Life insurance under managed management: the awards for a record year
The 2021 vintage of life insurance under managed management was very good. In the wake of the CAC 40 which closed the year with nearly 29% more, some contracts yielded up to 22.7%.
YIELDS SERVED BY FUNDS IN EUROS ARE AT THEIR LOWEST
Year after year, life insurance funds in euros bring less and less to savers. Blame it on low interest rates.
With inflation and possible costs on deposit, we even realize that investing our savings in a fund in euros is losing money!
For example, euro fund paid a gross return of 2.75% in 2021. But with payment fees of up to 3%, and then taxation, the net return stands at… – 0.79%.
To boost their life insurance, savers fortunately have managed management at their disposal .
With a management mandate, the saver relies on an investment professional:
Internally : as on the Yomoni and Nalo contracts
Expert partner : where management is entrusted to a portfolio management company, as Linxea did with Yomoni, Carmignac and Montségur Finance on its Spirit 2 and Avenir contracts
The additional cost is generally reduced (ranging from 0.10% to 0.25% per year as an additional cost on the part invested in units of account).
What should these performances be compared to?
There are several possible answers, the simplest being the CAC 40 in the French benchmark. In 2021, the CAC 40 closed up 28.9% compared to 2020.
Where the comparison becomes somewhat complicated is due to the multiplicity of profiles: Cautious, Balanced, Dynamic, Offensive, Responsible, Climate …
Overall, we can consider that there are 4 families of managed management profiles:
Prudent profiles : the least risky, with 10 to 25% unit-linked in the portfolio
Balanced Profiles : displaying the best risk-return ratio, with a maximum of 60% units of account, the rest being placed in a dynamic euro fund
Risky profiles : the most invested in the stock market, counting up to 100% units of account
The 2021 vintage was pretty good.
The most prudent management managed to release up to 3.7%. A performance to be commended knowing that funds in euros and fixed income products yielded very little in a persistent context of low interest rates.
The most risky managements ended up quite close to the CAC 40, with in particular an excellent 22.70% to be attributed to Yomoni.
It should also be remembered that each profile is diversified to cushion the risks. Each portfolio is invested in vehicles from different geographical areas, sectors and asset classes.
The goal is to perform in bull markets and stay positive in bear markets .
In the end, the 2021 performances of managed management serve as a reminder that investing in the stock markets is for the long term.
Indeed, each bullish or bearish cycle on equity indices lasts an average of 14 months . You must therefore be ready to see your investment go up and down, by accepting to temporarily cash in certain capital losses.
Over a period of at least 5 years, managed management is globally a winner.
For example, if you had invested in Linxea Avenir under managed management in 2016 ( Balanced profile ), your capital would have increased by 31.4% net of fees when the Parisian index gained 54%.
If you want to know more about these contracts, do not hesitate to read analyzes on the subject, such as that of Detective Bank which offers an opinion / evaluation of Linxea .