Investment results

Checked on 23 July 2021

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.

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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 Q2

End of Q1

End of Q4
End of Q3

Investment assets

23,089 22,441 22,869 21,827


The strategic distribution of the investment portfolio is as follows: 60% of the assets are invested in fixed-income securities and 40% of the assets are invested in real securities. The chart below shows how the pension fund’s investment assets are spread across the various asset classes. 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.

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




Q2 2021
1 April - 30 June

Q2 2021
1 April - 30 June

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 3.2% in the second quarter. Under 'Latest developments' it is explained that the economy received a significant boost in the second quarter. This led to equities showing good returns. Other riskier asset classes, such as real estate, emerging government bonds and high-yielding corporate bonds, also benefited from this development.

After the interest rate had risen sharply in the first quarter, it was much more stable in the second quarter. The returns on the portfolio of government bonds and mortgages were therefore modest.

Comparison with benchmark
Philips Pensioenfonds assesses the investment results by comparing them with an objective measure (benchmark). The total return was almost the same as the benchmark in the second quarter.  

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