Equity Investments

VER’s investments in stocks consist of two types of instruments: listed equities and other stocks and shares. According to the standing guidelines issued by the Ministry of Finance, a maximum of 55 per cent of all VER’s investments may be made in equities.

Listed equity investments

VER’s listed equity investments are spread globally and divided into five sub-portfolios: Europe, the Nordic countries, Emerging Markets, North America and Japan.

The portfolio is weighted to European stocks and funds with Japanese equities holding the lowest weighting.

Investments are made directly in listed companies or through funds. Most of the direct investments are made in listed Nordic companies while other geographical areas are mainly addressed through fund investments. They include both passive index investments and active funds of various forms. The strategies pursued by the individual funds may vary greatly depending on the investment policies employed. VER also makes use of exchange-traded funds (EFTs) in its investment operations.

When investing in listed equities, VER seeks primarily to invest in companies with a strong cash flow and solid financing standing. VER pursues a range of sub-strategies specific to individual industries that may vary considerably from one sub-portfolio to another. Special attention is also paid to the volatility of the equities portfolio when its allocation is determined.

Traditionally, annual changes in the listed equities portfolio have been limited. If necessary, however, trading activity can be quickly increased when warranted by market developments.

Other equity investments

Of VER’s other equity investments, the most important are private equity funds. Additionally, investments have been made in non-listed equities, listed real estate funds and balance funds.

EN Q1 2021 5


EN Q1 2021 6