News

Corona virus influences the financial position of Philips Pensioenfonds

13 March 2020

The corona virus is currently gripping the world and our country. This has a direct impact on the financial markets. Investors are concerned about the economic consequences of the spread of the corona virus. And that is reflected in strongly negative returns on equity markets and a fall in interest rates. As a result, the current funding ratio in February decreased from 115.0% (end of January) to 109.8% (end of February), or 5.2 percentage points. 

The downward trend in the current funding ratio is not immediately visible in the level of the policy funding ratio. This is because the policy funding ratio shows the average of the current funding ratio over the past 12 months. The policy funding ratio was 113.3% at the end of February.

 If the consequences of the corona virus continue in the coming period, the policy funding ratio will also decrease further. The funding ratio determines, for example, the indexation policy of Philips Pensioenfonds. The coming period will show how long negative sentiment will continue and when financial markets will recover. As a Pension Fund, we closely monitor these developments.

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