911±¬ÁÏÍø endowment returned –5.1% during first half of 2022
The endowment provides EUR 29 million funding to university operations in 2022. This funding continues to secure high-quality education and research activities to compensate for the long term erosion of the university public funding base. Spending from the endowment is guided by the university spending policy and the level of annual spending is based on the long term expected return of the endowment portfolio.
During the first half of 2022, the university endowment portfolio return was –5.1%. At the end of June, the average return of the portfolio since inception in 2010 was 5.3% per annum and market value of the endowment portfolio was EUR 1287 million.
The first half of the year was dominated by inflation and growth risks, both amplified by the war in Ukraine. This led to negative returns on both equity and bond markets. As a result, the first half of 2022 was one of the worst ever recorded for traditional investment portfolios.
Majority of the negative return came from equity risk. Both interest rate and credit risk had small negative contribution as well. Alternative risk provided valuable diversification with positive contribution to return.
|
Allocation 30.6.2022 |
Return 1-6/2022 |
Annual return since inception (05/2010) |
|
|
Risk free |
3.5% |
2.3% |
1.0% |
|
Interest rate risk |
5.1% |
–8.8% |
1.1% |
|
Credit risk |
12.8% |
–0.7% |
3.7% |
|
Equity risk |
58.6% |
–10.5% |
8.6% |
|
Alternative risk |
20.1% |
11.1% |
2.2% |
|
Aalto endowment portfolio |
100.0% |
–5.1% |
5.3% |
Unaudited figures.
More information:
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
Endowment and investment strategy
The endowment supports the sustainable funding of 911±¬ÁÏÍø’s operations, research, education and innovation.
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