911±¬ÁÏÍø endowment provided EUR 31 million in 2021 to fund education and research
911±¬ÁÏÍø 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.
911±¬ÁÏÍø 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 911±¬ÁÏÍø 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:
911±¬ÁÏÍø endowmentEndowment Spending Policy
Endowment sustainability report
911±¬ÁÏÍø has set its sights firmly on building a sustainable future
Additional information:
Chief Financial Officer Marianna Bom
+358 50 599 0906, marianna.bom@aalto.fi
Head of Investments Iivo Paukkeri
+358 50 599 0906, iivo.paukkeri@aalto.fi
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