The call to merge the pension companies is increasing – ministers must be scratching their heads when leading business daily, Kauppalehti, published a letter from three readers that there would be at least €500 million annual cost savings if they were to merge…
FinnishNews journalists have been reporting earlier about these substantial cost savings as well with a series of articles this last year.
The pension companies and their lobby have remained silent because too many lucrative jobs are at risk…
It is interesting to note that the head of the oldest investment fund in Finland – the Helsinki Investment Fund that dates back almost 300 years”.
Mr. Anders Ekholm, Ph.D., is the Chief Investment Officer at University of Helsinki and he has written the following two interest an pertinent paragraphs:
“The University of Helsinki has been an investor almost since the days of Newton, as its oldest still managed fund dates back to 1745. The corresponding risk of the average return is less than one percent over that time. Regardless of the exact numbers, the point is clear: risks become more manageable over time, as actual returns converge with the expected returns.”
and…
“This is why the University of Helsinki is moving towards a highly diversified portfolio, which contains shares in thousands of firms globally. Third, costs is the most certain component of future investment returns. The University of Helsinki has consequently reduced annual fees to 0.1 % for new investments.”
If he can earn a better return than the largest pension funds here, and he does, then it is about time to change the guard here too… without much further ado!
