Aalto University endowment provided EUR 35 million in 2022 to education and research

Endowment investment return was -3.5% in a challenging investment environment
Students studying together in a group

The endowment provided EUR 35 million funding to university operations in 2022. 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 general endowment fund was EUR 27 million, from the restricted funds EUR 6 million and unrestricted funds EUR 2 million. Spending from the general endowment fund is guided by a spending policy, where the level of annual spending averages 2.5% per year and is based on the long term expected real return of the endowment portfolio, thus helping to preserve the real value of fund over time.

2022 was a challenging year for institutional investors. Inflation and the resulting monetary policy tightening together with growth risks, both amplified by the war in Ukraine, led to declines in asset values across all traditional asset classes. This lack of diversification made portfolio management exceptionally challenging during the year.

Endowment portfolio return in 2022 was -3.5% after all fees and costs. At the end of the year, the average return of the portfolio since inception in 2010 was 5.2% per annum and market value of the endowment portfolio was EUR 1292 million.  Endowment portfolio returns over 3- and 5-year periods are 5.8% and 5.2% per annum respectively.

The negative performance was driven by investments in global listed equities. Allocation to alternative investments in credit risk, private equity and alternative risk had positive contribution to the return and helped to protect the endowment capital from more severe losses. Very low allocation to government bonds and traditional credit which saw negative returns also helped in relative terms. 

Implementation of sustainable investing policy continued during the year. Carbon intensity of listed equities was reduced further and stands at 44% below global benchmark in line with policy goals. The carbon intensity and other key sustainability metrics are reported in our sustainable investing report to be published in March 2023.



Return 2022

Annual return

Risk free




Interest rate risk




Credit risk




Equity risk




Alternative risk




Aalto endowment portfolio





Unaudited figures.

Read more: 

Aalto University endowmentEndowment Spending Policy

Aalto University’s academic results remained on a good level in 2022 despite declining funding


Contact 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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