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Matthieu Esposito: "We have not changed our strategic allocation with the health crisis"

According to Matthieu Esposito, Director of Investments & Treasury at La Mutuelle Générale, the investment team simply re-prioritized certain asset classes. With the markets falling, it has tactically sought to benefit from lower entry points on liquid assets.

Article also available in : English EN | français FR

Next-Finance : Could you tell us more about La Mutuelle Generale and the current amount of your assets?

Matthieu Esposito : Third largest mutual company in France, specialized in the health and provident insurance for 75 years, La Mutuelle Générale insures 1.5 million people with a turnover of 1.2 billion euros. It provides services for companies of all sizes as well as individuals. In 2020, La Mutuelle Générale diversifies its activities by launching a new range of services intended to facilitate the daily lives of its customers while contributing to their well-being. A player in the social and solidarity economy, La Mutuelle Générale carries out all of its actions for the benefit of its members, by mobilizing its 1,915 employees and 1,500 elected volunteers.

As of 31/12/2019, assets amounted to €2.7 billion.

What is your current asset allocation? Has it changed since the stock market crisis at the start of the year?

The asset allocation is as follows:

  • Bonds: 70%
  • Diversified securities (including private debts): 4%
  • Equities: 5%
  • Investment Property (not direct investment): 11%
  • Strategic investments (including operating real estate): 9%
  • Cash: 1%

We have not changed our strategic asset allocation with the health crisis. We just re-prioritized certain asset classes. With the market downturn, we have tactically sought to benefit from lower entry points for liquid assets (listed stocks, high yield bonds, financial subordinated debt).

Do you think that the current health crisis will strengthen the interest of investors in the ESG theme?

The movement was already strong before the health crisis and we think it will grow.

Does the Mutuelle Generale use ESG criteria in its management policy? Do you have any projects or developments in progress on this subject?

We benefit from the developments that have been made with our partners in charge of asset management. The investments in our bond mandate are therefore rated and we set rating targets. In addition, we apply exclusion lists and we have just excluded coal-related companies from our bond mandate.

In addition, when selecting funds, we ensure that asset management companies have made commitments in this direction, in particular through membership in programs such as the PRI supported by the UN.

Do you always delegate the entire management of your portfolio to asset management companies?

Yes, except for strategic titles.

Do you have profitability objectives in your portfolio? What was its performance last year?

We are targeting a portfolio return close to 2.4% in 2024. Last year, the portfolio generated a return of 2.65%.

What are your different investment constraints (SCR for example)?

In addition to the constraints linked to ESG, our strategic allocation is defined according to 3 parameters: ALM, SCR and yield.

Our strategic allocation aims to increase our exposure to private corporate and infrastructure debt, listed shares and private equity.
Matthieu Esposito, Director of Investments & Treasury at La Mutuelle Générale

What asset classes do you plan to position yourself on?

Our strategic allocation aims to increase our exposure to private corporate and infrastructure debt, listed shares and private equity.

These different asset classes also seem interesting to us because they help finance our ecosystem and in particular small and medium-sized French and European companies.

RF , August 31

Article also available in : English EN | français FR

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