The investments of the University of Helsinki produced a +7,9 percent return from January to June 2023. The return was boosted primarily by US companies, and especially technology companies, as their prospects improved more than expected. The total value of the investments was 633 million euros by the end of June.
"It would have been tempting to reduce investment risk at the beginning of the year, when the financial market outlook was rather gloomy. Academic research has however shown since the 1960's that short-term market returns are mostly random. Trading generates costs and often also other friction, whereby the prospects of market timing is bleak. We seek to invest long-term, based on facts and not emotions", states the University of Helsinki Chief Investment Officer Anders Ekholm.
The investments of the University of Helsinki have generated a +11,7 % average annual return since 2019, when the university introduced the current investment strategy. The strategy is based on academic research and its cornerstones are diversification, low costs, consistent risk, and climate change mitigation.
The University of Helsinki diversifies at least 90 % of its investments into exchange listed equities and bonds globally. Furthermore, a maximum of 10 % of the investments can be focused to startups related to the university. The average Total Expense Ratio (TER) of the investment products is less than 0,1 % and the products exclude fossil fuel producers.
