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Annual Report of the Board

Seafarers’ Pension Fund 2022 Annual Report

COVID-19 seen over the past few years, or the development of the
global economy in terms of the recent strongly weakened consumer
purchasing power. These are temporary issues, however, and for the
long term, the key issue is the share of Finnish navigation sailing under
the Finnish flag. This can be affected in many ways, for example, by
ensuring that the maritime subsidies are at a comparable level to that
of competitor countries and, on the other hand, that the price of
financing necessary for investments is competitive.

The third significant risk is data security. Risks include external
threats (system penetrations, invasion of premises, obtaining informa-
tion under false pretences, fire, etc.) or internal threats (unsafe or care-
less handling of data, deceit, etc.). Anomalies in data security can cause
an interruption to or even halting of activities. Furthermore, possible
data security breaches can lead to financial sanctions or a loss of repu-
tation and credibility. Last year, we updated all operating procedures
and documentation related to risk management, and on the basis of an
external assessment, our data security is at a good level. If cyber attacks
on Finland’s infrastructure, such as its electricity network or operators,
should occur however, we would, of course, face the same challenges as
other similar actors.

After the financial period, the Seafarers’ Pension Fund sold its
limited-liability housing company Asunto Oy Helsingin Seilori on
13 January 2023 and the residential properties Poitsila 1 and 2 in
Hamina on 31 January 2023. As the number of direct real estate invest-
ments was markedly reduced during 2020–2022, the Fund decided to
terminate the operations of MEK-Huolto, a company owned 100%
by the Fund and responsible for the Fund’s facilities management.
The activities ended on 31 December 2022 and the company will be
dissolved during 2023. These measures are part of our new real estate
strategy, according to which we have reduced the share of direct real
estate investments in our portfolio, thereby improving the liquidity of
our investments.

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