Page 12 - Seafarers_Pension_Fund_Annual_Report_2022

Annual Report of the Board

Seafarers’ Pension Fund 2022 Annual Report

Cumulative profit 2008-2022, 277.1 Investment activities
SPF and other pension insurers
The net income of investment activities at current values, including the
% value changes outside of bookkeeping, totalled EUR -23.2 million. The
300 book value of the net income was EUR 39.7 million.

250 Overall, the return on investments was -1.7% in 2022. The average
annual return on investments is 6.2% calculated over the past 5 years,
230.8 7.0% over 10 years and 5.9% over 15 years. For the past 20 years, the
200 average annual return has been 6.5% and the real return 4.6%.

150 At the end of the year, the Fund’s investment assets totalled EUR
1,359 million at current values. The value of the assets decreased by
100 EUR 53 million from the year 2021. The largest investment category is
equity investments, which accounted for 49.4% of all investments at
2008 the end of 2022. The category includes listed shares, which represented
2009 29.2% of all investments, as well as investments in capital funds and
2010 non-listed shares, which represented a combined 20.2%. The overall
2011 responsibility of the portfolio was further developed through fund and
2012 company choices.
2013
2014 Real investments represented 32.3% of the investments. Real invest-
2015 ments include investments in real estate (21,7% of all investments),
2016 infrastructure (3.3%) and forests (7.3%).
2017
2018 The proportion of fixed-income investments was 17.9% of the
2019 Fund’s total investment portfolio. This category included investments
2020 in private credits (9.3% of all investments), short-term money market
2021 instruments (4.1%), bonds (4.0%) and other loans (0.5%).
2022
In 2022, the highest return on investments, 26.7%, was gained from
Seafarers’ Pension Fund infrastructure investments. The return on capital funds was also good
Pension insurance industry at 14.6%. Equity investments brought a total return of -4.7%, while
the overall return on real investments was 1.5% and on fixed-income
Distribution of equity investments, % investments 2.9%.

6 The weakest yield in 2022 came from market shares, at -16.5%, and
direct real estate investments, at -6.6%. The return on real estate funds,
18 29 however, was 8.9%.

5 The real estate investment strategy of the Seafarers’ Pension Fund
was reformed and the introduction of the new strategy began, in prac-
19 23 tice, during 2022. According to the strategy, real estate management,
leasing and maintenance are outsourced to an external provider and
Finland the number of co-operative partners was reduced along with new ser-
Europe vice contracts. Altogether, six commercial properties and two co-owned
North America business properties were sold. The weak return on direct real estate
Japan investments was affected by the costs related to the introduction of a
Emerging markets new strategy, excess costs from sales and value adjustments of specific
World real estate properties. The share of real estate investments decreased to
21.7% (25%).

The principles of ownership steering were observed during 2022 as
stated below. The Seafarers’ Pension Fund monitors the realisation of
its investments both directly and on the basis of reports received from
the asset managers. Primarily, the Seafarers’ Pension Fund is only a
minor shareholder in different companies. During 2022, no representa-
tive of the Seafarers’ Pension Fund participated in the general annual
meetings of the listed companies in which it has a holding. The Board
members and senior management of the Seafarers’ Pension Fund have
not participated in the work of the boards of directors or supervisory

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