Keva, which is responsible for the funding of local government pensions in Finland and their investments, reported a return of -6.4 per cent in the first nine months of 2022.

In monetary terms, this represents a return of -€4.3bn on investments between Q1 and Q3.

Keva’s investments had a market value of €62.2bn at the end of Q3, down from €64.8bn a year prior.

Its return on hedge fund investments was 10.9 per cent, while on private equity investments it was 8.1 per cent and on real estate investments it was 5.7 per cent.

However, Keva’s return on fixed income investments was -10.2 per cent and on listed equities it was -14 per cent.

By the end of September, contribution income had amounted to €4.4bn and €4.6bn had been paid out in local government pensions.

Approximately 565,000 employees had earnings-related pension insurance at the end of September.

Keva CEO, Jaakko Kiander, said the that the increased uncertainty and higher interest rates had a negative impact on the value of equities and fixed income investments during Q3.

“The optimism built up during the summer evaporated during September,” he stated.

“This was also reflected in Keva’s investment performance, which was way into negative territory. On the other hand, Keva’s long-term financing outlook remained stable.”

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