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real estate investment strategy for the purpose of developing the real Annual Report of the Board
estate portfolio and improving operations.
Seafarers’ Pension Fund 2021 Annual Report
The proportion of fixed-income investments was 14.6% of the Fund’s
investment portfolio. This category included investments in private 1133
credits (9.8% of all investments), short-term money market instruments
(2.9%), bonds (0.6%) and other loans (1.2%).

In 2021, the highest return on investments, 31%, was gained from
equity investments, of which the return on private equity was especially
good at 47.6%. The overall return on real investments was 4.1% and on
fixed-income investments 8.2%.

The Seafarers’ Pension Fund has affirmed the principles for responsible
investments and is a member in Finland’s Sustainable Investment Forum
(FINSIF).

Information Systems

In August 2019, a major system reform was initiated in order to upgrade
all of the operational pensions systems of the Seafarers’ Pension Fund.
Erasmus, the pension processing system of the Seafarers’ Pension Fund
was completed at the end of 2021 and taken into use on 10 January
2022. In connection with the start-up of the new system, the Fund will
switch to the use of the Lapa calculation software that is widely utilised
within the pension insurance sector. The Erasmus system is used to
process pension applications and to manage and pay out pensions. At the
same time, the customer portals (Ankkuri and Loki) as well as the login
procedure for the Ankkuri service will be updated. The external website
of the Fund and the new well-being at work extranet service for shipping
companies as employers were published on a new web platform in three
languages (Finnish, Swedish and English).

The new accounting system and reporting system were taken into use
during summer 2021.

Risk Management

The Seafarers’ Pension Fund has a risk management plan in place,
which covers all its operations and is reviewed on an annual basis. The
plan includes the assessment of risks related to the Fund’s operations,
their probabilities and potential impacts on the Fund’s operations. The
Fund has also prepared, as part of its strategic decision-making and risk
management, a risk and solvency assessment in compliance with Section
184a of the Seafarer’s Pensions Act (MEL). The assessment includes a
review of the impacts of all essential risks on the operations of the Fund
as well as those measures that are relevant for the purposes of managing
these risks.

As required by the Financial Supervisory Authority, the Board
shall approve the manner in which the Seafarers’ Pension Fund will
implement its annual risk and solvency assessment. In 2021, the Fund
conducted a risk and solvency assessment that included a broad analysis,
complete with scenario calculations, which was commissioned separately
from an external party. The risk and solvency assessment were discussed
and approved by the Board on 21 October 2021.