Investment returns October, November and December 2022
Over the past three months, the corporate values portfolio has achieved a positive result. Divided over the different portfolios, these were the returns:
|
Business values (including shares) |
3,1% |
|
Medium-term fixed income (including government and corporate bonds) |
-0,2% |
|
Long-term fixed income (government bonds) |
-3,4% |
|
Total portfolio |
1,0% |
Annual return 2022
Distributed across the different portfolios, these were the returns seen over the entire year:
|
Business values (including shares) |
-13,8% |
|
Medium-term fixed income (including government and corporate bonds) |
-15,8% |
|
Long-term fixed income (government bonds) |
-26,8% |
|
Total portfolio |
-16,8% |
Interest rates continued to rise in the fourth quarter of 2022. The pension capitals of the oldest participants were most affected by rising interest rates. What does this mean for the pension benefits of participants who are about to retire? Fortunately, not much. The expected pension benefit for participants in the oldest age group (65-66 years) remained virtually unchanged. This is because the high interest rate ensures that a higher monthly pension can also be purchased with the accrued pension capital. Do you have a small pension? Then the pension is bought off. Your pension capital has become less valuable due to the negative returns. This means that the surrender amount has become lower. But you can still choose to have your pension paid out monthly. Watch our animation in which we explain how we invest.
Looking at the results of the returns in the various portfolios of last quarter: The "corporate values portfolio" achieved a positive result, thanks to European equities. The "fixed income" portfolios were negatively impacted by rising interest rates. The "long-term fixed income" portfolio (which only contains government bonds) was clearly more affected by this than the other fixed income portfolio and had a return of -3.4% this quarter. This ensured that the older age groups had negative returns this quarter while the younger age groups benefited from the stock market and thus experienced positive returns.
Returns and participation values by age category
Below you can view the investment results for your age group. If you click on one of the age categories, you can see the development of the participation value and the investment return over the past years and the months of this year. From the age of 57 you can make a choice whether you want to invest for a stable pension or a variable pension.
For those age groups, you will therefore see two choices. If it says (S), it concerns the results of that age group with a stable investment profile. If (V) is behind it, then it concerns the results of the variable investment profile.
What is a participation value?
A participation is your share in the investment deposit of your specific age group within the pension fund.
What are the benefits of investing?
The money from your pension pot is invested by StiPP. Every month we look at the total investment results. Are the results positive? Then money will be added to your pension pot. Are the results negative? Then some money goes out. StiPP wants to achieve a good return for its participants by investing, but in a way that takes into account the world around us. On Does StiPP invest socially responsible? you will find more information about this.
StiPP invests in various asset classes. In this way, we spread the investment risks and strive for an optimal return. How much we invest in which category for you depends on your age. If you are young, we take more investment risk. The older you get, the less risk we take. Unless you choose to invest a bit riskier. This can be done via 'Investing for a variable pension'. On 'How does StiPP invest' you will find more information about this.
E-Newsletter
The amount of your pension depends on the investment returns of the fund. StiPP therefore publishes the investment results every quarter via this website and in an e-newsletter. In it you will get more information about how StiPP invests the pension money and we answer a question about investing and pension. Would you like to receive this e-newsletter? Then log in to My StiPP Pension. There, under My Data > Change data > Subscriptions and communications, you indicate that you want to receive the financial developments newsletter.
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Explanation of previous quarters
The pension capitals of the oldest participants were most affected by rising interest rates. What does this mean for the pension benefits of participants who are about to retire? Fortunately, not much. The expected pension benefit for participants in the oldest age group (65-66 years) remained virtually unchanged. This is because the high interest rate ensures that a higher monthly pension can also be purchased with the accrued pension capital. Do you have a small pension? Then the pension is bought off. Your pension capital has become less valuable due to the negative returns. This means that the surrender amount has become lower.
The distribution between the portfolios is different in each age group. As a result, the return achieved is also different in each age category. Investments yielded less for all age groups. The oldest participants were most affected by rising interest rates.
A small bright spot for participants who are now retiring: the high interest rate ensures that a relatively higher monthly pension can be purchased with the accrued pension capital. Unfortunately, participants who buy off their pension on retirement date saw their surrender value decrease.
For participants in the highest age group (65-66), this does not mean that their future pension has deteriorated. On the contrary. As a result of the rise in interest rates, pension purchases have also become less expensive. On balance, pension purchases for older participants therefore improved last quarter.