Keva, which is responsible for financing pensions and investing pension funds for the municipal sector and wellbeing services counties, achieved an investment return of 3.4%, or 2.4 billion euros, in January–September. The market value of the investments totalled 73.1 billion euros at the end of September, compared with 69.7 billion euros at the same time last year.
The market-value return on Keva’s investment operations was 3.4% for January–September. Listed equities provided a return of 8.9%, real estate investments (including real estate funds) 0.5%, fixed-income investments 0.2%, private equity investments (including unlisted shares) –0.7%, and hedge fund investments –2.7%.
Jaakko Kiander, CEO of Keva, stated that the real return on Keva’s investments has been reasonable during the year.
‘The rise in share prices has benefited Keva. On the other hand, the weakness of the US dollar this year has had a negative impact on our investment results. However, as a long-term and financially sound investor, we are not sensitive to short-term exchange rate fluctuations,’ Kiander said.
The long-term return on Keva’s investments remains at a good level. The cumulative capital-weighted real return since the start of funding (1988) up to the reporting date was 3.9% per year. The non-capital-weighted average real return for the corresponding period was 4.9%. The non-capital-weighted real return for the past five years has been 3.6%, and for the past ten years, 3.9%.
According to Chief Investment Officer Ari Huotari, market developments have been quite positive following the turbulence in spring and the rapid weakening of the US dollar.
‘Recently, however, the actions of the US presidential administration have stirred growing unease. In addition, concerns have re-emerged regarding the smaller, less regulated banks in the US banking sector. The end of the year may once again prove to be rather interesting,’ Huotari commented.
New Chief Investment Officer of Keva: As Ari Huotari will be retiring, Maaria Kettunen, M.Sc. (Econ.), has been appointed as his successor. She will assume the position on 1 November 2025.
Further information:
CEO Jaakko Kiander, tel. +358 20 614 2097
Chief Investment Officer Ari Huotari, tel. +358 20 614 2205
Finance and Financing CFO and Chief Actuary, Piia Laaksonen, tel. +358 20 614 2371
The figures presented in this release are unaudited.