhance long-term value. We expect investment managers to engage in outcome-focused dialogue with companies held in our portfolios about systemic issues and material risks such as climate change, human rights and corporate governance.
Investment managers retained by TMU are expected to:
- Incorporate Environmental, Social and Governance (ESG) as part of the investment decision-making process
- Perform shareholder engagement
- Complete proxy voting
- Support various social initiatives within the Greater Toronto Area
- Provide TMU with ESG reporting
- Serve as members, supporters or signatories of one or all of the following:
- United Nations Principles of Responsible Investing (UNPRI)
- Climate Engagement Canada (CEC)
- Responsible Investing Association (RIA)
- Climate Action 100+
- Task Force on Climate Related Financial Disclosures (TCFD)
- Canadian Coalition for Good Governance (CCGG)
For many years, TMU has been focusing its efforts on advancing responsible investing practices for its endowment portfolio. Selected highlights of TMU’s journey towards responsible investing are outlined here.
In 2022, via its endowment portfolio, TMU joined the University Network for Investor Engagement (UNIE). UNIE is a climate-aligned portfolio investor engagement program for university endowments and pension plans, established by the Shareholder Association for Research and Engagement (SHARE).
Through UNIE, the universities’ collective power as institutional investors is used to influence and address climate change-related risks and opportunities in our portfolios. The objective of this collaboration of universities is to use influence to address climate change-related risks and opportunities.
By joining UNIE, TMU automatically connected to the following:
- Climate Action 100+: An investor-led initiative to ensure the world's largest corporate greenhouse gas emitters take necessary action on climate change
- Climate Engagement Canada: A finance-led initiative that drives dialogue between finance and industry to promote a just transition to a net zero economy