University finances and investment activities

The purpose of the university’s investment activities is to generate funding for the university’s core activities, strengthen the university’s financial position, and support the achievement of the university’s strategic objectives. The university manages its assets carefully, and clear roles and principles have been agreed for investment activities.  As a shareholder, the University of Eastern Finland seeks, through its investments, to promote responsible business activities and, as a result, positive social impacts through the capital it offers.

The university’s investment activities are guided by responsible values. According to the investment principles of the University of Eastern Finland, taking responsibility into account in investment activities is a prerequisite for long-term value creation. The objective of investment activities is primarily to retain the capital invested, while on the other hand also increasing the capital and generating return on capital that can be used for university’s activities in the long term. Return on capital is sought without the invested assets being exposed to a higher risk than deemed appropriate by the university's Board.

The Board oversees the university’s investment activities by, e.g., confirming an annual investment plan. In addition, the Board has confirmed the university’s principles for responsible investment. The university uses discretionary asset management services to manage its investments. Asset managers are committed to observing the agreed principles and they regularly report to the university’s leadership and Board on the achievement of the financial and responsibility objectives. The Chief Financial Officer is responsible for the implementation of investment activities in accordance with the investment plan approved by the Board, and for the preparation and development of the investment plan. 

The majority of the university's investment assets consists of the university's basic capital and other spare capital. In addition, the university has funded substantial donated assets for long-term use. Funding of assets and returns on investment activities enable greater contributions to the purpose of the fund than the original capital.

The funds include both permanent capital funds where the fund’s returns are permanently used for a specific purpose while retaining the original capital of the fund, as well as depreciation and private capital funds where, in addition to returns on investment, the original capital is also used over a certain period of time. The planned time of use of the assets is taken into account in the investment plan. Separate accounts are kept on the returns and use of the assets in funds, and they are used for a separately agreed purpose in accordance with the rules of the fund. A list of the funds can be found below.