This is how YTK invests its funds to protect its members

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How are YTK’s investment assets managed? Tuomo Mäkitalo, the Financial Manager responsible for investments, explains how responsible and long-term investing helps ensure the financial security of the fund’s members.

The primary mission of the YTK Unemployment Fund is to ensure the financial security of its members when they are temporarily out of work. This goal is also supported by YTK’s investment activities, which are designed to ensure the long-term growth and stability of its assets.

The unemployment fund is an organization based on mutual responsibility. The members of the YTK Unemployment Fund own the fund, and its investment assets are also jointly owned. The purpose of portfolio management is to provide long-term security for members in accordance with the Unemployment Fund Act. The fund’s surpluses are transferred to a statutory reserve, and any deficits are covered from that reserve.*

As of July 2026, the total value of YTK’s investment assets was approximately 150 million euros**.
The long-term return target for the investment portfolio is 6% (4% return + 2% inflation).

“We invest responsibly and in a diversified manner with a moderate level of risk. Our goal is for our investments to generate returns as stably as possible over the long term, even in changing market conditions,” says Tuomo Mäkitalo.

The average return has been 6,8%

YTK’s investment activities aim for a long-term annual return of approximately 6 percent. This target consists of a real return of approximately 4 percent and a 2 percent component that accounts for inflation.

In recent years, the structure of the investment portfolio has been adapted to reflect the changing market environment. The weight of equities and alternative investments has been increased, while the role of fixed-income and real estate investments has been reassessed.

Over the past three years, the annual return on the entire investment portfolio has averaged 6,8 percent.

Broad diversification reduces risk

YTK’s investment portfolio consists of several different asset classes. About 40 percent of the investments are in stocks, 25 percent in fixed-income investments, 15 percent in real estate, and 20 percent in alternative investments, such as infrastructure and private equity investments.

Investments are also geographically diversified across the globe. This ensures that fluctuations in a single market or industry do not have a significant impact on the entire portfolio.

Responsibility is reflected in investment decisions

YTK takes responsibility into account from multiple perspectives in its investments. Particular emphasis is placed on investments that support job creation and economic growth in Finland.

“We prefer to make riskier investments in the domestic market so that the impacts are directed directly toward Finland,” says Tuomo Mäkitalo.

Investments in sectors such as tobacco, gambling, and alcohol have been excluded from the investment portfolio. Instead, the portfolio emphasizes investments in areas such as renewable energy, the circular economy, digitalization, and cybersecurity.

Responsibility is also monitored using metrics. YTK examines, for example, the carbon footprint of investments and companies’ pay equity in relation to market benchmark indices.

Investing supports our core mission

Global events, changes in interest rates, and market fluctuations are also reflected in our investments. However, YTK’s investment strategy continues to be guided by a long-term perspective and a moderate level of risk.

The goal is not to maximize returns in the short term, but to ensure that YTK can continue to provide services and financial security for its members in the future.

YTK Unemployment Fund’s investments in a nutshell

• Investment assets of approximately 150 million euros

• Long-term return target of 6%

• Investments diversified across equities, fixed income, real estate, and alternative investments

• Key areas of focus in responsible investing include job creation, renewable energy, the circular economy, and cybersecurity

• The goal of investment activities is to support YTK’s financial stability and the continuity of member services.

*The unemployment insurance fund’s statutory equalization fund serves as a financial buffer for the fund, with the purpose of ensuring its liquidity even during periods of lower employment. Surpluses from the fund are transferred to the reserve, and deficits are covered from it. The Unemployment Insurance Fund Act sets a minimum level for the reserve, which, for employee-administered funds, corresponds to at least one year’s worth of the fund’s own