Groupe Mutuel Prévoyance-GMP

Activity Report 2021

Editorial

2021 – A year of contradictions

In 2021, as the population suffered from the restrictive measures that were imposed periodically to contain the spread of COVID-19, financial markets soared to unprecedented heights, with signs of rising inflation. While it was feared that reduced human contact due to the pandemic would undermine economic structures, companies have shown extraordinary resilience, supported by swift and effective measures. The massive intervention of central banks was beneficial to the economy, allowing the various stock markets to register exceptional results.

Against this mixed backdrop, Swiss pension funds have made solid gains in their investment activities, and most of them are now in a healthy position.

In this context, Groupe Mutuel Prévoyance-GMP obtained the best rating for the interest rate allocated to insured persons over three years, between 2018 and 2020.

2021 was not only an exceptional year in terms of investments, but also in terms of our business activities, with a record volume of new affiliations during the year, which shows that the Fund is meeting the expectations of SMEs.

The success of Groupe Mutuel Prévoyance-GMP’s activities owes a lot to the daily efforts of those of our employees who are involved in the management of pension contracts. Throughout the year, they deal with various requests from our insured persons and employers, with both accuracy and efficiency.

Administration of the pension fund

New member of the Pension Board
Frédéric Perraudin, who had been a member of the Pension Board since 2006, has resigned due to new professional duties. In the absence of a substitute member, the Pension Board has appointed a new member to represent employees, in accordance with the election regulation provisions. As a result, Mrs Stéphanie Emery Haenni will join the Pension Board until the next election.

New affiliations reached a record level of 319 contracts
Despite the pandemic, we have maintained close contact with our member companies, meeting with them as often as necessary and providing them with customised services. Thanks to an offer that is well-positioned in terms of costs and benefits, a contract management policy that combines security and performance, as well as to valuable advice, we were able to convince many companies to join Groupe Mutuel Prévoyance-GMP or to renew existing contracts.
During 2021, new affiliations reached a record level of 319 contracts signed, which represents an annual premium volume of CHF 12.3 million. This business development was achieved with SMEs of all sizes and in all language regions. 25% of the growth in turnover was achieved in the German-speaking part of Switzerland, thereby strengthening Groupe Mutuel Prévoyance-GMP's presence all over Switzerland.

Capital investment activities

Review of the past year
Because of the vaccination rate in developed countries, much of the economic activity resumed in 2021, or at least partially. While consumer demand has increased, this resumption of activity has mainly caused a supply shock, and bottlenecks in various sectors (transport, semiconductors, agriculture, wood and metals) have led to a return of inflation. Central banks consider that the situation is temporary and are remaining accommodating by keeping interest rates low. The excess liquidity found its way into the stock market, pushing market indices ever higher. This huge expansion of financial assets is both a source of wealth and a consequence of economic, environmental and social inefficiency. A balance between investment and savings will be needed to create strong sustainable growth.

Performance of investments
The management of different types of assets in 2021 allowed Groupe Mutuel Prévoyance-GMP to register a return on equity of 6.7% net of costs, while containing portfolio volatility. By way of comparison, the benchmark index was 7.4%. This underperformance is mainly due to the underperformance of Swiss equities, as well as to the under-exposure in private equity and private debt, as the roll-out of these two types of assets has not yet reached the strategic objective.

Sustainable and responsible investments
The process of setting up an ESG (Environment, Social and Governance) charter began in 2020. The first step was to find a partner to draft this document to reflect the awareness of a social insurance company in a financial investment environment. Portfolio monitoring and annual reporting were also important criteria for communicating periodically on the progress of the defined objectives by an independent body. Conser SA was chosen to assist Groupe Mutuel Prévoyance-GMP in the development and implementation of the charter, with the aim of achieving a sustainable and responsible performance with appropriate risk management, while excluding certain sectors or activities. An ESG investment process that defines these different aspects in more detail was drafted in 2021, including all asset categories. The second review of the portfolios, with a status update as at 30 September 2021, revealed a clear improvement in environmental indicators.
The overall rating is “green” (A- on a scale of A+ to D), despite stricter assessment criteria put in place by Conser SA. Therefore, GMP is better placed than its benchmark, which is rated at B.

Key figures

2021

Balance sheet total 2021 (in CHF thousand)

Number of employers affiliated to GMP as at 31.12.2021

Number of persons who contributed during the 2021 financial year

0,7%

Investment performance in 2021

0,3%

Coverage ratio for GMP in 2021

Remuneration interest for 2021 (3% more than the statutory minimum rate)