Returns on the investment of earnings-related pension assets are described on the following pages.

Summaries of returns

The page 'Summaries of returns' contain information about the composition of investment returns.

Our Investment Reporting Group (formerly the Return Calculation Group) recommends that individual pension insurers report the average nominal rate of return over five years. Another recommendation is that insurers report the average annual return for a period of ten years or longer. This recommendation is also applied when we present total returns on returns broken down by investment type for the whole sector or for each pension institution group.

The graph series in the section ‘Summaries of returns’ shows the average return percentages for two long return periods: from 1998 to the latest full year and the past five years. In addition, we present the most recent information available on the following two: the six-month return for January–June or the full year return for January–December.

In addition to the average total returns, we present returns for the various pension institution groups and for the principal investment types:

  • fixed-income investments,
  • shares and holdings and
  • real estate investments.

In addition to the returns of our members, we illustrate the general trend of the stock market by means of the return trends shown by some stock indices.

Returns by investment type

On the page ‘Returns by investment type’, we use a detailed investment category breakdown to present pension insurance companies’ group-specific return averages over long periods of time.

The investment categories are

  • fixed income,
  • equity,
  • real estate and
  • other investments.

The periods used are one year, three years, five years and ten years.

Time series graphs on investment returns

The graphs on the page ‘Time series graphs on investment returns’ illustrate the returns on earnings-related pension investments over the long term. The graphs show the nominal returns on investments since 1997 for both private-sector and public-sector pension providers. The third time series graph presents the real return accumulated on investments by private-sector pension providers since 1997.

Calculation of the average return

See the page ‘Calculation of the average return’ for more information about the methods we use for calculating the average return in our statistics.