Endowment and investment strategy
The endowment supports the sustainable funding of Aalto University’s operations, research, education and innovation.
Aalto University endowment returned 3.2% during first half of 2023
Endowment provides EUR 34 million to fund research and education this year
The endowment provides EUR 34 million funding to university operations in 2023. This funding continues to secure high-quality education and research activities to compensate for the long term erosion of the university public funding base. Spending from the endowment is guided by a spending policy and the level of annual spending is based on the long-term expected return of the endowment portfolio.
During the first half of 2023, the university endowment portfolio return was 3.2%. At the end of June, the average return of the portfolio since inception in 2010 was 5.3% per annum and market value of the endowment portfolio was EUR 1 321 million.
The first half of the year was dominated by strong recovery in the financial markets driven by declining inflation and growth worries. This led to positive returns on listed equity and bond markets. Private equity and credit investments had negative contributions driven by currency movements.
| Allocation 30.6.2023 | Return 1-6/2023 | Annual return since inception (05/2010) | |
| Risk free | 3.5% | 0.8% | 0.9% |
| Interest rate risk | 5.5% | 1.9% | 0.7% |
| Credit risk | 14.5% | -0.7% | 3.9% |
| Equity risk | 57.7% | 5.6% | 8.5% |
| Alternative risk | 18.8% | -0.1% | 1.9% |
| Aalto endowment portfolio | 100.0% | 3.2% | 5.3% |
Unaudited figures.
Contact:
Chief Financial Officer Marianna Bom
+358 50 575 3762, [email protected]
Head of Investments Iivo Paukkeri
+358 50 599 0906, [email protected]
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