The four largest occupational pension companies experienced a slight fall in asset values and average returns in the third quarter of 2023, statistics from the Finnish Pension Alliance (Tela) have shown.

During the quarter, the total investment assets of Elo, Ilmarinen, Varma and Veritas decreased from €148.9bn to €148.2bn.

Their average return also fell, from 3.1 per cent at the end of Q2 to 3 per cent at the end of Q3.

Equities remained the most popular asset class of the pension companies, making up 48.6 per cent of the total, followed by fixed income assets with 27.4 per cent.

Other investments, such as hedge funds, made up 12.7 per cent of assets, while real estate investments accounted for 11.4 per cent.

Ilmarinen was the largest pension company by investment assets, with €57.7bn, followed closely by Varma with €57.5bn.

Elo had €28.8bn worth of investment assets and Veritas had €4.3bn.

During the first three quarters of 2023, equities provided the best average return with 4.4 per cent, followed by fixed income (3.1 per cent), other investments (2.1 per cent) and real estate (-2 per cent).

Ilmarinen had a return of 3.3 per cent in Q1-Q3, while Varma had a return of 2.8 per cent, Elo returned 2.7 per cent and Veritas returned 2.3 per cent.

Tela’s statistics also included the Local Government Pension Fund (Keva) and the State Pension Fund (VER).

Keva had assets of €64.2bn and an average return of 4.1 per cent in Q3, and VER had assets of €22bn and a return of 3.2 per cent.

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