Bachelor's thesis (Turku University of Applied Sciences) Degree Program in Business Management

Partly, this has to be connected with the low-interest rates proposed by the ECB 
in order to facilitate the economic growth and overcome the general recession. 
As a result, bank’s profits from investments in mutual funds have somewhat 
declined, leaving the overall profitability margin at the end of 2011 25% lower 
than a year before (Board of directors and Financial statements report, p. 2-3). 

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TURKU UNIVERSITY OF APPLIED SCIENCES THESIS | Artem Vorobyev 
72% 
5% 
10% 
3% 
8% 2% 
2011 
Bonds and bond
funds
Alternative
investments
Equities
Private equity
Real property
Money market
instruments
71% 
7% 
12% 
2% 7% 1% 
2010 
Bonds and bond
funds
Alternative
investments
Equities
Private equity
Real property
Money market
instruments
According 
to 
bank’s financial 
analysts, a decrease in investment 
incomes 
in 
2011 
could 
be 
attributed to the overall uncertainty 
of the European financial markets, 
with return on investments at fair 
value 
being 
slightly 
negative 
(Board of directors and Financial 
statements report, p. 18). 
As you can see, the table above 
represents percent distribution of 
investment 
instruments 
in 
the 
investment portfolio of the Pohjola 
Group between 2011 and 2012. 
Let us take a closer look at the 
graphical representation charts in 
order to get a clear overview of the 
situation. 
Clearly, 
the 
proportion 
of 
investment instruments remains 
practically the same throughout the 
years. While the majority of the 
investment portfolio is comprised