ANALYSIS

SNPS once again delivered strong results. Nearly all portfolios ended the year in the green and outperformed their benchmarks — confirming the fund’s steady strategy in a volatile year.

Another strong investment year
2024 was another successful year for SNPS. Almost all asset classes ended positively. Equities performed exceptionally well, fixed income assets delivered solid results, and geopolitical tensions and interest rate cuts brought volatility to the markets. Despite concerns about the Middle East and political shifts, markets proved resilient — and SNPS capitalised on that strength. 

Inflation under control
Inflation fell in both Europe and the United States. In response, central banks cut interest rates by a full percentage point. Inflation dropped from 2.9% to 2.2% in Europe, and from 3.4% to 2.7% in the U.S. In the Netherlands, inflation remained relatively high due to rent increases and excise taxes. Thanks to positive investment results, nearly all participants in the Life Cycles achieved a return that outpaced Dutch inflation. Results were also strong in the benefit phase (CVP scheme), allowing for upward pension adjustments for most participants.

U.S. equities lead the way
The re-election of Donald Trump and his deregulation agenda boosted market sentiment—especially alongside the ongoing AI optimism. The ‘magnificent seven’ — Apple, Microsoft, Alphabet, Amazon, NVIDIA, Meta and Tesla—drove markets upward. US equities delivered strong returns, and globally, equities in developed markets rose by more than 26% (measured in EUR, unhedged). SNPS benefited from this through its Life Cycle portfolio Return , which has a strong equity allocation.

Positive results across nearly all portfolios
All Life Cycle portfolios achieved positive returns—except for Matching:

Return: 15.5% – driven by emerging market equities
Interest: 3.5% – outperformance due to European corporate bonds and mortgages
Matching: -5.0% – decline due to rising risk spreads, particularly on French government bonds.

Gains for participants with variable pensions
For participants with a variable pension (CVP), both portfolios posted strong investment results:

CVP Gross: 8.8%
CVP Net: 8.7%

Thanks to hedged interest rate risks and strong returns from growth assets, both CVP portfolios ended the year with funding ratios above 100%: 104.9% (gross) and 103.9% (net). The surplus above 100% will benefit participants with a variable pension and will be distributed over five years.

What is the Collective Variable Pension (CVP)?
From age 58, participants make a preliminary choice: a fixed pension with an external insurer or a variable pension via SNPS (CVP). The final decision is made at retirement.

With CVP, the pension amount varies each year based on investment returns. However, fluctuations are smoothed by spreading the result over five years. Most participants actively choose CVP. In the past six years, results were positive four times, neutral once and negative once.

What are Life Cycles?
SNPS invests based on a Life Cycle profile aligned with the participant’s risk preference: neutral, offensive or defensive. This profile can be selected via the my-Shellpension portal. If no choice is made, investments are carried out according to the default profile currently on file. If no profile has ever been selected, the neutral Life Cycle is applied.

Don't make a choice? Then we will continue to invest according to the profile known to us. Have you never communicated your choice? Then we invest according to Life Cycle profile neutral.