FINLAND - Etera Mutual Pension Insurance Company has reported a profit on investments of 4.4% in 2007, a fall of more than 3% from the previous year. 

Preliminary figures from the Finnish pension fund reveal the investment portfolio generated a return of 4.4% over the year, compared to 7.7% in 2006, although the value of the investment portfolio increased from €5.8bn to €6.1bn year-on-year.

Kalevi Hemilä, managing director of Etera, pointed out as it was a "challenging year in the investment markets" the results, which included a "solid" solvency ration of 30.7%, could be "considered reasonable".

"Our clients benefit from Etera's solid solvency, because it guarantees competitive client bonuses," Hemilä added.

The company, which is responsible for 156,000 pensioners and a further 317,000 members, revealed the profit was helped by "excellent" returns of 12.3% from its real estate investment, such as a former military hospital in Tilkka which is being converted into a healthcare facility for the elderly.

Commenting on the returns from the real estate sector of the investment portfolio Hemilä said: "We have invested in well-located commercial complexes and office premises at the right time."

Etera confirmed the full financial statements for 2007 will be published on March 12 2008.

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