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Aalto University endowment provided EUR 31 million in 2021 to fund education and research

Progress towards carbon neutral endowment portfolio continued in 2021
A Bloc ja Korkeakouluaukio talvella

Aalto University endowment portfolio provided EUR 31 million funding to the university operations in 2021 as guided by the university endowment spending policy. This funding continues to secure high-quality education and research activities to compensate for the long term erosion of the public funding base.  

Aalto University endowment has set a long-term target for a carbon neutral endowment portfolio. Progress towards this goal continued in 2021 with several investment changes implemented in the portfolio. As a result, the carbon intensity of public equity investments was reduced by more than 20% during the year and remains well below global market average. The carbon intensity and other key sustainability metrics are reported in our sustainable investing report

At the end of 2021, the average return of the Aalto University endowment portfolio since inception in 2010 was 6.0% per annum, net of fees and costs. In 2021 the total return net of fees was 18.4% (3.7% in 2020). The market value of the endowment portfolio was EUR 1 356 million (EUR 1 167 million 31.12.2020). 

In 2021 financial markets were dominated by the strong recovery as impact from the pandemic was gradually reduced and strong policy support remained in place. Majority of portfolio return came from equity investments while credit and alternative risk investments also contributed positively. 
 

  Allocation 31.12.2021  Return 2021

Annual return since inception (05/2010)

Risk free 3.8%  0.0%  0.8% 
Interest rate risk 5.8%  -2.1%  1.9% 
Credit risk 13.9%  10.7% 3.9%
Equity risk 60.9% 26.8% 10.0% 
Alternative risk 15.7%  8.1%  0.3%
Aalto endowment portfolio  100.0%  18.4% 6.0% 

 

Unaudited figures.

Read more: 

Aalto University endowmentEndowment Spending Policy

Endowment sustainability report

Aalto University has set its sights firmly on building a sustainable future 

Additional information: 
Chief Financial Officer Marianna Bom
+358 50 599 0906, [email protected]

Head of Investments Iivo Paukkeri
+358 50 599 0906, [email protected]

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