The Vita Collective Foundation achieves an investment return of 5.7 percent

In 2023, the capital markets were impacted by turbulence in the banking sector, the weakening Chinese economy, geopolitical conflicts and economic concerns. However, central banks appear to have succeeded so far in balancing inflation, interest rate hikes and economic growth. As inflationary pressure is easing in many countries, various central banks have paused their interest rate hikes. 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. Equities and bonds in particular contributed to the pleasing return. However, the currency hedging strategy has also proven its worth. Due to its globally diversified portfolio, the Foundation is exposed to foreign currencies. In 2023, the Swiss franc gained in value against many other currencies. Without hedging, investments in foreign currencies would therefore have lost value against the Swiss franc. Consistent hedging therefore made a positive contribution to the overall return.

Indicative cover ratio of 104.7 percent

"At the end of 2022, our cover 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 cover ratio to 104.7 percent as at 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 rate on retirement assets in advance for the following year. In 2024, the insured can look forward to a maximum total interest rate of 1.45 percent.