Ilmarinen’s investments

Ilmarinen seeks to gain the best possible return on its assets funded for the payment of future pensions. The company is attempting to contain the pressure to raise pension contributions through profitable investments.

Part of the yield on investments is returned to clients. Thanks to successful investments Ilmarinen has been able to pay very competitive client bonuses. From its 2009 result the company will transfer EUR 52 million to be used for reductions in contributions.

Ilmarinen’s technical provisions totalled EUR 22.7 billion at the end of 2009. The value of the assets covering the technical provisions was EUR 25.1 billion. The investment portfolio was distributed as follows:

• Fixed-income Investments: 50.6%
• Equities: 34.7%
• Real Estate Investments: 10.2%
• Other: 4.5%

Fixed-income investments

At the end of 2009, the value of Ilmarinen’s fixed-income portfolio including loan receivables, bonds and other money market instruments and deposits was, in market capitalisation terms, about EUR 12.7 billion. A total of EUR 9.0 billion of fixed-income asset allocation was invested in bonds. More than half of the bonds were invested abroad.

Ilmarinen’s loan portfolio was about EUR 3.2 billion at the end of 2009. Over half of these loans were TyEL-loans and the rest were investment loans.

Equities

The equity portfolio accounted for about EUR 8.7 billion of Ilmarinen’s total investment assets at the end of 2009. Some 40.9% of listed shares, i.e. EUR 3.2 billion, was in domestic equity investments.

Real estate invesments

At the end of 2009, the value of all Ilmarinen’s real estate investments was EUR 2.5 billion. The company owns altogether slightly over 4,500 dwellings and about 75 commercial, office, warehouse and other properties. A significant part of these locates in the Helsinki metropolitan area. Responsibility for the maintenance and leasing of the properties is with Ovenia Oy. (www.ovenia.fi).

Additional information

• Ownership Policy (pdf)
• Investments organisation chart (pdf)
• Financial Responsibility 2009 (pdf)
• Enviromental Responsibility 2009 (pdf)
• Key investment figures (pdf)
• PRI assesment results (pdf)