Page 12 - Seafarers---_Pension_Fund_Annual_Report_2021

Annual Report of the Board Technical Provisions

Seafarers’ Pension Fund 2021 Annual Report The technical provisions included in the balance sheet increased to
EUR 1,056.6 million (EUR 992.1 million in 2020). Of the technical
12 provisions, a total of EUR 328.2 million is included in the solvency
capital.

The liability for future and commenced pensions amounted to EUR
728.4 million at the end of the year.

Components of technical provisions: 390,331,000
Provision for commenced pensions 37,701,000
Provision for outstanding claims
Provision for pooled claims 428,032,000
Total
257,075,000
Provision for future pensions 43,246,000
Equity linked buffer fund 728,353,000
Technical provisions

Investment Activities

The net income of investment activities at current values, including the
value changes outside of bookkeeping, totalled EUR 201.2 million. The
book value of the net income was EUR 102.3 million.

Overall, the return on investments was 16.2% in 2021. The average
annual return on investments is 8.3% calculated over the past 5 years,
8.3% over 10 years and 6.3% over 15 years. For the past 20 years, the
average annual return has been 6.6% and the real return 5.1%.

At the end of the year, the Fund’s investment assets totalled EUR
1,411.7 million at current values. The value of the assets increased by
EUR 160.8 million from the year 2020. The largest investment category
is equity investments, which accounted for 49.5% of all investments at
the end of 2021. The category includes listed shares, which represented
30.4% of all investments, as well as investments in private equity and
non-listed shares, which represented a combined 19.1%. The overall
responsibility of the portfolio was developed through fund and company
choices. Accordingly, the ESG rating of the entire portfolio increased
and the carbon footprint reduced.

Real investments represented 34.9% of the investments. Real
investments include investments in real estate (25% of all investments),
infrastructure (3.6%) and forest (6.3%).

Construction in the Harppuunakortteli area of Turku continued
during 2021. In Espoo, the residential and commercial buildings in
the central and northern Tapiola areas were completed in 2021. The
renovation of the premises located at Uudenmaankatu, Helsinki,
were also completed in 2021. During 2021, one residential property
was sold from the Fund’s portfolio. At the end of 2021, the shopping
centre located in Tapiola was subject to a write-off based on an external
appraisal. Towards the end of the year, we initiated the renewal of the