Endowment and investment strategy
The endowment supports the sustainable funding of Aalto University’s operations, research, education and innovation.
Aalto University endowment returned 7.9% during first half of 2024
Endowment provides EUR 41 million to fund research and education this year
The endowment provides EUR 41 million funding to university operations in 2024, covering ca. 9% of the annual budget. 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 a 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 2024, the university endowment portfolio return was 7.9%. At the end of June, the average return of the portfolio since inception in 2010 was 5.9% per annum. Market value of the endowment was EUR 1475 million, comprising of 1456 million euro endowment portfolio and 19 million euro in endowment cash.
The first half of the year was dominated by strong performance in the equity markets driven by declining inflation and supportive growth outlook. Bond markets remained volatile as expectations for interest rate cuts by central banks fluctuated through the period. Private equity and credit investments also showed positive returns, but trailed public markets which continue to recover from the drawdown in 2022.
| Allocation 30.6.2024 | Return 1-6/2024 | Annual return since inception (05/2010) | |
| Risk Free | 1,4 % | 1,7 % | 1,1 % |
| Interest rate risk | 4,7 % | -0,1 % | 0,9 % |
| Credit Risk | 16,5 % | 4,4 % | 4,4 % |
| Equity Risk | 59,1 % | 10,6 % | 9,1 % |
| Alternative Risk | 18,2 % | 5,5 % | 2,7 % |
| Aalto Endowment Portfolio | 100,0 % | 7,9 % | 5,9 % |
Unaudited figures.
The long-term capital of Aalto University 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 capitalization 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.
Endowment and investment strategy
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