The Foundation’s financial management and investment strategies aim to ensure the continuation of the Foundation’s activities now and in the future. Values such as perseverance and ambition combine with expertise to guide investing activities.
Portfolio yield development
The Foundation has set an absolute return target of 5.5% per annum on its portfolio, which takes into account the grants awarded by the Foundation, its operating expenses and inflation expectations. This goal cannot be achieved with a low-risk investment portfolio, as the return on such a portfolio is insufficient.
The portfolio yield in the end of 2024 was 7.4%.
Portfolio distribution
Investments are divided between several asset classes and sectors in order to diversify risks and meet investment objectives. Part of the portfolio consists of equity investments that aim at long-term growth, but it also includes fixed-income investments that generate more stable returns. Investments are implemented in both publicly traded securities and other investment instruments. Investment takes into account the Foundation’s cash-flow needs by investing annually in items that distribute dividends or other direct income.
Investments can also be made in diversified private equity, private debt, real estate, forestry and infrastructure funds, as well as in unlisted companies. The purpose of these other investment assets is to improve the risk-reward ratio of the portfolio. The Foundation pays particular attention to the reporting and monitoring of illiquid investments.
Grants distribution
Each year, a portion of the returns generated from the Foundation’s investments is used to fund grants and projects in science, art, and social projects especially targeted for the youth. The grant decisions are based on the Foundation’s bylaws and guided by our mission and values.
In 2024, the Foundation distributed EUR 6,7 million in grants. 22,5 % of the amount was targeted at science, 45 % at art and 32,5 % social projects.
Sustainability
We promote sustainable development in themes that broadly affect the environment and people. We have set measurable sustainability goals and promote them in everyday choices, investment activities, and grant decisions.
The Foundation strives to invest its assets responsibly. We believe that responsible investing also lowers the risk level of the portfolio. Responsible investing means that when making investment decisions, we take into account not only financial considerations but also environmental, social responsibility, and good governance (ESG) perspectives.
The Foundation, together with its partners, is developing the monitoring and reporting of responsible investing. The impact of sustainability on portfolio returns and risk can be measured when the time series used are long enough.
