Restructuring and external consulting: Return on investment for the Schleswig-Holstein Pharmacists' Association is back in the black

At the recent chamber meeting of the Schleswig-Holstein Pharmacists' Association in Kiel, Deputy Managing Director Till Friedrich announced a net return of plus 2.16 percent for 2024. This was first reported by the Pharmazeutische Zeitung. By comparison, the 2023 annual financial statements reported a net return of minus 2.23 percent.

The institution, responsible for the pensions of over 4,000 members, suffered losses in the real estate sector, particularly due to so-called mezzanine financing . In this type of financing, investors provide money as subordinated capital for real estate projects. Due to the interest rate turnaround and the resulting real estate crisis, many projects could not be realized as planned.

The board reiterated that pensions were never at risk. "We have sufficient financial security and, despite high depreciation, we did not have to draw on any reserves," said Stefan Zerres, Managing Director of the pension fund.

Actual interest rate has not yet been reached

The pension fund had 18 percent of such investments on its books last year, but this has now been reduced to 11 percent.

According to auditor Jochen Reinke of the consulting firm Baker Tilly, the pension fund has achieved a turnaround. However, he pointed out that the net return is still below the average discount rate of 3.2 percent, which must be recouped over the long term.

The pension fund has been working with RMC since 2024

However, Baker Tilly's audit did not raise any objections, and the mezzanine investments are now being wound up "calmly and orderly." The pension fund has been receiving support from RMC Risk Management Consulting since March 2024.

The risk manager is therefore examining each individual investment, and in some cases they are still hoping for profitable realisations, explained Herwig Kinzler , Managing Director, and Daniel Sommerer, Senior Consultant at RMC Risk Management Consulting .

"The capital markets are in crisis mode, but they're always like that," Kinzler said. A plan is needed to deal with this. Kinzler also emphasized that the pharmacy supply portfolio is "special and complex, but broadly diversified." The current focus is on risk minimization, consolidation, and optimization.

Specifically, Kinzler envisions a dynamic increase by 2028. To achieve this, the portfolio has been restructured. The share of traditional real estate and fixed-income investments has increased, while the share of equities has decreased. In addition, regular stress tests will be conducted. An asset-liability study is planned for 2026.