2022: the second pillar in the midst of the crisis
While the previous year had offered excellent prospects for returns for the second pillar, 2022 served as a reminder of the fundamentals of this business activity: a long-term view and the building up of appropriate reserves in prosperous times with a view to absorbing fluctuations in market values. The war in Ukraine and its strong impact, the return of inflation and the sudden rise in interest rates, although expected, was a sharp turnaround that only pension funds with a sound management policy were able to cope with.
Thanks to its long-term vision, Groupe Mutuel Prévoyance-GMP was able to absorb the year’s performance of -9.35% while maintaining a coverage ratio of 105.25% as at 31 December 2022. This means that commitments remain fully covered.
Furthermore, insured persons received an additional interest of 3% in 2022, which brings the total interest to 4%, including the statutory LPP/BVG rate of 1%. For 2023, an allocation of 0.5% of the available provision guarantees that insured persons will receive an interest rate of 1.5% from the beginning of the financial year. This approach places Groupe Mutuel Prévoyance-GMP among the collective pension funds that have distributed the highest interest rates over the last 10 years, with an average of 2.8%.
The pension fund’s investment policy has taken into account respect for the environment, societal impact and corporate governance for several years now. The implementation of our ESG charter is well underway. The various assessments of our investment activities confirm that the approach we have chosen is successful and that it is continuously being improved.