LEC: performance

(*) The performance of the cash portfolio is calculated using IRR. The cash management department manages this portfolio for all three schemes. As there is no decision-making level per scheme within the management structure, we consider it appropriate to present the aggregated result for the three social insurance schemes here.

Principles: Returns for all portfolios are calculated using the Time Weighted Return (TWR) method, with the exception of the cash portfolio, for which a Linked Internal Rate of Return (LIRR) method is applied. Net returns include gains and losses (realised or unrealised), income (dividends, interest, securities lending fees), transaction costs (brokerage fees, stamp duty, custody fees and other taxes), as well as management fees for externally managed mandates.

As it has a more modest capital base, the LEC Compensation Fund is highly sensitive to fluctuations in cash flows observed during the month.

In 2025, the LEC's liquidity stood at an average of CHF 88 million. The insurance scheme’s investment assets amounted to CHF 2.0 billion at the start of 2025. By the end of the year, investment assets had risen to CHF 2.3 billion.

The return on the scheme’s investments was 6.03%. Over a five-year period, the annualised return stood at 1.90%. As the realised volatility for the year was 3.7%, the resulting risk-adjusted return (Sharpe ratio) amounts to 1.6.