January 26, 2011: Preliminary data shows that Keva the €28.8bn fund, for Finnish municipal workers, returned 12.3%, in 2010.
Managing Director Merja Ailus, stated in the company press release: “the performance of Keva’s investment activities can be considered very good with regard to the general situation.” She added that, "We can also be satisfied with the cumulative real return on the pension fund, which has stood on average at 3.9 per cent per annum since its inception in 1988. In the course of Keva’s funding operations, the capital markets have experienced two very difficult periods: the collapse of the equity markets as a result of the bursting of the dot-com bubble and the recent financial crisis."
The €28.8bn market value of Keva’s investments consist of 44.8% equities, 41.1% fixed-income investments, 7.6% real-estate, 4.0% private equity investments, 1.7% hedge-fund Investments, and .8% commodity investments. Keva’s investments are located in diverse locations and sectors, with only 20% of all their investments made within Finland.
Keva Investment Director, Ari Huotari mentioned that "2010 was a difficult yet interesting year from an investor’s viewpoint.“ He continued by stating, “The current year is also expected to be quite challenging. It is increasingly difficult to generate returns from interest rate markets, and equity markets already have two years of particularly high returns behind them. Indeed, the capital markets are ripe for investing in new targets."
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