Insured benefit from high interest rates
In the years from 2012 to 2014, the broadly diversified investment strategy pursued by the Vita Joint Foundation already earned above-average returns on the savings capital of the insured. Thanks to this excellent earnings basis and an innovative pension planning model, the Vita Joint Foundation can pay high interest on the pension capital: 2.25% on mandatory savings and 3% on super-mandatory savings, even in the current low interest rate environment.
Careful management of risks
The volatile investment environment and the current market correction give no reason for the Vita Joint Foundation to change its broadly diversified investment strategy: “Our strategy is geared to long-term security and coordinated with the structure of the insured of our semi-autonomous foundation,” says managing director Samuel Lisse, adding, “Our innovative pension planning model also absorbs value fluctuations in the capital markets with a capital buffer.” The security of the pension assets is the most important goal of Vita Joint Foundation. “In 2016, we will continue to focus on carefully managing risks of the capital market,” sums up Lisse.
Success thanks to innovation
The innovative pension model of the Vita Joint Foundation allows a build up of interest reserves in strong investment years with pension assets that exceed the target coverage ratio of 106% on October 31. From these interest reserves, the Vita Joint Foundation then gradually distributes additional interest to those insured over the next five years. Over time, this secure model has resulted in balanced interest earned for the retirement assets and made it possible for the Vita Joint Foundation to pay interest up to 1% higher than the BVG minimum interest rate four times in a row.
The largest semi-autonomous joint foundation with some 19,700 companies
The Vita Joint Foundation is the biggest semi-autonomous joint foundation in Switzerland with over 117,000 insured and some 19,700 companies. It manages pension fund assets worth CHF 10.7 billion.
Zurich Insurance Group is a leading multi-line insurance provider with a global network of subsidiaries and offices in Europe, North America, Latin America, Asia-Pacific and the Middle East as well as other markets. It offers a wide range of general insurance and life insurance products and services for individuals, small businesses, mid-sized and large companies as well as multinational orporations. Zurich employs about 55,000 people serving customers in more than 170 countries. The Group, formerly known as Zurich Financial Services Group, is headquartered in Zurich, Switzerland, where it was founded in 1872. The holding company, Zurich Insurance Group Ltd (ZURN), is listed on the SIX Swiss Exchange and has a level I American Depositary Receipt program (ZURVY) which is traded over-the-counter on OTCQX. Further information about Zurich is available at www.zurich.com.