Finland’s first wind power fund launched by Ålandsbanken has been a success
In 2020, Ålandsbanken launched Finland’s first wind power fund for private investors. The fund invests in Finnish wind power farms that have gone through the permitting phase but have not yet been built. Two years after the start, the fund has bought five farms, and exceeded the expectations.
“Our goal is a return of 5-7 percent annually. However, after 1.5 years in the business, the return has been 29 percent”, says Portfolio Manager Juha Känkänen.
What then are the reasons behind this impressive result? The global turmoil in 2022, with skyrocketing electricity prices and high inflation, has actually benefited the fund.
“This fund is what you could call inflation-friendly, as electricity is a commodity that is bought regardless of the situation in the economy. Moreover, there is an increased interest towards Finnish wind power in general, which in turn has increased the value of our wind farms.”
The value of the fund is calculated twice a year by an external consultant. At these occasions, new investors can join and old ones can sell their shares. The minimum investment is 10,000 euros and in autumn 2022, a total of 1,500 investors were on board. In the summer of 2022, the value of the fund was calculated to 210 MEUR, and the target is to buy new farms so that the value will be 500 MEUR in 2025.
It may not come as a big surprise that Ålandsbanken was the first bank to present a wind power fund, as the bank is known for its pioneering sustainability work. Ålandsbanken specialises in asset management and Private Banking, and has seen an increased interest towards sustainable investments among its customers.
Ålandsbanken has been present in Vaasa since 1995, and has a team of approximately 20 experts ready to serve local clients. The bank is especially known for its personal service and the Vaasa office has seen considerable growth in recent years.