Q3/2024 data by Investment Research Finland reveals a well-diversified allocation approach by institutional investors, as well as active growth of Finland-domiciled funds.
Finnish investors remain confident in established economies, with significant proportions of their capital being dedicated to North America (22.8% of institutional equity allocation), Finland (19.0%), and the rest of Europe (20.6%).
Over 60% of Finnish mutual funds are currently allocated outside of Europe as investors seek growth beyond domestic and regional markets.
While emerging markets accounted for only 8.3% of institutional equity allocation, Finnish assets in these markets have achieved a higher year-to-date growth rate than that of Finland and the rest of Europe. This suggests a slight change in institutional investors' risk appetites as well as an eye towards areas with higher potential growth opportunities.
Many professional investors across Europe diversify, but where are they looking next for real growth? In this article, we pull some insights from the latest report by the Investment Research Group, Finland's official fund database, to paint a picture of the country's investment environment as well as general trends that reflect a growing interest from European institutional investors in emerging economies.
As an asset manager with roots in the Finnish investment landscape, Kenno also aims to provide those among our readers who are not yet familiar with emerging markets with a glimpse of Vietnam— a Southeast Asian country with stable geopolitics, a thriving economy, and a developing stock market that offers high growth potential at a reasonable price.