STIFTUNGSCHWEIZ AND ZÜRCHER KANTONALBANK
Swiss Philanthropy Performance Index
Swiss Philanthropy Performance Index
Securities portfolios lose 0.9%
As we already pointed out in the last performance report, higher fluctuations are to be expected in the recovery of the Swiss Philanthropy Performance Index (SwiPhiX). After the initial euphoria, the underlying securities portfolios lost an average of 0.9% in February (previous month: +3.7%). As usual, the performance of the individual portfolios was quite varied, ranging from -1.8% to +0.7%. On average, the margin is 2.8 percentage points. Performance since the beginning of the year has been positive for all portfolios, averaging 2.7%.
High inflation likely to persist in 2023
A robust labor market and strong economic data are making the fight against inflation more difficult. This prompted U.S. Federal Reserve Chairman Jerome Powell to signal further interest rate hikes in his latest speech, which dampened investor sentiment on the stock markets. As a result, long-term bonds also lost value. The interest rate increases are also noticeable in the average allocation of SwiPhiX: at 7%, the liquidity share is 2% higher than in January. Although no global recession is expected, the year will still be one of sustained low growth.
OUTLOOK
Data source
Mandates managed by Zürcher Kantonalbank serve as the data source for SwiPhiX. Only mandates for which it can be assumed that the implemented strategy is representative for the investment strategy of the nonprofit organization are selected for the calculation. Currently, 75 different mandates with an average size of about CHF 41 million and a total volume of about CHF 3.1 billion are considered.
Calculation
For the calculation of the average performance, all mandates are weighted equally. The current index value is calculated as the index value of the previous month, plus the average performance in the current month. All performance figures are gross performance, i.e. the (individual) costs for asset management are not included.
Dispersion of performance figures
The development of the individual mandates is naturally very different due to the diverging strategies. To illustrate the scatter range, the tables show the respective minimum and maximum performance from the totality of all mandates recorded over different time periods.
Asset allocation
The performance of a portfolio depends on the development in the individual asset classes. The chart below shows the current average allocation across asset classes.
March 2023
New benchmark index for the investment performance of nonprofit organizations
LEGAL NOTES:
This document is for promotional purposes and is not intended for people domiciled or resident abroad. It was prepared by StiftungSchweiz and Zürcher Kantonalbank with due diligence as customary in business. However, StiftungSchweiz and Zürcher Kantonalbank do not guarantee the accuracy and completeness of the information contained therein and disclaim any liability arising from its use. The Swiss Philanthropy Performance Index is not a basis for products. StiftungSchweiz and Zürcher Kantonalbank reserve the right to discontinue the index calculation without giving reasons. Past performance and returns are no guarantee of future investment success. This document is neither an offer to conclude a contract nor an invitation to submit an offer for products and services. It does not constitute an offer or a recommendation to acquire, hold or sell financial instruments.
© 2023 StiftungSchweiz and Zürcher Kantonalbank