Uniarts Helsinki’s investment activities

Published 18.1.2022 | Updated 23.5.2024

Investment assets and investment goals

The current value of Uniarts Helsinki’s investment assets is about 98 million euros (April 2024). The value of investment assets varies depending on the prevailing market situation. 

The goal of the investment activities of Uniarts Helsinki is to secure Uniarts Helsinki’s financial room for manoeuvre and to improve funding stability. The return on investment assets is used for developing and supporting Uniarts Helsinki’s operations and for supporting its students. 

In 2018–2024, the return on Uniarts Helsinki’s investment activities totalled 32 million euros. During this period, the value of the investment portfolio has increased by 49 per cent. In 2021–2024, the university spent approximately 12 million euros of the returns on investments activities on the development of its operations.

Investment strategy

Uniarts Helsinki invests in listed equity investments, listed fixed-income investments and alternative i.e. non-liquid investments. Alternative investments refer to markets outside the traditional listed interest and share markets, such as private equity investments, private loans and immovable property.

As of 2018, the Uniarts Helsinki Board has begun changing the university’s investment policy by increasing the share of alternative investments in the university’s investment portfolio. The decision has increased the expected return of the portfolio, which is now less vulnerable to market fluctuations. Currently, the share of alternative investments in the portfolio is 60%, and there are no intentions to increase it further.

Strategy implementation

Uniarts Helsinki invests through funds. Investments are implemented in cooperation with senior asset managers and management companies. The selection of individual investment objects is outsourced to the portfolio managers of the investment funds concerned.  The decision on alternative investment objects is always made by the university’s Board or rector.

Uniarts Helsinki’s investment horizon is long and can withstand short-term exchange price fluctuations. An average of 6% of total annual return is sought for the invested assets. The aim is to use approximately half of it, or on average three percentage points per year, on operations development or on related support.

Investment distribution

The investment assets of Uniarts Helsinki consist of listed equity investments (30%), listed fixed-income investments and cash (10%) as well as alternative i.e. non-liquid investments (60%). 

Responsibility in investment activities

Responsibility is a central value and principle for Uniarts Helsinki when making investments. Responsibility is also part of investment risk management, as it helps to improve the risk-return ratio of the investment portfolio.

Principles for Responsible Investment (PRI)

Uniarts Helsinki is committed to complying with the Principles for Responsible Investment in its investment activities, and a responsibility assessment concerning an investment is always included when presenting a new investment decision proposal. The generally accepted environmental, social and governance standards (ESG) are emphasised when making investments and selecting cooperation partners. The principles also support the UN Sustainable Development Goals (SDG). Those selected as partners have accepted the UN Principles for Responsible Investment (UN PRI) or a similar document (alternative investments). In accordance with the goals stated in Uniarts Helsinki’s strategy, we are part of the solution to the ecological sustainability crisis and ecological thinking is something that permeates the entire university’s operations.

Responsible investment indicators

The responsibility of Uniarts Helsinki’s listed investments is regularly monitored using the ESG criteria by means of a reporting service produced by an independent external actor. ESG ratings are a reflection on how well the companies in an investment portfolio take environmental, social and governance risks and opportunities into account in relation to their field of business. 

Approximately 40% of Uniarts Helsinki’s investments are in listed investments. For these, the ESG classification of Uniarts Helsinki is AA, very good (on a CCC-AAA scale). The investment classification of Uniarts Helsinki is the responsibility of Investment Research Finland/MSCI ESG Research.

The university has the majority (60%) of its investments in alternative i.e. non-liquid investments.  Although responsibility is an important criterion for decisions on alternative investments, as well, there are no ESG ratings available for them.  The managers in Uniarts Helsinki’s service do, however report on the development of ESG objectives of alternative investments, as well.

Investment administration

Uniarts Helsinki’s investment activities are steered and monitored by the University Board. The Board is assisted by an advisory investment committee composed of external experts. The rector is responsible for the implementation of investment activities and related reporting to the Board.