- 2'15 min
Spirica launches the “New-Generation Euro Fund” and its “Long-Term Allocation Growth” investment vehicle
These two new products are available in Spirica's life insurance policies. On the one hand, they are designed to offer policyholders continued long-term access to a euro fund, with the prospect of higher returns than traditional euro funds but without increasing the proportion of unit-linked products currently required to access them. On the other hand, they represent a new type of diversified product designed to generate higher returns than euro funds with partial capital protection at maturity.
In a context of historically low interest rates reinforced by ever-increasing regulatory pressure, Spirica is expanding its offerings by proposing an innovation and an alternative to the triptych of capital guarantee, liquidity, and returns offered by traditional euro funds.
From 15 September, for any new subscription to a life insurance or capital bond policy insured by Spirica, it will be possible to invest in two new investment vehicles:
- the New-Generation Euro Fund (Fonds Euro Nouvelle Génération) – a new euro fund with diversified asset allocation (around 30% of diversified investments other than bonds versus 15% to 20% for the current euro funds), which points towards higher potential yields, in return for reducing the annual capital guarantee to between 97.7% and 98% according to the product.
- the Long-Term Allocation Growth (Croissance Allocation Long Terme) product, capitalising on the opportunities introduced by the PACTE (Action Plan for Corporate Growth and Transformation) Law. Annual returns net of management fees of between 3% and 5% are targeted over an 8-year horizon through diversified allocations into asset categories not correlated to markets (Real Estate, Private Equity), in addition to the equity and bond components. 80% of the invested capital net of fees is guaranteed for an 8-year maturity.
For Daniel Collignon, CEO of Spirica, “The creation of these new vehicles aims to protect both our current and future policyholders, by limiting the impact of the drop in interest rates and by increasing the share of diversification in euro funds in order to boost performance. As with any paradigm shift, the transformation of insurers' euro funds requires a reappraisal of established practices, but we are convinced that this is inevitable. It should also be seen as an opportunity to take advantage of the wide range of unit-linked products available in life insurance policies that have been overshadowed by security-based assets, such as real estate, private equity and socially responsible investment, which are beginning to strike a chord with savers who want to make sense of their savings.”