Equity holdings boost returns at Finland’s Etera

first_imgFinland’s Etera saw its listed equity portfolio boost returns for the first half of 2015 to 3.7%, as its solvency level continued to recover.The pension mutual said assets under management were approaching €6bn by the end of June, while year-to-date returns rose further to 4.2% when taking into account results from July.Stefan Björkman, the provider’s managing director, praised its continued active investment in domestic markets, highlighting its stakes in property and corporate bonds. Currently, 40% of Etera’s assets are invested in Finland.Listed equities were the provider’s best performer during the first six months of the year, retuning 8.5% compared to 9.6% for the first half of 2014. However, returns from equities as a whole outpaced 2014’s results by 0.9 percentage points, standing at 7.8. Its fixed income portfolio remained flat, returning 2.4%, while property dropped slightly year-on-year to return 2%.The mutual also continued to see improvements to its solvency level after questions over its future viability as a standalone entity emerged in late 2013.At the time, Etera reported a solvency level of 16.2%, which has improved to 17.2% by the end of June.Rival pension provider Ilmarinen saw returns of 6.2% over the first six months of the year, and Varma reported returns of 4.3%.last_img read more