Investment Policy and Portfolio

The Foundation’s activities are primarily funded with income from the Foundation’s securities portfolio. This has been diversified across different asset groups and then further diversified in order to provide the steadiest possible yield. The investment plan is prepared in accordance with guidance from the Foundations Act, good governance and the prevailing market conditions.

 

Saastamoinen Foundation’s investment policy is simple and straightforward. The investment policy is laid out in a document that the Board of Directors confirms each year. This specifies the strategy, restrictions and risk level of the investment portfolio. The Foundation is confident that Finnish and international blue chip companies serve as suitable investment targets over time. The environment, corporate social responsibility and good corporate governance are factors that blue chip companies take into account.

High equity risk can at times result in significant value changes, but good liquidity planning guarantees the funding of activities even in challenging market conditions.

The investment portfolio is managed by the Foundation in consultation with Finnish and international experts. The idea is not to turn the portfolio into an index portfolio, but to take an active approach to asset management. Investments are long-term and the portfolio turnover rate (PTR) is therefore very low.

The portfolio report provides information about the securities portfolio at the asset class and market instrument level.

 

Photo: Pastinen and Wolkoff, Vyborg Timber Agents in Egypt
Photograher: South Karelia Museum