Finances

Kone Foundation relies on yields from investments for its operations. The purpose of the Foundation’s investment function is to manage the Foundation’s investment assets so that operations pursuant to the Foundation’s by-laws remain stable now and in the future.

Because the Foundation employs a long term investment horizon, most investments are in shares. Investments are governed by the investment strategy and the annual investment plan, and are approved by the Board of Trustees.

The Foundation’s spending is not based on annual revenue, as cyclical fluctuations can cause the returns to vary widely year-on-year. In deciding on the financial allocation for grants, the Board of Trustees ensures that there will be no significant variations from one year to the next. It seeks to adjust allocations over a longer time period depending on the cumulative investment performance while also taking into account the running yield on assets in the previous financial year and the current outlook. The Foundation is also mindful of future funding needs.

Approximately 90% of Kone Foundation’s investment holdings are equities. Of these, Finnish equities account for roughly 90%. The Kone Foundation directly or indirectly owns approximately 11% of Kone Oyj’s shares and 3% of Cargotec Oyj’s and Kalmar Oyj’s shares. In addition, the Foundation has an investment portfolio consisting of globally and professionally invested securities. Kone Foundation requires its asset managers to have signed The United Nations Principles for Responsible Investment (PRI).