By investing in securities, the University aims to increase its assets and to ensure a steady and predictable cash flow to fund its core duties.
The securities are divided into two portfolios, those of the University of Helsinki and the University of Helsinki Funds. The investments are managed by external asset managers who are bound by the investment principles set by the University Board.
At the end of 2017, the securities portfolios of the University were valued at €433 million. Approximately one-third of this came from the investment of donated funds.
The University of Helsinki’s securities portfolio
Donations accumulated between 2010 and 2011 constitute the basic capital of the University of Helsinki’s securities portfolio. At the end of 2017, the total value of the portfolio was €299 million.
The long-term expectation is an annual return of 3–5%. The basic allocation of the portfolio is as follows: shares 50%, interests 30% and other 20%.
In 2017, the portfolio yielded a return of 6.5%. Between 2012 and 2017, the annual return has been 7.1%.
During that time, a total of €18 million accrued through investment returns was allocated to fund the University’s operations.
Development of the University of Helsinki portfolio from 2010 to 2017 in euros
The securities portfolio of the University of Helsinki Funds
The securities portfolio of the University of Helsinki Funds has accumulated over a long time from donations as well as proceeds from investments. At the end of 2017, the total value of the portfolio was €133 million.
The long-term expectation is an annual return of 4–6%. The basic allocation of the portfolio is as follows: shares 50%, interests 20%, other 30%.
In 2017, the portfolio yielded a return of 8.9%. Between 2012 and 2017, the annual return was 7.7%.
Development of the University of Helsinki Funds portfolio from 2010 to 2017 in euros
Responsibility in investment
The University’s investments must be in line with its values of social responsibility. As a responsible investor, the University practises good governance.
The University of Helsinki is a long-term investor, and it seeks to ensure that its investments yield good returns and positive performance over a long period. We believe that a responsible company which considers environmental and social factors and complies with good corporate governance is a better investment in the long term.
In its investments, the University of Helsinki primarily employs asset managers who take responsibility and sustainability into consideration. We will always consider the principles of responsible investment when making new investments and concluding asset management agreements.