US investments push Varma returns to 7.1%

first_imgThe average nominal return on investments over the past 10 years is now 5.5% per year.Varma said its investment returns developed strongly during the first half of the year, but uncertainty in investment markets caused the result to fluctuate considerably during the second half.The last quarter in particular was very turbulent.Reima Rytsölä, CIO at Varma, said: “The investment result was improved by a fairly strong focus on the US markets. Instead of a stagnant Europe, we were involved in a growing economy.”Returns were generated consistently across the different asset classes.Equities – which make up 41% of the portfolio, including 32% in listed stocks and 6% in private equity – were the best performers, with a 9.1% return (21.8% in 2013).The decline in interest rates ensured the return on fixed income investments was also good, at 5.5% (compared with 1.2% in 2013).At end-2014, fixed income made up 30% of investments.Returns were also boosted by hedge fund investments, which returned 7.8%, compared with 8.8% in 2013.The weighting had been increased early in 2014, taking the allocation to 17% by end-2014, compared with 13% the previous year.Real estate returned 3.8% over 2014, increasing from 3.1% the year before. The asset class made up 10% of the portfolio at end-2014.Rytsölä said: “It is realistic to expect lean times for investors. Interest rates are hovering around zero, and if economic growth does not pick up, the return on equities might also remain modest.”The company warned that the economic environment remained challenging for Finland.It said the change in the value of the euro and the drop in the price of oil would promote growth this year and next.But growth forecasts remain moderate with respect to recent history, and for investors, the interest rates especially are dramatically low.Risto Murto, president and chief executive at Varma, said: “We are used to a situation where low interest rates reflect a strong economy and stable currency, but that is not the case now. The record-low interest rate levels indicate economic problems, not strengths.”Meanwhile, during 2014, the company wrote premiums totalling €4.3bn and paid pensions of €5bn. Varma Mutual Pension Insurance, Finland’s largest earnings-related pension insurer and private investor, has announced a return on investments for calendar 2014 of 7.1% (€2.7bn), taking its solvency to a record high level.By the end of last year, its investment portfolio had reached €40bn – again, a record high – from €37.7bn the year before, while solvency capital was at €10.3bn, compared with €9.1bn at end-2013.This meant solvency capital amounted to 34% of technical provisions (31.6% in 2013).However, returns were lower than the previous year’s €3.2bn (9%).last_img read more

PSG boss Tuchel explains angry outburst at Leipzig coach

first_img Read Also: PSG fans celebrate UCL final qualification with fireworks “It’s incredible! We are here to play a final and to win,” said the 46-year-old. “We know that Bayern are the favourites, but it’s football. “Obviously, that will be the biggest challenge of my career on Sunday.” FacebookTwitterWhatsAppEmail分享 Promoted ContentPlus-Size Babes Who Will Make Your Heart RaceCan Playing Too Many Video Games Hurt Your Body?11 Most Immersive Game To Play On Your Table Top15 Photos Of Amazingly Beautiful Mutations6 Interesting Ways To Make Money With A DroneCouples Who Celebrated Their Union In A Unique, Unforgettable Way27 Animals That Don’t Need Color To Be CoolMind-Bending Technology That Was Predicted Before It AppearedLaugh, Cry, Or Just Relax With The Best Series Streaming On HBO2020 Tattoo Trends: Here’s What You’ll See This Year10 Characters That Should Be Official Disney Princesses10 Hyper-Realistic 3D Street Art By Odeith Paris Saint-Germain boss Thomas Tuchel has explained his angry outburst at RB Leipzig fitness coach Daniel Behlau after Tuesday’s night Champions League semi-final in Lisbon. PSG reached the European Cup final for the first time in their history by beating Leipzig 3-0 at Estadio da Luz. Goals from Marquinhos, Angel Di Maria and Juan Bernat wrapped up a comfortable victory for the French champions, who can now look forward to a showpiece clash against either Bayern Munich or Lyon on Sunday. Leipzig lost their discipline defensively as they struggled to cope with PSG’s high press and pace in the final third of the pitch, and gave away a total of 24 fouls over the course of the 90 minutes. Tuchel was seen clashing with Behlau shortly after the final whistle, but he attempted to play down the exchange in his post-match interview. The German manager admitted to confronting his Leipzig counterpart Julian Nagelsmann over his tactics, before revealing that the club’s fitness guru attempted to join in their private conversation. “It was between me and Julian,” Tuchel told reporters of the incident. “That is okay between two head coaches but then a third person interfered. “I didn’t like that but it has since been sorted out.” Nagelsmann conceded that Tuchel’s grievances were understandable, while acknowledging the fact that his side had been guilty of several mistimed tackles. “We fouled a lot, you can see that statistically,” the Leipzig head coach said. “That wasn’t planned, we just often came too late into challenges. “He complained because he wanted to protect his players. That’s all normal. “I think we had 34 fouls at the end of the day so you can say something.” Tuchel was delighted to see his team pick up a “deserved” victory against Leipzig, but conceded that Bayern are still the favourites to win this season’s Champions League after their stunning 8-2 quarter-final win over Barcelona. Loading… last_img read more