A CLEAR VISION FOR OVER 40 YEARS co re LA COLLECTIVE DE PRÉVOYANCE SINCE 1974
FOR OVER 40 YEARS WE HAVE BEEN KEEPING A CLOSE EYE ON YOUR PENSION SCHEME. IN BRIEF The organisation has existed since 1974. It acquired the name of La Collective de Prévoyance Copré on 1 January 1998 Over 40 years experience in the field of 2nd pillar pension insurance Legal form : semi-autonomous collective foundation with full reinsurance of death and disability risks No shareholders to remunerate, focus on its affiliates and insured persons
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TIME, THE PILLAR OF PENSION SCHEMES IN PENSION PLANNING, ONE NEEDS TO KNOW HOW TO MASTER TIME. The time spent in one s professional life is the period during which one gathers the financial resources that make it possible to enjoy the time of one s retirement. The interest rate on savings is fixed per year. The higher the rate of interest paid annually, and the longer the period of contributions, the higher will be the capital accumulated. The interest rate is so important for the constitution of the savings capital that it is considered as a third contributor, along with the employee or the employer. This element, too often underestimated in comparisons, has a major influence on the constitution of your retirement capital. The rate for converting the capital into a pension at retirement age is based on mortality tables, a statistical tool that expresses the probability of life expectancy of men and women within a certain population. At Copré, this rate is applied without distinction to the capital accumulated, both compulsory and supplementary. The time horizon of a pension insurance institution is long, longer than that of an individual who manages his own affairs, or that of a company. Copré constantly keeps in mind that time must work in your favour. That s why we always choose the solutions that leave open the most options. In pension planning more than anywhere else, time is money. 5
INTEREST PAID SINCE 1996 3.59 2.73 1996 2000 2005 2010 2015 4.50 5.00 5.00 7.00 5.00 4.00 4.00 3.25 2.25 4.50 4.50 3.00 2.75 2.25 2.25 0.75 3.00 3.00 3.50 2.25 COPRÉ (%) AVERAGE RATE OVER 20 YEARS (%) AVERAGE RATE OVER 10 YEARS (%) 6
RETURN ON SAVINGS AT COPRÉ, THE RETURN ON SAVINGS DEPENDS DIRECTLY ON THE RETURN ON THE ASSETS, THE OPERATING COSTS AND THE STATUS OF THE RESERVES. Being a foundation, we have no shareholders, so there is no other capital on which to provide a return other than that belonging to those we insure. This avoids management having to decide between the interest of shareholders expecting the best possible return on their capital and that of the insured, who Dynamic management combined with a light, largely decentralised organisation allow us to deliver rates that are regularly and significantly higher than the market average, while maintaining a very low risk factor : 2.73 % on average over the last ten years and 3.59 % over the last twenty years up to 2015. wish to find the net return produced by their savings in the form of the interest rate. The rate of interest on savings is applied to the whole of the retirement capital of the insured, both compulsory and supplementary. DID YOU KNOW? A variation of 0.5 % on the interest rate credited on your retirement savings capital (base calculated on an average salary of CHF 6,000. per month over 40 years of active life, taking into account the minimum cover required by the law) can represent... more than CHF 50 000.! Thus a difference in the annual pension amount of amountmontant de la rente annuelle de CHF 3 400. 7
EVOLUTION OF THE ASSETS SINCE 1998 5.00 7.00 5.00 4.00 4.00 3.25 2.25 4.50 4.50 3.00 2.75 2.25 2.25 0.75 3.00 3.00 3.50 2.25 1998 2001 2006 2011 2013 2014 2015 1 318 1 078 1 071.5 764.3 913.3 524 540.1 64.7 122.7 193.9 420.9 41.9 97.3 134.6 ASSETS (MILLION CHF) CAPITAL TIED UP (MILLION CHF) INTEREST PAID (%) 8
DEVELOPMENT THE QUESTION AS TO WHETHER IT WAS IN COPRÉ S INTEREST TO EXPAND WAS THE SUBJECT OF CAREFUL CONSIDERATION. The response rapidly became clear, as the analysis revealed undeniable advantages : ongoing reduction of costs greater diversification of investments strengthening of management It was more difficult to find the best way to achieve these objectives. After envisaging the creation of an own commercial platform, we finally opted for continuity and respect for the spirit that has infused Copré s organisation and operational functioning since its independence in 1998 ; so the commercial activity has been entrusted to an external company through a mandate. In this environment, the brokers have become the natural partners in the development of Copré. 9
FINANCIAL SITUATION 1 200 1 100 1 000 900 800 700 600 500 400 300 200 2013 764.3 2014 540.1 2015 122.5 24.4 104.5* 1 078 913.3 439 59.6 106.5* 1 318 1 071.5 252.7 53.8 105* 100 0 TOTAL ASSETS (MILLION) PENSION INSURANCE CAPITAL AND TECHNICAL PROVISIONS (MILLION) INFLOWS FROM CONTRIBUTIONS AND JOINING PAYMENTS (MILLION) RESERVE FOR SECURITIES FLUCTUATIONS (MILLION) DEGREE OF COVER (%) * TECHNICAL RATE : 2.5 % FROM 2013 10
COPRÉ IN A NUTSHELL POPULATION IN FIGURES 2013 2014 2015 Affiliated employers 460 550 614 Active insured 6 203 7 091 8 118 Pension beneficiaries 543 1 052 1 275 INVESTMENT GRAPH 50 40 30 20 10 2013 2014 2015 16 21.9 30.2 31.3 7.1 32 26.7 26.3 12.6 26.6 29 21.3 0 LIQUIDITIES (%) SHARES AND SIMILAR (%) PROPERTIES (%) BONDS AND SIMILAR (%) 11
INVESTMENT POLICY MANAGEMENT OF THE FOUNDATION S ASSETS IS HANDLED BY HAND-PICKED PROFESSIONALS WHOSE MANDATE IS RE-EXAMINED ON A PERIODIC BASIS. The goal is diversification, with a mix of index management and non-traditional management. Real estate historically represents a significant proportion of the total investments and constitutes one of Copré s major advantages. It has been strengthened by investments in a Swiss fund investing in foreign real estate on a global level, as well as in two other different funds invested in Germany. The property portfolio, composed of over 75 objects, focuses on the Lake Geneva basin, with a constant increase in properties in German-speaking Switzerland, aiming at greater geographical diversification. Its excellent stock market fluctuations and constitutes a guarantee of security and stability for the years to come. A prudent valuation of the property portfolio also provides a security cushion. The strong upswing in 2015 of nontraditional investments such as Private Equity and Trade Finance contributed to an annual performance of 2.37 %, which is considerably higher than the market average of 0.7 %. The good investment performance over successive years has been recognised through the first prize awarded to Copré by the SonntagsZeitung in its annual comparative study of Swiss pension planning solutions. return makes it possible to mitigate 12
SPLIT BY CATEGORY OF INVESTMENTS SITUATION AT 31.12.2015 4.8 % 3.7 % 18.3 % 14.6 % 3 % 3.7 % 13.4 % 25.3 % 13.2 % SECURITIES IN % BONDS CHF BONDS FOREIGN CURRENCIES SHARES CHF LIQUIDITIES NON-TRADITIONAL INVESTMENTS, CHF NON-TRADITIONAL INVESTMENTS, FOREIGN SHARES FOREIGN CURRENCIES REAL ESTATE AND SIMILAR REAL ESTATE, FOREIGN 13
TECHNICAL RATE GENERAL POLICY EVOLUTION UNTIL TODAY determination to provide insured 4.0 % until 2010 3.5 % from 31.12.2011 3.0 % from 31.12.2012 2.5 % from 31.12.2013 with security over the long term regular revision so as to develop this parameter in a progressive manner wish to have a technical rate in correlation with economic reality and the situation of the Foundation EVOLUTION OF THE DEGREE OF COVER YEAR DEGREE OF COVER TECHNICAL RATE 2005 115.50 % 4 % 2006 116.30 % 4 % 2007 111.00 % 4 % 2008 94.40 % 4 % 2009 100.01 % 4 % 2010 100.70 % 4 % 2011 100.00 % 3.5 % 2012 103.13 % 3 % 2013 104.52 % 2.5 % 2014 106.53 % 2.5 % 2015 105.02 % 2.5 % 14
CONVERSION RATE GENERAL POLICY Determination to offer the most favourable conditions possible Maintenance of a single rate (without splitting) Progressive adaptation in function of the Foundation s possibilities 22.6 million of provision for non-actuarial conversion rate SITUATION TODAY 7 % until 2013 6.8 % from 01.01.2014 Probable reduction from 2018 CURRENT SITUATION Possible from the age of 58 The conversion rate is adapted in the way described in the table Possibility of prefinancing one s early retirement, provided the egulatory benefits have been bought back beforehand AGE MEN WOMEN 58 5.40 % 5.65 % 59 5.50 % 5.75 % 60 5.65 % 5.85 % 61 5.75 % 6.10 % 62 6.00 % 6.35 % 63 6.30 % 6.55 % 64 6.55 % 6.80 % 65 6.80 % 6.95 % 66 6.90 % 7.10 % 67 7.00 % 7.30 % 68 7.10 % 7.45 % 69 7.15 % 7.60 % 70 7.25 % 7.75 % 15
+1998 % +567 % +283 % INCREASE IN ASSETS UNDER MANAGEMENT IN 18 YEARS. INCREASE IN NUMBER OF AFFI LIATED COMPANIES IN 10 YEARS, INCREASE IN NUMBER OF INSURED IN 10 YEARS.
STRONG POINTS PRICING Attractive risk pricing long-term stability Flexible acceptance policy : transfer of contract : none medical questionnaire if equivalent or inferior benefits individual membership : no medical questionnaire up to an annual salary of CHF 150,000.- maximum salary insured (risks) : CHF 666,666.- (unless derogation) Miscellaneous costs free provision of services (encouragement for home ownership, divorce etc.) monthly payment without supplement no premium debit account BENEFITS Above-average return on savings capital : 2.25 % in 2015, 3.5 % in 2014, 3 % in 2013 Better retirement benefits : No splitting of interest rates for the return on savings capital 6.8 % rate for conversion to old-age pensions guaranteed until end 2017 No splitting of interest rates for the conversion of old-age pensions General assembly of delegates : Possibility of expressing oneself on important subjects through the Annual Assembly of Delegates (appointment of the Board of Trustees, presentation and explanation of the accounts, modifications of the regulations, etc.) Internet portal : Access for affiliates Access for the insured, access to personal data online, simulation of pension planning approaches and options MANAGEMENT Qualified management team : bilingual senior manager Experience in taking on semiautonomous pension funds : specific taking-on agreement deployment of funds received in a staggered manner support possible for the liquidation of the Foundation 17
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COMMUNICATION POLICY OUR PRIMARY CONCERN IS TO BE A SOLID AND RELIABLE PARTNER FOR THE COMPANIES THAT PUT THEIR TRUST IN US, AN ADDITIONAL ASSET FOR ATTRACTING TALENTED STAFF. In pension planning, confidence is based on the ability to fulfil one s commitments and meet expectations over the long term. Our information services are intended to publicise our operational functioning and our financial situation. Our communications have a strong base : our solidity and our reliability. These are objective Our communications aim to generate confidence and not to give rise to exaggerated expectations. They are designed to be simple, comprehensible, truthful and complete. Their goal is simply to make our advantages known to companies that are not yet aware of them and to affiliates who wish to know more. notions that characterise our existence since 1974, and the quality of our balance sheet. 19
www.copre.ch 20
INFORMATION CHANNELS OUR PRIORITIES : TRANSPARENT AND CLEAR INFORMATION FOR THOSE INSURED. THIS MESSAGE FIGURED IN OUR FIRST NEWSLETTER OF NOVEMBER 1998. Today this declaration is as relevant as ever : the numerous Newsletters have been joined by a very complete website. It contains the management reports since 2004, the evolution of the results of the asset management month by month, and the details of those responsible for running the Foundation or administering your account. The by-laws, regulations and other useful documents can also be consulted here. All articles that have appeared on Copré in the This tool offers the possibility of directly accessing the different commercial and administrative documents necessary for the daily activity of those insured in the context of the partnership established with the Foundation. The insured can also access their personal account through a pension planning portal, allowing them to be informed at all times of their pension situation and to carry out certain simulations on-line (early retirement, etc.). press are published on the site. A space reserved for our distribution network has also been created. 21
IN CONCLUSION, COPRÉ IS... An attractive and stable pricing structure Experience in managing large numbers of staff (largest clients with 2,400 persons insured) Effective practice in deploying significant inflows, CHF 270 million beginning 2014 A very good level of security, due in particular to the real estate portfolio Above-average performances, 2.37 % in 2015 vs 0.7 % as per ASIP Effective transparency A healthy financial situation, with a volume of over CHF 1.3 billion, the guarantee of stability Access to high-level skills with respect to pension planning Through the Annual Assembly of Delegates, the right to vote on essential points, such as the appointment of the Board of Trustees, presentation and approval of the accounts, modifications of the regulations, etc. 22
THE KEY TO AN EFFECTIVE PROFESSIONAL PENSION PLANNING SOLUTION
co re LA COLLECTIVE DE PRÉVOYANCE SINCE 1974 RUE J.-GROSSELIN 8 CP CH 1227 CAROUGE GE T 021 924 87 49 COMMERCIAL@COPRE.CH WWW.COPRE.CH