Endowment portfolio returns 5.5% in the first half of 2015

The purpose of the Aalto University endowment is to generate additional funding for world-class research and education.

The Aalto University endowment portfolio total return net of fees was 5.5% in the first half of 2015 (5.0% in H1 2014). The average return since inception was 5.8% per annum. The market value of the endowment portfolio increased to EUR 945 million (EUR 898 million 31.12.2014).

At the beginning of the year, a liquidity portfolio of EUR 103 million (EUR 98 million 31.12.2014) was separated from the endowment portfolio. The liquidity portfolio yielded 0.3% in the first half of 2015. The market value of the total Aalto University portfolio amounted to EUR 1 048 million (EUR 996 million 31.12.2014).

On financial markets, the first two quarters of the year were in sharp contrast to one another. During the first quarter, the returns for both equity and fixed income markets were strong. European equity markets in particular rose as improving expectations of economic growth and support measures by the ECB helped to bolster markets. During the second quarter, however, the markets plunged, as concerns involving global growth and Greek loan negotiations arose once again. Despite the poor performance of the second quarter, investment returns for the first half of the year were good.

At the end of June 2015, 49.5% of the endowment portfolio was invested in equities and 50.5% in fixed income and money market investments. Allocation to equities was increased by approximately 5 percentage points during the first half of the year. Return from equity investments was 11.5% and from fixed income and money market investments 0.5%.

The purpose of the Aalto University endowment is to generate additional funding for world-class 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 approximately 5 percent of the university annual operative budget in the coming years.

More information

Aalto University
Kati Eriksson, Head of Investment
tel. +358 40 563 6110
[email protected]

Related news

Nanocellulose bicycle Photo: Eeva Suorlahti
Cooperation, Press releases, Research & Art Published:

Tomorrow's Sustainable Lifestyles Showcased in Otaniemi

One of Helsinki Design Week's main events, Designs for a Cooler Planet, will showcase Aalto University's cross-cutting future prototypes, such as a nanocellulose bicycle, microbial headphones and Ioncell clothes
Photoactive rod-like virus bundle schematic
Press releases, Research & Art, University Published:

Dyes and viruses create new composite material for photooxidation reactions

A recent study shows that native viruses can be employed as a scaffold to immobilise photoactive molecules to potentially oxidise organic pollutants present in wastewater, under visible light irradiation
Kuvituskuva, jonka pohjana käytetty visualisointia eduskuntavaaleihin liittyvistä aihetunnisteista
Press releases Published:

Finns were reluctant to share election tweets of bots

According to the final report of ELEBOT project, the effect of Twitter bots was minimal during this year’s Finnish elections
breakben aivomittausanturi kuvaaja marko havu
Press releases, Research & Art Published:

Breaking through barriers for a revolution in brain scans

The EU-funded BREAKBEN project promises better and more detailed brain scans
  • Published:
  • Updated:
Share
URL copied!