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.