A statement released ahead of Keva’s annual report said investment returns reached 18.9 per cent, equivalent to e3.9bn and four times higher than the average return for the past five years.

Deputy CEO Timo Viherkenttä said the results were driven partly by a high equity allocation, which remained close to 40 per cent throughout 2009. Keva has also been increasing its allocations to emerging markets and high yield and investment grade corporate bonds, although its investment strategy has remained largely unchanged.

In addition, VER, the Finnish state pension fund, reported returns of 16.4 per cent in 2009. This goes some way to making up for the disastrous year it experienced in 2008, when returns sank to -15.8 per cent. Managing director Timo Löyttyniemi said it had increased its equity holdings from a low point of 27 per cent to its current neutral position of 41 per cent.