The revenue yielded by the capital invested by the Finnish Cultural Foundation is distributed in the form of grants.

The Board of Trustees is responsible for administering the Foundation's assets. A Finance Committee, elected by the Board from among its members, meets five to six times a year and is responsible for making investment decisions. Preparing these decisions and managing day-to-day investment activities take place at the Foundation's office.

Investment decisions are based on an investment policy that sets out how the Foundation's capital should be spread across different types of securities. The Finance Committee monitors how the policy is implemented, and the Board receives reports on a regular basis.

Market-driven asset growth

Stability and a long-term investment horizon are priorities in the Foundation's investment decisions. The aim is to establish long-term positions rather than secure quick profits over the short term. Guaranteeing the Foundation a steady cash flow from its investments is important. The funds used for the Foundation's grants come from dividends and interest and similar sources of revenues. Capital gains are reinvested.

The economic situation in Finland and internationally is reflected in the Foundation's investments, and the growth in the size of its investment portfolio from the mid-1990's until 2005 was partly a result of general positive market developments and the "Nokia-story" specificly related to Finland. However, the international financial crisis which started in 2008 and the recent soveireign debt crisis puts also the Foundation to a test. For the next couple of years the Foundation will be able to maintain the total sum distributed as grants at the current level. But if growth especially in the western economies remains sluggish in the coming years, the Foundation may be forced to accommodate its activities to the situation.