Ilmarinen, one of Finland's largest pension providers, returned 7.5% in 2012 compared to -4% the previous year, according to the company's annual report.
Based in Helsinki, Ilmarinen's total assets grew to €29.5 billion ($38.3 billion) as of Dec. 31 from €27.5 billion at the end of 2011.
All asset classes tallied a positive return in 2012. Private equity was one of the best performers, adding 15.4% during the year, while public equities rose 9.1%.
Among alternatives, Ilmarinen's hedge funds strategy returned 7.7%, and real estate investments rose 5.1%.
The fixed-income portfolio increased 6.9%, mostly due to the 13.5% return from the government bonds strategy. Loan receivables increased 3.4%, while public corporate bonds rose 2.6%.
Cash and other money market instruments returned only 1.9% for the year, according to the annual report.
As of Dec. 31, about 44.2% was invested in fixed income and 38.4% allocated to equities and shares, including private equity. Real estate, which predominantly consisted of direct investments, accounted for 11.7% of total assets. Hedge funds comprised 1.2%, and the remainder was in “other” asset classes, including commodities.
