The return on investment of the State Pension Fund (VER) for the period from January 1 to June 30, 2012 was 4.8%, while the corresponding figure for the whole of 2011 was -2.3%. The geometric mean of VER's five-year return was 2%, while the geometric mean for VER's 10-year return was 5.4%.
The market value of VER's investments was 14.4 billion at the end of June (13.7 billion on December 31, 2011). VER investments comprised fixed income investments of 54.3% (56.6%), equities of 38.6% (36.4%), and other investments of 7.2% (6.9%).
The return of fixed-income investments was 4.1% and the return of stock investments was 6.4%. Other investments reached a 1.7% return.
"Our return on investment was good at the beginning of the year. This positive development has continued throughout the summer. The state debt crisis in Europe may cause occasional surprises in the market.
"The interest rate of government loans for countries in a better economic situation is starting to become quite low for investors. This has resulted in investors increasing their investments in corporate bonds and other targets yielding extra return", says Managing Director Timo Löyttyniemi.
Total returns on pension fund contributions during the first half of the year amounted to 829 million. This accumulation is 15 million more than the corresponding figure from 2011.
A total of 821 million of VER assets had been transferred to the State budget by the end of June. The corresponding figure for the period January 1 to June 31, 2011 was 774 million.
Source: The State Pension Fund