Keva turns corner as pension payouts outweigh contributions

Finland's biggest pension fund, with more than EUR 50 billion of assets, has turned a crucial corner which puts more pressure on its investment team: Pensions paid out of the local government pension fund are set to outweigh contributions this year for the first time.

Photo: Colourbox

Assets in the huge investment portfolio of Keva, the pension fund for local government staff in Finland, generated EUR 2.6 billion in returns in the first nine months of this year. It is a profit of 5.3 percent on a diversified collection of assets, and higher than the 4.2 percent the fund produced for the same period in 2016. But the pension fund warns that creating investment returns will become increasing important in future as its membership profile shifts.

"The difference between the pension contributions from employers and employee customers and the pensions we pay will turn slightly negative this year according to our estimates, for the first time in the history of Keva," said the pension fund's chief executive Timo Kietäväinen on release of third quarter results.

Read the whole article

Get 14 days free access.
No credit card required.

  • Access all locked articles
  • Receive our daily newsletters
  • Access our app
An error has occured. Please try again later.

Get full access for you and your coworkers.

Start a free company trial today

More from AMWatch

The ESG market is controlled by a few big investors

Finland's largest investor holds 62 percent of shares of multi-trillion ETFs offered by iShares and 64 percent of Xtrackers' equivalent offering. Having a few investors dominating ownership in this way is not good for the vehicles' liquidity and could be a big challenge facing the sector.

"We continue to see further growth in our Nordic book of business"

DECEMBER SERIES: What were the most important developments at some of the global asset managers present on the Nordic market in 2021, and what are their expectations for the coming year? AMWatch's December series is kicked off by Head of Nordics at State Street Global Advisors, Arnaud Bruyneel. 

Further reading

Latest news


Latest news from FinansWatch (dk)

Latest news from EnergyWatch

Latest news from ShippingWatch