Finnish earnings-related pension provider, Varma, has reported a return on investments of 18.5 per cent or €9.3bn in 2021, the highest annual return ever in its history.

The best returns were generated by equities, 32.2 per cent, of which private equity investments generated 49.6 per cent, unlisted equities 26.3 per cent, and listed equities 26.4 per cent.

Hedge fund investments also generated very good returns, at 15.3 per cent. Real estate investments generated a return of 5.9 per cent, and fixed-income investments 1.9 per cent.

Varma’s solvency capital reached a new record high of €16.9bn and was 2.0 times the solvency limit at the end of the year.

“Last year was exceptionally favourable for investors," Varma’s CIO Reima Rytsölä said.

“The strategic allocation of our investment portfolio worked particularly well. The asset classes that showed weak performance in 2020 were our strengths last year. It goes to show that investment calls for resilience and perseverance.”

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