VER Ups Long Vol Across Asset Classes, Reduces Market Beta

The EUR22 billion State Pension Fund of Finland (VER) has increased its long volatility exposure across asset classes in its systematic strategies and derivatives portfolio and reduced exposure to strategies with higher market beta. Jukka-Pekka Poutanen, portfolio manager at VER in Helsinki, said this is to diversify the portfolio and because markets have provided good entry points for long vol and defensive strategies this year.