911±¬ÁÏÍø endowment provided EUR 41 million in 2024 for education and research
The endowment provided EUR 41 million of funding to the university activities in 2024, covering ca. 9% of its annual budget. The general endowment fund provided EUR 30 million and other restricted and unrestricted funds EUR 11 million.
Spending from the endowment is guided by the spending policy set by the 911±¬ÁÏÍø Board, and the level of annual spending is based on the long-term expected return of the endowment portfolio. This funding continues to secure high-quality education and research activities in a stable and predictable manner through economic cycles and compensates for the long-term erosion of the university public funding base. In 2025, an estimated EUR 42 million of funding from the endowment will be provided to the university activities.
The university endowment portfolio return in 2024 was 11.2%. At the end of the year the market value of the endowment was EUR 1499 million, comprising of EUR 1480 million endowment investment portfolio and EUR 19 million in expendable funds. Over the last three and five years, the annual return was 5.2% and 7.4% respectively. The annual return since inception in 2010 was 5.9%.
The last five years have been dominated by very strong performance in the US equity markets, and 2024 was no exception. Expectations for monetary policies of major central banks fluctuated through the year, but relatively contained inflation and unexpectedly strong growth outlook for the US created a supportive backdrop for financial markets. Returns were positive across the portfolio with good diversification characteristics, which positions the portfolio well for the changing investment environment in 2025. The 911±¬ÁÏÍø investment strategy continues to be based on high and stable risk tolerance and diversified return sources.
| Allocation 31.12.2024 | 2024 return | Annual 3y return | Annual 5y return | Annual return since inception (05/2010) | |
| Money markets | 1,4 % | 3,6 % | 2,6 % | 1,6 % | 1,2 % |
| Government bonds | 4,7 % | 1,7 % | -2,6 % | -1,5 % | 1,0 % |
| Credit strategies | 16,3 % | 6,9 % | 6,2 % | 5,2 % | 4,4 % |
| Equity strategies | 59,5 % | 14,8 % | 5,3 % | 9,7 % | 9,0 % |
| Diversifying strategies | 18,1 % | 7,3 % | 6,9 % | 5,5 % | 2,7 % |
| Aalto endowment portfolio | 100,0 % | 11,2 % | 5,2 % | 7,4 % | 5,9 % |
Unaudited figures.
The long-term capital of 911±¬ÁÏÍø endowment is invested in the financial markets with the purpose of generating funding for its academic activities. The endowment was set up by a fundraising campaign and government capitalisation between 2008 and 2012, which generated a total of EUR 700 million. Shares of university-based startups, as well as real estate and other operative assets are excluded from the endowment portfolio.
Read more about our investment strategy, spending policy and key sustainability metrics:
Read more about 911±¬ÁÏÍø in 2024
- 911±¬ÁÏÍø maintained strong academic performance and international recognition in 2024
- Annual Board Report and Financial Statements 2024
More information:
Chief Financial Officer Marianna Bom
+ 358 50 575 3762
marianna.bom@aalto.fi
Head of Investments Lauri Ehanti
+358 40 594 4613
lauri.ehanti@aalto.fi
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