Finnish earnings-related pension provider Elo made a return of 7 per cent, equivalent to €2.1bn, in the first nine months of 2024, which it attributed to the strong performance of listed equities.

Publishing its interim results, Elo said the market value of investments was €32bn (€30bn at the end of 2023). The average return on investments over 10 years was 5.7 per cent, corresponding to a real return of 3.6 per cent.

“Our investments generated good returns and our management fee was competitive thanks to our cost-effectiveness,” Elo CEO, Carl Pettersson, said.

The return on Elo's equity investments was 10.1 per cent with the best return for listed equity investments at 14.1 per cent. Fixed-income investments returned 4.0 per cent while the return on real estate investments was 1.9 per cent.

The return on other investments was 6.3 per cent. These consisted mainly of investments in hedge funds, on which the return trend levelled out at 6.4 per cent.

Commenting on the September insurance transfer round, Petterson said there were both successes and areas for improvement.

“We had a good positive result in YEL, while the result in TyEL was negative. We have implemented projects within the organisation to implement the strategy and support sales, and I am convinced that the services and operating models we have developed for the benefit of our customers will yield results,” Pettersson said.

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