Investment activities of Uniarts Helsinki
At the end of 2021, the total market value of the investment assets of Uniarts Helsinki was approximately EUR 90 million. Responsibility is a key value and operating method in the investment operations of the university.
Investment assets and investment objectives
In December 2021, the value of Uniarts Helsinki’s investment assets was approximately EUR 90 million. The value of investment assets varies depending on the prevailing market situation.
The objective of the investment activities of Uniarts Helsinki is to secure the university’s financial room to manoeuvre and to improve funding stability. The return on investment assets is used to develop the university’s operations.
From 2018 to 2021, the return on Uniarts Helsinki’s investment activities totalled EUR 24 million. During this period, the value of the investment portfolio increased by 36 per cent. From 2021 to 2024, the university will spend approximately EUR 11 million of the returns on investment activities on the development of its operations.
Uniarts Helsinki invests in listed equity investments, listed fixed-income investments, and alternative or 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.
Since 2018, the Board of Uniarts Helsinki has changed the university’s investment policy, so that the share of alternative investments in the investment portfolio has been increased. The decision has increased the expected return on the portfolio, and it is now less prone to market volatility.
Uniarts Helsinki invests mainly through funds. The 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.
Uniarts Helsinki’s investment horizon is long and can withstand short-term price fluctuations. An average of 5–6% 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, for operations development.
The investment assets of Uniarts Helsinki consist of listed equity investments (45%), listed fixed-income investments, cash (10%), and alternative or non-liquid investments (45%).
Responsibility in investment activities
Responsibility is a key value and operating method in the investment operations of Uniarts Helsinki. Responsibility is also part of investment risk management, as it helps to improve the return risk ratio of the investment portfolio.
Principles for Responsible Investment
Uniarts Helsinki is committed to complying with the Principles for Responsible Investment in its investment activities. In investment activities and when selecting partners, the generally accepted environmental, social, and governance criteria (ESG) are emphasised. 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).
Responsible investment indicators
The responsibility of Uniarts Helsinki’s investment activities is regularly monitored using the ESG criteria, by means of a reporting service produced by an independent external actor. The ESG rating shows how well companies in the investment portfolio consider risks and opportunities related to the environment, social issues, and good governance, in relation to their sector.
Approximately 55% 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.
Approximately 45% of the university’s investments are in alternative or non-liquid investments. Although responsibility is also an important criterion for such investment decisions, no ESG ratings for alternative investments are available.
The University Board administers and supervises Uniarts Helsinki’s investment activities. The Board is assisted by an advisory investment committee composed of external experts. The rector is responsible for the implementation and reporting of investment activities to the Board.
- Head of Finance, Financial Services, University of the Arts Helsinki