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UCC Foundation develops new investment policy

The UCC Foundation has appointed Cambridge Associates as its investment adviser and developed a new investment policy statement.

These decisions were driven by a number of considerations, including a belief that the UCC Foundation’s investment approach should adapt to serve the needs of its growing endowment, and to address current and expected future market conditions. Assuming continued growth in gifts to the UCC Foundation and reasonable investment performance, it’s expected that the endowment will surpass $100 million within the next two years.

The UCC Foundation previously used a simple, low-cost investment strategy involving allocations to index funds and cash.

“This strategy served the foundation well, generating a 10-year annualized return of approximately 5.6 per cent with limited volatility,” says Vice-Principal of Advancement and Strategy Jim Garner. “The Foundation board believes that the proposed changes to the investment policy statement are desirable in the pursuit of investment objectives going forward.”

The long-term investment objective remains to earn a real total return, net of fees and expenses, equal to or greater than distributions to the College after inflation. Risk tolerance also remains unchanged and is expected to correspond to a portfolio of 70 per cent equities and 30 per cent bonds.

The UCC Foundation is an entity independent from Upper Canada College, governed by its own Board of Trustees and supported by staff shared with the College. Unless otherwise provided for in a gift agreement, all of the UCC Foundation’s assets are invested in a common pool and share proportionately in investment gains and losses. Currently, endowment payouts are equivalent to approximately four per cent of its market value.