2018 was a challenging year for investors – equity markets corrected downwards. The total portfolio thus made an as yet unaudited return of –4.2% as of 31.12.2018. This means that the provisional funding ratio is 103%. On account of its sound financial condition, Profond can offer members an above-average interest rate of 1.5% despite the unfavourable market environment. Based on an extremely stable customer base, Profond was able to continue to grow healthily and significantly improve its structure for the benefit of its existing members.

Whereas real estate and alternative investments each delivered a return of more than 4% in 2018, Swiss equities reported a loss of 13%, and foreign equities a loss of 9%. The foreign bond yield was –1.5%, the Swiss bond yield 0%. This gives rise to a provisional total return of –4.2%. “We are not put off by temporary fluctuations in value,” says Andreas Häberli, Investment Director at Profond. “If you take into account that Profond’s equity ratio is far above average in the sector, the result is respectable compared to the industry average. If prices fall in equity markets, we perform a little worse than average with our investment strategy, but if prices rise, we derive an above-average benefit from this.” Profond is therefore sticking to its long-term investment strategy with a high proportion of equities and real estate. Thanks to this strategy, it has been possible to pay interest on the retirement assets averaging 4% per year since 1991.

The provisional funding ratio is 103%.

Thanks to its sustainable interest rate policy, in 2018 Profond can once again offer members an interest rate higher than the 1% minimum interest rate prescribed by the Federal Council:  1.5% for the mandatory assets and 1.5% for the supplementary assets.

In 2018, Profond was again able to count on a very stable customer base and strong growth. More than 98% of our customers have remained loyal to us, and we increased our number of members from around 45 000 to around 52 000 as of 1.1.2019. Of the new members acquired, 98% are actively contributing members, meaning a pleasing improvement in Profond’s age structure.