Finnish pensions giant pulls in healthy return but lags behind on climate targets
An ageing population, a low birth rate and a zero interest rate environment are putting pressure on pension financing in Finland. "It is now important to get the population vaccinated quickly so that we can lift the Covid-19 restrictions and re-open the economy at a fast pace," says Ilmarinen CEO Jouko Pölönen.
Two years ago, KLP Kapitalforvaltning accounted for 4 percent of inflows to Norwegian retail funds. Now, its share is 17.6 percent. "It's been a dramatic change," says CEO Håvard Gulbrandsen, who thinks sustainable funds, low prices and new dynamics in the Norwegian retail market are responsible.
The Swedish Pensions Agency has been busy recently, with a first foray into real estate and new terms and conditions for its fund platform meaning lower fees for savers. Fund department chief Erik Fransson also discusses whether going fossil free has had an impact on returns.
Five new guidelines aim to create more transparency about how Danish pension funds asses the value of unlisted assets – but according to several pension firms, they already live up to these principles.