The return of the investments of the State Pension Fund (VER) was 11.7% in 2010 (16.4% in 2009). The mean of VER's five-year return (20062010) was 3.6% and 10-year return (20012010) 5.5%.
The market value of the fund's investments was 13.9 billion at the end of the year (12.3 billion in 2009). VER investments comprised 54.3 (54.9)% in fixed income investments, 40.4 (40.8)% in equities, and 5.2% (4.3%) in other investments.
2010 was a successful year for VER's investment operations. All asset classes yielded good returns. In comparison to the benchmark indices, significant excess earnings were secured in fixed income and stock investments. The Nordic equities performed best with the return exceeding 32%. The returns for other investments also continued to increase toward the end of the year.
"The year was very successful for VER. We were able to reach an 11.7% return on investment. The return exceeded 10% already for the second consecutive year. We are particularly happy with the ability of our organisation to exceed the benchmark indices for equity and fixed income investments already for the third year in a row.
"At the end of the year, VER had no government bonds in Greece, Ireland, Portugal or Spain. The problems with many European countries and the low interest rates will create a challenging investment environment for this year," says Timo Löyttyniemi, Managing Director of VER.
Source: The State Pension Fund (VER)
