the good plan of civil real estate companies

You have no doubt noticed this if you have a life insurance contract: the return on funds in euros has shrunk to a trickle: it has been divided by 5 in 20 years.
To improve the performance of your contracts, more and more of you are turning to the real estate supports available in life insurance in the form of units of account (UC). The most common are real estate investment companies (SCPIs) eligible for life insurance and, to a lesser extent, real estate collective investment organizations (OPCIs). Recently, a third category has emerged: civil real estate companies (SCI), sometimes also called SC, for civil companies.

Dear subscribers,

Products appreciated by investors and insurers

In 2021, SCIs returned + 3.80% in 2021 (against + 2.89% in 2020). An honorable result for a low-risk asset: it ranks 3 on a risk scale ranging from 1 (the lowest level) to 7 (the highest). In addition to being efficient, they are also liquid and not very volatile. Investors were not mistaken: last year, the 31 products available in life insurance collected 3.1 billion euros, or 30% of the overall collection of consumer real estate funds; a figure up 10% compared to 2020. Appreciated by individuals, SCIs are also appreciated by insurers. This is not, for example, the case with SCPIs, which are deemed by the latter to be restrictive to manage and not liquid enough (they must, in fact, guarantee the liquidity of the products appearing in their contracts). As for OPCIs, perceived as “catch-all” because they contain both financial and real estate assets, it is individuals that they do not have the good fortune to please…

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Choose well among the 30 SCI available

Unlike SCPIs, which must hold real estate directly, and OPCIs, which are forced to keep a minimum financial pocket, SCIs can freely draw from the range of real estate assets and supports: shares in SCPIs, OPCIs, OPPCIs (OPCIs reserved for institutions), simplified joint-stock companies, participations in club deals or even index funds. You will have to choose from the thirty products available. Check if the coveted SCI is available in your life insurance policy (usually only a dozen are) and if it is accessible at all. You should also know that selecting an SCI is more difficult than that of an SCPI: in fact, the information made available to investors is less numerous and less standardized for SCIs than for SCPIs. Also focus on the quality and experience of the management company, its investment strategy but also your personal convictions, as certain themes (health, zero-carbon assets, urban or life recycling) may appeal to you more than others. ‘others.

The success of SCIs should continue, with an offer set to expand. Insurers seek, in fact, to dissuade savers from investing in funds in euros, while they still represent 85% of outstanding contracts. Real estate units of account in general and SCIs in particular seem to have a bright future ahead of them. See you next week.

See you next week,

Valérie Valin-Stein, head of the Real Estate section of Le Particulier

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