The 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%).
RelatedPosts Sexual assault: McGregor awaits physical test, video evidence Sexual assault charge: UFC superstar denies allegation, released without charge Mayweather’s ex-babe died of fentanyl overdose Floyd Mayweather has dismissed claims that he could come out of retirement and insisted that he is “finished with boxing”.There have been suggestions that Mayweather, who beat Conor McGregor in his last fight in 2017, could return to the ring to take on Adrien Broner. However, Mayweather played down such claims and says that he doesn’t want to face fighters who “sell out little arenas”.Mayweather told Fight Hype: “These are just rumours. I’m retired. I’m finished with boxing. I stay in shape.“I am not retired from business. Would I fight with McGregor? People make $370 million. I make that in one night. I made over $320 million twice. It only took me 36 minutes or 28 minutes, something like that.“If this guy [Broner] wants to fight Floyd I say ‘you guys sell out little arenas and do some little baby moves, not bad, but I’m older and a lot wiser, meaning I don’t want to end up like my uncle Rog. A lot of fighters don’t know when to give up.“Even the fight with McGregor it was smart on my behalf and smart on his behalf. I can make more money than any other fighter.” Mayweather revealed that he is enjoying being retired but did suggest that he could return for a fight against a fighter who sells out big arenas.He said: “Even if we did it again it’s entertainment and it’s business. I’m not boxing – no boxing at all.“I’m done, I’m retired and I love my life. I enjoy being retired.“If I see an opportunity and have a little fun and make $600 million – why not.“If I was to come back why would I fight a fighter that only sells out little cities?” Mayweather has taken part in 50 fights during his career, winning all of them.He is one of the greatest boxers ever having won 15 major world titles.Last month Mayweather revealed his desire to follow in the footsteps of his uncle Roger and become a trainer.Tags: Adrien BronerConor McGregorFloyd Mayweather