Finnish earnings-related pension assets fell by €1bn to €284bn in the first quarter of 2026 amid “challenging conditions”, the Finnish Pension Alliance (Tela) has revealed.

The update noted that the investment year started promisingly before turning negative due to the conflict in the Middle East.

Despite these conditions, the investment return on earnings-related pension assets was down only slightly, and Tela said far-reaching conclusions should not be drawn based on the results of the quarter.

In Q1, the investment return on earnings-related pension assets was 0.1 per cent in nominal terms and -1.7 per cent in real terms, accounting for inflation.

“The closure of the Strait of Hormuz was quickly reflected in energy prices, which in turn accelerated inflation and pushed up market interest rates,” commented Tela chief economist, Mikko Mäkinen.

“This was reflected in the investment returns of earnings-related pension providers, particularly on the stock markets.

“However, the geographic and asset-class diversification of assets provided protection in the volatile market environment, and the overall impact on assets was limited.”

Between January and March, the real return on equity and equity-type investments was -1.9 per cent, while for fixed income it was -2.1 per cent, for property investments it was -1.1 per cent, and for alternative investments it was 0 per cent.

Nominal returns across the asset classes were -0.3 per cent on equities, -0.5 per cent on fixed interest, 0.5 per cent on property, and 1.6 per cent on alternatives.

Tela noted there were no significant changes to the asset class or geographical allocations during the quarter.

“Accelerating inflation and rising interest rates are dampening economic growth prospects in the eurozone and Finland this year,” Mäkinen stated.

“For the rest of the year, the biggest risk surrounds the duration and scope of the war in Iran and damage to energy infrastructure. Uncertainty surrounding US trade policy remains high and may cause market upsets.

“Earnings-related pension providers have an investment horizon spanning decades, evening out short-term fluctuations in investment returns over time. The system can weather bumps now and in the future.”

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