Finlands Keva Posts Positive Returns

27 April 2012 (PLANSPONSOREurope.com) – Keva has posted a 5.9% return in Q1 with a market value of investments of 31.5bn euros at the end of March, citing a positive trend in capital markets.

The Q1 report reveals: 

• Listed equities and equity funds returned 10.9% and fixed income investments 3.4% 
• Return on real estate investments (including real estate funds) was 1.1% 
• Among the smaller asset categories, the return on private equity investments was 1.3%, on hedge funds 3.1%, and on commodities 5.2%.  
• Listed equities and equity funds accounted for 39.0%, fixed income investments for 45.5% and real estate investments for 7.9% of the entire investment portfolio.  
• Private equity investments accounted for 4.6%, hedge funds 2.1% and commodity investments for 0.7% of Keva’s entire investment portfolio. 

Chief Investment Officer Ari Huotari said: “The positive trend in the capital markets that already began at the end of 2011 continued in the first quarter of 2012. This optimism is probably mainly due to the European Central Bank’s financing operations aimed at supporting the banking system, which were launched at the end of last year. These measures abated, at least for the time being, concerns over the sustainability of the European banking system.  

“The outlook in the capital markets at the beginning of the second quarter of 2012 has, however, turned more negative. Equities markets have in general been under pressure, and the European equities markets, in particular, have been tried by the re-emerging concerns. The market uncertainty and turbulence that we know so well from recent years is set to continue.”  

Graham Simons
editors@plansponsoreurope.com