04 May Fund Performance to + 5.01% for 2017
The Provident Fund of Hotel Industry Employees achieved an extremely stable return of EUR 10.5 million in the investment portfolio after expenditure for the year 2017, which corresponds to 5.01% in the Member States’ accounts on 31 December 2017.
The results are mainly due to high return on equity as a result of price increases in global markets and a moderate rise in interest rates in Europe. Thus, listed international stocks yielded 7.4% and infrastructure at 10% followed by emerging market shares with 6.1%, alternative investments of 4.5% and Global Macros and GDF of 3.8 % and 1.5% respectively. Overall in global markets we had return for 2017, 5.7%. In the local market, we had a very good return on real estate with 11.3%, loans to Members 2% and deposits 1.2%, overall in the local market the yield was 4%.
In the global market 69% of the portfolio is invested in 8 different investment categories and 14 different managers. In the local market the remaining 31% is invested in 4 different investment categories.
The total annual cost of the Fund in 2017 amounted to 0.27% of the assets.