The Vita Collective Foundation achieved a provisional net performance of 6.6 percent in 2024. Foreign equities made the largest contribution to returns – particularly US equities, which posted a strong performance. However, bonds, real estate, infrastructure and alternative investments also contributed to the positive year-end result.
The Vita Collective Foundation relies on a broadly diversified investment strategy geared towards long-term stability. It regularly reviews its strategic asset allocation and adjusts it if necessary. In 2025, it will increase investments in foreign equities and infrastructure investments and reduce the proportion of bonds in foreign currencies.
The investment performance had a positive effect on the coverage ratio. As at December 31, 2024, this amounted to an indicative 111.7 percent. "This enabled us to further increase our value fluctuation reserves and further strengthen the stability of the foundation," says Werner Wüthrich, Managing Director of the Vita Collective Foundation. Value fluctuation reserves are used to offset losses in value resulting from unfavorable developments on the capital markets.
The economic outlook for 2025 paints a mixed picture: While opportunities arise from technological innovations, risks remain due to geopolitical instability and climate protection challenges. The new government in the USA and political uncertainties in several European countries could cause market volatility.