Pori allocates €285 million from energy company sale to investment markets

The city of Pori has invested the majority of the €366 million proceeds from the sale of its energy company, Pori Energia, with €285 million already placed in financial markets, reports Finnish public broadcaster Yle.

Of the total sale amount, €300 million has been allocated to three external asset managers, while the remaining funds are managed directly by the city. According to Pori’s financial director Tuomas Hatanpää, approximately €230 million has been invested in funds through these managers, with the rest placed in fixed-term deposits. The city itself has invested around €55 million in bond funds.

Investments began in early February, with monthly allocations continuing through autumn as part of a planned diversification strategy. The funds are split evenly between equity and bond funds, though the current focus remains on bond investments. The largest individual bond fund allocations range from €20–50 million, while equity fund investments cap at around €20 million.

Hatanpää confirmed that Pori has no direct stock holdings and that current returns are positive, despite a slight dip in late March. He emphasised the city’s long-term investment horizon, targeting an average annual return of 6–8 percent.

“Asset managers have recently shifted toward more bond-focused allocations. This is the kind of expertise we expect from them, rather than having to monitor markets ourselves,” Hatanpää said.