FINLAND - The State Pensions Fund (VER) posted a return of 7% over 2006, with assets totalling over €10bn at year end.
In spite of disappointing half-yearly results, with 0% return, the value of VER’s investments rose significantly over the whole of 2006. However, it dropped by 7.9% from the 2005 figure of 14.9%.
The market value of the fund’s investments exceeded the €10bn limit, rising to €10.3bn at year end. This saw an increase from the 2005 sum of €8.2bn.
VER had around 40% of its assets in equities, 56% in fixed income and 4% in other asset classes.
VER MD Timo Löyttyniemi said: “During the year, we raised the share of other investments to 4% and we will continue to diversify our investment portfolio even further.”
In other Finnish news, the Evli Bank’s group joint pension fund achieved a 16.8% net return on its investments over 2006.
The good returns were attributable to both the good performance of the equity markets and successful fixed income investment.
The pension fund's good result indicates that active investment operations have brought significant additional returns, said Antti Pesonen, the fund's administrator.
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HM Treasury has agreed in principle to give NEST a £329m contingent liability guarantee in the event of the master trust's wind up or closure.
AMP Capital has set up a dedicated team to help institutional investors, including pension funds, invest in infrastructure through direct equity allocations.