The State Pension Fund (VER) investment return was -2.3% in 2011 (11.7% in 2010). The geometric mean of VER's five-year return was 1.7%, while the geometric mean for VER's 10-year return was 4.8%.
The market value of the fund's investments was 13.7 billion at the end of the year (13.9 billion in 2010). VER investments comprised 56.7% (54.3%) in fixed income investments, 36.4% (40.4%) in equities, and 6.9% (5.2%) in other investments.
The return of fixed-income investments was 4.1% and the return of stock investments was -12.3%. Other investments reached a 6.1% return.
"2011 was marked by the Eurozone state debt crisis. The return of the State Pension Fund's fixed income investments was 4.1%, which is a good result in these circumstances. Despite this, total investment return was negative due to a declining economic outlook and lower returns on equity caused by the European debt crisis. However, towards the end of the year, the situation in the financial sector seemed to be stabilizing," says Managing Director Timo Löyttyniemi.
Source: VER
