The average investment return of the Finnish earnings-related pension system in 2020 was 4.8 per cent, according to the Finnish Centre for Pensions (ETK).
The positive return is despite a year dominated by the Covid-19 pandemic. In total earnings-related pension assets rose to €223bn.
At year-end 2020, the investment assets of the earnings-related pension system in Finland were divided as follows: 52 per cent in listed shares and share-like instruments (up by 2 per cent from 2019), 32 per cent in money-market investments and interest-bearing instruments, 9 per cent in real estate and 8 per cent in other investments (incl. hedge funds).
One fourth (25 per cent) of the investment assets were in domestic objects while slightly less than one fifth (17 per cent) were in objects within the euro area. The main part (58 per cent) of the earnings-related pension system’s investment assets were in objects outside the euro area.
“In the review period 1997–2020, the average return of the Finnish pension insurance investors has exceeded the baseline projections. A sufficient average long-term return improves solvency, thanks to which our pension system can weather crises on the financial markets,” ETK stated.
Latest News
-
European DC assets expected to pass €10trn by 2030
-
TPO increases output despite pandemic challenges
-
News in brief: 23 July
-
Netherlands’ ABP funding ratio rises to 104.5% in Q2
-
Institutional investors have ‘increased appetite’ for indexed FI strategies – SSGA
-
Nordea Asset Management’s inflow impacted by €3.7bn Danish pension business divestment
How the US’s robust securities law can benefit European investors
Over recent years several financial scandals have shocked investors, such as the Danske Bank money laundering case. When a scandal like this occurs, investor returns suffer, which is why many seek redress. Many European investors seek to recover assets lost as a result of securities fraud through U.S. courts, with their robust securities laws.
In this podcast, Jeremy Lieberman, Managing Partner at Pomerantz LLP, talks to European Pensions Editor, Natalie Tuck, about how European investors can use U.S. courts to recover assets lost to securities fraud and the challenges facing investors seeking compensation.
In this podcast, Jeremy Lieberman, Managing Partner at Pomerantz LLP, talks to European Pensions Editor, Natalie Tuck, about how European investors can use U.S. courts to recover assets lost to securities fraud and the challenges facing investors seeking compensation.
Podcast: Opportunities in Chinese equities
China was the first country to be impacted by the coronavirus outbreak, which lead to its economy plummeting. Since then, however, the country has managed to keep outbreaks of the virus under control, and is experiencing a V-shaped recovery with many areas returning to normal.
In this podcast, David Choa CFA, Head of Greater China Equities at BNP Paribas Asset Management talks to European Pensions Editor, Natalie Tuck, about China, its position within the global economy and the potential institutional investor opportunities within Chinese equities.
In this podcast, David Choa CFA, Head of Greater China Equities at BNP Paribas Asset Management talks to European Pensions Editor, Natalie Tuck, about China, its position within the global economy and the potential institutional investor opportunities within Chinese equities.
Mitigating risk
BNP Paribas Asset Management’s head of pension solutions, Julien Halfon, discusses equity hedging with Laura Blows
Europe’s pensions challenges
Francesca Fabrizi meets Matti Leppälä, Secretary General and CEO of PensionsEurope, to discuss the key aims and objectives of the association today.
© 2019 Perspective Publishing Privacy & Cookies
Recent Stories