News

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.

Are you traveling to a country where a negative travel advice (code red or orange) is applicable? Now that the coronavirus is going around the world and more and more countries are being classified as 'risk areas', we think it is important to clarify any restrictions on the payment for your partner (capital, annuity or pension) after death.

Philips Pensioenfonds and Blue Sky Group have signed a letter of intent for the outsourcing of pension administration from 2021. This is an important step in the process of reaching a final contract. It is expected that negotiations on the final contract can be completed in the short term. The contract with our current pension provider, PGGM, ends at the end of this year.

Philips Pensioenfonds exerts influence in various ways on companies in which we invest. As a shareholder in many companies, for example, we have the option of voting at shareholder meetings. And if companies in which we invest violate the Global Compact principles, we address them to this.

The quarterly report for the fourth quarter of 2019 has been published. You can download the report via our website. In the fourth quarter, the current funding ratio increased from 110.9% at the end of September 2019 to 117.0% at the end of December 2019. The increase in the funding ratio was due to the higher interest rate and stock markets showing good returns. This was mainly because investors have become more positive now that two risks to the global economy have declined in a short time. The trade war between the US and China has subsided, while in the short term the chance of a hard Brexit has decreased. Due to the rise in interest rates, the return on the fixed-income portfolio was negative. But the negative effect on the funding ratio was more than offset by a decrease in the provision for pension liabilities. On balance, the higher interest rate therefore led to a higher funding ratio. Due to the good stock returns, the value of the portfolio with return assets increased. Due to the rise in interest rates and the increase in the portfolio with return assets, the funding ratio rose by slightly more than 6 percentage points in the fourth quarter.

Today, all participants who accrue pension with Philips Pensioenfonds or receive a pension from us, received the latest edition of our Generaties magazine. In this edition Christiane van der Wateren and Eric Coutinho talk about the role of the Accountability Body within Philips Pensioenfonds and the new composition of the Accountability Body. We also tell you what the Pension Agreement ('Pensioenakkoord') means for you as a participant of Philips Pensioenfonds.

In the past month, the current funding ratio has risen from 110.9% (end of September) to 113.1% (end of October). After a fall in the third quarter, interest rates rose again in October. This is because the US and China seem to be getting closer to resolving the trade dispute. In addition, a firm Brexit has been averted in the short term now that the EU has agreed to a third extension until 31 January 2020. This interest rate increase did indeed reduce the value of the fixed-interest portfolio. But this negative effect on the funding ratio was more than offset by a stronger fall in pension liabilities. Stock markets also responded positively to developments regarding the trade dispute and Brexit. The value of the portfolio with real values ​​increased in the past month. On balance, the rise in interest rates and positive stock markets led to an increase in the current funding ratio by 2.2 percentage points in October.

Philips Pensioenfonds exerts influence in various ways on companies in which we invest. As a shareholder in many companies, for example, we have the option of voting at shareholder meetings. And if companies in which we invest violate the Global Compact principles, we address them to this.

You probably would rather not think about it, but imagine that you will die ... do you know how your partner and children are left behind financially? A few things are also arranged for your partner within the flex pension. But you have to do something for it yourself!

In the first six months of this year, the assets of Philips Pensioenfonds increased by almost 1.8 billion euros. However, at the end of June of this year our financial situation was not that good as at the start of 2019. This indicates that only the size of the assets does not really say much about the financial situation of Philips Pensioenfonds. After all, we only know whether the assets are sufficient if we know how much money the Fund needs to pay you and all other pension builders and pension recipients the pension now and in the future. We call this the pension liabilities. And in the aforementioned period they increased even more than the assets. The main reason for this was a fall in the interest that we must use to calculate the pension liabilities.