REPORT NUMBER 284 OF THE BUSINESS BOARD
WEDNESDAY, APRIL 23, 2025
To the Governing Council,
University of Toronto,
Your Board reports that it held a meeting in the Council Chamber, Simcoe Hall on April 23, 2025, at 5:00 p.m. with the following members present:
PRESENT: Rajiv Mathur (Chair), Mathangi Gopinathan (Vice-Chair), Scott Mabury (Vice-President, Operations & Real Estate Partnerships), Kelly Hannah-Moffat (Vice-President, People Strategy, Equity & Culture), Trevor Rodgers (Chief Financial Officer), Amanda Bartley, Lindsay Boyce*, Jovan Bursac, Vikram Chadalawada, Janet Anne Cloud, Samuel Elfassy, K. Sonu Gaind, Maureen Harquail*, Thomas Hofmann, Paul Huyer, Katheryn Jenkins, Samantha Kappagoda, Scott MacKendrick, Brian Madden, Adel Melek*, David Regan*
REGRETS: Sharleen Ahmed, Glen W Bandiera, Rima Ramchandani, Firdaus Sadid, Mary-Agnes Wilson
NON-VOTING ASSESSORS: David Palmer (Vice-President, University Advancement), Christine Szustaczek (Vice-President, Communications), Joseph Wong (Vice-President, International), Nicholas Rule (Vice-Provost, Academic Programs), Jeff Lennon (Assistant Vice-President, Planning & Budget), Anne MacDonald (Assistant Vice-President, Spaces & Experiences), David Lehto (Chief of University Planning, Design & Construction), Deborah Brown* (Chief Administrative Officer, UTM) Sonya Donovan (Managing Director, Real Estate Portfolio)
SECRETARIAT: Timothy Harlick (Secretary), Joanne Chou
IN ATTENDANCE: Archana Sridhar (Assistant Provost, Office of the Vice-President and Provost), Gwen Burrows (Assistant Vice-President, International Engagement & Impact), Susan McCahan (Associate Vice-President and Vice-Provost, Digital Strategies and Vice-Provost, Innovations in Undergraduate Education), Chuck O’Reilly (President & Chief Investment Officer, UTAM), Alex Matos (Executive Director, Internal Audit), Sandra Nelson (Executive Director, University Procurement), Elizabeth Cragg (Director, Office of the Vice-President, Operations & Real Estate Partnerships),Russell Smith (Director, Finance and Administration), Sanish Samuel (Controller & Director Financial Services), Anthony Tia (Director, Treasury and Investments), Ihab Khalil (Chief Operations Officer, PSEC), Helen Bao (Executive Finance Officer, OREP), Audelyn Budihardjo (Assistant Director, Internal Audit), Debbie Oakley, Terese Weisberg
*attended remotely
ITEMS 3, 4, AND 10 WERE APPROVED. ALL OTHER ITEMS ARE REPORTED TO THE GOVERNING COUNCIL FOR INFORMATION
Pursuant to section 38 of By-Law Number 2,
consideration of items 15 and 16 took place in camera.
OPEN SESSION
- Chair’s Remarks
The Chair welcomed members and guests to the meeting.
- Reports of the Administrative Assessors
Professor Scott Mabury, Vice-President, Operations & Real Estate Partnerships, provided an update on the following matters.
In preparation for spring events, the front campus grounds would be roped off for three weeks in May to allow for reseeding and restoration following last year’s convocation and summer activity. This work is intended to ensure the campus remains in excellent condition for upcoming community and alumni events.
Professor Mabury also updated the Board on the University’s Operational Excellence initiative. Following a year-long scoping effort, the final phase of planning is now underway. The project will be led by Professor Tim Chan and will include a tiered governance structure comprising executive oversight, a mid-level operational working group, and a core delivery team. The initiative will focus on identifying scalable improvements to administrative service delivery across the tri-campus.
With respect to the construction market, Professor Mabury noted signs of early softening. A recent capital project tender returned significantly below budget expectations which could be seen as a positive shift following several years of sustained construction inflation. He advised caution in interpreting the result, given the volatility of the sector, but acknowledged that some moderation in pricing may emerge.
In closing, Professor Mabury remarked that while inflationary pressures remain present, there is cautious optimism that the most severe cost escalation phase may have passed.
- Spaces & Experiences: Annual Report 2024-25 and Budget 2025-26
The Board received for consideration the Spaces & Experiences Annual Report for 2024-25 and the proposed operating plans and budgets for 2025-26.
Professor Scott Mabury, Vice-President, Operations & Real Estate Partnerships, introduced the item. He noted that the University’s cost recovery services had been consolidated under the Spaces & Experiences portfolio to better integrate service delivery and the University's emerging real estate activities. Professor Mabury emphasized that the unit had demonstrated significant resilience coming out of the pandemic and highlighted the importance of building new revenue streams to support the University’s financial sustainability.
Anne MacDonald, Assistant Vice-President, Spaces & Experiences, presented the Annual Report and Budget reporting that the unit managed operations across student residences, food services, campus events, family housing, transportation, real estate services, and trademark licensing. She highlighted the first full year of operations at the Schwartz Reisman Innovation Campus (West Building) and the upcoming opening of Oak House, the first new residence on the St. George campus in over two decades.
She noted that financial results for 2024-25 exceeded budget expectations, primarily driven by stronger-than-anticipated performance at the Schwartz Reisman West operations. Food services and campus events had recovered post-pandemic through operational restructuring and the relaunch of conference services at Chestnut Residence.
On the 2025-26 budget, Ms MacDonald outlined proposed rate increases across residences and ancillary services, aimed at addressing inflationary pressures and maintaining capital investment plans. She explained that although rates for Oak House had been set conservatively to encourage early occupancy, the new residence was expected to operate at a deficit for its first two years.
Discussion
In the ensuing discussion, members inquired about the pricing strategy for Oak House, and in particular noting that some rates appeared high relative to private market comparators. Ms MacDonald responded that while premium units were priced at the upper end of the market, demand testing through university partnerships with external providers such as CampusOne confirmed that there is a market for such accommodations. She emphasized that university-operated residences provide additional value through amenities, security, and academic support not typically available from private landlords.
Professor Mabury further noted that construction costs, including a $40 million increase for Oak House due to pandemic-era inflation, had been the primary driver of rates. He confirmed that Spaces & Experiences must fully recover both operational and capital costs without drawing on operating subsidies, consistent with cost recovery principles.
On motion duly moved, seconded, and carried
YOUR BOARD APPROVED
THAT the Business Board concur with the recommendation of the University Affairs Board’s approval of the S&E fees charged to students and the University community; and
THAT the proposed 2025-26 operating plans and budgets for Spaces & Experiences, as summarized in the S&E annual report Appendix A, and the St. George business ancillary rates as summarized in Appendix B, be approved effective May 1, 2025.
- Fighting Against Forced Labour and Child Labour in Canadian Supply Chains University of Toronto Annual Report 2025
Mr. Rodgers commented that the federal government had recently enacted the Fighting Against Forced Labour and Child Labour in Canadian Supply Chains Act to combat labour exploitation and that the University, as an importer of goods, was subject to the Act's annual reporting requirements.
Sandra Nelson, Executive Director, University Procurement, presented the Report. She commented that the University’s procurement of imported goods represents a small fraction of total spending, with the majority sourced from low-risk jurisdictions. Ms Nelson reported that no instances of forced or child labour were identified during the reporting period and outlined the University's approach to compliance, which has thus far focused on research-based best practices and staff training.
Ms Nelson indicated that future priorities include exploring formal supplier codes of conduct, developing a process to identify high-risk suppliers, and establishing clearer metrics for reporting progress. She noted that consistent practices across the sector remain in early stages of development.
Discussion
In the ensuing discussion, members asked about the depth and nature of diligence required under the Act. Ms Nelson clarified that the University is required to submit a report affirming reasonable diligence but is not legally required to conduct audits or inspections at this time. She acknowledged that defining a formalized risk identification framework remains a future goal.
Members also discussed the challenges of building sector-wide frameworks for supplier assessment and reporting. It was noted that while collaborative initiatives are underway at the provincial and national levels, current efforts remain focused on foundational training and building internal capacity.
A question was raised regarding the operational burden of compliance. Mr. Rodgers confirmed that compliance with the Act does not yet impose significant additional costs but acknowledged that this could change over time as due diligence practices evolve.
On motion duly moved, seconded, and carried
YOUR BOARD APPROVED
THAT the Fighting Against Forced Labour and Child Labour in Canadian Supply Chains: University of Toronto Annual Report 2025 as presented be approved; and
THAT the Chair of the Business Board be authorized to attest to the Minister of Public Safety that, having exercised reasonable diligence, the information in the Report for the 2023-24 fiscal year is true, accurate and complete in all material aspects for the purposes of the Fighting Against Forced Labour and Child Labour in Supply Chains Act.
- Annual Report: Vice-President, International
The Board received for information the Annual Report of the Vice-President, International.
Professor Joseph Wong, Vice-President, International, presented the 2025 Annual Report highlighting the University’s international engagement strategy and noting that despite ongoing geopolitical challenges, the University’s international activities remain robust and strategically focused.
Professor Wong reported that the University had seen an 8 percent increase in international students accepting offers of admission and paying deposits, compared to the same time in the previous year. He noted that the University had increased the required international tuition deposit rates from $1,000 to $3,000, a move intended to strengthen commitment rates and improve enrolment forecasting.
He then outlined the University’s efforts to diversify its international student recruitment strategies, particularly in response to external regulatory uncertainties affecting traditional markets. The university continues to maintain strong engagement in China through enhanced communications and recruitment efforts. He also reported a 16 percent increase in U.S. student applications, significantly higher than national comparators, highlighting the University’s growing appeal among American students.
The presentation further emphasized the importance of the University’s "Blue Door" initiative, a corporate engagement portal designed to facilitate international partnerships in research, innovation, and academic collaboration. Professor Wong commented on broader international risks, noting the importance of maintaining a strategic, diversified approach to internationalization in the current global climate.
Discussion
In the ensuing discussion, members inquired about maintaining strong recruitment pipelines from China given political uncertainties. Professor Wong affirmed that maintaining strong educational and alumni ties with China remains a key priority and described ongoing efforts to deepen outreach through localized staff and targeted communications.
A member noted the University’s recent success in the U.S. market and asked whether broader trends might continue to benefit Canadian institutions. Professor Wong responded that while some upward trends are visible, U of T’s results reflect specific strategic efforts and should not be assumed to be uniform across the sector.
The Chair expressed support for the University’s balanced and proactive approach to global engagement and thanked Professor Wong for the presentation.
- Annual Report: Vice-President, People Strategy, Equity & Culture
The Board received for information the Annual Report of the Vice-President, People Strategy, Equity & Culture.
Professor Kelly Hannah-Moffat, Vice-President, People Strategy, Equity & Culture, reported on the initiatives undertaken by the Division of People Strategy, Equity & Culture between January 1 and December 31, 2024, emphasizing leadership development, employee wellness, and workplace inclusion.
Professor Hannah-Moffat highlighted the expansion of leadership development programs, including the People Leadership Program, and noted ongoing efforts to equip managers with the skills to lead empathetically and effectively in a hybrid work environment. She reported that staff satisfaction remained high, with 79 percent of employees indicating strong commitment to the University and 78 percent expressing satisfaction with their roles. The Division also observed a slight decrease in employee intent to resign compared to prior survey data.
The Report also outlined investments in employee wellness, including expanded early intervention supports, updated crisis management frameworks, and increased opportunities for professional development in areas such as artificial intelligence literacy. Professor Hannah-Moffat discussed the University’s emphasis on fostering a culture of inclusion, with initiatives such as the establishment of the Employees with Disabilities Community Network and the expansion of programming at the newly opened Ziibiing Indigenous learning space.
Looking ahead, Professor Hannah-Moffat emphasized that the Division would continue work to strengthen institutional crisis preparedness, review and improve conflict resolution pathways, and expand digital literacy initiatives across the University community.
Discussion
In discussion, members inquired about employee retention trends following the pandemic. Professor Hannah-Moffat reported that while burnout and shifting expectations around work arrangements continue to pose challenges, overall retention and recruitment remain strong. She noted that the University’s investments in alternative work arrangements, leadership development, and wellness supports have contributed positively to employee engagement and satisfaction.
The Chair thanked Professor Hannah-Moffat for her report.
- Semi-Annual Update on Investment Performance and Responsible Investing Activities to December 31, 2024
Chuck O’Reilly, President and Chief Investment Officer (CIO), University of Toronto Asset Management Corporation (UTAM) presented the UTAM Semi-Annual Update on Investment Performance and Responsible Investing Activities to December 31, 2024.
Highlights of the presentation included:
- The Long-Term Capital Appreciation Pool (LTCAP) returned 14.9% for the calendar year 2024, driven by strong performance in public equity markets.
- While LTCAP’s 2024 return was below that of the Reference Portfolio by 1.9 percentage points, LTCAP’s 10-year annualized return continues to exceed the Reference Portfolio and the University’s Target Return of 4% plus CPI.
- The Expendable Funds Investment Pool (EFIP) achieved a return of 6.4% for 2024, outperforming its target return and maintaining strong 10-year results.
- Private market valuations contributed to short-term underperformance relative to the Reference Portfolio, reflecting the inherent lag in private asset revaluations compared to public markets.
- UTAM continued progress on responsible investing initiatives, with further reductions in fossil fuel exposure and carbon footprint across the investment portfolio. Mr. O’Reilly noted that while the trend is positive, future year-to-year changes may vary due to market conditions.
Discussion
In response to a member’s question regarding the valuation lag in private markets and its effect on performance benchmarking, Mr. O’Reilly confirmed that private assets are valued quarterly and tend to show less short-term volatility than public markets. He explained that although private assets may underperform relative to public benchmarks during strong equity market periods, they are expected to provide diversification and value over the long term.
A member asked about whether UTAM would consider prioritizing allocations to locally domiciled managers in light of current geo-political environment Mr. O’Reilly noted that UTAM has historically been agnostic to manager location as it seeks to identify the best manager available for a given strategy. He further noted that UTAM has not considered prioritizing capital allocations to locally domiciled managers. Rather, its work more recently (in light of geo-political environment and changing international trade dynamics) has been focused on whether the US exposure with the Reference Portfolio’s equity component continues to be appropriate.
Another member asked how LTCAP’s performance track record compares to peer asset owners. Mr. O’Reilly noted that peer performance comparisons can be difficult to interpret and misleading as different asset owners construct their portfolios based on their own risk/return objectives. As a result, the Reference Portfolio, which represents the University’s risk/return objectives for LTCAP is the best benchmark to measure LTCAP’s long-term performance. Mr. O’Reilly further noted that at the request of the UTAM Board, he does report on LTCAP’s performance compared to a peer group of US endowments. Based on this reporting, at June 30, 2024, LTCAP’s 1-year and 10-year returns ranked in the top quartile despite LTCAP having lower equity risk.
The Chair thanked Mr. O’Reilly for his presentation.
CONSENT AGENDA
On motion duly moved, seconded, and carried
YOUR BOARD APPROVED
THAT the consent agenda be adopted and that Item 10, the Report of the Previous Meeting, be approved.
- Status Report on Debt to March 31, 2025
Members received the Status Report on Debt to March 31, 2025, for information. - Health and Safety Requirements: Quarterly Report on Compliance
Members received the Health and Safety Requirements – Quarterly Report on Compliance for January 1 to March 31, 2025, for information. - Report of the Previous Meeting: Report Number 283, March 12, 2025
Report Number 283, from the meeting of March 12, 2025, was approved. - Business Arising from the Report of the Previous Meeting
There was no business arising from the report of the previous meeting. -
Report Number 162 of the Audit Committee, March 5, 2025
Report number 162of the Audit Committee, March 5, 2025, was received for information. -
Date of Next Meeting – Wednesday, June 17, 2025, at 5:00 p.m.
The Board was informed that the next meeting was scheduled for Wednesday, June 17, 2025, at 5:00 p.m.
- Other Business
No other business was raised by members.
The Board moved In Camera.
IN CAMERA CONSENT AGENDA
- In Camera Reports of the Administrative Assessors
Mr. David Palmer, Vice-President, University Advancement, provided an overview of some fundraising strategies undertaken by the university. - Report on Capital Projects as of March 31, 2025
Professor Mabury and Mr. David Lehto, Chief, University Planning, Design & Construction, presented theCapital Projects Reportfor the period ending March 31, 2025. The report included a comprehensive list of capital projects under construction and in design.
The Board returned to Open Session.
The meeting adjourned at 7:34 p.m.
April 29, 2025