managed management in light of declining financial markets

There are still two and a half months to the end of the year 2022, but the probability that it will end with positive results in the financial markets is now very small.

Those who have placed part of their life insurance on units of account invested in stocks or bonds see the decrease in the value of their investments. And the decline is similar for savers who have entrusted the management of their investments through managed management (or management under mandate) to professionals.

Ideal for those who do not want to take care of their investments, managed management makes it possible to delegate the arbitration between investments to a specialist. The latter selects the appropriate medium and carries out the follow-up over time. It adjusts investments month by month according to the economic and stock market context. The client chooses, depending on his risk appetite and his projects, a risk profile: Cautious, balanced or dynamic, for example.

Each profile corresponds to a risk level. Be careful, behind the same terminology there can be significantly different approaches between life insurance contracts, making comparison difficult. For example, the balanced profile at Fortuneo targets an allocation consisting of 60% unit-linked and 40% Euro funds. For the same balanced profile at Linxea, the manager aims for 50% safe assets and 50% risky assets.

A double difficulty

In a complicated market environment, the mandate offers a reassuring framework for savers. “It is the best solution in this context, which requires very strong reactivitysays Emmanuel Bouriez, CEO of Predictis. It will always outperform an investor who doesn’t manage his money, but managed management doesn’t work miracles. » The few figures collected from online players – the most transparent on the matter – confirm this statement. For a balanced profile, the latest known performance is around -10%.

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The managers responsible for placing the funds had to face a double difficulty this year. First of all, the stock markets have fallen seriously, which has consequences for the profiles most exposed to risky assets. “The most dynamic profiles were largely invested in growth stocks because the latter were very buoyant in 2020 and 2021. They are suffering a big setback this year”notes Gilles Belloir, CEO of Placement-direct.fr.

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