History
Over 120 years of successful investment
The life annuity institution was not a new invention when Hereditas was established over a hundred years ago in 1905. A unique concept involving a hereditary annuity was launched for the first and only time, however. This fundamental idea was inherent in the name Hereditas, which means inheritance in Latin.
1905—1925
Hereditas was founded in 1905 by Gösta Sundman, Lennart Munck af Fulkila, Arthur Reinhold Frenckell, and August Alexander Andersson. Finland became independent. Thirty people subscribed for shares worth 1,000 marks each, forming the initial capital of Hereditas. The company began by investing in bank deposits and later expanded to include loans and shares. Inflation significantly affected the actual returns.
1926—1945
The recession in the early 1930s hit Hereditas hard. The company began investing in real estate. In 1930, Hereditas became bilingual and started publishing materials in Finnish as well. The war years also had a significant impact on Hereditas.
1946—1965
During the post-war period, Hereditas began actively investing in industrial shares. The company continued to manage real estate and made long-term investments in companies such as Wärtsilä, Kymmene, and Nokia. Hereditas published a 50-year history.
1966—1985
Hereditas focused on real estate and industrial shares. Due to uncertainties regarding Hereditas’s legal status and taxation, discussions arose about a possible liquidation of the company.
1986—2015
Hereditas’s wealth increased significantly, mainly thanks to a substantial holding in Nokia. The recession of the 1990s and the technology bubble around the turn of the millennium hit the Finnish market hard. Hereditas celebrated its 100th anniversary and published a centennial history of the company.
2016—
Heredita's corporate form will change at the end of 2015/16 and become a limited company, allowing trading in the company's shares. The company's administration is being renewed and the investment strategy is being updated. The investment strategy becomes global, Finland's importance in the portfolio decreases and an increased focus on alternative investments. Wealth will grow considerably between 2017 and 2021. Responsible investment principles are integrated into the investment process. The company celebrates its 120th anniversary in 2025.
