In 2005, the total assets under management of mutual funds registered in Finland increased from EUR 31.1 billion to EUR 44.7 billion. Mutual fund assets have never previously grown so fast in Finland.
The growth was also reflected at the five-year old Tapiola Fund Management Company, as assets under its management grew by EUR 244 million to EUR 974 million. The number of unit holders also increased steeply, by about 50%. At the end of 2005, there were over 15,000 unit holders.
There are a total of 24 fund management companies registered in Finland, Tapiola being the eight largest.
New mutual funds together with expert partners
Last year Tapiola Fund Management Company expanded its range by introducing two new mutual funds in the market for companies and organisations: Tapiola Real Estate and Tapiola Corporate Bond.
Tapiola Real Estate is an equity fund investing primarily in the shares of companies investing in or managing European real estate. The investments of the real-estate fund have been diversified in the European real-estate markets in, for example, France and the United Kingdom. Tapiola’s cooperation partner is Scottish Widows Investment Partnership, a Scottish asset manager. The equity team at Tapiola Asset Management also employs one portfolio manager specialising in real-estate equities.
In addition to its own expertise, Tapiola Fund Management Company utilises the experience of the US asset manager T.Rowe Price in its mutual funds, Tapiola USA and Emerging Markets. In the High Yield fund, external assistance is provided by the world's largest fixed-income asset manager PIMCO.
Tapiola’s funds have been successful
The mutual funds of Tapiola Fund Management Company were successful in the comparison of Finnish fund management companies in the Mutual fund guide published by the Arvopaperi magazine in 2005.
The mutual funds of Tapiola Fund Management company came in as high as third in the comparison of Finnish fund management companies in the mutual fund guide published by the Arvopaperi magazine in 2005. The assessment covered Tapiola’s range of 16 mutual funds.
Three of Tapiola’s equity funds, Trend, Wellbeing, and Institution, were awarded the highest grade of the review, 10.
The success was based on the portfolio managers’ disciplined long-term analysis and the selection of investments. The management company does not seek exceptional returns at high risk but rather a solid return, being conscious of the risks.
The popularity of mutual funds investments as a cost-effective form of investment for households, companies and organisations will continue to rise, thus supporting our profitable growth.
Asko Sasi
Managing Director
Tapiola Fund Management Company Ltd