Toronto Foundation Investment Performance in 2024
Last year marked an impressive period for the markets, with strong performance across various asset classes. Reflecting this positive trend, the Foundation's investment portfolio delivered a robust 14.6% net return in 2024. We increased our investments to $378 million, up from $333 million in 2023, aligning with our commitment to strategic growth and long-term sustainability. Within that portfolio, $129M was intentionally invested to do good. The portfolioâs performance underscores the effectiveness of our investment strategy and our dedication to maximizing impact through prudent financial stewardship.
2024: Global Trends at Play
Public markets drove steady growth across global markets. The Canadian economy demonstrated resilience with a 2.1% GDP growth, a low unemployment rate of 5.3% and inflation moderating to 2.8% by year-end. TSX ended the year up close to 12%. These macro trends contributed to performance in the portfolio, benefiting the Foundationâs approximately 23% exposure to domestically domiciled investments. Global markets across both developed and emerging economies experienced growth with the MSCI All-Country World Index and MSCI World Index both posting double-digit gains. With approximately a quarter of the Foundationâs portfolio allocated outside North America, the Foundation's portfolio benefitted from this broad-based market appreciation as wellâparticularly with the depreciation of the Canadian dollar. All of this diversification shored up the portfolio as markets started to face geopolitical uncertainty later in the year.
The private equity sector began to regain momentum in 2024, driven by a rebound in deal activity and improved financing conditions. Impact-oriented investments contributed to strong returns for the year and continued to gain traction across different thematic sectors. In the venture capital segment, two themes reflected in the Foundation's portfolio more clean technology and female-founded enterprises received funding.
Looking Ahead to 2025
In 2025, artificial intelligence (AI) will continue to be a transformative force across multiple sectors, presenting compelling investment opportunities. RockCreek Canada is strategically focusing on areas where AI can drive significant impact, particularly in affordable housing, digital infrastructure and financial inclusion. We are committed to harnessing the transformative potential of AI to drive impactful investments that contribute to sustainable development and inclusive economic growth.
Despite the increased volatility at the beginning of 2025, the Foundation's portfolio stands firm with a diversified, long-term vision. By blending passive and active investments across different asset classes, currencies, geographies and sectors, the portfolio has a balanced risk profile that paves the way for future growth and stability. While volatility presents challenges, the core structure of the portfolio is designed to endure, positioning it to capitalize on opportunities as conditions stabilize.