Page 12 - Seafarers---_Pension_Fund_Annual_Report_2020_s

Annual Report of the Board Technical Provisions

Seafarers’ Pension Fund 2020 Annual Report The technical provisions included in the balance sheet increased to
EUR 992.1 million (EUR 971.6 million in 2019).
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The liability for future and commenced pensions amounted to
EUR 688.6 million at the end of the year.

Components of technical provisions: 371 509 000
Provision for commenced pensions 38 327 000
Provision for outstanding claims 409 836 000
Provision for pooled claims
Total 265 300 000
13 442 000
Provision for future pensions
Equity linked buffer fund 688 578 000
Technical provisions

Investment Activities

The net income of investment activities at current values, including the
value changes outside of bookkeeping, totalled EUR 73.8 million. The
book value of the net income was EUR 50.7 million.

Overall, the return on investments was 6.2% in 2020. The average
annual return on investments is 6.4% calculated over the past 5 years,
6.5% over 10 years and 5.9% over 15 years. For the past 20 years, the
average annual return has been 5.7% and the real return 4.3%.

At the end of the year, the Fund’s investment assets totalled EUR
1,250.9 million at current values. There was an increase of EUR 46.5
million from the year 2019. The largest investment category is equity
investments, which accounted for 45.4% of all investments at the end of
2020. The category includes listed shares (29.3% of all investments) and
investments in non-listed companies through capital funds (16.1%).

The proportion of real investments was almost as large as that of
equity investments, 40.4% of all investments. Real investments include
investments in real estate (30.3% of all investments), infrastructure
(4.3%) and forest (5.9%).

The Fund has continued the implementation of its major
construction projects. In Turku, the second residential building in the
Harppuunakortteli area was completed in early 2020 and the third
one will be completed in February 2021. In Espoo, the residential and
commercial buildings under construction in central and northern
Tapiola area will be completed in 2021. The renovation of the premises
located at Uudenmaankatu, Helsinki, will also be completed in 2021. In
2020, three residential properties were sold in the Greater Helsinki area.

The proportion of fixed-income investments was 14.1% of the
Fund’s investment portfolio. This category included investments in
private credits (9.6% of all investments), short-term money market
instruments (3.1%), bonds (0.3%) and other loans (1.1%).

In 2020, the best return on investments, 8.0%, was gained from