Jump to content

Investments

The objective of Elo’s investment operations is to ensure the profitable, secure and responsible investment of employment pension assets. The fundamental idea is to operate so as to generate the best possible return on funded pension assets. Employment pension assets are invested in compliance with the company’s strategy and policy. The responsibility for pension assets extends forward for decades. Elo’s principles for responsible investing are also based on corporate social responsibility: our accountability to policyholders and the insured. The investment process is independent, autonomous and focused on the long term.
content image
Picture: Elo's investment asset allocation 9/2019
At the end of September 2019 the return on Elo’s investments was 9.4%. The market value of Elo’s investments was EUR 25 billion. The solvency ratio was 123.7% and solvency capital was 1.5 times the solvency limit. The overall result was EUR 879 million.

Principles of Elo’s investment operations

Basic task

• The objective of Elo’s investment operations is to ensure the profitable, secure and responsible investment of employment pension assets.
• The strategy of Elo’s investment operations is to seek to achieve good and sufficient returns on investments through the selected strategic allocation and success in internal asset class investment decisions.
• The responsibility for pension assets extends forward for decades.

Solvency

• Good solvency enables active investment policies in all economic environments.
• The key determining factor for return and risk is the selection of the strategic allocation.
• Risk-taking in investment operations is required in order to generate sufficient returns. Risk-taking is managed with limits and restrictions as well as sufficient diversification.
• Responsible investments are also a way to avoid and manage risks.

Responsibility for investments

• Responsibility is integrated in the investment processes, taking into account the special features of asset classes.
• Responsible investments aim at sustainable long-term returns.
• The responsible investment strategy is comprised of the responsibility for own operating methods, compliance with international norms, the assessment of responsibility as part of the analysis, decision-making and monitoring related to investments, as well as ownership steering and other means of influence.

Resources and cost efficiency

• Investment operations across different asset classes are implemented cost-efficiently and transparently throughout the investment process.
• Most investments across different asset classes are made in-house.
• Additional returns from the markets are the result of excellence. Additional value is created through strong expertise and long-term developments.
• Continuous development of expertise and more comprehensive utilisation of digitalisation opportunities play the key role.