U of T to curtail aggressive investing.

Move follows a decade of disappointing returns and a $1.5-billion loss that wiped out nearly 30 per cent of the school’s pension and endowment funds in a single year.

By Elizabeth Church

Excerpt from: Globe and Mail, Monday, Feb. 22, 2010

The University of Toronto’s foray into aggressive U.S.-style investing is coming to an end following a decade of disappointing returns and a $1.5-billion loss that wiped out nearly 30 per cent of the school’s pension and
endowment funds in a single year.

The move was announced quietly over the weekend in a letter to faculty and staff from university president David Naylor and follows the recommendations of a blue-ribbon panel led by Hal Jackman, a former chancellor and major donor to the school. That report, also made public on the weekend, finds that University of Toronto Asset Management, a corporation set up in 2000 to boost returns by applying the investment style pioneered at big U.S. schools, “has not achieved its mission.” It recommends that the university bring the asset manager back under its direct control and that its exposure to risky investments such as hedge funds and private equity “be scaled back significantly.”

Dr. Naylor in his letter said ….

Full article at:

http://www.theglobeandmail.com/globe-investor/u-of-t-to-curtail-aggressive-investing/article1476669/

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One Response to U of T to curtail aggressive investing.

  1. Susan Fitzgibbon says:

    U of T had 15.8% in private equity and 23.3% in hedge funds; Queen’s had none of the pension money in these

    two types of assets. U of T got caught up in Bernie Madoff investments/Ponzi schemes in a big way; Queen’s

    didn’t. The Queen’s Pension Plan Quarterly reports are available under Compensation and Benefits on the HR

    website (last one is for Dec. 31, 2009). The one-year return was 18.6% – pretty healthy against a benchmark

    return of 15.9%.

    Susan Fitzgibbon
    Member Services Officer
    Queen’s University Faculty Association

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