FINLAND- Finish pension insurer Etera posted a 17% loss on investments in 2008 down from positive 4.5% the previous year.
Etera chief investment officer Mika Pesonen said: "The financial crisis made the year exceptional. We reduced the proportion of equities in the investment portfolio and increased the proportion of fixed income investments."
At the end of 2008, ut fixed income assets totalled 58% of the portfolio, 14 percentage points higher than the previous year; equity assets were 21%, down 16 percentage points. Etera also invests 17% in real estate and 4% in absolute return strategies.
Pesonen said the insurer moved to decrease it's hedge fund allocation, part of the absolute return portfolio, last year finishing 2008 at 2% of assets.
The insurers fixed income investment lost 2.1% for the year, down from 1.4% in 2007, while equities returned -40.9%, down from 3.4% the previous year. Real estate returned 1.2%, down from 12.5% in 2007 and absolute return strategies returned -19.1%, down from a gain of 4.9% last year.
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AMP Capital has set up a dedicated team to help institutional investors, including pension funds, invest in infrastructure through direct equity allocations.