The Treasury group is responsible for the prudent stewardship of the university's endowment and non-endowed cash assets. Its responsibilities include developing, recommending, implementing, and reviewing policies and procedures relating to:
To ensure available and adequate liquidity for faculty and business unit requirements. These objectives include maximizing short-term interest income, minimizing interest expense, and managing financial risk as it relates to interest rates and currency.
To optimize risk-adjusted returns on the investment of endowment and non-endowment funds for use by the university and its programs. Treasury oversees and works closely with external investment managers, money managers, external brokers and other specialists. Results are reviewed regularly and reported to senior management, the Investment Committee, and the Board of Governors.
As at March 31, 2024, the investment assets of the University of Calgary subject to the oversight of The Governors of the University of Calgary (the “Board”), had a total market value of approximately $2.7 billion. This amount is divided between endowed and non-endowed funds.
The university invests non-endowed funds which are surplus to the immediate needs of their designated purposes. The non-endowed funds primarily consist of operating funds, capital project funds and restricted funds. Restricted funds consist of research funds provided by federal and provincial government agencies, corporations, individuals and transitional endowment funds.
The Board has delegated to an Investment Committee (the “Committee”) the obligation to oversee the investment process to ensure assets are being managed in accordance with approved policies.
The target rate of return for each type of funds is determined based on time horizon and risk tolerance. Requirements may change over time and objectives for each type of funds will be reviewed by the Committee at least annually.
The primary objective for endowed funds is to achieve a long-term real rate of return, net of all fees and expenses, to be able to provide income to support related programs while maintaining the real value of the endowed funds. For example, endowed funds at the University of Calgary support a variety of programs, including research chairs, experiential learning programs, and lectureships, as well as more than a thousand scholarships and bursaries for students. The long-term health of these endowed funds creates the foundation for success of future generations of UCalgary students and researchers, while also delivering immediate impact to university programs.
The secondary objective for endowed funds is to add value through prudent management. This is achieved by active management, where appropriate, and by adopting a long-term asset allocation strategy which is perceived by the Committee to carry a reasonable but prudent degree of risk. This objective will be measured in terms of an annualized time-weighted rate of return, measured over moving four-year periods, which is expected to exceed the return computed by linking quarterly returns from the composite portfolio.
The primary objective for short-term non-endowed funds is preservation of capital.
For longer-term non-endowed funds, the primary objective is to increase returns within a level of risk determined to be appropriate by the Committee.
The Committee approves the appointment of institutional investment managers to invest endowed funds. The Committee believes external investment management brings investing expertise, geographic and asset class diversification, cost effective investing, reduced risk and volatility, and enhanced returns compared with managing funds internally (in whole or in part).
The Committee will approve the appointment of institutional investment managers for the management of non-endowed funds. For operational purposes, a portion of non-endowed funds will be internally managed by the Treasury & Investments department.
The Committee believes appropriate consideration of environmental, social, and governance (“ESG”) factors contributes to the long-term performance of the university’s investment portfolios and ultimately benefits its stakeholders. ESG considerations reflect the diversity of societal values which vary and evolve over time and as such, the Committee appreciates there needs to be multiple perspectives considered in determining appropriate ESG requirements for the university’s investments. ESG is one of several considerations in evaluating appropriate investment opportunities. The Committee commits to continuously evaluating the university’s ESG framework and processes across its investment portfolios.
Endowments donated for specific purposes are held and invested in perpetuity. Only investment income is utilized for the intended purpose to allow the value of the endowment to grow or be maintained.
To establish an endowment, please contact University of Calgary's Advancement Office at give@ucalgary.ca
E-mail: investments@ucalgary.ca or treasury@ucalgary.ca