Se­cur­it­ies in­vest­ment

The total investment assets of the University of Helsinki and the University of Helsinki Funds amount to approximately €500 million, while their real estate holdings are valued at €1 billion. The investment assets of the University of Helsinki consist of the capital accrued in conjunction with the 2010 reform of the Finnish university system and its returns. The investment assets of the University of Helsinki Funds have accumulated over a long period of time as a result of donations and investment activities.

The primary goal of investment activities is to increase the University’s financial stability and independence. The long-term expectation is an annual return of 4% + inflation. However, the target return on investment cannot be less than the allocation for core duties to avoid jeopardising intergenerational fairness. The University intends to establish a risk profile where the set target return on investment is achieved by taking as few risks as possible. The benchmark index is 70% shares and 30% interests.

 

At the end of 2019 the value of the University of Helsinki’s investments were 472 million euro. 

Allocation 31 Dec 2019

Allocation 31 December 2019

In 2019 investments generated a return of 21.66%, an exceptionally high figure representative of a risk level where the weight of stocks in the investment portfolio is considerable. In practice, this also denotes a significant variance of return: in individual years, the negative return can reach an equivalent or higher rate. 

University of Helsinki and University of Helsinki Funds Time-Weighted Return (TWR) as of beginning of 2019 and monthly return

 

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As a counterpart to the variance of return – also known as risk – the University can, in the long run, expect returns exceeding a risk-free rate of return. For the University to be able to cover negative returns and conduct its investment activities with a long-term approach, it is necessary to consolidate positive returns in funds. 

Investment activities are guided by the Principles for responsible investment activities approved by the University Board on June 12, 2019. University of Helsinki has now published its first Annual Report on Responsible Investments.
 
The University’s investment activities must be in line with its values of social responsibility. As a responsible investor, we practise good governance.

We are a long-term investor and seek to ensure that our 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 our investments, we primarily employ 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.

 

The University of Helsinki seeks to enhance its investment activities by focusing its investments to effective and responsible investment funds. As a part of its responsibility efforts, the University will publish any new significant long-term investments as they are executed.

The fund list’s aim is to increase the transparency of the investment activities and promote equal access to investment product information. The fund list is not advice to subscribe to, redeem or exchange fund shares. Before making an investment, the investor should examine fund-specific material, which, among other things, describes the risks.

The University of Helsinki fund list #helfunds

Spring 2019: Handelsbanken Global Index Criteria
Fall 2019: SEB Sustainability Global Index Fund