Accumulated investment returns enable up to 10 million Euros new investments into spinouts and startups.
The University of Helsinki's financial security investments' return was -2.6 percent from January to June 2025. The investments have yielded in total 99 percent, approximately 370 million Euros, since the beginning of year 2019, when the University adopted the current investment strategy. The annual average return has been 11.2 percent since the beginning of year 2019, which is two percentage points more than for the benchmark index.
The University of Helsinki's dollar-denominated five-year average annual return was 11.4 percent per June 2025 and is comparable with US educational endowments' returns. Per June 2024, the five-year dollar-denominated return reached the top decile in a comparison of 599 endowments. The comparison per June 2025 will be published once all endowments have reported their returns, probably during the first quarter of 2026.
By the end of year 2024, accumulated returns had increased the equity weight to 77 percent. The weight was reduced back to approximately 70 percent by selling equity funds during the first quarter of year 2025. Through these sales, sufficient cash for spending during the ongoing 2025-2029 Investment Plan was secured. Furthermore, a suitable risk level was maintained with the sales.
− We get an expected return as compensation for risk, of which the turbulence on the financial markets during the beginning of the year was an excellent reminder. Changing the allocation tactically to benefit from short-term market movements has scientifically been proved so challenging, that an investor like us rather should focus on strategical diversification, costs, and risk level, Chief Investment Officer Anders Ekholm contemplates.
The investment strategy of the University of Helsinki is based on science
The investment strategy of the University of Helsinki is based on science. Its cornerstones are broad diversification, low costs, a consistent risk-level, and the mitigation of climate change. At least 90 percent of the investments are diversified globally into listed stocks and bonds. Furthermore, at most 10 percent are primarily concentrated into ventures formed in connection with the University. During the ongoing Investment Plan, the University seeks to invest even 10 million Euros more into spinouts and startups founded in connection with the University, in addition to the current five million Euros.
− As an investor with a strong solidity and sustainability profile, we have the means to finance the commercialization of science-based innovations over the long-term, regardless of short-term market movements. We therefore invest even 10 million euros more into them, through our internal venture capital fund, into which we also gather our current spinout and startup investments . Seed investments will hereafter account for circa one third, and follow-ups for the rest, Deputy Chief Investment Officer Marko Berg concludes.
