Life insurance: is it still necessary to believe in the fund euros?

Their yields are tilted to the downside again this year. Should it reorient its savings to other media?

The performance of funds in euros to 2018 - revealed since mid-January this year are particularly expected for two reasons. On the one hand, these funds which have a capital guarantee (this is not the case of the media in units of account) continue to drain the very large part of the savings life insurance of the French : not less than 72% of new contributions have been made on the supports secured in euro during the first 11 months of 2018 according to the French Federation of the insurance. On the other hand, their average performance should not be allowed to compensate for inflation (1.8% in 2018, according to the Insee).

returns still honorable for some contracts...

To understand what is happening, it is necessary to turn to the side of the first results available. Although it is down from 0.10 to 0.20 point approximately compared to the previous year, the yield on 2018 number of contracts general public remains honourable : up to 2.50 % for Gaipare Sélectissimo of the association Gaipare (Allianz), 2.48 per cent for Retirement Savings 2 association Asac Fapès (Allianz), 2.35 per cent for the Savings Account Free Future (MIF), 2.25% for the contract of the association Afer (Aviva) or a 2.20 % for the RES multi-purpose tray (Macsf). For certain funds euro specific, such as fund Security Stone Euro (Primonial), primarily invested in real estate business (and accessible under certain conditions for investment in units of account), this performance is very good, since it is of 3.20% of the net management fee to 2018, compared to 3,40% in 2017.

... But not very attractive for others

conversely, for other contracts general public, this yield 2018 is particularly low : 1,90 % for the Arpeggios, Figures Free or Excelium AXA France, to 1.85 % for Winalto of the MAAF, 1,35% for Shades 3D des Caisses d'epargne, and 1.33 % for Sequoia of the Société générale, for example.

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These impressive differences that dig truly the difference between the good and the less good contracts, among others due to bond yields that insurers manage or not to rake, to their decision to adopt or instead to use their reserves of performance (referred to as provisions for profit sharing) or even a more earth to earth, their mode of distribution and their commercial policy...

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careful : do nothing

The returns are still disclosed net of the management fee (between 0.35 % and 1% per year depending on the contract), but gross of social contributions (of 17,20 %) and any tax levies : with inflation that appears to 1.80% in the past year, it is clearly seen that the purchasing power of savers will no longer be protected. In other words : by 2018, rare phenomenon, the funds in euros of certain life insurance contracts will have negative returns !

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therefore, what to do ? A first solution is by far the most prudent, is to do nothing, that is to say, to keep your savings on the fund is euro. As explained by William Rosenwald, general director of the MACSF épargne pension, "even if some contracts competition do not compensate for inflation, their funds euro is still very competitive compared to the 0.75% of true net income tax and social contributions on the booklet".

Find a fund's solid euro

A second solution could be to search for a fund-euro plus performance, that is to say, a fund that protects, again this year, your savings of monetary erosion. An approach relatively accessible to a condition to check the good performance of this fund over time.

To build on the good contract, do you communicate the net return on aggregate three or five years, the level of expenses on payment (none, if possible, which is the case of the contracts sold on the Internet) and its annual management fees (0,60% is a good average, knowing these costs are generally higher for the substrates in units of account).

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also, Check the terms and conditions of investment, because "access to good funds euro is increasingly conditioned, in parallel, to an investment in units of account. This type of diversification, of course, should match the investment horizon of the individual," note Bernard The Arm, chairman of the executive board of Suravenir.

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Bet on an upturn in the equity markets

The last prospect finally could be to arbitrate a (small) part of their savings lodged in the euro, units of account, in the hope of benefit from an upturn in the (desired) market shares, particularly abused in the past year (the flagship index of the Paris Bourse, the CAC 40, lost 10,90 % in 2018). This strategy, which fits in the longer term, and which aims to capture "points of entry particularly low," according to Bernard The Arms, not address, however, "to investors noticeés, in spite of the current and real opportunities of purchases on the markets".