The fund carrying Teosto’s name was established to ensure the continuity of Teosto’s mission and cultural promotion activities. The Fund is used to offer financial support to organisations such as the Finnish Music Foundation, which provides financial assistance and grants for live music events, audiovisual recordings and a wide range of other musical projects.
The fund was first set up in 2009 for the purpose of securing the ongoing delivery of activities in line with Teosto’s mission, including the promotion of Finland’s musical heritage.
How are the funds used?
In 2016, Teosto awarded a total of EUR 2.5 million from its Teosto Fund to promote Finnish music. The Finnish Music Foundation (MES), for example, received a total of EUR 1.2 million. MES promotes Finnish music, including research, education and export, by issuing grants and other forms of financial assistance. We co-founded MES with Gramex in 2012.
The Teosto Fund also provides the funding for the annual Teosto Prize.
Other beneficiaries in 2016 included Teosto member organisations and associated foundations, such as the Georg Malmstén Foundation, Music Finland, the Sibelius Fund and the fund of the Finnish Music Publishers Association.
Teosto Fund overview
The fund primarily derives its funding from the so-called national funds which Teosto retains in accordance with the agreements it has made with its rightholders and foreign copyright organisations. Further income has also been secured through profits acquired through Teosto’s asset sales and the private copying levy paid by the Ministry of Education and Culture. At the end of 2016, the Teosto Fund was valued at EUR 24 million.
Unit: 000 €
In 2016, the national funds were set at 6.7% of performing right royalty income. In 2017 the share will be 6 %.
The fund’s investment policy is based on a long-term approach, which will ensure that the Teosto Fund remains resilient against short-term fluctuations of value.
Allocating the funds to different investment classes (so-called neutral allocation)
- Direct equity investments 40%
- Interest bearing instruments 30%
- Alternative investments 30%
In practice, the investments are carried out through selected partners and funds, with the emphasis on following the principles of responsible investment.
The National Funds Working Group 2016–2017:
Kim Kuusi (Chairman)