The Vita Joint Foundation recorded an investment performance of 6.76% in 2017. A key contributor to this pleasing result was the high-performance contribution of the equities in the broadly diversified investment portfolio. The other investment categories also performed well. The details can be found in the Investment Report as of December 31, 2017.
Insured individuals benefit in several ways
The insured individuals of the Vita Joint Foundation benefit directly from the pleasing investment results, thanks to an innovative pension planning model. The pension planning model enables the fair distribution of the investment income earned, in the form of additional interest on the retirement assets.
“We work in a partially autonomous market, which helps us to diversify our investment strategy more broadly and thus achieve high performance,” says Werner Wüthrich, Chairman of the Vita Joint Foundation. “In this way, our insured individuals benefit twice over: On the one hand from the improved performance, and from our interest rate model on the other, which promptly passes on to them as much of the investment income as possible.”
The insured individuals who have been with the company for many years are benefiting especially greatly from the above-average interest earned, because they have in the past made a significant contribution to this positive performance with their pension assets. The mandatory part of their retirement assets will enjoy an interest rate of 2.4% in 2018 (1.4% above the BVG minimum interest rate of 1%) and the non-mandatory part will attract 3.15% interest. In the last five years, the Vita Joint Foundation has awarded on average an interest rate of 2.33% in the mandatory part and 3.03% on the voluntary contributions. “This average figure is attractive in comparison with the rest of the market. We can thus make a valuable contribution to the retirement assets of our insured individuals and to an untroubled financial future,” says Werner Wüthrich.
The biggest partially autonomous joint foundation with about 21,000 companies
The Vita Joint Foundation is the largest partially autonomous joint foundation in Switzerland, with a total of 125,000 active insured individuals and around 21,000 companies. It has a very good ratio between active insured individuals and pensioners, and manages assets amounting to around CHF 13 billion.