News

Aalto University endowment portfolio returned 0.5% in the first half of 2016

The purpose of the Aalto University endowment is to generate additional funding for top quality research and education.

The Aalto University endowment portfolio total return net of fees was 0.5% in the first half of 2016 (5.5% in H1 2015). The average return since inception has been 4.6% per annum. The market value of the endowment portfolio was EUR 905 million (EUR 901 million 31.12.2015).  

At the end of June 2016, 46% of the endowment portfolio was invested in equities and 54% in fixed income. Allocation to equities decreased by 4 percentage points during the first half of the year. Return from equity investments was -2.8% and from fixed income 3.8%. In the first half of 2016 the biggest positive return contributor was investments in emerging markets debt, while European equities provided negative contribution to the return.

In the financial markets, the first half of the year was two-folded. The risky assets declined strongly during the first weeks of the year mainly due to the worries related to global growth and foreign exchange policy in China. Main part of the decline was recovered by mid-April. Nevertheless, global recession fears and UK referendum on EU membership kept the market volatility on higher level and interest rates continued to decline throughout the first half of the year.

The Board of the Aalto University Foundation has decided that, of the cumulated real return of the endowment portfolio, an annual spending of EUR 8 million will be used to fund the University operations in 2016.

The purpose of the Aalto University endowment is to generate additional funding for top quality research and education. The endowment provides the University with greater financial independence and enhances its ability to direct resources to strategic focus areas. The returns from the endowment are expected to cover ca. 5% of the University annual operative budget in the coming years.

 

For more information, please contact:
Head of Investments Kati Eriksson
Aalto University
+358 40 563 6110
[email protected]

  • Published:
  • Updated:
Share
URL copied!

Related news

Myrskyennuste
Press releases Published:

AI predicts if storms will cause blackouts many days in advance

A collaboration between Aalto University and Finnish Meteorological Institute improves prediction tools for energy companies
Two white-face sakis sitting on a tree branch and grooming in Korkeasaari Zoo
Cooperation, Press releases, Research & Art Published:

Saki monkeys get screen time for more control over their lives in captivity

Computer scientists have designed a video player that the small primates can activate on demand
A small microchip containg quantum circuitry inside a metal sample holder
Press releases Published:

New physics rules tested on quantum computer

Simulation of non-Hermitian quantum mechanics using a quantum computer goes beyond centuries old conventions
Picture: Neurocenter Finland.
Press releases Published:

Artificial intelligence for dementia prevention

AI-Mind is a 5-year project funded by Horizon 2020, with the goal of facilitating a paradigm shift in clinical practice of mild cognitive impairment. A team of Aalto University and HUS Helsinki University Hospital researchers are involved in the project