Since 1988, RJ has been an independent financial entity with its own internal financial management.
The Finance Department comprises the foundation's Financial Director and three Portfolio Managers with individual investment responsibilities. In the years 1989–2016, aggregate financial result was SEK 17.3 billion. Equity grew from SEK 1.6 billion in 1988 to SEK 12.2 billion at year-end 2016, while research grants totalling SEK 7.7bn were approved in the same period.
Besides the original donation from the Bank of Sweden, RJ received further donations of SEK 1.5 billion, which increased the foundation's asset base, in 1993. Every year, RJ makes an allocation to tied-up capital from profit brought forward, to preserve the real original value of the donations. For the years 1998–2015 RJ has allocated SEK 1.6 billion, which corresponds to the rise in the consumer price index.
At the end of 2016, RJ had a strong financial position. RJ's Annual Reports disclose the foundation's return and financial result for each year.
Change in equity 1989-2016
Real-return targets and profits
RJ has, by a substantial margin, met the targets for real return adopted by the Board for the foundation's financial operations.
More about real-return targets and profit
Favourable results from asset management have enabled RJ to develop its activities and, over time, increase the size of the annual research grants awarded.
More about research grants
Investments are currently made in international, as well as Swedish, shares; Swedish interest-bearing securities; directly owned properties and property funds; and alternative investments, such as hedge funds. The distribution of assets among different categories has varied over time, depending on market conditions and the management team's assessment of future trends.
More about asset allocation
Risks and risk management
The investment policy, which sets the framework for financial management, is drawn up in consultation with the foundation's Finance Committee and decided by its Board. Every year, RJ sets up a financial sustainability test ('stress test') to assess the impact a sharp fall in asset value would have on the foundation's future dividend capacity.
More about risks and risk management
For ten years, RJ's investments have been subject to ethical considerations. These are based on the investment policy requiring RJ to comply with the conventions signed by Sweden in the areas of human rights, environmental conservation and labour law.
More about ethical principles
- Published: 2013-12-27 11:39:22Changed: 2017-05-03 15:32:06