Aalto University: Aalto University endowment returned 10.9% during first half of 2021
The Aalto University endowment provides EUR 28 million funding to university operations in 2021. This partially compensates the Ministry of Education and Culture funding cuts made during the past 10 years. These cuts have reduced the university government funding by 50 million euro on an annual level, when comparing the year 2021 funding to the year 2011 funding.
During the first half of 2021, Aalto University endowment portfolio return was 10.9%. At the end of June 2021, the average return of the Aalto University endowment portfolio since inception in 2010 was 5.7% per annum and market value of the endowment portfolio was EUR 1293 million.
The first half of the year saw a strong rebound globally in both economic activity and financial markets, enabled by progress with vaccinations against COVID and continued strong policy support. Majority of the return contribution came from equity investments with government bonds being the only detractor.
Aalto University has a long-term target for carbon neutral endowment portfolio, with changes being implemented in the portfolio to reduce the carbon intensity of the investments from year 2021 onwards. As part of this work, ca. 20% of the investments have been changed into more sustainable versions and these changes will continue in the second half of the year. Additionally, the first Endowment Sustainability report will be published in September, see Aalto University Endowment webpages, link below.