Tampere University’s asset management
The University Board is responsible for organising investment activities. The University's Asset Management Committee consists of external experts and supports the Board and the investment organisation with recommendations and advice. The President supervises the investment activities while the Chief Financial Officer is responsible for operational activities.
Practical investment activities are guided by an investment plan which is annually approved by the Board. The investment plan defines, among other things, the general principles of the university’s investment function, the objectives of investment activities and the basic distribution of investments between asset classes.
University’s financial assets
The University’s financial assets refer to assets that the University invests in investment instruments on market terms. On 31 December 2022, the value of financial assets was EUR 460 million.
The financial assets are divided into investment assets and a liquidity buffer. The market value of the investment assets was approximately EUR 437 million on 31 December 2022. Some 48% of the investments were invested in globally traded equities. Fixed income investments accounted for around 28% of the investments and alternative investments for some 24%.
In 2022, the return on investments was -7,5%. The return on listed equities was -12,9% while the fixed income investments return was -11,2% and alternative investments accounted for 7,5%.
A liquidity buffer refers to assets saved in bank accounts or other instruments from which they can be quickly converted into book money. The market value of the liquidity buffer was some EUR 23 million on 31 December 2021.
Accountability
Responsibility is one of Tampere University’s seven core values and an integral part of investment activities. The principles of environmental and social responsibility and good governance (ESG) are considered in all investments. The University invests in companies that comply with the principles of the UN Global Compact initiative on corporate responsibility. The Board of Tampere University Foundation annually confirms the University's principles of responsible investment when it approves the investment plan.
The University mainly invests in fund-based investment objects, where the fund's portfolio manager is responsible for selecting an individual investment object. In addition to the UN Principles for Responsible Investment, Tampere University Foundation requires that the funds in which it invests comply with local legislation and international tax treaties.
The University monitors the implementation of a fund’s responsibility through responsibility reports and by actively contacting service providers. The University requires asset managers with a full power of attorney to submit an annual report on the implementation of the portfolio's responsibility.
Tampere University aims to be carbon neutral by 2030. To achieve this goal, the share of investments in companies operating in the production of coal, oil and gas will be gradually reduced.
Promoting responsibility in the University’s investment operations
Tampere University participates in the activities of the Finnish Forum for Responsible Investment (Finsif). By networking with other institutional investors, the University can develop its own ways of working and participate in discussions on responsibility.
The University takes part in initiatives, petitions and commitments that promote responsibility and have a clear goal and association with the University. These may include, for example, initiatives aimed at developing responsibility reporting or commitments aimed at reducing harmful emissions.
Investment horizon
The University's investment horizon is long and reaches beyond different economic cycles. By effectively diversifying investments into different asset classes, the aim is to even out fluctuations in the market value of the investment portfolio in changing market situations.
Another purpose of diversification is to ensure that the risk of an individual asset class or investment object will not become a significant part of the investment assets. To enhance diversification, the University's investments are mainly made in fund-based investments.
Investments
The University Board annually approves the investment plan. In the investment plan for 2023, the basic distribution of investments is the following:
- Some 45 % of the investment portfolio is invested in listed equities focusing on European and North American shares.
- Twenty-five per cent of the investment portfolio is invested in fixed income. These investments are mainly divided between European higher-rated corporate bonds and European government bonds.
- Another 25% of the investment portfolio is alternative investments, which include, for example, investments in private equity funds and real estate funds.