Investment results

Checked on: 31 October 2022

Investment results

The investment policy is based on an investment portfolio that distinguishes between fixed-income and return assets. The distribution at any point in time is aimed at having a good chance of achieving our ambition in the long term, a pension that is stable in value for retired members and non-contributory policyholders and a welfare pension for active members, without the risks becoming too great.

The fixed-income securities largely consist of relatively 'safe' investments, which significantly secure part of the future expected pension benefits. Think in particular of government bonds with a spread within and outside Europe. It also invests in slightly riskier fixed income securities, such as corporate bonds and emerging market bonds. The higher risk is compensated by a higher return expectation.

More about our Investment policy

Do you want to know more about the choices made by Philips Pensioenfonds in its investment policy?

Go to Investment policy

The investments with more risks are classified as real assets. The aim of these investments is to achieve greater returns. Think of investments in shares and real estate.

Amounts in millions of euros


End of Q3
End of Q2
End of Q1
End of Q4

Investment assets

17,734 18,766 21,992 23,811


Due to a new pension system that will come into effect in the Netherlands within a few years, the Board of Philips Pensioenfonds has considered what this change means for the Fund's policy. We are dealing with a new reality in the short term. The Fund's policy is normally long-term. However, due to the upcoming system change, there is reason to deviate from our long-term policy on a number of points. The aim of this is to give our participants a good start in the new pension system.

At the end of 2021, the Board decided, among other things, to reduce the risk profile of our investments during the transition to a new scheme, for which the allocation to equities was reduced by 7.5 percentage points in favor of government bonds and cash. In addition, the interest rate hedge has been adjusted from a dynamic hedge to a higher and fixed interest rate hedge of currently 45% of the real pension liabilities.

Therefore, the distribution of the investment portfolio is temporarely as follows: 67.5% of the assets are invested in fixed-income securities and 32.5% of the assets are invested in commercial securities. The chart below shows more details. Fixed-income asset classes are shown in purple and orange, while return assets are presented in blue and green.

Click here for more information about the investment policy of Philips Pensioenfonds. Would you like to know more about the adjustments to the investment policy and the other decisions taken by the Board with a view to the arrival of the new pension system? Click here and read the news item.

The financial position of Philips Pensioenfonds is exposed to a number of risks. For example, movements in interest rates and inflation have a major impact on the pension fund’s ability to pay its future pensions (including indexation). That is why, besides investing in fixed-income and return assets, the pension fund also purchases additional ‘protection’ to hedge some of its exposure to those risks. That additional protection against interest-rate and inflation risks is not included in the benchmark. It is important to realise that the additional protection only covers part of the risks. Scenarios are possible where realising the ambition of an indexed pension is in jeopardy. Think of scenarios with disappointing stock returns or an interest rate that becomes even more negative.

The table below shows the following return figures:

  • Total return net of hedging against interest-rate and inflation risks. This percentage can be compared against the corresponding benchmark.
  • Total return including hedging against interest-rate and inflation risks; no benchmark available.



Philips Pensioenfonds




Q3 2022
1 July - 30 September

Q3 2022
1 July - 30 September

Total return
(net of hedging for interest-rate and inflation risks)



Total return
(including hedging for interest-rate and inflation risks)


does not apply

The total return of the portfolio (including hedging interest rate and inflation risk) was -4.4% in the third quarter. This return was strongly influenced by the rise in interest rates in the third quarter. This made investing in equities less attractive, resulting in a negative return on that portfolio. The value of the fixed-income portfolio also decreased as a result of higher interest rates. The real estate portfolio did achieve a positive return. Investments in real estate react less quickly to interest rate developments. However, this positive return on real estate did not prevent the return on the real estate portfolio (stocks and real estate) from being negative. This means that both the fixed-income portfolio and the portfolio with marketable securities achieved a negative return.

Comparison with benchmark
Philips Pensioenfonds assesses the investment results by comparing them with an objective benchmark (benchmark). Total returns were virtually flat versus the benchmark in the third quarter.

Related information

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Indexation policy

We try to increase your pension every year. This is called 'indexation'. But indexation cannot be taken for granted. Do you want to know more about our indexation policy?

Go to indexation policy
Financiele positie

Responsible investments

Responsible investment means selecting investments with due observance of the environment, social issues and good corporate governance.

Go to Responsible investment