The strategic objectives of investment activities give the operations of the Church Pension Fund a long-term direction. The purpose of the strategic objectives is to ensure that the Pension Fund is able to cope with future pension payments and to balance the development of the parishes’ pension contributions. The strategic objective of the investment activities is to accumulate the assets to cover pension liabilities in a profitable, secure and responsible manner.
When preparing the strategic objectives, the changed situation of the Pension Fund has been taken into account. The Pension Fund has shifted from the accrual phase to the transition period, where the amount of pension expenditure permanently exceeds the amount of pension contribution income. This means that the Fund’s assets are used to pay pensions.
The Pension Fund’s long-term real profit target is 3.5%. The profit target is in line with the profit targets of other Finnish pension providers. The objective of investment activities is to annually exceed the profit of the benchmark index set in the investment plan and to manage in the control group of other public pension investors. The aim is to achieve these objectives through tactical allocation and active investment activities, while considering responsibility aspects.
In terms of investment operations, the greatest risk is that the set profit target will not be achieved in the long term. The long-term goal for the annual risk level is 10.5%. The development of investment profits and risk is monitored, in the long term, as part of the annual management report and, in shorter periods, in connection with monthly reporting.
The Church Pension Fund is committed to responsible investment, and the aim is to remain a pioneer in responsible investment in Finland. This means that responsibility aspects, i.e. environmental, social and good governance factors, are considered in all investment activities. The Pension Fund follows the Guidelines for Responsible Investing approved by the Board, the PRI principles and the Active Ownership Policy.
The Pension Fund is a responsible investment partner. The Pension Fund operates openly, participates in discussions at events and forums and cooperates with other institutional investors, asset managers and other stakeholders to promote a sustainable future.
The Pension Fund Board has appointed a separate Responsible Investment Work Group to support the development of responsible investment activities.
The updated Climate Strategy of the Pension Fund was published in autumn 2025. The aim is to achieve a carbon-neutral and net-zero emissions investment portfolio by 2035, provided that the investment environment makes it possible.
The decision on strategic allocation is the most important factor in achieving long-term return and risk objectives. Strategic allocation enables sufficient allocation of assets across different asset classes, while reducing the overall risk of investments.
Pension Fund’s long-term strategic allocation for 2024–2027.
In addition to strategic allocation, practical investment activities are guided by the basic allocation of the annual investment plan approved by the Board. The target weights guiding the tactical allocation are reviewed and, if necessary, amended in the annual investment plan. The target allocation and their percentage ranges within the investment category are determined for each asset class.
