funds and turn-key services to meet the needs of the neophytes. Presentation.
Too complicated! Too risky! It was beautiful their dwelling that they need to diversify their investments with a dose of action to address the declining performance of life insurance in euros, many investors are reluctant. There are only 7.8 % of shareholders live (almost 9 % including the holders of the fund invested in shares).
Diversify, it's good, but how do when one doesn't know anything? Most of the banking networks put in front of dozens of investment funds, while dealers and banks offer securities accounts and life contracts with hundreds of fund multi-managers are different. Hard to find in this abundant supply.
There are in fact three families of financial products on markets : equity, representing a share of the capital of companies that rise or fall according to events; bonds, representing debt payable by the companies or the States borrowers; and securities cash, short-term, which yields the following rates set by the central banks for each currency.Your support is essential. Subscribe for $ 1 support Us
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investors interested in the Stock market can directly purchase shares, including through online brokers, low fees, such as Boursedirect.fr, Binck.fr or Fortuneo.fr. But for others, choosing and mix of mutual fund and mutual fund, in appropriate proportions, to diversify their financial savings reports to the puzzle. To help, banks, insurers and brokers offer diversified investments turnkey : the fund profiles, the legacy funds and flexible funds, the management led on the life insurance contracts and, now, the multiplication of mandates of management.
Little soft for the fund profiles
The fund profiles and hoses are diversified portfolios which the manager is changing the allocation between equities and other assets in the hope to maximize gains when the markets go up, limiting the losses when they fall. There are several kinds according to their degree of risk : funds-profile cautious have less than 30 % of the shares, profiles, well-balanced, up to 50 %, and the profiles offensive up to 80 %.
other fund profiles, the so-called "flexible," may increase or decrease more strongly their dose of the shares according to market expectations. Some of these funds are qualified as "economic" when they demanded that the management of the father of the family. "In practice, the legacy funds are often flexible funds, that is to say, having a flexibility of at least 30 % in the proportion of shares they have in portfolio, up to 50 % of the shares for the flexible, cautious, and up to 100 % for the flexible classic," says Jean-Paul Raymond, director general of the society of performance analysis Quantalys.
After years of increasing, the environment is less favorable for these funds. While the CAC 40 index of the Paris stock Exchange earns only 1.5% since the beginning of the year, the 19 September, 80 % of the 852 flexible funds identified in the database of Quantalys are in loss on 2018 to this day.
A difficult year for diversified investments
Carmignac patrimoine remains the standard of flexible funds cautious : he had escaped the sharp declines of the Stock market in 2001, 2002, 2008 and 2011. But his caution cost him dear; although he still earns 54 % over ten years, he lost nearly 5% since the beginning of the year.
Another feature that had distinguished itself by dodging the crashes of 2001 and 2002, the fund flexible careful Exchequer Heritage had limited its fall to 6.5% in 2008, when the CAC 40 lost 43 %. It loses about 2.8 % on the first nine months of 2018 (as at 19 September), reducing its performance to 3.4 % over the three years and 22 % over ten years. About sixty of funds cautious, having experienced the 2008 crisis, they are more numerous in the loss this year that the crash! The fault rate negative of the ECB, which cripple the performance of the money market - 0.4% since the spring of 2016.
Some are doing better. With +1.8% since the beginning of the year, up 13.5% over three years and +50% over eight years, the fund flexible Generali ambitions on the strength of the economic recovery, even if he has reduced the sail area. "We've reduced a little the exposure to equities, 83% in the beginning of the year to a little less than 75 %," explains the manager.
"The earnings growth is expected to remain solid and support the performance of the equity markets", also believes Malik Haddouk, director of the diversified management of CPR AM. It continues to prioritize action, particularly within the funds CPR growth reactive (+0.2% over 2018 and 19 September) and RPC dynamic growth (+2.2% on 2018, 19 September).
Source: Quantalys. 2018*: 19 September.
The management under mandate, the anti-puzzle
Faced with the embarrassment to choose a funds profile rather than another, the insurers have developed services allocation driven, and management under mandate. "The principle is to entrust the selection of funds on its contract to an outside professional," says Antoine Delon, president of Linxea.com, which offers services of this type, in particular on the contract Linxea life insured by Generali.
To select the correct profile, it must first make a diagnosis of its situation. In the form of subscription of the contract Darjeeling Investment - direct.fr for example, the clients must answer twenty questions about their income and their assets, their investment horizon, their goals and their capacity to withstand risk of loss. As in the quiz magazines, each response is associated with a number of points, and the total of the points obtained determines the financial profile of the client, to choose between four levels of diversification : security (100 % funds euro), cautious (20 % diverse), balanced (50 % diverse) and dynamic (100% diverse).
performance quite comparable
If they simplify the choices in relation to the funding profiles, mandates and allocations delegated to have performance comparable enough. At the dealer Yomoni.fr performance 2018 ranging between 1.6% and +0.5% for the eight proposed mandates on securities accounts, to the 7th of September, compared to gains of 2.2 to 10.3% in 2017 for these same mandates. And in the life insurance outside of the fund, in euros, its nine mandates lose between 0.1 and 0.4% since the beginning of the year (September 7) compared to gains of 2.8 % to 10.4 % last year, expenses included.
The difference between allocation-driven, and management under mandate is subtle, as it may vary from one institution to the other. In the first case, the allocation proposed by the insurer includes a security section on the fund in euros, and a share of the diversification entrusted to a manager. In the second case, the security part is not on the fund in euros, but in the mandate entrusted to the manager, which explains their poor results with the lower rate.
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"A profile careful 100 % in units of account was not necessarily of interest to an investor wishing to diversify its life insurance, it is better to combine diversification with a stronger potential in keeping the unit secure on the fund in euros without risk that provides a return correct", explains Gilles Belloir, managing director of Placement-direct.fr. Clearly, in order to prudently diversify its life insurance, it is better to put 20 % of his contract on an investment invested in 80% equities, 80 % of his contract in a mandate or a fund containing only 20% of the shares.