The Aalto University investment portfolio’s total return for 2014 was 6.3% (2013: 3.3%). The average return since inception has been 4.7% per annum. At the end of the year, the market value of the investment portfolio grew to EUR 996 million (EUR 936 million 31 December 2013).
The focus of the financial markets remained fixed on monetary policy, and during the second half of the year specifically on declining oil prices. Interest rates decreased significantly during the year, and major stock indices had positive returns. Equity investments in North America had especially strong returns, benefiting from depreciation of the Euro against the US Dollar. All asset classes in the university portfolio showed positive returns in 2014.
At the end of 2014, 41% of the portfolio was invested in equities and 59% in fixed income and money market investments. Allocation to equities was increased by ca. 7 percentage points during the year. Return from equity investments was 10.9% and from fixed income and money market investments 3.5%.
The purpose of the Aalto University Endowment is to generate additional funding for world class research and education. The endowment provides the university with greater financial independence and enhances its ability to direct resources to strategic focus areas. The returns from the endowment are expected to cover ca. 5 per cent of the university’s annual operative budget in coming years.
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