In 2021, keep 60% of your savings in the secure euro fund and dare 40% in international equities for the long term.
Health crisis or not, the same scenario has been repeated for several years: the fall in bond rates – in which the majority of the secured euro funds of thelife insurance – weighs on the performance of your life contract.
And yields are not expected to rebound anytime soon. It should be remembered that they were on average 1.8% net of management fees (excluding social security contributions) in 2018 and 1.5% in 2019.
At this rate, could we soon drop below the 1% floor? Income is intended to be both optimistic and realistic: our return forecasts are 1.3% for the year 2020 (1.5% for contracts awarded by Revenue) and 1.1% for 2021 (1, 3% for the Golden Trophies of Returned).
Erosion of yields
Certainly, some insurers could fall below the symbolic threshold of 1%, but it is hard to imagine them risking massively.
For two reasons: first, they can draw from several “reserves” to boost the performance of their contracts in euros.
Starting with the provision for profit sharing (PBB), which represents more than 4% of the outstanding amount of euro funds, a record! Other “weapons” of insurers: unrealized capital gains on shares and real estate funds that are sometimes found in euro funds.
Take inflation into account
Then, to remain competitive, life insurance in euros must continue to post a higher yield than that of the Livret A (0.5%). Insurers have every interest in attracting part of the some 134 billion euros that French households have saved since January and which remain, for the moment, largely frozen on current accounts or passbooks.
Consequently, for 2020, certain “good” euro funds awarded by Income should do better than 1.5% net, but few will exceed 2%. Importantly, to assess the performance of euro funds, it must always be compared with the rate of inflation, forecast at + 0.5% for 2020 according to the Banque de France.
So, minus the price increase, the average return served for 2020 will be much better than that of 2018 and 2019! An opportunity to rejoice, tenuous but real, which could happen again in 2021 since the Banque de France foresees “only” 0.6% of price increases.
The 60-40 strategy of Returned
The sums invested in units of account (UC), the name of life insurance investment funds, should be less well off, after, it is true, an exceptional year 2019 (+ 13.9% of gains on average).
The year 2021 could look like 2020: a limited drop in euro fund rates and high market volatility. Even if it does not earn much, it is better to keep your fund in euros, which acts as a shock absorber.
Advice for 2021, diversify your investments by applying the 60-40 strategy of the Returned : 60% on the fund in euros and 40% on UC in international equities. To reduce the risks, and avoid investing when the financial markets are at their peak, spread your investments in the stock market over time.
|
Last name (insurer / distributor) |
Yields(1)
2019 |
Max. installments |
The Revenue Notice |
| Savings 2
(La France Mutualiste) |
1,62% | 2,1% | ■■■■ |
| Optimum Adif
(MMA) |
1,47% | 4% | ■■■■ |
| Altaprofits Vie
(Generali / Altaprofits.com) |
1,15% | 0% | ■■■■ |
| Amadeo Excellence Vie
(Axa / Axa Private Banking) |
1,7% | 5% | ■■■■ |
| Grain Amplifier 9
(CNP / Ampli Mutuelle) |
1,65% | 3% | ■■■■ |
| Arborescence Opport.
(Spirica / UAF Life Pat.) |
1,5% | 4,75% | ■■■■ |
| Arpèges
(Axa / General agents) |
1,6% | 4,85% | |
| Responsible and Solidarity Life Insurance
(Maif) |
1,5% | 2,4% | ■■■■ |
| Batiretraite 2
(SMAvie BTP / SMAvie) |
1,45% | 3% |  |
| Batiretraite Multicompte
(SMAvie BTP / SMAvie) |
1,65% | 2,5% | ■■■■ |
| BforBank Life
(Spirica / BforBank) |
1,65% | 0% | |
| BNPP Multi. Privileges
(Cardif / BNPP Private Bank) |
1% | 4% | ■■■ |
| Boursorama Life
(General / Boursorama) |
1,55% | 0% | |
| Cashmere Heritage
(CNP / La Banque Postale) |
1,35% | 2% | |
| Carac Épargne Plénitude
(Carac) |
1,8% | 2,44% | ■■■■ |
| Carac Profiléo
(Carac) |
2,2% | 3,5% | |
| Cardif Elite
(Cardif / Liberals) |
1,37% | 4,5% | ■■■■ |
| Cela Multisupport
(MIF) |
1,95% | 2% | |
| Cler
(Axa / Agipi) |
1,7% | 4,85% | |
| Carac Savings Account
(Carac) |
1,8% | 2,44% | |
| Family Savings Account
(Carac) |
1,8% | 2,44% | ■■■■ |
| Curator Helios Sélection
(The conservative) |
1,8% | 3% | |
| Contract Affair
(Aviva Vie / GIE Afer) |
1,85% | 2% | |
| Coralis Selection
(Axa / Axa Théma) |
1,3% | 4,5% | ■■■■ |
| Darjeeling
(SwissLife / Placement-direct.fr) |
1,3% | 0% | |
| Digital Vie
(Suravenir / Altaprofits.com) |
1,6% | 0% | ■■■■ |
| Dynavia
(Capma & Capmi / Monceau Assurances) |
2,2% | 2% | |
| Ebony
(Sogecap / Societe Generale) |
1,3% | 2,5% | |
| Entraid’Epargne Carac
(Carac) |
1,9% | 2,44% | ■■■■ |
| Evolution savings
(Spirica / E.Patrimoine) |
1,5% | 0% | ■■■■ |
| Retirement Savings 2
(Allianz / Asac-Fapès) |
2,05% | 2% | |
| Retirement Savings 2 Plus
(Allianz / Asac-Fapès) |
2,05% | 2% | |
| Ethic Vie
(Suravenir / Patrimea) |
1,6% | 0% | ■■■■ |
| Evolution Life
(Aviva vie / Assurancevie.com) |
1,76% | 0% | |
| Vic excelcis
(Suravenir / Arkéa Private Bank) |
1,45% | 2% | ■■■■ |
| Excelium
(Axa) |
1,6% | 4,85% | ■■■■ |
| Fortuneo Life
(Suravenir / Fortuneo) |
1,6% | 0% | |
| Gaipare Selectissimo
(Alliance / Gaipare) |
2,15% | 3,95% | |
| Garance Savings
(Guarantee) |
3% | 3% | ■■■■ |
| Himalia
(Generali Vie / Generali Patrimoine) |
1% | 4,5% | ■■■ |
| HSBC Strategy Patrim.
(HSBC Life Insurance / HSBC) |
1,73% | 1,5% | |
| ING Direct Vie
(Generali / ING Direct) |
1,15% | 0% | ■■■■ |
| Direct capital
(Generali / Placement-direct.fr) |
1,15% | 0% | ■■■■ |
| Linxea Future
(Suravenir / LinXea) |
1,6% | 0% | |
| Linxea Spirit
(Spirica / LinXea) |
1,5% | 0% | ■■■■ |
| Linxea Life
(General / LinXea) |
1,15% | 0% | ■■■■ |
| Linxea Zen
(Apicil / LinXea) |
1,25% | 0% | ■■■■ |
| My-placementsfreedom
(Spirica / Mes-placements.fr) |
1,5% | 0% | |
| My-retirement investments
(Suravenir / Mes-placements.fr) |
1,6% | 0% | ■■■■ |
| My-life-investments
(Generali / Mes-placements.fr) |
1,15% | 0% | ■■■■ |
| Infinite Millevie
(BPCE Vie / Caisses d’Épargne) |
1,35% | 2% | ■■■ |
| MMA Multisupport
(MMA) |
1,47% | 4% | ■■■■ |
| MonFinancier Retirement Life
(Suravenir / MonFinancier) |
1,6% | 0% | ■■■■ |
| MonFinancier Life
(Generali / MonFinancier) |
1,15% | 0% | ■■■■ |
| Multéo
(GMF) |
1,9% | 2% | |
| Multi Life
(Mutavie / MACIF) |
1,5% | 0% | ■■■■ |
| Multisupport Trust
(SAF BTP Vie / Pro BTP) |
1,46% | 1% | |
| NetLife
(Spirica / UAF Life Patrimoine) |
1,5% | 0% | ■■■■ |
| Panthea
(AEP / Nortia) |
1,04% | 4,5% | ■■■■ |
| Premium Heritage
(Oradéa Vie / Patrimea) |
1,35% | 0% | ■■■■ |
| Heritage Options
(Suravenir / Crédit Mutuel Arkéa) |
1,3% | 2% | ■■■ |
| Heritage Life Plus
(Suravenir / Liberals) |
1,4% | 4,5% | ■■■■ |
| Éparmil Plan
(AGPM Vie / Tégo) |
1,95% | 2,5% | |
| Primonial Serenipierre
(Suravenir / Primonial) |
2,8% | 5% | |
| Privilege
(Axa) |
1,6% | 4,85% | ■■■■ |
| Future Power
(Suravenir / Assurancevie.com) |
1,6% | 0% | ■■■■ |
| Power Selection
(Generali / Assurancevie.com) |
1,2% | 0% | ■■■■ |
| Quintessa
(BPCE Vie / Banque Populaire banks) |
1% | 1,5% | ■■■ |
| RES Multisupport
(MACSF) |
1,7% | 1% | |
| Swisslife Strategic Premium
(Swisslife) |
1% | 4,75% | ■■■ |
| Target +
(Oradéa Vie / Primonial) |
3,15% | 5% | ■■■■ |
| Titles @ Life
(SwissLife / Altaprofits.com) |
1,3% | 0% | |
| Valvie Invest Pat.
(Prepar-vie / Bred Banque Pop.) |
1,3% | 1,5% | ■■■■ |
| Winalto
(Sorry) |
1,75% | 2% | |
| Yomoni Vie
(Suravenir / Yomoni) |
1,6% | 0% | ■■■■ |
| Average | 1,6% | 2% |
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