News

Aalto University endowment portfolio returned 3.1% in the first half of 2017

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 3.1% in the first half of 2017 (0.5% in H1 2016). The average return since inception has been 5.2% per annum. The market value of the endowment portfolio was EUR 977 million (EUR 948 million 31.12.2016).

At the end of June 2017, 49% of the endowment portfolio was invested in fixed income, 47% in equities and 4% in alternative risk. Allocation to alternative risk was increased during the first half of the year in line with the endowment strategy. Return from fixed income was 0.8%, from equity investments 5.1% and from alternative risk -1.2%.

Risky asset classes continued to perform strongly in the first half of 2017. The biggest positive return contributors were investments in European equities and emerging markets debt and equity, which together formed significant part of the total allocation. Towards the summer, market sentiment turned into slightly more cautious tone. Yields increased especially in Europe, which led to poor return on interest rate risk in general. Nevertheless, the interest rate sensitivity of the endowment portfolio was kept on low levels and return on fixed income remained positive. The appreciation of Euro against other currencies had negative contribution to total return.

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.

 

More information:
Head of Investments Kati Eriksson
Aalto University
+358 40 563 6110
[email protected]

 

  • Published:
  • Updated:
Share
URL copied!

Related news

Aalto Töölön juhlasali
Campus, Press releases Published:

The renovation of the Aalto University Töölö building restored the spirit of the 1950s

The former main building of the School of Business in Runeberginkatu was renewed into a modern learning environment.
With the right guidance, certain bacteria can produce 3D objects made of nanocellulose
Press releases, Research & Art Published:

Scientists use bacteria as micro-3D printers

Technique creates highly customised structures that could be used in regenerative medicine
Amsterdamin konserttisali
Press releases Published:

Can you identify which concert hall this music is being played in? Test to see

Study shows music volume has a major impact on how the listener experiences the acoustics of a concert hall
Aikalava
Press releases Published:

Building European cities with wood would sequester and store half of cement industry’s current carbon emissions

Model shows that slowly increasing the use of wood in European construction could increase the carbon storage of buildings by 420 million CO2 tons over the next 20 years