Dear reader
As in the previous year, 2021 was dominated by the COVID-19 pandemic. It is therefore all the more pleasing that, in addition to a successful new appointment to the Board of Trustees, we can report a positive investment result, an improved coverage ratio and a higher return on your pension assets:
Investments
Thanks to the expansive monetary policy of the central banks, the stock markets defied not only the Corona crisis but also increasing fears of inflation and again posted significant gains in the past year. In contrast, the slightly rising interest rates on bonds had a clearly negative effect and led to price losses. The investment committee made use of the available risk budget and overweighted investments in shares and real estate compared to bonds last year. This has paid off. We achieved a total return of 9.6% in the 2021. The result is 2.2 percentage points above our benchmark and is also better than the Swiss Pension Fund Index. As of 31 December 2021, of our total assets of CHF 356 million, just under 40% are invested in equities, 34% in real estate and around 25% in bonds.
Cover ratio
The gains and income on investments have raised the coverage ratio (assets in relation to liabilities) of our pension fund to over 125%. Our reserve to compensate for short-term fluctuations in market values is fully accumulated and the Fund expects to be able to report a small amount of free assets for the first time in years.
Interest rate on pension assets
The cover ratio and the very pleasing investment result again allow the Board of Trustees to grant an interest rate above the BVG minimum interest rate. At its meeting on 14 December 2021, the board decided to pay interest at 4.75% on the assets of the insured in the compulsory and non-compulsory areas for the year 2021.
Changes in the Foundation Board
At the end of the year, our long-standing President Willi Rohner was discharged from the Foundation Board, with thanks for his great services. The employers have elected Reto Meier, Head of Finance at C&A Mode AG, as the new employer representative on the Foundation Board. He will take over the presidency. Mr Hans-Peter Gasser from Libera AG will be happy to answer any questions you may have about your insurance situation by telephone 061 205 74 25 or e-mail hanspeter.gasser@libera.ch. You can find the pension fund of the C&A Group on the internet at www.pkca.ch.
With best wishes
For the Foundation Board
Reto Meier
President
Christian Wigger
Vice-President