Among investors, wealthy or not, the euro fund is resisting, News / Analysis Savings

Despite some distributors, life insurance funds in euros have been highly popular at the start of the year, shows the Observatory of independent financial advice from Nortia, based on data from more than 1,200 advisers in wealth management (CGP).

According to this quarterly survey, the distribution of gross inflows in life insurance operated by the CGPs was mainly oriented towards vehicles in euros during the January-March period. Whereas in the previous quarter, 60% of inflows had been made in unit-linked funds, the latter fell to 42% in the 1st quarter, 58% having been invested in funds in euros.

The euro fund, a defensive position par excellence

Burned by the war in Ukraine, the gloomy international economic outlook, and the change in tone of central banks – wealth management professionals have prioritized security for their clients’ life insurance flows.

Despite yields lower than inflation, these continue to find their audience in these phases of risk-off marketsnotes Philippe Parguey, CEO of Nortia. A defensive position par excellence, the euro fund reassures undecided and risk-averse investors in the face of the current global environment. In this sense, due to the sharp fall in the markets, with the CAC 40 posting -6.89% in Q1 2022, CGPs have turned more to these supports to secure client portfolios, and have at the same time favored accounts- securities, appreciated for their flexibility in times of volatility. »

Cautious arbitrations that we do not find besides only among the wealthy savers offering themselves the services of CGP. The same phenomenon is observed at the level of all life insurance contract holders: in March, the gross inflow of supports in euros (600 M€) was thus higher than that of unit-linked products (500 M€ ), reported France Assurances.

Caution should certainly remain in the 2nd quarter, and the fund in euros will continue to benefit from it, while risk aversion remains dominant among operators and fears of a global recession are growing.

CUs carry net life insurance inflows

On the “stock”, however, no major trend reversal, since “net”, units of account continue to gain ground to the detriment of funds in euros.

For several years now, distributors’ offers have focused on risky vehicles and the secure bond pocket is tending to dwindle in new contracts, while old ones, sometimes entirely invested in euro funds, are liquidated by their holders. retirees.

The stone always on top

A tangible, durable asset that benefits from inflation, real estate remains one of investors’ favorite investments at the start of the year. Among CGPs, this asset class represented more than a quarter of gross UC inflows (26%), compared to 17.3% in the 4th quarter of 2021, reports the Observatory of Independent Financial Council.

“Paper rock has shown its resilience over the past two years and it makes perfect sense for investors to favor it when the markets are hectic, observes Adrien Lhermitte, director of engineering at Nortia. In the 1st quarter, real estate presented itself as an excellent medium for securing portfolios, complementary to funds in euros. »

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