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.
At the end of 2017, the Teosto Fund was valued at EUR 27 million.
How are the funds used?
In 2017, Teosto awarded a total of EUR 1.2 million from its Teosto Fund to promote Finnish music. The beneficiaries included Music Finland and Teosto member organisations and foundation, such as the Georg Malmstén Foundation, the Sibelius Fund and the fund of the Finnish Music Publishers Association.
National funds worth EUR 1.5 million were funded in the Teosto Fund. The national funds consist of funds deducted by Teosto in accordance with the client and reciprocating agreements from the copyright royalties it collects. These funds are used for the promotion of Finnish music.
In 2017, the national funds were set at 6 per cent of the distribution of performing right royalties, amounting to approximately EUR 2.7 million.
The return on investment for the fund amounted to EUR 1.2 million. The fund’s assets increased by a total of EUR 2.7 million.
The Teosto Fund also provides the funding for the annual Teosto Prize.
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:
Katri Sipilä (Chairman)