Sammelstiftung Vita chieves an investment return of 5.7 percent

15 February 2024

The investment year 2023 was characterized by inflation and the decisions of the central banks. The end-of-year rally on the capital markets ensured positive development of the Vita Collective Foundation’s investment portfolio. The foundation closed the financial year with a provisional net performance of 5.7 percent. The indicative coverage ratio as of December 31, 2023 is 104.7 percent.

In 2023, the capital markets were burdened by the turbulence in the banking sector, the weakening Chinese economy, geopolitical conflicts and economic concerns. However, the central banks seem to have succeeded so far in the balancing act between inflation, interest rate increases and economic growth. As inflationary pressure eases in many countries, various central banks paused in raising interest rates. The possible and already anticipated interest rate cuts for 2024 led to a year-end rally on the capital markets – and thus to a positive development of the Vita Collective Foundation’s investment portfolio. The foundation closed 2023 with a provisional net performance of 5.7 percent. Stocks and bonds in particular contributed to the pleasing returns. But the currency hedging strategy has also proven successful. Thanks to its globally diversified portfolio, the foundation is exposed to foreign currencies. In 2023, the Swiss franc increased in value against many currencies. Without hedging, investments in foreign currencies would have lost value compared to the Swiss franc. The consistent hedging of foreign currencies therefore made a positive contribution to the overall return.

Indicative coverage ratio of 104.7 percent

“At the end of 2022, our coverage ratio was 100.5 percent after a challenging investment year. Thanks to the positive development of our investment portfolio in 2023, we were able to increase the coverage ratio to 104.7 percent as of December 31, 2023,” says Werner Wüthrich, Managing Director of the Vita Collective Foundation. This increases the stability of the foundation and benefits the insured in the form of additional interest. The Vita Collective Foundation communicates the interest on retirement savings in advance for the following year. In 2024, those insured can look forward to a maximum total interest rate of 1.45 percent.

Source: Sammelstiftung Vita
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