Asset management at Tampere University
Investment assets
The Foundation’s long-term capital is part of its investment assets, which are invested in financial markets in accordance with the Investment Plan. Long-term capital comprises the Foundation’s basic capital, the capital of funds and retained earnings from previous financial years. The investment assets have primarily accumulated through the 2019 merger of the University of Tampere and Tampere University of Technology, along with subsequent donations and capital contributions from the Finnish Government. These assets do not include shares in subsidiaries and associated companies or other holdings acquired by the University to achieve its strategic and operational goals.
As of the end of December 2024, the value of the Foundation’s investment assets stood at €544.4 million. Investment returns account for approximately 3–4% (€10–15 million) of our annual budget.
Investment strategy
Tampere University Foundation maintains a long-term investment horizon, with objectives extending decades into the future. We mainly invest through investment funds. Liquid assets are primarily managed through discretionary mandates, while fund selection for alternative investments is conducted internally. As a general rule, we invest in reputable asset managers and responsibly managed investment funds.
Our investment activities are governed by the Investment Plan, which is approved annually by the Foundation’s Board. The strategic allocation of investment assets across asset classes determines both the portfolio’s expected return and overall risk level. It is a key instrument for aligning the investment portfolio with the Foundation’s strategic goals. The goal of strategic asset allocation is to fulfil the objectives outlined in the Foundation’s Capital Utilisation Policy. Return and risk expectations, along with a stable Capital Utilisation Policy, play an important role in achieving this goal. The strategic allocation is reassessed if long-term market expectations change or if the Capital Utilisation Policy is amended. The strategic allocation determines the long-term performance of our portfolio.
Strategic asset allocation and tolerance bands
| Asset class | Strategic asset allocation | Tolerance bands | |
| Minimum | Maximum | ||
| Equity investments | 50% | 20% | 80% |
| Equity, Global | 50% | ||
| Fixed income investments | 22% | 0% | 80% |
| Short-term bonds | 2% | ||
| Government loans | 5% | ||
| Investment Grade loans | 10% | ||
| High Yield loans | 3% | ||
| Emerging Market Debt | 2% | ||
| Alternative investments | 28% | 0% | 40% |
| Private Equity | 10% | ||
| Illiquid fixed income and others | 5% | ||
| Real estate | 6% | ||
| Infrastructure | 5% | ||
| Forestry | 2% | ||
The long-term target for the real return on Tampere University Foundation’s investment assets is 3% per year. Based on the European Central Bank’s medium-term inflation target, this corresponds to a nominal return target of approximately 5% annually. The portfolio’s return and risk objectives are set at a level that allows for reasonable annual withdrawals from investment returns without compromising the preservation of basic capital, even under the most adverse market scenarios. The capital designated for preservation includes the Foundation’s basic capital of €272.9 million and the initial capital of restricted private equity funds amounting to €115.4 million, totalling €388.3 million.
Responsible investment
We are committed to responsible investment and to promoting sustainable development across all our operations, including investment activities. We believe that integrating environmental, social and governance (ESG) factors into investment decisions will positively contribute to the long-term financial performance of our portfolio. The continuous development of responsible investment practices supports effective risk management and the identification of new opportunities. All investment activities adhere to the Foundation’s Principles for Responsible Investment, with ESG considerations integrated into all our investment decisions.
Use of financial resources
The Board of Tampere University Foundation determines the annual allocation of investment returns as part of the budget approval process. The Board also approves the Capital Utilisation Policy, which outlines the principles for determining an appropriate level of capital use to support the University’s core operations.
Over the long term, investment income must exceed expenditure to ensure the preservation of the real value of the Foundation’s assets for future generations. Consequently, the long-term real return target imposes a ceiling on the amount of funding that may be distributed from investment returns.
Governance of investment activities
The roles, responsibilities and decision-making authority related to the management of the Foundation’s assets are defined in the Asset Management Regulations.
The Board decides on the allocation of income generated by the Foundation’s invested capital, confirms the Investment Plan and appoints the Asset Management Committee. The President confirms the procedures governing investment activities and monitors alignment between the Foundation’s investment strategy and its strategic long-term goals. Investment activities are carried out within the Financial Services unit. The Board has delegated to the Director of Finance the authority to make decisions that are in line with the Investment Plan. The Investment Manager is responsible for the planning and operational implementation of investment activities. The Asset Management Committee supports the preparation and implementation of the Foundation’s Investment Plan. The Asset Management Committee consists of the Foundation's Director of Finance, Investment Manager and 3–5 external specialist members. External members are appointed for a term of one calendar year. The external members of the Committee (2025) include Ari Kaperi (MEcon, Chair), Head of Illiquid Investments Maarit Säynevirta (VER), Head of Listed Securities Timo Sallinen (Varma) and Senior Portfolio Manager Tapio Olhava (Keva).