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Press release, 24 January 2012
Advance notice of the return of the investment operations in 2011
-2.3 per cent return on investment for the State Pension Fund
The State Pension Fund (VER) investment return was -2.3 per cent in 2011 (11.7 per cent in 2010). The geometric mean of VER’s five-year return was 1.7 per cent, while the geometric mean for VER’s ten-year return was 4.8 per cent.
The market value of the fund’s investments was 13.7 billion euro at the end of the year (13.9 billion euro in 2010). VER investments comprised 56.7 (54.3) per cent in fixed income investments, 36.4 (40.4) per cent in equities, and 6.9 (5.2) per cent in other investments.
The return of fixed-income investments was 4.1 per cent and the return of stock investments was -12.3 per cent. Other investments reached a 6.1 per cent return.
The year 2011 was marked by the Eurozone state debt crisis. The return of the State Pension Fund's fixed income investments was 4.1 per cent, which is a good result in these circumstances. Despite this, total investment return was negative due to a declining economic outlook and lower returns on equity caused by the European debt crisis. However, towards the end of the year, the situation in the financial sector seemed to be stabilising, says Managing Director Timo Löyttyniemi.
The press release on the return of 2011 will be published on 29 February 2012
For further details, please contact:
Managing Director Timo Löyttyniemi, tel. +358 9 2515 7010, mobile +358 50 336 2094
The State Pension Fund (VER) is a fund external to the State budget, established in 1990, whose proceeds the Finnish state uses to prepare for the financing of future pension liabilities and the balancing of pension costs. VER is an investment organisation. The function of VER is long-term management of the assets that are entrusted to it with a view to ensuring the security, returns, and liquidity of investments and their appropriate diversity and diversification.
www.ver.fi
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VER KEY FIGURES
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31.12.2011
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31.12.2010
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Investments, MEUR (market value)
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13 736
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13 937
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Fixed-Income Investments
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7 781
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7 574
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Quoted Equity Investments
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5 006
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5 632
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Other Investments
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948
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731
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1.1-31.12.2011
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1.1-31.12.2010
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Return on Investments, %
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-2,3 %
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11,7 %
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Fixed-Income Investments, %
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4,1 %
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3,9 %
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Quoted Equity Investments, %
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-12,3 %
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23,6 %
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Other Investments, %
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6,1 %
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8,6 %
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The figures in this release are preliminary and have not been audited.
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