With total assets of over CHF 19 billion, the Vita Collective Foundation is one of the largest pension plan providers in Switzerland. Its broadly diversified investment strategy, oriented toward long-term stability, paid off in 2021: The Vita Collective Foundation closed the financial year with net performance of 8.49% and a cover ratio of 115%. As of the end of the year, the target value fluctuation reserves of 12% were fully accumulated. The Foundation had decided on a further reduction of foreign currency risks, increasing the stability of the portfolio. In the first quarter of 2022, this decision proved its worth when currencies became highly volatile due to the Ukraine crisis.
To ensure tomorrow's generations can also rely on a sustainable retirement provision solution, the Vita Collective Foundation attaches great importance to responsible corporate governance, financial security and sustainable investments. "We are taking specific measures against the unfair redistribution in the second pillar and are committed to fair and secure occupational retirement provision for all generations," says Managing Director Werner Wüthrich. The Vita Collective Foundation has therefore revised its retirement provision model for 2021 and adjusted the enveloping conversion rate.
Stronger focus on sustainability
Impact-oriented investments were expanded consistently in 2021 – with the acquisition of two new residential complexes in Wetzikon and Churwalden as well as the decision to invest in green bonds from 2022. For equity investments, the Vita Collective Foundation formulated CO2 reduction targets for the first time: By 2025, CO2 emissions are to be reduced by 20% compared to 2019. What's more, the Foundation has decided, among other measures, to exclude companies from its equity and alternative investments that generate more than 30% of their turnover or electricity generation from coal. The Vita Collective Foundation is convinced that it is making a contribution toward decarbonization with this step.
Even more transparency in corporate governance
The Vita Collective Foundation places great importance on good corporate governance. SST Vita Dienstleistungs AG therefore had its processes certified according to the ISAE 3000 standard. The management company has been entrusted with the management of the Vita Collective Foundation since 2017.
The general re-elections for the Foundation Board were successful. The new Foundation Board will now consist of eight rather than 12 members. For the first time, more women than men are represented in the supreme governing body of the Vita Collective Foundation.