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

Asa-Marie Kultima, Aalto-yliopiston rehtorin tehtävän 8.10. valtaava lukiolaistyttö Rovaniemeltä kuvattuna kaupunkinäkymässä. Kuva Aaro Keipi
Press releases, University Published:

On 8 October, 17-year-old Asa-Marie Kultima assumes the role of Aalto University President in the Girls Takeover campaign

At the beginning of October, the ‘Super Week’ for girls, young people and technology will also host a Shaking up Tech event open to all and select the winner of the youth innovation competition.
Laboratoriotarvike.
University Published:

Students at Aalto University’s Mikkeli unit diagnosed with coronavirus

First- and second-year students of the bachelor’s programme in Mikkeli will shift to distance education for two weeks.
Aalto logo
Research & Art, University Published:

Professors Markus Linder and Tapani Vuorinen invited to the Finnish Academy of Science and Letters

Professor of Biomolecular Materials Markus Linder and Professor of Wood Chemistry Tapani Vuorinen from the School of Chemical Engineering at Aalto University have been elected as new members of the Finnish Academy of Science and Letters.
Coaching and guidance of work training meeting / Photographer Unto Rautio
Studies, University Published:

EU funding for Erasmus Mundus Joint Master's Degrees

Aalto University succeeded again in its bid to obtain funding from the European Commission for the Erasmus Mundus Joint Master's Degree programme.