News

Aalto University endowment returned 15.5% in 2019

The purpose of the Aalto University endowment and its long-term strategy is to generate additional funding for top quality research and education. Of the cumulated real return of the endowment portfolio, a spending of EUR 4 million was used to fund the university operations during the year.
Aalto-yliopiston rakennus
Of the cumulated real return of the endowment portfolio, a spending of EUR 4 million was used to fund the university operations during the year. Photo: Tuomas Uusheimo

The average return of the Aalto University endowment portfolio since its inception has been 5.0% per annum, net of fees. In 2019 the total return net of fees of the endowment was +15,5% (-6.0% in 2018). The market value of the endowment portfolio was EUR 1 142 million (EUR 983 million 31.12.2018). Of the cumulated real return of the endowment portfolio, a spending of EUR 4 million was used to fund the university operations during the year.

At the end of 2019, 30 (37)% of the endowment portfolio was invested in fixed income, 57 (52)% in equities and 14 (11)% in alternative risk. Allocation to alternative risk was increased in line with the endowment strategy.

In 2019 both interest rate and equity risk had strong returns. At the start of the year, markets recovered from the drawdown seen in late 2018. Towards the end of the year, equity markets rose to all time high levels. Easy central bank policy and reduces worries over political risks and trade tensions were among the key drivers for risky assets. The equity markets saw periods of higher volatility but recovered quickly.

Majority of the return contribution came from equity risk. Interest rate, credit and FX risk also contributed positive. Alternative risk had a marginally negative contribution due to weak performance of systematic risk premia strategies.

Aaltos investments

Not audited figures.

Additional information:

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

  • Published:
  • Updated:
Share
URL copied!

Related news

Laboratorioväline ja kädet
University Published:

Aalto helps in the midst of the pandemic

We collect ideas and solutions from the community to assist authorities and other actors in this situation
Act_conferment_18_1
University Published:

Conferment of doctoral degrees in the schools of technology postponed

The event is postponed due to corona pandemic. The new date will be announced accordingly.
Ei tehdä korona-ajasta suorittamisen olympialaisia, kuvituskuvassa kolme ihmistä kävelee syksyisessä kaislikossa
University Published:

Let’s not turn the corona crisis into the Solo Performance Olympics

‘In this exceptional situation, we should be kind to ourselves and to each other,’ says Assistant Professor Jukka Luoma.
Opiskelijoita kampuksella. Kuva: Unto Rautio / Aalto-yliopisto.
Press releases, University Published:

Academic results and international recognition developed favourably in 2019

Campus development took major steps and the School of Business relocated to the new building at the heart of Otaniemi campus.