Dear reader
The year 2022 was a very special challenge also for the pension fund. The Covid 19 pandemic, Russia's war of aggression on Ukraine, the energy crisis, supply chain problems, inflation and a resulting uncertainty among consumers clouded the economic outlook. At the same time, central banks abruptly raised key interest rates on several occasions. All this had a negative impact on the stock markets, with both bond and equity markets losing ground this year. For once, bonds failed to compensate for equity risks.
Investment result
The pension fund had to accept a negative return of minus 8.11% on assets. The result is nevertheless 0.6 percentage points better than our benchmark and above the result of the CS Swiss Pension Fund Index. This index shows a return of minus 9.96% for pension funds of comparable size. The reason for the comparatively better performance of our fund is the overweighting of investments in real estate and the underweighting of bonds. As of December 31, 2022, our assets of CHF 314 million were invested 37% in equities, 38% in real estate, 22% in bonds and just under 3% in alternative investments. The investments are for the most part passively implemented. This means that the fund invests in equities and bonds based on market indices and does not use active managers. In the case of real estate, we are primarily invested through low-cost investment foundations with a focus on residential real estate.
Funding ratio
The negative investment result has pushed the funding ratio (assets in relation to liabilities) of our pension fund down to around 112% (preliminary estimate). Our reserve to compensate for short-term fluctuations in market values is therefore no longer fully funded and, in contrast to the previous year, the fund no longer has any free assets.
Interest on assets
With a coverage ratio of 112%, our Fund is still in good shape. At its meeting on December 12, 2022, the Board of Trustees therefore decided to pay interest of 3.5% on the assets of insured persons in the compulsory and non-compulsory areas for 2022, despite the negative investment return.
Changes in the Board of Trustees
We are pleased to announce that Ms. Maude-Emmanuelle Botteron has been elected to the Board of Trustees as employee representative as of September 1, 2022. She replaces Robert Fischer, who left the company at the end of August.
Pension certificate
You have received your pension certificate as of January 1, 2023 per mail. It shows your current contributions and insured benefits. As already communicated, the conversion rate at age 65 will be gradually reduced to 4.60% by 2025. In the current year it is 4.9%. If you have any questions regarding your personal insurance situation, please do not hesitate to contact Ms. Petra Roduner at the Pension Fund Administration Libera AG by phone 061 205 74 23 or by e-mail pk.ca@libera.ch.
In spring we will send you the financial summary report on the annual accounts of the fund. Detailed information on the pension fund can be found at www.pkca.ch.
With best wishes
For the Board of Trustees
Reto Meier Christian Wigger
President Vice-President