Finnish pension companies are gearing up to take on more risk in their stock investments within this year, following a government-initiated pension reform that allows for greater risk tolerance. Ilmarinen, one of the major pension companies, has recently reported a substantial change in their investment strategy, including the sale of their stake in the electricity transmission company Fingrid to the Finnish government and OP-Pohjola for 400 million euros. This move is part of a strategy to liquidate assets that do not meet their investment criteria and to free up capital for higher-risk investments.

Alongside Ilmarinen, another pension entity, Varma, has announced a similar shift, divesting from residential properties and re-investing in stocks and cash. The real estate sector appears to be under scrutiny as these pension companies reassess their portfolios in light of changing economic conditions and investment outlooks. Stakeholder feedback indicates that the focus is shifting more towards stocks, which are perceived as having higher potential returns, even amidst greater volatility.

CEO Mikko Mursula of Ilmarinen clarified that the decision to divest from Fingrid was part of a broader evaluation of investment opportunities and did not directly align with the recent pension reform. The pension companies are expected to navigate the evolving landscape and carefully consider their options for risk management as they undertake this significant shift in investment strategy, aiming to enhance returns for beneficiaries while minimizing potential downsides in the volatile market environment.