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Annual Report of the Board contents and completely new sections. The purpose of the renewal was to
provide a visually attractive website with more diversified contents. The
Seafarers’ Pension Fund 2020 Annual Report Albatrossi magazine is published in three issues annually, with an online
browsable version available as well. The annual report was distributed
22 only online as a browsable publication through the website.

Of the real estate development projects underway in 2020,
Harppuunakortteli in Turku has its own website, newsletters,
information bulletins and social media channels, and news and
joint information bulletins have also been published for the projects
in Tapiola, Espoo. For Harppuunakortteli, brand marketing and
communications as well as the website have been updated under the
direction of the Fund.

As a result of the corona epidemic, Maritime Day, the industry
fair to be held in Mariehamn, Åland, had to be postponed until early
summer 2021.

Future Outlooks

The Seafarers’ Pension Fund serves as the pension fund in the field
of seafaring, so the development of Finnish navigation and shipping
affects essentially its operations. The COVID-19 pandemic had a
significant impact on passenger traffic, in particular, and the premium
income declined to a much larger extent than in other industries on
average. The lower than normal premium income level will, based on
current understanding, prevail until summer 2021, at least, but we are
also preparing for a longer lasting lag. This will influence the liquidity
position of the Seafarers’ Pension Fund, which will partly be alleviated
by the real estate projects expected to be completed this year.

The solvency of the Seafarers’ Pension Fund is at an excellent level,
and it facilitates investing in high-risk investments with a good return
potential. In recent years, the Fund has invested heavily in real estate with
the intention to replace fixed-income investments of low or even negative
yield expectations. In the future, the weight can be shifted towards
other real investments as well as equity investments. Although the yield
expectations have declined across all asset categories, the expected long-
term return of our portfolio continues to be at a good level.

As regards the administrative costs in relation to pension expenditure,
the Seafarers’ Pension Fund stands at the average level of earnings-
related pension insurance companies. The maintenance and renewal
of the information systems will accrue additional administrative costs
but, on the other hand, they facilitate more efficient operations and the
allocation of resources to, for example, well-being at work activities.

The number of seafarers on old-age pension is growing slowly. The
number of disability pensions is not anticipated to increase, regardless of
the lengthening of work careers due to the reforms of the MEL pension
system. The Seafarers’ Pensions Fund aims to continually develop its risk-
based well-being at work activities in order to manage disability risks.

The role of responsibility in our activities will become increasingly
important in the future, and we take all responsibility aspects into
consideration when developing our activities. This is reflected in
everything we do and is manifested in the ways we contribute to the
well-being of our customers and carry out responsible investments.