Tampere University endowment

The University’s financial assets refer to assets that the University invests in financial instruments on market terms. On 31 December 2023, the value of financial assets was EUR 505,2 million.

The financial assets are divided into investment assets and a liquidity buffer. The market value of the investment assets was approximately EUR 486 million on 31 December 2023. Some 55% of the investments were invested in listed equities globally. Fixed income investments accounted for around 21% of the investments and alternative investments for some 24%.

In 2023, the return on investments was 10,4%. The return on listed equities was 16,6% while the fixed income investments return was 7,9% and alternative investments accounted for 0,5%.

A liquidity buffer refers to assets held in bank accounts or other instruments that can be quickly converted into cash. The market value of the liquidity buffer was some EUR 19,6 million on 31 December 2023.

Responsibility is one of Tampere University’s seven core values and an integral part of investment activities. Environmental, social and governance (ESG) issues are considered in all investment decisions. The practical implementation relies on the Guidelines for responsible investing approved by the Board.

University´s investment assets are mainly invested in funds. Decisions on individual securities are done by fund managers in accordance with the fund rules. Tampere University requires that the asset manager has signed the UN Principles for Responsible Investment and that the funds in which it invests comply with local legislation and international tax treaties.

The University monitors the implementation of Guidelines for responsibility through ESG reports and active dialogue with asset managers. Asset managers with investment mandates are required annually to report on the implementation of the portfolio's responsibility goals.

Tampere University aims to be carbon neutral by 2030. To achieve this goal, the share of investments in companies operating in the production of coal, oil and gas will be gradually reduced.

Developing responsibility in the University’s investment operations

Tampere University participates in the activities of the Finnish Forum for Responsible Investment (Finsif). By networking with other institutional investors, the University can develop its own ESG practices and participate in discussions on responsibility.

The University takes part in investor initiatives and commitments that promote responsibility and have a clear goal that is aligned with ours. These may include, for example, initiatives aimed at developing responsibility reporting or commitments aimed at reducing harmful emissions.

The University's investment horizon is long and extends beyond various economic cycles. By effectively diversifying investments across different asset classes, the aim is to mitigate fluctuations in the market value of the investment portfolio during changing market situations.

Additionally, diversification is pursued to prevent the risk of any single asset class or investment from becoming a significant portion of the investment portfolio. To enhance diversification, the University's investments are mainly made in funds.

According to the investment strategy for 2023, the basic asset allocation is the following:

• Some 45 % of the investment portfolio is invested in listed equities focusing on European and North American shares.
• Twenty-five per cent of the investment portfolio is invested in fixed income. These investments are mainly divided between European Grade bonds and European government bonds.
• Another 25% of the investment portfolio is in alternative investments, which include, for example, investments in private equity funds and real estate funds.