PE delivers best returns for Keva

The pension fund also announced that its entire portfolio generated 0.7% over the same period, amounting to €366m. Keva CEO Timo Kietäväinen said he is pleased that investment performance has returned to a positive trajectory since the first quarter.

Private equity was the best performing class, followed by real estate (2.8%) and hedge funds (2.8%). However, listed equities and fixed income delivered negative returns since the start of the year.

Trade wars, concerns about the sustainability of economic development, and interest rate hikes are among the factors casting shadows over the markets, according to chief investment officer Ari Huotari. He also said the sentiment during the first half of the year will continue during the second half.

Keva has increased its allocation to private equity to 8% as of 30 June, compared with 6.3% at the end of 2017. Investments in private equity are mainly outsourced to external managers, while only a small proportion are managed in house.

The pension scheme recently committed €150m to Bridgepoint Europe VI. Other recent commitments include KRR III and EQT VIII.

Keva has been a signatory to the UN Principles for Responsible Investment (UN PRI) since 2008, and has embraced responsible investing in private equity investments. It has included ESG criteria during its investment process, in DDQ documentation, fund description, and legal due diligence documentation. It also conducts an ESG survey of the largest funds' management companies every year.

Unquote caught up with Keva as part of its LP Profiles series

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