Real-return targets and results
RJ has fulfilled, by a substantial margin, the return targets adopted by the Board for the foundation's financial activities.
From the start, the Finance Department's goal was to substantially safeguard the real value of assets, i.e. maintain its value in relation to inflation. In 1997 this goal was revised to a real return of 5% over time. In 2003, this target was lowered to 4%.
In 2017, the Board approved an investment policy with the target of a long-term average annual real return of at least 3%. With this target, RJ expects to maintain an even level of research grants, thus allowing the long-term active promotion and support of scholarly research.
Target fulfilment in relation to the targets adopted in each period
Long-term target fulfilment
RJ’s yield is evaluated based on the accumulated yield from 2003, on rolling five-year periods and on each calendar year. Asset management is also evaluated based on a reference portfolio proposed by the chief investment officer and adopted by the Finance Committee.
The reference portfolio should be seen as the Finance Committee’s and the chief investment officer’s assessment of a reasonable portfolio composition that can achieve the real yield target. During the period 2003–2020, the active asset management by RJ’s Finance Department surpassed the reference portfolio’s comparative benchmark index by 46.5 pp.
Real return 2003-2020
The financial result for the ten-year period 2011–2020 was SEK 10.394 billion. Total yield was 121.7 per cent, and the yield on the comparative benchmark index was 116 per cent.
Active asset management by RJ’s Finance Department over the last ten-year period surpassed the reference portfolio’s comparative benchmark index by 5.7 pp. The real yield for the ten-year period amounted to 112.5%, which exceeds the long-term target by 70.0 pp.