The Vita Collective Foundation recorded an investment performance of 5.54% in 2020. The estimated annual performance significantly outperformed the market. Throughout 2020, Vita Collective Foundation's broadly diversified investment strategy, which is oriented towards long-term stability, proved effective in a turbulent year for the stock market.
Consistent rebalancing pays off
After the heavy, short-lived loss in March, the stock markets recovered steadily. Most asset classes contributed positively to the overall performance, with equities leading the way with a contribution of 3.39%. Markus Leuthard, Head Investment: "The result is pleasing: our hedging strategy paid off. Thanks to our consistent rebalancing, we were able to realize valuable gains." The shares purchased by the Vita Collective Foundation as part of the rebalancing gained significantly in value due to the sharp price increase in the second quarter. By selling them at a considerably higher price, the collective foundation made significant profits.
Indicative cover ratio of around 107%
The loss in the cover ratio caused by the coronavirus crisis was made up for in the course of the year thanks to the positive market development. The cover ratio as of December 31, 2020 is estimated to be around 107%. The Vita Collective Foundation was therefore able to build up additional value fluctuation reserves (previous year 104.3%). Interest will be paid on the retirement assets in 2021 at a rate of 1.40% in both the mandatory and the super-mandatory part.