911±¬ÁÏÍø endowment provided EUR 36 million to fund education and research
During 2020, the 911±¬ÁÏÍø endowment provided EUR 36 million funding to the university operations. This secured the continuation of high-quality education and research activities after the state special funding provided to 911±¬ÁÏÍø by the Ministry of Education and Culture was discontinued in 2019.
911±¬ÁÏÍø has a long term target for carbon neutral endowment portfolio, with gradual changes being implemented in the portfolio to reduce the carbon intensity of the investments from year 2021 onwards.
At the end of 2020, the average return of the 911±¬ÁÏÍø endowment portfolio since inception in 2010 was 4.9% per annum, net of fees. In 2020 the total return net of fees was 3.7% (15.5% in 2019). The market value of the endowment portfolio was EUR 1 167 million (EUR 1142 million 31.12.2019).
In 2020 financial markets were dominated by the global corona virus pandemic. The uncertainty brought by the pandemic caused prices of risky assets to drop significantly in early 2020. Unprecedented policy stimulus and optimism on vaccine development led to exceptionally fast recovery during the rest of the year. University’s investment strategy implementation continued normally during the year with special attention given on securing university’s funding from the endowment.
Majority of the return contribution came from equity investments with interest rate investments also contributing positively. Contribution from other asset classes was slightly negative.
| Allocation 31.12.2020 | Return 2020 | Annual return since inception (05/2010) |
|
| Money market | 5.6% | -0.7% | 0.7% |
| Government bonds | 6.5% | 2.3% | 2.4% |
| Credit investments | 13.6% | -2.8% | 3.2% |
| Equity investments | 60.3% | 7.2% | 8.6% |
| Diversifying strategies | 13.9% | -0.6% | -1.4% |
| Aalto endowment portfolio | 100.0% | 3.7% | 4.9% |
Unaudited figures
Read more:
911±¬ÁÏÍø endowment911±¬ÁÏÍø’s academic results and international recognition maintained momentum in 2020
Contact:
Marianna Bom
Chief Financial Officer
+358 50 599 0906, marianna.bom@aalto.fi
Iivo Paukkeri
Head of Investments
+358 50 599 0906, iivo.paukkeri@aalto.fi
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