LocalTapiola Asset Management Ltd

Report of the Board of Directors and financial

statements for 2025

Business ID: 1604393-7

Table of contents

Table of contents	1
Report of the Board of Directors for 2025	1
1Key information	1
2The economic environment	1
3Key events during the financial year	1
4Solvency and the risk position	5
5Risk management of the group	6
6Sustainability at LocalTapiola Asset Management Group	7
7Events after the financial year	8
8Future prospects	8
9Governance	9
10Personnel and remuneration	11
11Proposal on the use of the profit for the financial period	11
Financial statements for 1 January-31 December 2025	12
12Financial statements for LocalTapiola Asset Management Ltd Group	12
13Financial statements for LocalTapiola Asset Management Ltd	29
14Accounting principles	43
15Notes on the group’s risk management	44
Signatures for the report of the Board of Directors and financial statements	47
Auditor’s note	48

LocalTapiola Asset Management | Report of the Board of Directors for 2025		1

Report of the Board of Directors

for 2025

LocalTapiola Asset Management Ltd (business ID 1604393-7)

is domiciled in Espoo, Finland, and its address is

Revontulenkuja 1, FI-02100 Espoo.

LocalTapiola Asset Management Ltd Group (LocalTapiola

Asset Management Group) comprises its parent company,

LocalTapiola Asset Management Ltd (LocalTapiola Asset

Management), and subsidiaries Seligson & Co Fund

Management Company Plc (Seligson & Co), LocalTapiola Real

Estate Asset Management Ltd (LocalTapiola Real Estate Asset

Management), LocalTapiola Alternative Investment Funds Ltd

(LocalTapiola Alternative Investment Funds, which was merged

to Seligson & Co Fund Management Company on 31 December

2025) as well as the subsidiaries founded for the purposes of

the investment structures of these companies.

The investment services provided by LocalTapiola Asset Management Group

are part of LocalTapiola Group’s integrated package of services. In the form

of various service packages, we provide sustainable asset management

services that enable wide asset-class diversification. The most notable

packages include Institutional Asset Management, LocalTapiola Private

Banking, and our investment solutions that implement the co-investment

ideology. We invest our client assets under the same principles and in the

same investees in which we invest the assets of the LocalTapiola Group

insurance companies. The LocalTapiola and the Seligson & Co funds cover an

extensive range of active tactical funds as well as index funds.

LocalTapiola aims to promote investment as part of lifelong security, to

expand the client base of our investment services and to increase the amount

of client assets under management. Based on client needs, we develop

LocalTapiola’s investment services in cooperation with LocalTapiola Life. At

LocalTapiola Asset Management Group, we integrate sustainable investment

into everything we do.

By providing asset management and investment advice and transmitting

orders to funds, LocalTapiola Asset Management delivers comprehensive and

cost-effective investment services to institutional investors, enterprises,

institutions and private clients. In addition, the company acts as insurance

intermediary for LocalTapiola Life. Seligson & Co manages the LocalTapiola

and the Seligson & Co mutual funds. LocalTapiola Real Estate Asset

Management administers the real estate assets of the LocalTapiola Group

companies, while LocalTapiola Alternative Investment Funds manages real

estate funds, private equity funds and private debt funds (alternative

investment funds). On 31 December 2025, LocalTapiola Alternative

Investment Funds was merged to Seligson & Co Fund Management Company,

after which Seligson & Co manages LocalTapiola Asset Management Group’s

all mutual and alternative investment funds.

LocalTapiola Asset Management is owned by LocalTapiola Mutual Life

Insurance Company (LocalTapiola Life), LocalTapiola General Mutual

Insurance Company (LocalTapiola General) and the regional non-life

insurance companies part of LocalTapiola Group. LocalTapiola Asset

Management Group is consolidated into LocalTapiola Group’s consolidated

financial statements. The financial statements of the ultimate parent

company of LocalTapiola Group, LocalTapiola General (business ID

0211034-2), are available at www.lahitapiola.fi.

1 Key information

• Group’s operating result EUR -0.5 million (EUR -2.7 million)

• Group’s operating result excluding amortisation of goodwill on

consolidation EUR 6.5 million (EUR 4.3 million)

• Group’s turnover EUR 62.5 million (EUR 60.0 million)

• Assets managed at group companies (gross) EUR 35.2 billion (EUR 32.3

billion)

• Client assets managed by the group (net) EUR 17.3 billion (EUR 15.9

billion)

• Group’s solvency ratio 487.0 per cent (414.4%)

LocalTapiola Asset Management | Report of the Board of Directors for 2025		1

2 The economic environment 

2.1 Fixed-income and equity investment

market

For the investment market, 2025 was a strong year. The eventful year was

marked particularly by President Trump’s trade and economic policy.

However, the impact of tariff increases on global economic activity remained

limited overall.

In 2025, global equity markets delivered double‑digit returns when measured

in local currencies. In the second half of the year, equity markets were

supported by stronger‑than‑expected economic and performance

developments, reduced trade policy uncertainty, increased investor risk

appetite and continued enthusiasm for artificial intelligence.

For euro‑area fixed‑income investments, the year was positive. Credit risk

rewarded investors, but euro‑area government bonds also generated positive

returns, despite long‑term rates rising in the euro area during the year.

Exchange‑rate movements and possible currency hedges had a significant

impact on whether the euro‑denominated returns of fixed‑income

investments made in other currencies were positive or negative.

In the foreign‑exchange markets, the dollar weakened considerably during the

year. The weakening of the dollar reduced the euro‑denominated returns of

dollar‑based investments. This development was underpinned by concerns

over U.S. trade and fiscal policy.

2.2 Private equity and private debt

investment market

For private equity and private debt investments, the year 2025 largely

continued in the same vein as the previous one. The year began on an

optimistic note, but the positive outlook faded following the introduction of

Liberation Day tariffs. Fundraising remained 5–15% below the previous year’s

level, and distributions to investors stayed below historical levels. Higher

interest rates and persistently elevated valuation levels weighed on the

activity and return performance of private equity funds. As for private debt

funds, they enjoyed higher running yields, but holding periods lengthened due

to a lack of exits, while higher financing costs contributed to an increase in

the number of challenging assets. Target enterprises have continued to grow

and perform more strongly than expected and, consequently, valuations in

the unlisted market have held their level comparably well.

2.3 Real estate investment market

During 2025, trading activity in the Finnish real estate market picked up

significantly compared with the previous year. The total volume rose to EUR

4.4 billion, compared with roughly EUR 2.2 billion in the previous year. In 2025,

the most actively traded asset classes were public sector properties,

residential homes and retail properties. Foreign investors have become active

again, accounting for approximately 60% of all buyers. However, the market

remains highly polarised between different property types and locations.

The polarisation in the office leasing market has continued to be strong, both

between areas and between individual properties. Average office vacancy in

the Helsinki Metropolitan Area increased during the year, reaching roughly 18

per cent. Occupancy rates particularly at weaker sites have declined, whereas

modern, flexible and environmentally sustainable office buildings have

continued to attract tenants. Shopping centre footfall has continued to grow

moderately, as have sales, although total sales are increasing at a slower

pace than footfall due to a declining average purchase size.

Few new residential projects are currently being completed, which has

gradually improved occupancy rates in the residential sector. However, high

supply is still limiting the development of rents for non-ARA-subsidised

apartments, especially in the Helsinki Metropolitan Area, while in other

growth centres rents for market‑rate apartments have also been increasing.

The number of new construction launches has remained low, but construction

costs have not declined.

3 Key events during the financial year

2025 was a year of growth, similarly to the year before. The growth of client

assets under management (net) was 9.2%. Our number of clients continued to

grow, and net sales to LocalTapiola Group clients were strongly positive.

During 2025, we invested in developing the product range of LocalTapiola

Asset Management Group and carried out a significant number of various

product changes. New product launches included LähiTapiola Asuntorahasto

V LP, and we supplemented the services provided to wealthy individuals and

investment firms under LocalTapiola Life’s investment baskets. The work to

LocalTapiola Asset Management | Report of the Board of Directors for 2025		2

found LocalTapiola Private Debt IV LP was completed, and the fund was given

a marketing authorisation in November 2025.

The ownership structure of LocalTapiola Asset Management changed as of 1

January 2025, when LocalTapiola Life’s ownership in LocalTapiola Asset

Management increased to 51 per cent, with LocalTapiola General owning 16

per cent and the LocalTapiola regional companies 33 per cent.  The reason

for this change is LocalTapiola Life and LocalTapiola Asset Management

Group’s common investment business growth strategy.

On 31 December 2025, LocalTapiola Alternative Investment Funds Ltd was

merged to Seligson & Co Fund Management Company. After the merger,

Seligson & Co manages LocalTapiola Asset Management Group’s all mutual

and alternative investment funds.

The concentration of the fund management companies clarifies the

operations of LocalTapiola Asset Management Group, enabling services to be

produced more efficiently. During the accounting year, alongside merging the

fund management companies, we furthered a transition to uniform policies

and processes at all LocalTapiola Asset Management Group companies.

3.1 LocalTapiola Asset Management Group

LocalTapiola Asset Management Group’s result for the financial year was EUR

-1.2 million (EUR -2.7 million). Operating result excluding amortisation of

goodwill on consolidation was EUR 6.5 million (EUR 4.3 million), with the

resulting cost/return ratio at 0.90 (0.93).

LocalTapiola Asset Management Group’s turnover for 2025 was EUR 62.5

million (EUR 60.0 million). A positive market development and strong net

sales in 2025 increased the (net) client assets under the group’s management

by 9.2% to EUR 17,330 million (EUR 15,870 million). Net commissions

increased 4.7%, and operating expenses remained nearly at the previous

year’s level, increasing only 0.6%.

LocalTapiola Asset Management -group
Key figures describing financial development
(% / EUR m)	2025	2024	2023
Capital and reserves (on average)	65.8	67.7	71.3
Balance sheet total (on average)	87.5	88.7	91.6
Net commissions	57.9	55.3	51.9
Turnover	62.5	60.0	56.9
Operating profit	-0.5	-2.7	-4.2
Operating profit of turnover	-0.9	-4.5	-7.4
Operating profit excl. amortisation of consolidated goodwill	6.5	4.3	2.5
Result for the financial period	-1.2	-2.7	-4.5
Return on equity (ROE)	-1.8	-4.0	-6.3
Return on assets (ROA)	-1.3	-3.1	-4.9
Equity ratio	74.6	75.8	76.9
Cost/return ratio	0.9	0.9	1.0

LocalTapiola Asset Management -group
Balance sheet summary
(EUR m)	2025	2024
Receivables from credit institutions	58.3	56.3
Liabilities	22.2	21.2
Shareholders' equity	65.2	66.3
Balance sheet total	87.4	87.5

The (gross) assets under management by the LocalTapiola Asset

Management Group companies totalled EUR 35.2 billion (EUR 32.3 billion). Of

these, EUR 16.7 billion (EUR 15.2 billion) was in assets in portfolio

management, and EUR 14.3 billion (EUR 12.7 billion) was in fund capitals, EUR

1.5 billion (EUR 1.6 billion) in other contractually managed assets and EUR 2.8

billion (EUR 2.8 billion) in real estate.

As shown below, the operations of LocalTapiola Asset Management Group

divide into three business areas, in which intragroup items are eliminated. The

LocalTapiola Asset Management | Report of the Board of Directors for 2025		3

development of the fixed-income and equity investment business had the

greatest impact on the group’s turnover and operating profit.

LocalTapiola Asset Management -group
(EUR m)	2025	2024
Turnover
Fixed-income and equity investments	41.1	39.0
Private equity and private debt investments	5.5	4.9
Real estate	15.9	16.1
Total	62.5	60.0
Operating profit excluding consolidated goodwill
Fixed-income and equity investments	5.8	3.4
Private equity and private debt investments	1.8	1.6
Real estate	-1.1	-0.8
Total	6.5	4.3
Total client assets under management (net)
Fixed-income and equity investments	13,351.3	11,944.7
Private equity and private debt investments	1,773.7	1,739.1
Real estate	2,204.9	2,186.6
Total	17,329.9	15,870.4

3.1.1   Fixed-income and equity investment

Fixed-income and equity investment was supported by a positive market

development, which increased the assets under management and net

commission of this business area.

Net subscriptions for mutual funds during the financial year were EUR 650

million (EUR 433 million), of which fixed-income funds accounted for EUR 406

million. Liquid client assets in portfolio management increased to EUR 7.8

billion (EUR 7.3 billion).

Once again, LocalTapiola Asset Management Group’s investment expertise

received recognition when LSEG Lipper Fund Awards 2025 rewarded four

LocalTapiola and two Seligson & Co mutual funds. The awards were given in

recognition of the funds’ excellent risk‑adjusted performance development. 

For information about changes made to mutual funds during the financial

year, please see the Report of Seligson & Co’s Board of Directors.

Turnover for the business area of fixed-income and equity investments was

EUR 41.1 million (EUR 39.0 million), and operating result was EUR 5.8 million

(EUR 3.4 million). Net client assets for fixed-income and equity investments

were EUR 13.4 billion (EUR 11.9 billion) at the end of the period under review.

3.1.2   Private equity and private debt investment

For the private equity funds managed at LocalTapiola Asset Management

Group, 2025 proved to be an excellent year relative to the broader market.

Returns surpassed the targets set for portfolio management, even though a

significant weakening of the dollar had a negative impact on returns.

LocalTapiola Private Equity VI LP held the last closing in November 2025, and

the fund’s investment commitments rose to a record-breaking EUR 428

million.

The performance development of private debt funds improved from the

previous year. However, challenges with the direct lending strategy continued,

and asset write-downs made by a small number of funds weighed on returns.

Currency movements were also reflected in the returns of private debt funds.

The work to set up a new fund, LocalTapiola Private Debt IV LP, was

completed, and the fund was given a marketing authorisation in November

2025.

Turnover for the business area of private equity and private debt investment

was EUR 5.5 million (EUR 4.9 million), and operating result was EUR 1.8 million

(EUR 1.6 million). Net client assets administered by this business area

amounted to EUR 1.8 billion (EUR 1.7 billion) at the end of the period under

review.

3.1.3   Real estate operations

During 2025, the real estate operations of LocalTapiola Asset Management

Group successfully carried out several loan refinancings.  New joins increased

the surface area administered by LocalTapiola Community Forest to 11,136

hectares. Valuations of LocalTapiola-managed real estate investments

declined moderately during the year under review, nevertheless maintaining

positive overall returns. The range of value changes across different real

estate assets and structures narrowed in the course of 2025. 

The occupancy rates of commercial premises were successfully maintained at

a good level in spite of the difficult market. The situation on the residential

lease market took a turn for the better, and occupancy rates improved.

LocalTapiola Asset Management | Report of the Board of Directors for 2025		4

Tenant satisfaction remained excellent. Sustainability work was continued

actively, and policies were developed further.

In January and February 2025, LocalTapiola Real Estate Asset Management

and LocalTapiola Alternative Investment Funds held co-operation

negotiations to rationalise real estate operations.

Turnover for real estate operations was EUR 15.9 million (EUR 16.1 million),

and operating result was EUR -1.1 million (EUR -0.8 million). Client assets

under management (net) were EUR 2.2 billion (EUR 2.2 billion) at the close of

the period under review.

3.2 LocalTapiola Asset Management Ltd,

parent company

LocalTapiola Asset Management’s turnover, that is, income from investment

services, was EUR 27.2 million (EUR 26.0 million). Market development in 2025

had a positive impact on assets under management and on the net

commissions received from them.

LocalTapiola Asset Management’s operating result was EUR -4.6 million (EUR

-4.8 million). The result for the financial year was EUR 5.4 million (EUR 4.0

million), ending up positive due to appropriations worth EUR 10.6 million.

LocalTapiola Asset Management
Balance sheet summary
(EUR m)	2025	2024
Receivables from credit institutions	13.8	17.6
Liabilities	12.0	12.4
Shareholders' equity	85.5	80.1
Balance sheet total	97.5	92.5

LocalTapiola Asset Management’s shareholders’ equity was EUR 85.5 million

(EUR 80.1 million). This change in shareholders’ equity was mainly due to the

retained earnings accrued during the financial year.

LocalTapiola Asset Management
Result summary
(EUR m)	2025	2024
Net commissions	22.9	21.8
Income from investment services	27.2	26.0
Administrative expenses	-30.4	-29.6
Operating result	-4.6	-4.8
Result for the financial period	5.4	4.0

The (gross) assets under management by LocalTapiola Asset Management

increased to EUR 16,691.7 million (EUR 15,187.3 million). 

LocalTapiola Asset Management
Key figures describing financial development
(% / EUR m)	2025	2024	2023
Capital and reserves (on average)	82.8	78.1	74.7
Balance sheet total (on average)	95.0	90.2	87.4
Net commissions	22.9	21.8	19.7
Turnover	27.2	26.0	26.1
Operating profit	-4.6	-4.8	-4.2
Operating profit of turnover	-16.8	-18.6	-16.1
Return on equity (ROE)	-6.2	-6.2	-5.6
Return on assets (ROA)	-5.4	-5.4	-4.8
Equity ratio	87.7	86.6	86.6
Cost/return ratio	1.2	1.2	1.2

LocalTapiola Asset Management | Report of the Board of Directors for 2025		5

4 Solvency and the risk position

4.1 Prudential management of the group

The prudential management process of LocalTapiola Asset Management

Group consists of Pillar I solvency calculation and reporting under the

Investment Firms Regulation and Directive (IFR/IFD) and of the group’s own

internal capital and risk assessment model (ICARA). The own risk assessment

deepens the Pillar I calculation, taking into account the material risks to

operations not covered by the Pillar I calculation. These include, for example,

risks associated with the operating environment and changes therein, which

may affect solvency by way of the group’s financial performance. In the

course of annual planning, the Board determines the guidelines for

LocalTapiola Asset Management Group’s risk appetite, by setting target

levels for the ratio of own funds to the capital requirements. Solvency

calculation is carried out and the results are reported to the Board on a

quarterly basis or more frequently, and as needed.

At the close of 2025, the solvency ratio of LocalTapiola Asset Management

Group was 487.0 per cent, meaning the solvency position was excellent. Own

funds consisted in their entirety of own funds items recognised as Common

Equity Tier 1.

4.2 Solvency position

LocalTapiola Asset Management -group
Solvency calculation		(% / EUR m)
	Balance sheet *)	2025	2024
Own funds		56.1	50.4
Tier 1 capital		56.1	50.4
Common equity tier 1 capital		56.1	50.4
Fully paid up capital instruments	a	0.9	0.9
Additional paid-in capital and non-restricted reserves	b, c	58.1	58.1
Retained earnings	d	7.3	10.0
Profit for previous periods		7.3	10.0
Total deductions from common equity tier 1		-10.2	-18.6
Own CET1 instruments		0.0	0.0
Losses for the current financial year	e	-1.2	-2.7
Other intangible assets	f	-8.6	-15.5
CET1 instruments of financial sector entites where the institution does not have a significant investment	g	-0.5	-0.5
Capital requirement for own funds
Fixed overheads		46.1	48.7
Capital requirement		11.5	12.2
Solvency ratio (CET1+AT1+T2, min. 100%)		487.0	414.4
Solvency ratio Tier 1 Capital (CET1+AT1/requirement, min. 75%)		487.0	414.4
Solvency ratio Common equity tier 1 capital (CET1/ requirement, min. 75%)		487.0	414.4
Balance sheet *) reconciliation to the balance sheet of the financial statements
The balance sheet item in section g includes investments in instruments of financial sector entities.

LocalTapiola Asset Management | Report of the Board of Directors for 2025		6

LocalTapiola Asset Management
Solvency calculation		(% / EUR m)
	Balance sheet *)	2025	2024
Own funds		17.6	14.4
Tier 1 capital		17.6	14.4
Common equity tier 1 capital		17.6	14.4
Fully paid up capital instruments	a	0.9	0.9
Additional paid-in capital	b, c	58.1	58.1
Retained earnings	d	21.0	17.0
Total deductions from common equity tier 1		-62.5	-61.7
Other intangible assets	f	-1.0	-0.2
Qualifying holding outside the financial sector which exceeds 15% of own funds	g	-10.7	-10.7
CET1 instruments of financial sector entites where the institution does not have a significant investment	g	-0.4	-0.4
CET1 instruments of financial sector entities where the institution has a significant investment	g	-50.4	-50.4
Capital requirement for own funds
Fixed overheads		24.4	26.7
Capital requirement		6.1	6.7
Solvency ratio (CET1+AT1+T2, min. 100%)		288.1	215.5
Solvency ratio Tier 1 Capital (CET1+AT1/requirement, min. 75%)		288.1	215.5
Solvency ratio Common equity tier 1 capital (CET1/ requirement, min. 75%)		288.1	215.5
Balance sheet *) reconciliation to the balance sheet of the financial statements.
The balance sheet item in section g includes investments in instruments of financial sector entities.

 

5 Risk management of the group

Risk management at LocalTapiola Asset Management Group is based on

current legislation and the regulations and guidelines issued pursuant to

current legislation. The group complies with the risk and prudential

management principles of LocalTapiola Group, and the group’s risk

management process is part of the risk management process of LocalTapiola

Group.

The Boards of Directors of the LocalTapiola Asset Management Group

companies have overall responsibility for organising risk management at the

companies. In the risk management plan approved annually, the Boards

define the objectives and limits for risk-taking, and they are responsible for

organising risk management, regularly monitor the level and development of

risk-taking and, where appropriate, decide on the necessary risk management

measures. On an annual basis, the risk management functions submit to the

Boards a statement on the achievement of the risk management plan. As well

as developing risk management capabilities, the risk management functions

support the business with efforts to implement the risk management process.

The risk management function of LocalTapiola Asset Management also

monitors the group’s overall risk position.

Executive management and the business units are responsible for ensuring

that the management of operational risks complies with the law and the

LocalTapiola Group risk management frameworks. Internal audit supports

management and the Board in the development of control and risk

management.

The risk management process includes a risk survey, carried out as part of the

annual planning cycle, that evaluates the financial and operational risks to

which the group may be exposed as well as the operating environment and

strategy risks. The risks assessed as most significant for operations are

recorded in the risk management plan, and risk management measures are

defined for them.

During annual planning, the key sustainability risks to which LocalTapiola

Asset Management Group is exposed are also identified. The risk

management principles are updated at least once a year.

More detailed description of risk management

The risk notes to the financial statements describe in further detail the

organisation of risk management, the risk levels and how the various risk

classes are monitored.

LocalTapiola Asset Management | Report of the Board of Directors for 2025		7

6 Sustainability at LocalTapiola

Asset Management Group

The Sustainability Steering Group of LocalTapiola Asset Management Group

defines and directs how sustainability is addressed in business operations. For

the group, a decision was taken to establish a sustainability team serving the

entire group. The portfolio managers of the LocalTapiola and the Seligson &

Co funds are continuing to integrate sustainability into their portfolio

management processes using the methods presented in the relevant fund

prospectus and on our website. For more information on how sustainability is

implemented in the mutual funds, please see the websites of LocalTapiola

Asset Management and Seligson & Co Fund Management Company. 

The most recent updates to LocalTapiola Asset Management Group’s

principles for sustainable investment and its corporate governance and

escalation policy were made in December.  At the same time, we harmonised

several sustainable investment practices, covering both corporate

governance and the management of sustainability risks as well as the

handling of potential sustainability risk incidents or suspicions. The climate

and nature strategy presents the updated climate goals and a new nature

action roadmap for the real estate business.

In 2025, LocalTapiola Asset Management Group reported to the PRI in

accordance with two required modules: Senior Leadership Statement, and

Other Responsible Investment Reporting Obligations. The PRI Transparency

Report is available on the LocalTapiola website. Every year, the LocalTapiola

real estate division takes part in the Global Real Estate Sustainability

Benchmark (GRESB) review. The LocalTapiola real estate division’s particular

strengths lie in governance and social sustainability, for which it has received

a near perfect score year after year.

LocalTapiola Asset Management Group is committed to complying with the

goals of the Paris Agreement to reduce GHG emissions. This target is aligned

both with the LocalTapiola Group Climate Policy and with the international

Net Zero Asset Managers (NZAM) climate initiative. Furthermore, the targets

are also supported by the Net Zero Carbon Buildings commitment made by

LocalTapiola Real Estate Asset Management. In early 2025, the group

adopted updated milestones for 2030. Taking the real estate operations into

account, 60% of the investment assets managed by LocalTapiola Asset

Management Group fall within the scope of the GHG reduction target. In the

real estate operations, focus is placed on improving the energy efficiency of

properties and on the production and procurement of renewable energy.

We tell more about the sustainability goals of LocalTapiola Group in the

sustainability statement published as part of the Report of the Board of

Directors of LocalTapiola General, and in a separate voluntary Sustainability

Report. The Report of the Board of Directors of LocalTapiola General and the

LocalTapiola Group Sustainability Report will be published on the

LocalTapiola website at www.lahitapiola.fi/tietoa-lahitapiolasta/lahitapiola-

ryhma/lahitapiola-ryhman-raportit.

6.1 Corporate governance

Active ownership carried out by LocalTapiola Asset Management Group

encourages companies to increase their sustainability and to report on

sustainability transparently. We engage investees through general meetings,

company meetings and engagement initiatives.

Authorised by the fund management company and, in addition, by some

asset management clients, LocalTapiola Asset Management Group

companies participated in 1,900 general meetings on behalf of the

LocalTapiola and the Seligson & Co equity funds. Of these meetings, 40 took

place in Finland and 1,860 abroad. For voting in foreign general meetings, we

used the Institutional Shareholder Services (ISS) Proxy Voting platform and

analyses, with the exception of two meetings. Further information about the

voting behaviour of the funds is available on the LocalTapiola website and in

the annual report of the funds.

Seligson & Co Fund Management Company joined LocalTapiola Asset

Management in an engagement solution run by ISS Sustainability Solutions

Collaborative Engagement Services. The solution consists of a norm-based

engagement solution and four thematic engagement solutions (Net Zero,

Biodiversity, Water, and Gender Equality). In addition, LocalTapiola Asset

Management participates as a company in several collaborative investor

engagement initiatives, including Climate Action 100+, the PRI Spring nature

initiative and CDP’s Non-Disclosure Campaign. 

In real estate operations, sustainability work is reflected not only in

responsible investment but also practical measures, such as in improving the

lifecycle energy efficiency of properties, using renewable energy sources,

achieving environmental certifications, issuing stakeholder guidelines, and in

partner choices for combating the grey economy. 

For more comprehensive information on sustainable investment activities and

on implementation across the different asset classes, please see LocalTapiola

Asset Management Group’s annual sustainable investment review.

LocalTapiola Asset Management | Report of the Board of Directors for 2025		8

7 Events after the financial year

In connection with the merger of the fund management companies, the

portfolio management organisation was centralised as of 1 January 2026 to

Seligson & Co Fund Management Company. 

8 Future prospects

8.1 The economic environment

Global economic growth is expected to continue in 2026 close to the previous

year’s level. The outlook for the international economy improved in the

second half of 2025 as trade policy uncertainty eased, but politics and

geopolitical tensions continue to be surrounded by uncertainty.

The initial outlook for the 2026 investment year is fairly positive. The

economic cycle outlook and favourable corporate earnings expectations

support the equity markets. A key question for market performance is the

future trajectory of the artificial intelligence theme. A key risk for equity

markets is related to elevated valuations, as a result of which potential

economic or earnings disappointments could, in weaker scenarios, lead to a

repricing of risks.

In the baseline scenario, the interest rate outlook for bond investments in the

euro area is relatively clear. The European Central Bank has, for the time

being, ended its rate cuts and moved to a wait-and-see stance. In the United

States, there are more question marks surrounding the Federal Reserve’s

interest rate policy.

For corporate bonds, market interest rates remain reasonable as we head

into 2026, but risk premiums of corporate bonds have narrowed to

historically tight levels. In the baseline scenario, strengthening economic

conditions support corporate earnings performance and solvency, but there is

limited room for a further tightening of risk premiums.

In the investment market, the most significant risk factors are linked to

politics and geopolitics. Also, sovereign debt challenges, the reduced fiscal

space for stimulus and elevated asset valuations may, in weaker scenarios,

cause instability in the economic and financial system..

Private equity and private debt investment market

For private equity and private debt investments, the mood at the beginning

of 2026 was once again expectant. In transaction volumes, there are strong

signs of a recovery. Fund managers continue to hold large amounts of capital

accumulated in previous year, waiting to be invested. Reference rates and risk

premiums have dropped, which, coupled with the increased supply of

financing, should assists the operating landscape of buyout funds. In the

short term, the buyout mathematics is challenging (valuation multiples, the

cost of financing, the proportion of equity in the capital structure); however,

a longer-term examination does not give reason to believe that the risk-

adjusted (absolute and relative) return potential of the asset classes would

have changed to any significant degree. The illiquidity premium and investor

interest will, with a high likelihood, be maintained. However, the broader

economic picture is quite challenging – geopolitical risks, weakened consumer

purchasing power and overly leveraged capital structures created before the

interest rate increases are weighing down expectations.

Real estate investment market

Improving transaction volumes and a stable interest rate outlook bring

optimism to the real estate investment market, although general uncertainty

and weak economic growth are slowing down recovery. As the yield spread of

real estate investments becomes sufficiently attractive relative to other asset

classes, capital will be likely to start flowing back into real estate investments,

which would further boost transaction activity and would also support a

positive price reversal. Typically, the Finnish real estate market is post-

cyclical, with the market recovering only after the main European markets. In

terms of return requirements, we foresee only moderate changes for 2026.

Currently, investors are showing particular interest in sites for which net

performance scenarios are positive and where the demand for premises is

good. For weaker sites, we anticipate that investors and providers of finance

will continue to show low interest.

Residential rents are expected to rise moderately during 2026, as the growth

of supply will decline and the population in cities will grow. On the office

rental market, a strong oversupply is continuing, which intensifies the

polarisation of office markets. For commercial premises, we do not expect

major changes to rent levels. Construction activity is forecast to remain low in

2026. An increase in investor demand and rising rents would support a

change for the better for construction.

8.2 Group’s business operations

The implementation of the investment business growth strategy continues in

close cooperation with LocalTapiola Life.

LocalTapiola Asset Management | Report of the Board of Directors for 2025		9

Alongside growth-oriented measures, we are also strongly focused on

operational efficiency. Transitioning to uniform policies and processes in the

LocalTapiola Asset Management Group companies continues even after the

merger of the fund management companies. In 2026, we will be carrying out

integrations of ICT environments and systems, as well as operational

efficiency increasing process changes that they enable.

9 Governance

9.1 Governance of LocalTapiola Group

LocalTapiola Group and its companies adhere to good corporate governance,

which is based on legislation applicable to the insurance and financial sector,

the regulations and guidelines issued by the Financial Supervisory Authority,

EBA and ESMA (the European Banking Authority and the European Securities

and Markets Authority) and also, where applicable to mutual insurance

companies, the Finnish Corporate Governance Code for listed companies.  . 

LocalTapiola Group constitutes an insurance group within the meaning of the

Insurance Companies Act, with LocalTapiola General as the group’s ultimate

parent company as referred to in the Act. In this role, LocalTapiola General

has responsibility extending to LocalTapiola Group for ensuring the reliable

governance, prudential supervision, risk management, internal control and

related regulatory reporting of entire LocalTapiola Group and its companies. 

The LocalTapiola Group companies have concluded intragroup agreements

on their mutual responsibilities and division of duties. LocalTapiola Group has

a Group’s Management Group, appointed by the Board of Directors of

LocalTapiola General, that has broad representation from the various

LocalTapiola Group companies and those responsible for the most important

common functions. 

The Group’s Management Group is responsible for preparing strategic and

other group-wide matters of LocalTapiola Group, for related decision-making

and implementation, and for the overall control and development of the

group, within the authorisations granted to it by the Board of Directors and

set out in the Joint Agreement concluded between the LocalTapiola Group

companies. 

LocalTapiola Asset Management complies with LocalTapiola Group’s common

governance procedures. 

9.2 Annual General Meeting

On 24 January 2025, an Extraordinary General Meeting of LocalTapiola Asset

Management decided to set up a Shareholders’ Nomination Committee for

drafting proposals to appoint the members and Chair of the Board of

Directors of LocalTapiola Asset Management.

The Annual General Meeting of LocalTapiola Asset Management was held on

27 March 2025. The meeting approved the financial statements for 2024,

decided on the use of the company’s profit, discharged the members of the

Board of Directors and the Managing Director from liability, and elected the

company’s auditor. The meeting also confirmed the number of the members

of the Board of Directors and their remuneration. 

On 30 October 2025, an Extraordinary General Meeting of LocalTapiola

Asset Management decided to select LocalTapiola Group President Sari

Heinonen as Chair of the Board of Directors as of 1 January 2026.

9.3 Board of Directors

The Board of Directors of LocalTapiola Asset Management comprises five

members. The Board members sit for a term of one year. The Board members

must have wide-ranging and complementary professional expertise and

experience, and they must possess such competences in the business

operations of an investment firm as are necessary considering the nature and

scope of the company’s activities.  

In 2025, the Board convened 11 times. The meeting participation rate was

100%.

The following persons served as Board members:  

Jari Eklund (born 1963), Board Chair until 1 January 2026 

M.Sc. (Econ.) 

Group Director, LocalTapiola Group

 

Mikko Ayub (born 1969)

Master of Social Sciences, MBA

  

Marja Pajulahti (born 1966), from 27 March 2025

Master of Laws

Managing Director, Live Foundation 

 

LocalTapiola Asset Management | Report of the Board of Directors for 2025		10

Pia Santavirta (born 1976)

Master of Laws 

CEO, Finnish Industry Investment Ltd 

 

Joel Sunabacka (born 1988), from 27 March 2025

M.Sc. (Econ.)

Managing Director, LocalTapiola Pohjanmaa

  

Pasi Aakula (born 1969) until 27 March 2025

M.Sc. (Agr. & For.), academic agronomist, eMBA

Managing Director, LocalTapiola Länsi-Suomi

Mirel Leino-Haltia (born 1971), until 27 March 2025

PhD (Econ.), CFA 

Professor of Practice, Aalto University 

 

Hanna-Leena Pesonen (born 1967), until 27 March 2025

PhD (Econ.) 

Dean and Professor, Jyväskylä University School of Business and Economics 

Teemu Tähtinen (born 1976), until 27 March 2025

M.Sc. (Econ.), M.Sc. (Tech.) 

Director, Investments and Asset Liability Management, LocalTapiola General 

Petri Vilska (born 1986), until 27 March 2025  

Master of Arts, SHV Actuarial Qualification 

Director, Business and Products, LocalTapiola Life 

The salaries and remuneration paid to the Board of Directors, and their

pension commitments, monetary loans and terms thereof, as well as

guarantees and contingent liabilities, are presented in the notes to the

financial statements.

9.4 LocalTapiola Asset Management Ltd’s

Management Group

The following persons were members of the company’s Management Group:

Samu Anttila (born 1974)  

Master of Arts, eMBA, SHV Actuarial Qualification 

Managing Director 

 

Jyrki Mäkelä (born 1961) 

M.Sc. (Econ.) 

Director, Asset Management, temporary Managing Director   

Joona Lappi (born 1985)  

M.Sc. (Econ.) 

Director, Sales and Accounts 

 

Satu Norhomaa (born 1974)  

MBA 

Chief Operating Officer 

 

Janne Pesonen (born 1965)  

M.Sc. (Tech.), SHV Actuarial Qualification 

Director, Finances and Administration   

Hanna Vihavainen (born 1974)  

Master of Laws 

Director, Legal and Compliance 

9.5 Managing Director

Samu Anttila serves as LocalTapiola Asset Management Ltd’s Managing

Director.

9.6 Auditor

The Annual General Meeting elected KPMG Oy Ab to continue as

LocalTapiola Asset Management Ltd’s auditor, with Authorised Public

Accountant Timo Nummi as the principal auditor appointed by KPMG Oy Ab.

9.7 Supervisory authority

LocalTapiola Asset Management is an investment firm subject to public

supervision by the Financial Supervisory Authority (FIN-FSA). 

Seligson & Co is a fund management company and alternative investment

funds manager within the meaning of the Act on Common Funds, and the

company is subject to supervision by the FIN-FSA.

LocalTapiola Alternative Investment Funds is an alternative investment fund

manager within the meaning of the Act on Alternative Investment Funds

Managers, and the company is subject to supervision by the FIN-FSA.

LocalTapiola Asset Management | Report of the Board of Directors for 2025		11

The FIN-FSA supervises and ensures that financial institutions comply with the

law and that they employ appropriate methods in their operations. It

monitors and assesses the financial position of the companies that it

supervises, as well as monitoring and assessing the management, supervision

and risk management systems, operating prerequisites and changes in the

operating landscape of these companies.

9.8 Related parties

The related parties of LocalTapiola Asset Management Group are discussed

in the notes to the financial statements.

10 Personnel and remuneration

At year-end, LocalTapiola Asset Management Group employed a total of 226

persons, and at the end of the year the parent company employed 139

persons.

LocalTapiola Asset Management -group
Number of employees	2025	2024
At year end	226	220

LocalTapiola Asset Management
Number of employees	2025	2024
At year end	139	129

The aim of the special remuneration scheme is to incentivise good

performance and to boost the motivation and commitment of staff. The

special remuneration scheme must be competitive in comparison with the

other players in the sector, in order for the company to attract and commit

the right kind of talents to its business needs. At LocalTapiola Asset

Management, remuneration is based on the corporate group’s and

LocalTapiola Asset Management Group’s strategy and the targets set on its

basis.

Remuneration is based on the person’s good work performance in relation to

the set targets. The bonus scheme is part of the remuneration package, and

it is based on annual bonuses, although some bonus targets may measure

periods that are longer than one year. The special remuneration scheme

covers senior managers and all staff.

When confirming the special remuneration scheme, efforts are made to

ensure that the scheme is aligned with the business strategy, targets and

values of LocalTapiola Group and LocalTapiola Asset Management Group,

and that it works in the long-term interests of LocalTapiola Asset

Management Group. The special remuneration scheme is in harmony with the

good and effective risk management of the corporate group and

LocalTapiola Asset Management Group, and it does not encourage excessive

risk-taking, while also being gender neutral.

Staff are members in the LocalTapiola Group personnel fund as specified in

the fund rules. Personnel costs include the company’s share of the profit

bonus item payable for 2025 to the personnel fund.

11 Proposal on the use of the profit for

the financial period

Proposal by the Board of Directors

Distributable assets in the financial statements total EUR 82,924,758.45.

There have been no material changes in the company’s financial position

after the end of the financial year, nor does the solvency test referred to in

chapter 13, section 2 of the Limited Liability Companies Act have a bearing

on the amount of distributable assets.

The Board of Directors proposes to the General Meeting to be held on 27

March 2026 that, from the result for the 2025 financial year, no dividend be

paid on either share series (not on the A series or the B series) but that the

profit for the financial year, EUR 5,444,282.95, be transferred in full to the

profit and loss account of the previous financial years.

LocalTapiola Asset Management Group | Financial statements for 2025	12

Financial statements for 1 January-31 December

2025

12 Financial statements for LocalTapiola Asset

Management Ltd Group

12.1 Balance sheet, LocalTapiola Asset Management Group

Assets	note number	IF*	31.12.2025	31.12.2024
Receivables from credit institutions
Payable on demand			46,313,192.54	50,295,571.90
Other			12,000,000.00	6,000,000.00
Receivables from credit institutions	K1, K2, K12, K13, K14		58,313,192.54	56,295,571.90
Receivables from the public and public entities
Other			17,000.00	11,500.00
Receivables from the public and public entities	K1, K3, K12, K13, K14		17,000.00	11,500.00
Shares and holdings	K1, K5, K13, K14		5,124,744.24	30,485.00
Shares and holdings in group companies	K1, K5, K13, K14	g	1,177,623.31	1,177,623.31
Intangible assets
Consolidated goodwill			6,940,138.75	13,932,215.14
Other capital expenditures			1,668,524.46	1,519,321.64
Intangible assets	K6, K7, K13	f	8,608,663.21	15,451,536.78
Tangible assets
Other properties and shares and interests in property			2,025,585.26	2,016,817.40
Right-of-use asset			1,262,563.48	1,708,889.88
Other tangible assets			473,965.89	301,544.67
Tangible assets	K7, K13		3,762,114.63	4,027,251.95
Other assets	K8, K13		6,530,374.12	6,822,630.81
Prepaid expenses and accrued income	K9, K13		3,874,269.91	3,722,352.81
Total assets			87,407,981.96	87,538,952.56

LocalTapiola Asset Management Group | Financial statements for 2025	13

Liabilities	note number	IF*	31.12.2025	31.12.2024
Liabilities
Other liabilities
Other liabilities			6,097,893.58	5,456,685.98
Provisions			1,434.15	5,280.39
Other liabilities	K10, K13		6,099,327.73	5,461,966.37
Accruals and deferred income	K11, K13		16,126,174.47	15,730,152.35
Total liabilities			22,225,502.20	21,192,118.72
Shareholders' equity
Share capital	K15	a	933,350.00	933,350.00
Additional paid-in capital	K15	b	1,691,534.45	1,691,534.45
Non-restricted reserves
Reserve for invested non-restricted equity	K15	c	56,444,888.17	56,444,888.17
Retained earnings	K15	d	7,277,061.22	10,013,074.11
Profit (loss) for the period	K15	e	(1,164,354.08)	(2,736,012.89)
Total shareholders' equity			65,182,479.76	66,346,833.84
Total liabilities and shareholders' equity			87,407,981.96	87,538,952.56
* Reference to own funds in the solvency report (IF)

LocalTapiola Asset Management Group | Financial statements for 2025	14

12.2 Profit and loss account, LocalTapiola Asset Management

Group

Income Statement	note number	1.1.-31.12.2025	1.1.-31.12.2024
Fee and commission income	K16	57,886,638.62	55,294,887.96
Net income from financial assets at fair value through profit or loss	K19	91,759.24	—
Income from equity investments
From Group companies		8,308.48	10,057.64
Income from equity investments	K17	8,308.48	10,057.64
Interest income	K18	1,229,496.48	1,581,474.12
Other operating income	K20	3,262,509.05	3,066,718.58
Net Income From Investment Service Operation		62,478,711.87	59,953,138.30
Fee and commission expenses	K16	(369,312.68)	(969,513.85)
Interest expenses	K18	(48,345.13)	(63,037.75)
Personnel costs and administrative expenses
Personnel costs
Salaries and remunerations	K28	(22,950,912.10)	(24,093,011.79)
Social security expenses
Pension expenses	K24, K28	(4,539,924.72)	(4,579,133.84)
Other social security expenses		(720,267.39)	(501,575.90)
Social security expenses		(5,260,192.11)	(5,080,709.74)
Personnel costs		(28,211,104.21)	(29,173,721.53)
Other administrative expenses		(24,183,642.54)	(22,412,331.24)
Personnel costs and administrative expenses		(52,394,746.75)	(51,586,052.77)
Amortisation and impairment of consolidated goodwill		(6,992,076.39)	(6,940,176.22)
Depreciation and impairment of tangible and intangible assets and shares and holdings	K22	(1,416,573.27)	(1,320,894.05)
Other operating expenses	K21, K30	(1,799,095.86)	(1,744,984.21)
Operating Profit (-Loss)		(541,438.21)	(2,671,520.55)
Income taxes		(622,915.87)	(64,492.34)
Profit (Loss) For The Period		(1,164,354.08)	(2,736,012.89)

LocalTapiola Asset Management Group | Financial statements for 2025	15

12.3 Indirect cash flow statement, LocalTapiola Asset Management

Group

Indirect Cash Flow Statement	2025	2024
Cash flow from operating activities
Operating profit (loss)	-541,438.21	-2,671,520.55
Taxes paid	107,134.46	527,796.44
Adjustments to operating profit:
Planned depreciation	8,408,649.66	8,261,070.27
Changes in fair value	-89,267.62	0.00
Income from equity investments	-8,308.48	-10,057.64
Interest income and expenses	-1,181,151.35	-1,518,436.37
Other adjustments	-3,846.24	-11,523.21
Total adjustments to operating profit	7,126,075.97	6,721,053.05
Other assets	286,756.69	10,481.97
Prepayments and accrued income	-128,404.16	-736,086.16
Paid taxes as adjustment to tax receivables	-174,517.23	-740,969.50
Increase (-) or decrease (+) in operating assets	-16,164.70	-1,466,573.69
Other liabilities	1,067,965.77	-558,418.47
Accruals and deferred income	396,022.12	1,384,208.95
Paid taxes as adjustment of tax debt	-555,533.10	148,680.72
Increase (-) or decrease (+) in operating liabilities	908,454.79	974,471.20
Interest paid	-48,345.13	-63,037.75
Interest received	940,530.21	1,256,770.51
Net cash used in operating activities (A)	8,476,247.39	5,278,959.21
Net cash used in investing activities
Fixed term deposits	-6,000,000.00	2,000,000.00
Interests received	265,453.33	305,906.11
Shares and holdings	-5,002,491.62	-6,575.00
Disposal proceeds from Shares and holdings	-2,500.00	5,086.00
Dividends received	8,308.48	10,057.64
Intangible and tangible assets	-1,300,638.77	-1,035,845.95
Cash flow from investing activities (B)	-12,031,868.58	1,278,628.80

LocalTapiola Asset Management Group | Financial statements for 2025	16

Net cash provided by (used in) financing activities
Lease liabilities, withdrawals	19,034.56	101,223.76
Lease liabilities, repayments	-445,792.73	-428,017.42
Net cash provided by (used in) financing activities	-426,758.17	-326,793.66
Net increase/decrease in cash and cash equivalents (A+B+C)
increase (+) / decrease (-)	-3,982,379.36	6,230,794.35
Cash and cash equivalents at year-start	50,295,571.90	44,064,777.55
Cash and cash equivalents at year-end	46,313,192.54	50,295,571.90
Net increase/decrease in cash and cash equivalents	-3,982,379.36	6,230,794.35

LocalTapiola Asset Management Group | Financial statements for 2025	17

12.4 Key figures, LocalTapiola Asset Management Group

Key Figures Describing Financial Development	2025	2024	2023
Capital and reserves (on average), EUR million	65.8	67.7	71.3
Balance sheet total (on average), EUR million	87.5	88.7	91.6
Fee and commission income, EUR million	57.9	55.3	51.9
Turnover, EUR million	62.5	60.0	56.9
Operating profit/loss, EUR million	-0.5	-2.7	-4.2
Operating profit, % of turnover	-0.9	-4.5	-7.4
Return on equity (ROE), %	-1.8	-4.0	-6.3
Return on assets (ROA), %	-1.3	-3.1	-4.9
Equity ratio, %	74.6	75.8	76.9
Cost/return ratio	0.90	0.93	0.96

12.5 Notes, LocalTapiola Asset Management Group

12.5.1 Notes to the balance sheet, LocalTapiola Asset Management

Group

K1. Categories of financial assets	2025	2024
Measured at fair value through profit or loss	5,124,744.24	30,485.00
Valued at cost	59,507,815.85	57,484,695.21
Total	64,632,560.09	57,515,180.21

K2. Receivables from credit institutions	2025	2024
From domestic credit institutions
Payable on demand	46,313,192.54	50,295,571.90
Other than payable on demand	12,000,000.00	6,000,000.00
Total	58,313,192.54	56,295,571.90

K3. Receivables from the public and public entities	2025	2024
Receivables from the public and public entities
Companies and housing cooperatives	17,000.00	11,500.00
Subordinated receivables	15,000.00	11,500.00

K4. Notes on credit risk

Receivables from the public and public entities are not material and therefore do not involve any material credit risk.

LocalTapiola Asset Management Group | Financial statements for 2025	18

K5. Shares and holdings	2025	2024
Shares and holdings
Measured at fair value
Others than publicly listed	5,124,744.24	30,485.00
Total	5,124,744.24	30,485.00
of which subject to stock lending	—	—
of which investments in credit institution	—	—
Shares and holdings in group companies
Valued at cost
Others than publicly listed	1,177,623.31	1,177,623.31
Total	6,302,367.55	1,208,108.31
of which subject to stock lending	—	—
of which investments in credit institution	—	—

K6. Intangible assets	2025	2024
ICT system design and programming costs	1,668,524.46	1,457,416.64
Consolidated goodwill	6,940,138.75	13,932,215.14
Other intangible assets	0.00	61,905.00
Total	8,608,663.21	15,451,536.78

LocalTapiola Asset Management Group | Financial statements for 2025	19

K7. Changes in intangible and tangible assets during the financial year	2025	2024
Intangible assets
Acquisition cost 1 January	41,961,436.41	41,200,039.13
+ increases during the year	942,847.00	761,397.28
Acquisition cost 31 December	42,904,283.41	41,961,436.41
Accumulated depreciation and impairments 1 January	-26,509,899.63	-18,810,824.42
- planned depreciation	-7,785,720.57	-7,699,075.21
Accumulated depreciation and impairments 31 December	-34,295,620.20	-26,509,899.63
Book value 31 December	8,608,663.21	15,451,536.78
Book value 1 January	15,451,536.78	22,389,214.71
Tangible assets
Other properties and shares and interests in property
Acquisition cost 1 January	2,016,817.40	2,016,817.40
+ increases during the year	8,767.86	0.00
Acquisition cost 31 December	2,025,585.26	2,016,817.40
Book value 31 December	2,025,585.26	2,016,817.40
Book value 1 January	2,016,817.40	2,016,817.40
Tangible assets
Right-of-use asset, premises
Acquisition cost 1 January	2,589,075.18	2,487,851.42
+ increases during the year	19,034.56	101,223.76
Acquisition cost 31 December	2,608,109.74	2,589,075.18
Accumulated depreciation and impairments 1 January	-880,185.30	-426,488.82
- planned depreciation	-465,360.96	-453,696.48
Accumulated depreciation and impairments 31 December	-1,345,546.26	-880,185.30
Book value 31 December	1,262,563.48	1,708,889.88
Book value 1 January	1,708,889.88	2,061,362.60
Tangible assets
Other tangible assets
Acquisition cost 1 January	1,563,826.82	1,390,639.41
+ increases during the year	400,989.35	223,187.41
- decreases during the year	-71,000.00	-50,000.00
Acquisition cost 31 December	1,893,816.17	1,563,826.82
Accumulated depreciation and impairments 1 January	-1,262,282.15	-1,154,021.07
- planned depreciation	-157,568.13	-108,261.08
Accumulated depreciation and impairments 31 December	-1,419,850.28	-1,262,282.15
Book value 31 December	473,965.89	301,544.67
Book value 1 January	301,544.67	236,618.34

LocalTapiola Asset Management Group | Financial statements for 2025	20

K8. Other assets	2025	2024
Other assets
Other receivables	6,530,374.12	6,822,630.81
Total	6,530,374.12	6,822,630.81

K9. Prepaid expenses and accrued income	2025	2024
Prepaid expenses and accrued income
Interest receivables	177,698.08	154,185.14
Other accrued income	3,696,571.83	3,568,167.67
Total	3,874,269.91	3,722,352.81

K10. Other liabilities	2025	2024
Other liabilities
Lease liabilities	1,338,090.73	1,764,848.90
Other than payment transfer liabilities	4,759,802.85	3,691,837.08
Provisions	1,434.15	5,280.39
Total	6,099,327.73	5,461,966.37

K11. Accruals and deferred income	2025	2024
Accruals and deferred income
Other accruals than interest liabilities	16,126,174.47	15,730,152.35
Total	16,126,174.47	15,730,152.35

K12. Financial assets and liabilities by maturity
Maturity
	less than 3 mo.	3-12 mo.	1-5 yr.	over 5 yr.	2025	2024
Receivables from credit institutions	46,313,192.54	12,000,000.00	0.00	0.00	58,313,192.54	56,295,571.90
Receivables from the public and public entities	0.00	2,000.00	0.00	15,000.00	17,000.00	11,500.00
Lease liabilities	75,606.07	383,745.86	878,738.80	0.00	1,338,090.73	1,764,848.90

LocalTapiola Asset Management Group | Financial statements for 2025	21

K13. Breakdown of balance sheet items by domestic and foreign currency and from entities within the same group
Balance sheet item	Domestic currency	Foreign currency	from entities within the same group	2025 total	2024 total
Receivables from credit institutions	58,313,192.54	0.00	0.00	58,313,192.54	56,295,571.90
Receivables from the public and public entities	17,000.00	0.00	0.00	17,000.00	11,500.00
Other assets	29,077,789.42	0.00	3,122,189.58	29,077,789.42	31,231,880.66
Total	87,407,981.96	0.00	3,122,189.58	87,407,981.96	87,538,952.56
Other liabilities	6,099,327.73	0.00	967,168.71	6,099,327.73	5,461,966.37
Accruals and deferred income	16,126,174.47	0.00	687,092.00	16,126,174.47	15,730,152.35
Total	22,225,502.20	0.00	1,654,260.71	22,225,502.20	21,192,118.72

K14. Fair values and book values of financial assets and liabilities and the fair value hierarchy
Assets and liabilities that are measured at fair value on a recurring or non-recurring basis after initial recognition
Fair values are classified into three levels based on how the fair value is determined. Net gains or losses on items measured at fair value through profit or loss do not include interest or dividend income.
Fair values of level 1 instruments are based quoted prices for identical assets or liabilities in active markets, such as prices from an exchange, broker or pricing service. The group does not have any level 1 instruments. Level 1 instruments mainly consist of fund units.
The fair values of Level 2 instruments have been calculated using valuation techniques derived from quoted prices in active markets. The Group has no Level 2 instruments.
The fair values of Level 3 instruments are based on inputs relating to the asset or liability that are not observable in the market, but are largely derived from management’s estimates and their application in generally accepted valuation models.

LocalTapiola Asset Management Group | Financial statements for 2025	22

Fair values of assets and liabilities	2025	2024	2025	2024
	Fair value	Fair value	Book value	Book value
Financial assets
Financial assets measured at amortised cost
Receivables from credit institutions	58,313,192.54	56,295,571.90	58,313,192.54	56,295,571.90
Receivables from the public and public entities	17,000.00	11,500.00	17,000.00	11,500.00
Financial assets at fair value through profit or loss
Shares and holdings	5,124,744.24	30,485.00	5,124,744.24	30,485.00
Financial assets valued at cost
Shares and holdings in group companies	1,341,352.81	1,272,403.81	1,177,623.31	1,177,623.31
Financial instruments valued at fair value	Level 1	Level 2	Level 3	2025
				Total
Financial assets
Shares and holdings	5,091,759.24	0.00	32,985.00	5,124,744.24
Unrealised profits and losses of the financial period (level 3)			—
	Level 1	Level 2	Level 3	2024
				Total
Financial assets
Shares and holdings	0.00	0.00	30,485.00	30,485.00
Unrealised profits and losses of the financial period (level 3)			—

K15. Shareholders' equity
	01.01.2025	+ Increase - Decrease	Transfers between items	31.12.2025
Restricted equity
Share capital	933,350.00	0.00	0.00	933,350.00
Additional paid-in capital	1,691,534.45	0.00	0.00	1,691,534.45
Non-restricted reserves
Reserve for invested non-restricted equity	56,444,888.17	0.00	0.00	56,444,888.17
Profit or loss for previous periods	10,013,074.11	0.00	-2,736,012.89	7,277,061.22
Profit or loss for financial period	-2,736,012.89	-1,164,354.08	2,736,012.89	-1,164,354.08
Total	66,346,833.84	-1,164,354.08	0.00	65,182,479.76

 

LocalTapiola Asset Management Group | Financial statements for 2025	23

12.5.2 Notes to the income statement,  LocalTapiola Asset

Management Group

K16. Net commissions and fees	2025	2024
Net commissions
Management fees	82,721,556.84	76,525,347.03
- Management fee returns	-31,279,905.01	-27,714,684.89
Subscription charges	1,500.00	1,000.00
Redemption charges	0.00	2,500.00
Asset management fees	6,443,486.79	6,480,725.82
Total	57,886,638.62	55,294,887.96
Commission expenses
Commission expenses for asset management	-5,454.79	109.80
Other commission expenses	-2,587.92	-15,239.59
Custody expenses	-361,269.97	-954,384.06
Total	-369,312.68	-969,513.85

K17. Income from equity investments	2025	2024
Dividend income from shares and holdings
From group companies	8,308.48	10,057.64
Total	8,308.48	10,057.64

K18. Interest income and expenses by balance sheet item	2025	2024
Interest income
From receivables from credit institutions	1,228,533.49	1,580,550.58
Other interest income	962.99	923.54
Total	1,229,496.48	1,581,474.12
of which from group companies	962.99	923.54
Interest expenses
From lease liabilities	-47,419.99	-59,932.58
Other interest expenses	-925.14	-3,105.17
Total	-48,345.13	-63,037.75
of which from group companies	-925.14	-3,102.61

K19. Net income from financial assets at fair value through profit or loss	2025	2024
From shares and holdings
Changes in fair value (net)	89,267.62	0.00
Other items	2,491.62	0.00
Total	91,759.24	0.00

LocalTapiola Asset Management Group | Financial statements for 2025	24

K20. Other operating income	2025	2024
Other income	3,262,509.05	3,066,718.58
Total	3,262,509.05	3,066,718.58

K21. Other operating expenses	2025	2024
Rent expenses	-638,241.74	-627,181.83
Expenses from owner-occupied property	-107,039.82	-127,069.92
Other expenses	-1,053,814.30	-990,732.46
Total	-1,799,095.86	-1,744,984.21

K22. Depreciation and impairment of tangible and intangible assets and shares and holdings	2025	2024
Of tangible assets
Planned depreciation	-793,644.18	-758,936.49
Total	-793,644.18	-758,936.49
Of tangible assets
Planned depreciation	-622,929.09	-561,957.56
Total	-622,929.09	-561,957.56
Total depreciation and impairments	-1,416,573.27	-1,320,894.05

K23. Notes on business segments and geographical markets

The group’s geographical area of operations is Finland.

The group does not maintain any branch network outside Finland. Personnel information is disclosed in Note 27.

Business areas by segment, 2025	Liquid	Real estate	Private equity	Other	Total
Turnover	41,120,183.29	15,862,632.71	5,495,895.87	0.00	62,478,711.87
Amortisation and impairment of consolidated goodwill	0.00	0.00	0.00	-6,992,076.39	-6,992,076.39
Depreciation and impairment of tangible and intangible assets	-814,082.96	-556,151.71	-46,338.60	0.00	-1,416,573.27
Other operating expenses	-34,526,990.42	-16,394,799.09	-3,689,710.91	0.00	-54,611,500.42
Operating profit/loss	5,779,109.91	-1,088,318.09	1,759,846.36	-6,992,076.39	-541,438.21
Assets	51,755,036.94	21,237,435.77	7,475,370.50	6,940,138.75	87,407,981.96
Liabilities	14,294,923.80	5,865,854.69	2,064,723.71	0.00	22,225,502.20

K24. Pension liabilities

Statutory pension coverage for the personnel is arranged through the TyEL basic insurance with Elo Mutual Pension Insurance Company, and supplementary pension coverage through LocalTapiola Mutual Life Insurance Company.

LocalTapiola Asset Management Group | Financial statements for 2025	25

K25. Rental liabilities	2025	2024
Liabilities from non-cancellable leasing and other rental agreements
Within one year	111,388.86	105,851.38
Within 1-5 years	180,719.88	247,847.29
Material termination and redemption clauses
Rental agreements are fixed-term until 31 October 2028

K26. Off-balance-sheet commitments	2025	2024
Joint responsibility associated with VAT group registration
Within one year
Group companies	1,459,027.51	2,023,756.80
Other companies from the group	3,575,170.19	3,969,064.33
Total	5,034,197.70	5,992,821.13
VAT liability with a positive sign = VAT debt
VAT liability with a negative sign = VAT receivable
Inspection responsibility of real estate investments under section 120 of the Value Added Tax Act
10-year auditing period
Other companies of the group	52,779,335.41	69,124,987.11

K27. Number of employees	2025	2024
Number of employees at year-end
Permanent full-time employees	209	206
Permanent part-time employees	9	11
Fixed-term employees	8	3
Total	226	220

LocalTapiola Asset Management Group | Financial statements for 2025	26

K28. Managements' salaries and remunerations, pension commitments, monetary loans and terms thereof, as well as guarantees and contingent liabilities				2025	2024
Managing director and deputy managing director
Salaries and remunerations				-1,378,292.60	-1,384,870.28
Pension commitments	The retirement age is stated by the law.
	Statutory pension coverage for management is arranged through the TyEL basic insurance with Elo Mutual Pension Insurance Company, and supplementary pension coverage through LocalTapiola Mutual Life Insurance Company.
Monetary loans and terms thereof	No monetary loans granted
Guarantees and contingent liabilities	No guarantees or contingent liabilities granted
Members of the board and deputy board members
Salaries and remunerations				-255,031.65	-243,275.84
Pension commitments	The retirement age is stated by the law.
Monetary loans and terms thereof	No monetary loans granted
Guarantees and contingent liabilities	No guarantees or contingent liabilities granted

K29. Related party loans and transactions	2025	2024
Loans granted to related-party entities	0.00	0.00
Investments in related-party entities	0.00	0.00
Guarantees and collateral lodged on behalf of a related party on behalf of another	0.00	0.00
The company has not carried out related party transactions involving non-conventional commercial terms and conditions.
Information on the joint responsibility associated with VAT group registration can be found in Note 26.

K30. Fees paid to auditor	2025	2024
Audit	171,771.50	167,239.18
Assignments referred to in section 1, subsection 1, paragraph 2 of the Auditing Act	19,389.75	0.00
Tax advisory services	241.22	0.00
Other services	37,586.92	15,358.05
Total	228,989.39	182,597.23

LocalTapiola Asset Management Group | Financial statements for 2025	27

K31. Subsidiaries included in the consolidated financial statements
Company name	Domicile	Groups's shareholding %
LocalTapiola Real Estate Asset Management Ltd	Espoo	100.0
Seligson & Co Fund Management Company Plc	Helsinki	100.0
LähiTapiola Asuntorahasto V GP Oy	Espoo	100.0
LähiTapiola AsuntoSuomi Oy	Espoo	100.0
LocalTapiola European Real Estate GP Ltd	Espoo	100.0
LähiTapiola GP Prime Oy	Espoo	100.0
LocalTapiola Private Equity IV GP Ltd	Espoo	100.0
LocalTapiola Private Equity V GP Ltd	Espoo	100.0
LocalTapiola Private Equity VI GP Ltd	Espoo	100.0
LocalTapiola Private Debt II GP Ltd	Espoo	100.0
LocalTapiola Private Debt III GP Ltd	Espoo	100.0
LocalTapiola Private Debt IV GP Ltd	Espoo	100.0
Pohjantikka Oy	Espoo	100.0
Yhteiskuntakiinteistöt GP Oy	Espoo	100.0
Yhteiskuntakiinteistöt II GP Oy	Espoo	100.0
LähiTapiola GP Tapiolan Hohka Oy	Espoo	100.0
LähiTapiola KiinteistöCore Oy	Espoo	100.0
LähiTapiola Yhteiset GP Oy	Espoo	100.0
Promote Tapiola Oy	Espoo	100.0
Tuulitikka Oy	Espoo	100.0
LocalTapiola Alternative Investment Funds Ltd has merged with Seligson & Co Fund Management Company Plc on 31 December 2025.

K32. Companies not included in the consolidated financial statements
The consolidated financial statements do not include companies operating as feeder companies for funds.
LähiTapiola Asuntorahasto Prime Feeder Oy
Tapiola KR III Feeder Oy
LähiTapiola Asuntosijoitus Suomi Feeder Oy
LähiTapiola Asuntosijoitus Suomi Feeder II Oy
LähiTapiola Asuntosijoitus Suomi Feeder III Oy
Consolidating these entities would result in a misleading representation of the Group’s financial position, as significant restrictions materially limit the Group’s ability to exercise control over these entities.
The Group's balance sheet includes capital loans granted by group companies to	2025	2024
Tapiola KR III Feeder Oy	9,000.00	6,000.00
LähiTapiola Asuntorahasto Prime Feeder Oy	3,000.00	2,500.00
LähiTapiola Asuntosijoitus Suomi Feeder Oy	3,000.00	3,000.00
Total	15,000.00	11,500.00

LocalTapiola Asset Management | Financial statements for 2025	28

K33. Assets under management	2025	2024
Assets under management
Trustee asset management	16,691,720,294.70	15,187,332,980.38
Management of funds	14,269,407,016.78	12,734,265,667.31
Other contractual management	1,500,694,675.37	1,565,710,087.30
Managing real estate objects	2,757,175,368.51	2,840,849,104.42
Total assets under management (gross)	35,218,997,355.36	32,328,157,839.41
Group's total client assets under management (net)	17,329,866,205.38	15,870,377,554.21

LocalTapiola Asset Management | Financial statements for 2025	29

13 Financial statements for LocalTapiola Asset

Management Ltd

13.1 Balance sheet, LocalTapiola Asset Management

Assets	note number	IF*	31.12.2025	31.12.2024
Receivables from credit institutions
Payable on demand			5,845,824.59	13,552,556.06
Other			8,000,000.00	4,000,000.00
Receivables from credit institutions	1,2,11,12,13		13,845,824.59	17,552,556.06
Shares and holdings	1,4,12,13		3,054,280.89	370.00
Shares and holdings in group companies	1,4,12,13	g	61,847,815.02	61,847,815.02
Intangible assets
Other capital expenditures			1,030,032.20	228,841.00
Intangible assets	5,6,12	f	1,030,032.20	228,841.00
Tangible assets
Other tangible assets			207,462.10	156,116.11
Tangible assets	6,12		207,462.10	156,116.11
Other assets	7,12		3,452,681.45	3,287,627.27
Prepaid expenses and accrued income	8,12		14,097,037.50	9,420,573.89
Total assets			97,535,133.75	92,493,899.35

Liabilities	note number	IF*	31.12.2025	31.12.2024
Liabilities
Other liabilities
Other liabilities			1,941,392.72	1,066,802.04
Provisions			1,434.15	5,280.39
Other liabilities	9,12		1,942,826.87	1,072,082.43
Accruals and deferred income	10,12		10,042,663.98	11,316,456.97
Total liabilities			11,985,490.85	12,388,539.40
Shareholders' equity
Share capital	14,15	a	933,350.00	933,350.00
Additional paid-in capital	14	b	1,691,534.45	1,691,534.45
Non-restricted reserves
Reserve for invested non-restricted equity	14	c	56,444,888.17	56,444,888.17
Non-restricted reserves			56,444,888.17	56,444,888.17
Retained earnings	14	d	21,035,587.33	17,039,053.13
Profit (loss) for the period	14	e	5,444,282.95	3,996,534.20
Total shareholders' equity			85,549,642.90	80,105,359.95
Total liabilities and shareholders' equity			97,535,133.75	92,493,899.35
* Reference to own funds in the solvency report (IF)

LocalTapiola Asset Management | Financial statements for 2025	30

13.2 Profit and loss account, LocalTapiola Asset Management

Income Statement	note number	1.1.-31.12.2025	1.1.-31.12.2024
Fee and commission income	18	22,862,993.46	21,820,372.41
Net income from financial assets at fair value through profit or loss	21	53,910.89	0.00
Income from equity investments
From Group companies		6,391.14	7,736.65
Income from equity investments	19	6,391.14	7,736.65
Interest income	20	436,937.78	634,640.26
Other operating income	22	3,885,143.25	3,572,385.98
Net Income From Investment Service Operation		27,245,376.52	26,035,135.30
Interest expenses	20	-315.76	-1,708.11
Personnel costs and administrative expenses
Personnel costs
Salaries and remunerations	30	-14,613,106.31	-15,285,803.58
Social security expenses
Pension costs	26, 30	-3,063,077.46	-2,975,031.48
Other social security expenses		-473,327.92	-324,591.23
Social security expenses		-3,536,405.38	-3,299,622.71
Personnel costs		-18,149,511.69	-18,585,426.29
Other administrative expenses		-12,289,535.60	-10,990,413.21
Personnel costs and administrative expenses		-30,439,047.29	-29,575,839.50
Depreciation and impairment of tangible and intangible assets and shares and holdings	24	-151,487.81	-78,851.95
Other operating expenses	23, 32	-1,238,832.10	-1,218,602.98
Operating Profit (-Loss)		-4,584,306.44	-4,839,867.24
Appropriations		10,568,834.66	8,836,641.82
Income taxes		-540,245.27	-240.38
Profit (-Loss) For The Period		5,444,282.95	3,996,534.20

LocalTapiola Asset Management | Financial statements for 2025	31

13.3 Indirect cash flow statement, LocalTapiola Asset Management

Indirect Cash Flow Statement	2025	2024
Cash flow from operating activities
Operating profit (loss)	-4,584,306.44	-4,839,867.24
Taxes paid	3.98	-240.38
Adjustments to operating profit:
Planned depreciation	151,487.81	78,851.95
Changes in fair value	-52,272.34	0.00
Income from equity investments	-6,391.14	-7,736.65
Interest income and expenses	-436,622.02	-632,932.15
Other adjustments	-3,846.24	-11,044.42
Total adjustments to operating profit	-347,643.93	-572,861.27
Other assets	-165,054.18	198,051.45
Prepayments and accrued income	-441,144.99	-524,127.37
Increase (-) or decrease (+) in operating assets	-606,199.17	-326,075.92
Other liabilities	874,590.68	-161,329.51
Accruals and deferred income	-1,273,792.99	826,160.83
Paid taxes as adjustment to tax debt	-540,249.25	0.00
Increase (-) or decrease (+) in operating liabilities	-939,451.56	664,831.32
Interest paid	-315.76	-1,708.11
Interest received	248,858.67	351,751.93
Net cash used in operating activities (A)	-6,229,054.21	-4,724,169.67
Net cash used in investing activities
Fixed term deposits	-4,000,000.00	4,000,000.00
Interest received	184,953.33	305,906.11
Shares and holdings	-3,001,638.55	-3,514,448.67
Dividends received	6,391.14	7,736.65
Intangible and tangible assets	-1,004,025.00	-271,783.02
Cash flow from investing activities (B)	-7,814,319.08	527,411.07
Net cash provided by (used in) financing activities
Group contributions received	6,336,641.82	9,473,019.71
Net cash provided by (used in) financing activities	6,336,641.82	9,473,019.71
Net increase/decrease in cash and cash equivalents (A+B+C)
increase (+) / decrease (-)	-7,706,731.47	5,276,261.11
Cash and cash equivalents at year-start	13,552,556.06	8,276,294.95
Cash and cash equivalents at year-end	5,845,824.59	13,552,556.06
Net increase/decrease in cash and cash equivalents	-7,706,731.47	5,276,261.11

LocalTapiola Asset Management | Financial statements for 2025	32

13.4 Key figures, LocalTapiola Asset Management 

Key Figures Describing Financial Development	2025	2024	2023
Capital and reserves (on average), EUR million	82.8	78.1	74.7
Balance sheet total (on average), EUR million	95.0	90.2	87.4
Commission income, EUR million	22.9	21.8	19.7
Turnover, EUR million	27.2	26.0	26.1
Operating profit/loss, EUR million	-4.6	-4.8	-4.2
Operating profit, % of turnover	-16.8	-18.6	-16.1
Return on equity (ROE), %	-6.2	-6.2	-5.6
Return on assets (ROA), %	-5.4	-5.4	-4.8
Equity ratio, %	87.7	86.6	86.6
Cost/return ratio	1.2	1.2	1.2

13.5 Notes, LocalTapiola Asset Management

13.5.1 Notes to the balance sheet, LocalTapiola Asset Management

1. Categories of financial assets	2025	2024
Measured at fair value through profit or loss	3,054,280.89	370.00
Valued at cost	75,693,639.61	79,400,371.08
Total	78,747,920.50	79,400,741.08

2. Receivables from credit institutions	2025	2024
From domestic credit institutions
Payable on demand	5,845,824.59	13,552,556.06
Other than payable on demand	8,000,000.00	4,000,000.00
Total	13,845,824.59	17,552,556.06

3. Notes on credit risk

Receivables from the public and public entities are not material and therefore do not involve any material credit risk.

LocalTapiola Asset Management | Financial statements for 2025	33

4. Shares and holdings	2025	2024
Shares and holdings
Measured at fair value
Others than publicly listed	3,054,280.89	370.00
Total	3,054,280.89	370.00
of which subject to stock lending	—	—
of which investments in credit institution	—	—
Shares and holdings in group companies
Valued at cost
Others than publicly listed	61,847,815.02	61,847,815.02
Total	61,847,815.02	61,847,815.02
of which subject to stock lending	—	—
of which investments in credit institution	—	—

5. Intangible assets	2025	2024
ICT system design and programming costs	1,030,032.20	228,841.00
Total	1,030,032.20	228,841.00

6. Changes in intangible and tangible assets during the financial year	2025	2024
Intangible assets
Acquisition cost 1 January	3,624,220.00	3,507,709.00
+ increases during the year	883,525.00	116,511.00
Acquisition cost 31 December	4,507,745.00	3,624,220.00
Accumulated depreciation and impairments 1 January	-3,395,379.00	-3,368,565.75
- planned depreciation	-82,333.80	-26,813.25
Accumulated depreciation and impairments 31 December	-3,477,712.80	-3,395,379.00
Book value 31 December	1,030,032.20	228,841.00
Book value 1 January	228,841.00	139,143.25
Tangible assets	2025	2024
Other tangible assets
Acquisition cost 1 January	628,970.94	473,698.92
+ increases during the year	120,500.00	205,272.02
Acquisition cost 31 December	749,470.94	628,970.94
Accumulated depreciation and impairments 1 January	-472,854.83	-420,816.13
- planned depreciation	-69,154.01	-52,038.70
Accumulated depreciation and impairments 31 December	-542,008.84	-472,854.83
Book value 31 December	207,462.10	156,116.11
Book value 1 January	156,116.11	52,882.79

LocalTapiola Asset Management | Financial statements for 2025	34

7. Other assets	2025	2024
Other assets
Other receivables	3,452,681.45	3,287,627.27
Total	3,452,681.45	3,287,627.27

8. Prepaid expenses and accrued income	2025	2024
Prepaid expenses and accrued income
Interest receivables	115,495.64	112,369.86
Other accrued income	13,981,541.86	9,308,204.03
Total	14,097,037.50	9,420,573.89

9. Other liabilities	2025	2024
Other liabilities
Other than payment transfer liabilities	1,941,392.72	1,066,802.04
Provisions	1,434.15	5,280.39
Total	1,942,826.87	1,072,082.43

10. Accruals and deferred income	2025	2024
Accruals and deferred income
Other accruals than interest liabilities	10,042,663.98	11,316,456.97
Total	10,042,663.98	11,316,456.97

11. Financial assets and liabilities by maturity
Maturity
	less than 3 mo.	3-12 mo.	1-5 yr.	over 5 yr.	2025	2024
Receivables from credit institutions	5,845,824.59	8,000,000.00	0.00	0.00	13,845,824.59	17,552,556.06

12. Breakdown of balance sheet items by domestic and foreign currency and from entities within the same group
Balance sheet item	Domestic currency	Foreign currency	from entities within the same group	2025 total	2024 total
Receivables from credit institutions	13,845,824.59	0.00	0.00	13,845,824.59	17,552,556.06
Other assets	83,689,309.16	0.00	17,096,573.95	83,689,309.16	74,941,343.29
Total	97,535,133.75	0.00	17,096,573.95	97,535,133.75	92,493,899.35
Other liabilities	1,942,826.87	0.00	588,610.87	1,942,826.87	1,072,082.43
Accruals and deferred income	10,042,663.98	0.00	686,829.00	10,042,663.98	11,316,456.97
Total	11,985,490.85	0.00	1,275,439.87	11,985,490.85	12,388,539.40

LocalTapiola Asset Management | Financial statements for 2025	35

13. Fair values and book values of financial assets and liabilities and the fair value hierarchy

Assets and liabilities that are measured at fair value on a recurring or non-recurring basis after initial recognition

Fair values are classified into three levels based on how the fair value is determined. Net gains or losses on items measured at fair value through profit or loss do not include interest or dividend income.

Fair values of level 1 instruments are based quoted prices for identical assets or liabilities in active markets, such as prices from an exchange, broker or pricing service.  Level 1 instruments mainly consist of fund units.

The fair values of Level 2 instruments have been calculated using valuation techniques derived from quoted prices in active markets. The company has no Level 2 instruments.

The fair values of Level 3 instruments are based on inputs relating to the asset or liability that are not observable in the market, but are largely derived from management’s estimates and their application in generally accepted valuation models.

Fair values of assets and liabilities	2025	2024	2025	2024
	Fair value	Fair value	Book value	Book value
Financial assets
Financial assets measured at amortised cost
Receivables from credit institutions	13,845,824.59	17,552,556.06	13,845,824.59	17,552,556.06
Financial assets at fair value through profit or loss
Shares and holdings	3,054,280.89	370.00	3,054,280.89	370.00
Financial assets valued at cost
Shares and holdings in group companies	64,202,445.52	64,804,027.80	61,847,815.02	61,847,815.02
Financial instruments valued at fair value	Level 1	Level 2	Level 3	2025
				Total
Financial assets
Shares and holdings	3,053,910.89	0.00	370.00	3,054,280.89
Unrealised profits and losses of the financial period (level 3)			—
	Level 1	Level 2	Level 3	2024
				Total
Financial assets
Shares and holdings	0.00	0.00	370.00	370.00
Financial liabilities
Unrealised profits and losses of the financial period (level 3)			—

LocalTapiola Asset Management | Financial statements for 2025	36

14. Shareholders' equity
	1.1.2025	+ Increase - Decrease	Transfers between items	31.12.2025
Restricted equity
Share capital	933,350.00	0.00	0.00	933,350.00
Additional paid-in capital	1,691,534.45	0.00	0.00	1,691,534.45
Other restricted reserves
Reserve for invested non-restricted equity	56,444,888.17	0.00	0.00	56,444,888.17
Retained earnings	17,039,053.13	0.00	3,996,534.20	21,035,587.33
Profit or loss for financial period	3,996,534.20	5,444,282.95	-3,996,534.20	5,444,282.95
Total	80,105,359.95	5,444,282.95	0.00	85,549,642.90

15. Share capital	2025
The company’s shares are divided into A and B share series.
According to articles of association ,each A share carries 100 votes and each B share carries one vote.
A series
Share capital at the beginning of the financial year	88,350.00
Share issue implemented during the financial year	0.00
Share capital at the end of the financial year	88,350.00
Nominal value of shares	ei ole
Number of shares at the beginning of the financial year, pcs	447.00
Change in number of shares due to share issue, pcs	0
Number of shares at the end of the financial year, pcs	447.00
B series
Share capital at the beginning of the financial year	845,000.00
Share issue implemented during the financial year	0.00
Share capital at the end of the financial year	845,000.00
Nominal value of shares	ei ole
Number of shares at the beginning of the financial year, pcs	42,052.00
Change in number of shares due to share issue, pcs	0.00
Number of shares at the end of the financial year, pcs	42,052.00

16. Share issues, options rights and convertible bonds issued related to shares

None

LocalTapiola Asset Management | Financial statements for 2025	37

17. Largest shareholders and distribution of share ownership	2025	2025	2025
Share distribution	Shares, pcs	% of shares	% of votes
A series
LocalTapiola Mutual Life Insurance Company	375.00	84%	84%
LocalTapiola General Mutual Insurance Company	72.00	16%	16%
Total	447.00	100%	100%
B series
LocalTapiola Mutual Life Insurance Company	21,307.00	51%	51%
LocalTapiola General Mutual Insurance Company	6,728.00	16%	16%
Other LocalTapiola Group companies	14,017.00	33%	33%
Total	42,052.00	100%	100%
Share distribution, total
LocalTapiola Mutual Life Insurance Company	21,682.00	51%	68%
LocalTapiola General Mutual Insurance Company	6,800.00	16%	16%
Other LocalTapiola Group companies	14,017.00	33%	16%
Total	42,499.00	100%	100%

13.5.2 Notes to the income statement, LocalTapiola Asset

Management

18. Fee and commission income and expenses	2025	2024
Fee and commission income
Asset management fees	22,862,993.46	21,820,372.41
Total	22,862,993.46	21,820,372.41

19. Income from equity investments	2025	2024
Dividend income from shares and holdings
From group companies	6,391.14	7,736.65
Total	6,391.14	7,736.65

20. Interest income and expenses by balance sheet item	2025	2024
Interest income
From receivables from credit institutions	435,534.91	632,948.25
Other interest income	1,402.87	1,692.01
Total	436,937.78	634,640.26
of which from group companies	1,402.87	1,692.01
Interest expenses
Other interest expenses	-315.76	-1,708.11
Total	-315.76	-1,708.11
of which from group companies	-315.76	-1,708.11

LocalTapiola Asset Management | Financial statements for 2025	38

21. Net income from financial assets at fair value through profit or loss	2025	2024
From shares and holdings
Changes in fair value (net)	52,272.34	0.00
Other items	1,638.55	0.00
Total	53,910.89	0.00

22. Other operating income	2025	2024
Other income	3,885,143.25	3,572,385.98
Total	3,885,143.25	3,572,385.98

23. Other operating expenses	2025	2024
Rent expenses	-756,573.02	-737,004.98
Other expenses	-482,259.08	-481,598.00
Total	-1,238,832.10	-1,218,602.98

24. Depreciation and impairment of tangible and intangible assets and shares and holdings	2025	2024
Of intangible assets
Planned depreciation	-82,333.80	-26,813.25
Total	-82,333.80	-26,813.25
Of tangible assets
Planned depreciation	-69,154.01	-52,038.70
Total	-69,154.01	-52,038.70
Total depreciation and impairments	-151,487.81	-78,851.95

25. Notes on business segments and geographical markets

The company is an investment services firm. The main business area is asset management.

The company’s geographical area of operations is Finland.

The Company does not maintain any branch network outside Finland. Personnel information is disclosed in Note 29.

26. Pension liabilities

Statutory pension coverage for the personnel is arranged through the TyEL basic insurance with Elo Mutual Pension Insurance Company, and supplementary pension coverage through LocalTapiola Mutual Life Insurance Company.

LocalTapiola Asset Management | Financial statements for 2025	39

26. Rental liabilities	2025	2024
Liabilities from non-cancellable leasing and other rental agreements
Within one year	307,879.59	341,730.72
Within 1-5 years	620,763.44	968,237.04
Material termination and redemption clauses
Rental agreements are fixed-term until 31 October 2028
Other rental liabilities have a notice period of 1 to 6 months.

28. Off-balance-sheet commitments
Joint responsibility associated with VAT group registration	2025	2024
Within one year
Group companies	1,456,404.44	2,012,587.58
Other companies from the group	3,575,170.19	3,969,064.33
Total	5,031,574.63	5,981,651.91
VAT liability with a positive sign = VAT debt
VAT liability with a negative sign = VAT receivable
Inspection responsibility of real estate investments under section 120 of the Value Added Tax Act	2025	2024
10-year inspection period
Other companies of the group	52,779,335.41	69,124,987.11

29. Number of employees	2025	2024
Number of employees at year-end
Permanent full-time employees	131	124
Permanent part-time employees	4	5
Fixed-term employees	4	0
Total	139	129

LocalTapiola Asset Management | Financial statements for 2025	40

30. Management salaries and remunerations, pension commitments, monetary loans and their terms, as well as guarantees and contingent liabilities				2025	2024
Managing director and deputy managing director
Salaries and remunerations				-517,828.00	-485,577.00
Pension commitments	The retirement age is stated by the law.
	Statutory pension coverage for management is arranged through the TyEL basic insurance with Elo Mutual Pension Insurance Company, and supplementary pension coverage through LocalTapiola Mutual Life Insurance Company.
Monetary loans and terms thereof	No monetary loans granted
Guarantees and contingent liabilities	No guarantees or contingent liabilities granted
Members of the board and deputy board members
Salaries and remunerations				-95,000.00	-105,950.00
Pension commitments	The retirement age is stated by the law.
Monetary loans and terms thereof	No monetary loans granted
Guarantees and contingent liabilities	No guarantees or contingent liabilities granted

31. Related party loans and transactions	2025	2024
Loans granted to related-party entities	0.00	0.00
Investments in related-party entities	0.00	0.00
Guarantees and collateral lodged on behalf of a related party on behalf of another	0.00	0.00
The company has not carried out related party transactions involving non-conventional commercial terms and conditions.
Information on the joint responsibility associated with VAT group registration can be found in Note 28.

32. Fees paid to auditor	2025	2024
Audit	-20,080.00	-18,600.00
Tax advisory services	-196.90	0.00
Other services	-19,546.01	-3,680.72
Total	-39,822.91	-22,280.72

33. Shares and holdings in other companies
Company name	Domicile	Shareholding %
LocalTapiola Real Estate Asset Management Ltd	Espoo	100.0
Seligson & Co Fund Management Company Plc	Helsinki	100.0
LocalTapiola Alternative Investment Funds Ltd has merged with Seligson & Co Fund Management Company Plc on 31 December 2025.

LocalTapiola Asset Management | Financial statements for 2025	41

34. Assets under management	2025	2024
Assets under management
Trustee asset management	16,691,720,294.70	15,187,332,980.38
Total assets under management (gross)	16,691,720,294.70	15,187,332,980.38

35. Notes concerning a group company

The Company is part of the LocalTapiola Mutual Life Insurance Company Group, whose parent company is LocalTapiola Mutual Life Insurance Company, domiciled in Espoo. LocalTapiola Asset Management Ltd is consolidated into the consolidated financial statements of the LocalTapiola Group. The financial statements of the ultimate parent entity of the LocalTapiola Group, LocalTapiola General Mutual Insurance Company, (Business ID 0211034-2), are available at www.lahitapiola.fi.

LocalTapiola Asset Management Ltd prepares consolidated financial statements, which are available at www.lahitapiola.fi.

The companies do not prepare subgroup consolidated financial statements.

LocalTapiola Asset Management Ltd’s domicile is Espoo and its financial statements are available at www.lahitapiola.fi.

Interest income from group companies and interest expense to group companies are presented in Note 20.

Dividend income from group companies are presented in Note 19.

Receivables from group companies and liabilities and subordinated loans to group companies are presented in Note 12.

Off-balance-sheet commitments on behalf of group companies are presented in Note 28.

13.6 Calculation of key figures

Calculation of key figures

1) Important net income calculations

Turnover = income statement Net income from investment service operations

2) Return on equity as percentage (ROE)

Operating profit - income taxes

x 100

Shareholders' equity and minority interest +

appropriations less deferred tax liabilities (average of start and end of year)

3) Return on assets as percentage (ROA)

Operating profit - income taxes

x 100

Average balance sheet total (average of start and end of year)

4) Equity ratio as percentage

Shareholders' equity and minority interest

appropriations less deferred tax liabilities

x 100

Balance sheet total

LocalTapiola Asset Management | Financial statements for 2025	42

5) Cost/income ratio

Commission excenses + Interest expenses + Administrative expenses + Depreciation and

amortisation for tangible and intangible assets + Other operating expenses

x 100

Net income from investment service operations

LocalTapiola Asset Management | Financial Statements 2025		43

14 Accounting principles

The financial statements and the report of the Board of Directors of

LocalTapiola Asset Management Ltd are prepared in accordance with the

Finnish Accounting Act and Decree; the Act on Investment Services; the Act

on Credit Institutions; the Ministry of Finance’s decree on the financial

statements, consolidated financial statements and report of the Board of

Directors of credit institutions and investment firms; the regulations and

instructions of the Financial Supervisory Authority; and the general guidelines

of the Accounting Board.

LocalTapiola Asset Management Ltd is owned by LocalTapiola General

Mutual Insurance Company, LocalTapiola Mutual Life Insurance Company and

the regional non-life insurance companies part of LocalTapiola Group.

LocalTapiola Asset Management Ltd (business ID 1604393-7) is domiciled in

Espoo, Finland, and its address is Revontulenkuja 1, FI-02100 Espoo. The

financial statements are available at www.lahitapiola.fi.

14.1 Summary of the key accounting

principles

The receivables from credit institutions item includes deposits made with

credit institutions. Receivables to be repaid within one day of cancellation are

considered receivables payable on demand. Negotiable receivables from

credit institutions are not recognised in the balance sheet item. 

Debt securities comprise all marketable debt instruments, such as treasury

bills, local government papers, bonds issued by governments and other public

entities, certificates of deposits by banks, commercial papers, as well as

bonds and convertible bonds issued by banks and companies. Debt securities

are classified for measurement at amortised cost.

Shares and participations are individually classified for measurement as

financial assets at fair value. Subsequent measurement is at cost if the fair

value cannot be determined reliably (level 3). Shares and participations in

undertakings belonging to the same group, and investments in associates and

joint undertakings, are measured at cost.

In intangible assets, the design expenses of IT systems acquired for value, and

the costs of renovations of apartments, are capitalised as other expenses

with long-term effects. They are amortised over 10 years from commissioning

or a shorter economic period of utilisation.

The other tangible assets balance sheet item comprises equipment,

presented in the balance sheet at cost less planned amortisation and

depreciation. The annual depreciation rate of equipment is 25% of net

expenditure.

Under net commissions, commissions are recorded when the service or

separate measure in question has been carried out. The amount of net

commissions is the fair value of the consideration received.

Interest income shows the interest income derived from the balance sheet

items included in the ‘Receivables from credit institutions’ assets. Negative

interest rates are shown in interest expenses.

Other operating expenses shows rental expenses as well as the control,

inspection and membership fees charged by authorities.

The report of the Board of Directors uses the term ‘operating result’ to refer

to operating profit (loss), and the term ‘result for the financial year’ to

describe the profit (loss) for the financial year.

The report of the Board of Directors uses the term ‘gross assets under

management’ to refer to the value of investments under the group

companies’ management and of the assets in portfolio management,

calculated at fair value and inclusive of any possible debt portions, to which

are added the following: the irrevocable investment commitments callable

from clients, and the other assets contractually managed by the group

companies.

The report of the Board of Directors uses the term ‘net clients assets under

management’ to refer to the fair value of the assets invested by clients, to

which are added the following: the irrevocable investment commitments

callable from clients, and the other assets contractually managed by the

group companies.

14.2 Classification of financial assets

The company’s financial assets are classified in accordance with IFRS 9 as

measured either at amortised cost, at fair value through profit or loss or at

fair value through the fair value reserve. The classification of financial assets

into different groups is based on the company’s business models and the

instrument’s contractual cash flow characteristics.

Financial assets that are held in order to collect contractual cash flows are

measured at amortised cost. Interest income is recognised using the effective

interest method. Financial assets measured at amortised cost include

receivables from credit institutions and receivables from the public and

public-sector entities.

LocalTapiola Asset Management | Financial Statements 2025		44

Financial assets that are held both to collect contractual cash flows and to

sell these financial assets are measured at fair value, with changes in value

recognised in the fair value reserve. The company does not have any such

financial assets on the balance sheet date.

Other financial assets that are held for trading or that do not meet the cash

flow conditions of the first two models are measured at fair value through

profit or loss. Gains and losses are recognised in net income from financial

assets measured at fair value through the profit or loss account. Financial

assets measured at fair value through profit or loss include shares and fund

units. Shares and participations in undertakings belonging to the same group

are measured at cost.

Instruments classified under the first two business models must pass the SPPI

(Solely Payments of Principal and Interest) test. The test is passed by

instruments whose contractual cash flows consist solely of payments of

principal and interest on the principal amount outstanding.

Reclassification of financial assets is permitted only if the company’s business

model changes significantly. The company has had no such changes or

reclassifications of financial assets.

Purchases and sales of financial assets are recognised in the accounts on the

basis of the trade date.

The company does not actively trade in financial assets. The objective is to

invest assets profitably and prudently through long-term investment

activities.

Impairment is recognised on the basis of expected credit losses on debt

instruments measured at amortised cost. Financial assets measured at

amortised cost consist of agreements with solvent Finnish banks. Receivables

from the public and public-sector entities are not material.

14.3 Accounting principles for the

consolidated financial statements

The consolidated financial statements of LocalTapiola Asset Management

are prepared as combinations of the income statements, balance sheets and

notes of the subsidiaries. From them, the following are eliminated: inter-

company receivables and liabilities, income and expenses, profit distribution,

intragroup realised gains and losses, and cross-ownership.

Intragroup shareholdings are eliminated using the acquisition method. As all

subsidiaries are wholly owned, no minority interest arises in the consolidated

financial statements. Nor does the group have any associates.

Leases that are considered material and in which the risks and rewards of the

underlying asset are transferred to the lessee are transferred in the

consolidated financial statements to the lessee’s balance sheet as a right-of-

use asset.

14.4 Changes in the accounting principles

affecting the comparability of the result for

the financial year with the result for the

previous financial year

There have been no material changes in the company’s accounting principles

that would affect the comparability of the result for the current financial

year and the previous financial year.

15 Notes on the group’s risk

management

The prudential management process of LocalTapiola Asset Management

Group is based on the in-force Investment Firms Regulation and Directive

(IFR/IFD).

Risk management at LocalTapiola Asset Management is based on current

legislation, the regulations, guidelines and interpretations issued by

authorities and LocalTapiola Asset Management Group-internal documents:

the risk management plans and the principles of internal control. Additionally,

the policies and practices employed by LocalTapiola Group guide operations.

The risk management process of the company is part of the group’s Own Risk

and Solvency Assessment (ORSA).

15.1 Publication of solvency data

The solvency data required under the prudential regulation governing

investment firms, and the solvency data laid down in the regulations of the

LocalTapiola Asset Management | Financial Statements 2025		45

Financial Supervisory Authority, are included in the report of the company’s

Board of Directors.

15.2 Rationale for risk management

Risk management is active and proactive activity that identifies, assesses,

limits, reports on and monitors hazards to business operations as well as new

opportunities arising from evolving external and internal conditions, or from

LocalTapiola Group’s own strategic intent. The aim is to promote the

continuity of the financial security of customers and clients and to support

the achievement of operational and financial targets. In accordance with the

principles of responsible business conduct, the group reliably manages risks

and provides information on risks and risk management to customers, clients

and other stakeholders.

Investment firms must establish effective strategies, approaches, processes

and systems to identify, measure, manage and control the following risk

factors and the impacts of these factors, among others:

• Risks to customers and clients  

• Risks to markets

• Risks to the investment firm

• Prudential management risk

• Liquidity risk

• Sustainability risks

• Operational risks

During the year under review, the risk management principles of LocalTapiola

Asset Management Group were supplemented, inter alia, with regard to

DORA, sustainability risk management and the sustainability goals.

Sustainability risk means an environmental, social or governance event or

condition that, if materialised, might have a negative impact on the value of

an investment, the value of a liability, or the company’s income or reputation.

Typically, sustainability risks materialise through the traditional risk

categories, which is why their identification is also linked to the periodically

conducted operational risk surveys.

15.2.1 Organisation of risk management

The Board of Directors has overall responsibility for organising risk

management. The Board defines the risk management targets, risk appetite,

risk-taking limits, responsibilities, metrics and supervision principles. The

Board annually confirms the plans that deal with risk management, ensures

that they are taken into account in the operational plans and monitors the

implementation of and compliance with these plans. Additionally, on a regular

basis, the Board also monitors the state of risk management and the

development of key risks.

The Managing Director and senior management are responsible for the

practical preparation, implementation and monitoring of risk management

within the risk management framework. The business units are responsible for

identifying risks that relate to their own business operations and for

implementing the related risk management measures. It is for superiors to

ensure that the control of operational processes is adequate and that there is

reliable and up-to-date information available on the results of this control. All

employees have an obligation to report any risks which they observe and any

risk management areas needing improvement which they identify. Superiors

are in charge of internal control with regard to their own function, and this

work also covers operational compliance. The risk management function

oversees implementation of the internal-control measures taken by superiors,

and it reports to management on the implementation of this control.

The risk management function of LocalTapiola Asset Management is

responsible for maintaining and developing the risk management framework,

and for the company’s and the group’s prudential management process and

solvency calculation. The risk management function of LocalTapiola Group

supports and oversees the execution of risk management from the group’s

perspective.

The risk management function of the parent company must be able to get an

adequate understanding of the total risk exposure with regard to the group,

and to ensure compliance with the risk management strategy. For their part,

the risk management functions of the group’s subsidiaries are responsible, in

respect of their own company, for maintaining and developing the risk

management frameworks and principles of LocalTapiola Group, Asset

Management Group and the individual companies.

The company’s legal function supports the business units of the company in

complying with the applicable laws, official regulations and internal guidelines

while also ensuring that people at the company are aware of the regulatory

requirements and official regulations to which the company is subject. The

company’s compliance function is part of the legal function. The compliance

function annually submits to the Board of Directors a report on the

observations it has made and on the oversight carried out regarding

compliance with the applicable provisions.

LocalTapiola Asset Management | Financial Statements 2025		46

Internal audit assists the Board and the management in the practical

implementation of risk management controls and risk monitoring. In addition,

the auditing function oversees the implementation of risk management.

15.2.2 Risk identification, measurement and

management

The identification of operational risks and of risks relating to the operating

environment, as well as their likelihood and impacts, are evaluated at the

business units during annual planning and whenever there is a material

change in the risk position. The key risks identified in the risk surveys part of

the Management Group’s annual planning cycle are included in the

company’s risk management plan, and they are monitored on a regular basis

by the Board.

LocalTapiola Asset Management | Report of the Board of Directors and financial statements 2025	47

Signatures for the report of the Board of Directors and financial statements

In Espoo, 27 February 2026

Sari HeinonenMikko AyubJoel Sunabacka

Chair of the Board of Directors

Marja Pajulahti Pia Santavirta

Samu Anttila

Managing Director

LocalTapiola Asset Management | Report of the Board of Directors and financial statements 2025	48

Auditor’s note

A report has been issued today on the audit performed.

In Espoo, 23 March 2026

KPMG Oy Ab

audit firm

Timo Nummi

Authorised Public Accountant

This document is an English translation of the Finnish auditor’s report. Only the Finnish version of the report is legally binding.

Auditor’s Report

To the Annual General Meeting of LocalTapiola Asset Management Ltd

Report on the Audit of the Financial Statements

Opinion

We have audited the financial statements of LocalTapiola Asset Management Ltd (business identity code 1604393-7) for

the year ended 31 December, 2025. The financial statements comprise the balance sheets, the income statements,

cash flow statements and notes for the group as well as for the parent company.

In our opinion, the financial statements give a true and fair view of the group’s and the company’s financial performance

and financial position in accordance with the laws and regulations governing the preparation of financial statements in

Finland and comply with statutory requirements.

Basis for Opinion

We conducted our audit in accordance with good auditing practice in Finland. Our responsibilities under good auditing

practice are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our

report. We are independent of the parent company and of the group companies in accordance with the ethical

requirements that are applicable in Finland and are relevant to our audit, and we have fulfilled our other ethical

responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is

sufficient and appropriate to provide a basis for our opinion.

Responsibilities of the Board of Directors and the Managing Director for the Financial Statements

The Board of Directors and the Managing Director are responsible for the preparation of financial statements that give a

true and fair view in accordance with the laws and regulations governing the preparation of financial statements in

Finland and comply with statutory requirements. The Board of Directors and the Managing Director are also responsible

for such internal control as they determine is necessary to enable the preparation of financial statements that are free

from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Board of Directors and the Managing Director are responsible for assessing

the parent company’s and the group’s ability to continue as a going concern, disclosing, as applicable, matters relating

to going concern and using the going concern basis of accounting. The financial statements are prepared using the

going concern basis of accounting unless there is an intention to liquidate the parent company or the group or cease

operations, or there is no realistic alternative but to do so.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from

material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with

good auditing practice will always detect a material misstatement when it exists. Misstatements can arise from fraud or

error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the

economic decisions of users taken on the basis of the financial statements.

As part of an audit in accordance with good auditing practice, we exercise professional judgment and maintain

professional skepticism throughout the audit. We also:

— Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,

design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and

appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud

is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,

misrepresentations, or the override of internal control.

		2

LocalTapiola Asset Management Ltd	Client
Auditor’s Report	Auditor’s Report
financial year ended 31 December, 2025	Date

— Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are

appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the

parent company’s or the group’s internal control.

— Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and

related disclosures made by management.

— Conclude on the appropriateness of the Board of Directors’ and the Managing Director’s use of the going concern

basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to

events or conditions that may cast significant doubt on the parent company’s or the group’s ability to continue as a

going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s

report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our

opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However,

future events or conditions may cause the company to cease to continue as a going concern.

— Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and

whether the financial statements represent the underlying transactions and events so that the financial statements

give a true and fair view.

— Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities

within the group to express an opinion on the consolidated financial statements. We are responsible for the

direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of

the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our

audit.

Other Reporting Requirements

Other Information

The Board of Directors and the Managing Director are responsible for the other information. The other information

comprises the report of the Board of Directors. Our opinion on the financial statements does not cover the other

information.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing

so, consider whether the other information is materially inconsistent with the financial statements or our knowledge

obtained in the audit, or otherwise appears to be materially misstated. Our responsibility also includes considering

whether the report of the Board of Directors has been prepared in compliance with the applicable provisions.

In our opinion, the information in the report of the Board of Directors is consistent with the information in the financial

statements and the report of the Board of Directors has been prepared in compliance with the applicable provisions.

If, based on the work we have performed, we conclude that there is a material misstatement of the report of the Board

of Directors, we are required to report that fact. We have nothing to report in this regard.

Helsinki, 23 March 2026

KPMG OY AB

Audit Firm

TIMO NUMMI

Authorised Public Accountant, KHT