Nortia CGPs continue to favor UCs

The volatility in the equity markets did not scare Nortia’s partner wealth management advisors (CGP). The platform has published its independent financial advice observatory for the third quarter (1).

This new edition confirms the trend of the Fund’s fall in Euro towards Units of Account (UA), which once again wins the day. In the third quarter, they captured 67% of inflows, slightly more than double the investment in Euro funds (33%). The rush to UC is facilitated by the strong return on investment placed on standby support (12% of payments). These are mainly payments on options offered by insurance companies. “These offers allow you to gradually invest in UCs over a pre-defined period, thereby seizing market opportunities and troughs.“, explains Manon Cosyn-Martin, financial engineer at Nortia.

The end of the quarter was also marked by a small return from investment advisors to fixed-term bond funds. Nortia explains this return in favor of the level “historically low” reached by the bond level. The advisers would thus be in a functional state to take advantage of a possible future recovery,’as soon as the light turns green.» «This recovery may be triggered by the end of the Fed and ECB rate hike cycle” says the company in its barometer. However, the inflow figures for the quarter as a whole do not testify to CGPs’ renewed appetite for bonds. On the contrary: the asset class attracted only 1.44% of UC investments in the third quarter, i.e. 1.16 points less than in the second quarter. Conversely, structured products are the period’s big winners. 12.9% of UA streams went there, up sharply from the second quarter (see below).

Detail of Nortia Life’s device connected collection

When it comes to arbitration, stability is important. Only 2.4% of Nortia Life’s contract lending was reallocated, which is the lowest level in two years. “Wealth management advisors seek the right investment timing to reposition their clients’ contracts for an upturn, Nortia explains. While the central banks’ interest rate hikes follow each other and affect the financing capacity of economic actors, the entry points on the stock markets are not yet considered optimal by the CGPs“.

(1): Independent Financial Advice Observatory, Third Quarter 2022, October 2022. Examining data from more than 1,200 active CGPs, i.e. more than 80,000 customers, for outstandings of 10.2 billion euros per 30/09/2022


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