Update April 2020

As most of the pension funds, we closed the year 2019 with excellent results. The performance of the investments was with 12.3% once again a two digit number, bringing us to a coverage ratio of 120.8% as of 31 December 2019.

We enjoyed these good results for a couple of months.

Since then COVID19 happened and turned many things "upside down". Unfortunately, the 2019 profits have more or less disappeared, setting us back to a coverage ratio we had at the end of 2018. As of 31 April 2020, our estimated coverage ratio is 111.1%. The investment fluctuation reserve of 20.8% is now reduced to 11.1%, but it served its purpose to cover market fluctuations, so we are still well financed.

No one knows how the economy will recover from this pandemic crisis and, in particular, how the stock markets will develop. Investing assets with an objective of achieving a "certain" positive performance has become even more difficult and requires risk taking, including investing in the stock market.

The investment committee has decided to remain on the investment strategy that we have applied in 2019, although with the transfer out of HP Inc, we have slightly increased our portion in Real Estate from 15% to 18% and decreased the Equity allocation from 45% to 42%.

We still feel confident with our investment strategy and the other key parameters and look forward to the challenges for the reminder of the year.