HELSINKI, April 23 Finnish mutual pension
insurance company Ilmarinen may further cut investments in
domestic companies, building on a recent shift towards overseas
equities including emerging markets, a senior executive said.
Ilmarinen, which has 30.4 billion euros ($39.6 billion) in
investments, holds over 30 percent of its investment in listed
Within equities, around 30 percent is in Finnish companies,
compared with about 40 percent two years ago, but Deputy Chief
Executive and head of investments, Timo Ritakallio, said
Ilmarinen would probably cut that further to maintain solid
"In the long run, it still may be too high," Ritakallio told
Reuters in an interview.
Ilmarinen's top investments in Finland include Pohjola Bank
, utility Fortum, lift maker Kone
Ritakallio said he expected Ilmarinen to maintain around 30
percent of its investment in listed equities, but to shift the
weighting towards emerging markets and other areas outside
He also said it would aim to increase the weighting of
private equity, currently 4.6 percent of all investments, to
around 6 percent in the long term.
"If you consider the slow growth environment in Europe as
well as a low interest rate environment, many of the trends -
maybe most of them - are not positive for investment returns,"
he said. "But at the same time, for the next 2-3 years, if you
look at the global economy, the growth picture is quite
Finland is one of the euro zone's healthiest economies but
its growth has been hit by weak exports. With one-time export
leader Nokia continuing to lose market share and few companies
listing on Helsinki's bourse in recent years, economists expect
weak growth ahead for the small Nordic economy.
Ilmarinen's quarterly results, announced earlier on Tuesday,
showed the value of its stake in the mobile phone maker fell 27
percent to 151 million euros over the first three months of the
Ritakallio said that was due to both the fall in share
prices and a reduced stake.
($1 = 0.7674 euros)
(Reporting by Ritsuko Ando; Editing by Helen Massy-Beresford)