Vita Classic - Investment report December 31, 2018

Vita Classic - Investment report December 31, 2018

Although the real economic data for 2018 was mostly positive, it was a weak investment year. Two major corrections occurred on the financial markets. The negative trend also influenced the overall performance of the Vita Joint Foundation.

All performance contributions are relatively small; none of the large investment categories contributed more than 1%. Swiss real estate continues to make positive contributions. The bonds, however, have suffered as a result of the increase in interest rates and demonstrate negative performance.

At the end of 2017, the Vita Joint Foundation developed a new investment strategy, the goal of which was to increase investment efficiency and provide the insured with a lastingly secure solution in the future as well. The foundation is aligning the majority of the investment categories achieved a negative performance in 2018. Individual illiquid investments such as private equity and infrastructure made a positive contribution over the year. The gradual development of these two investment categories in 2018 is therefore paying off.

The recently implemented hedging strategy made a positive contribution toward stabilizing the performance and the coverage ratio, which was 100.0% (unrevised) as at year-end 2018. The performance of the Vita Joint Foundation finally leveled off at - 3.08% as at December 31. This figure is above the average of - 3.53% published in the Swisscanto Pension Fund Monitor 2018.

As a joint foundation, the Vita Joint Foundation invests over the long term and has achieved an average return of 3.28% over the past five years.

Sustainability gets good rating

The comprehensively implemented sustainability concept has already begun to bear fruit, as reflected in the pension fund rating of the environmental protection organization, the World Wildlife Fund (WWF), published at the start of 2019. Encouragingly, the Vita Joint Foundation received a rating in the upper mid-range.e portfolio with the investment strategy step by step. Furthermore The Vita Joint Foundation wants to be an active and responsible investor that also takes sustainability principles into consideration when making investments.

Vita Joint Foundation Investment report December 31, 2018