Spirica launches two new vehicles: Fonds Euro Nouvelle Génération and Croissance Allocation Long Terme

July 23 2020

In a context of historically low interest rates combined with increasingly strict regulatory pressure, Spirica is developing its range by offering a new alternative to the triple focus of traditional euro funds, namely capital guarantee, liquidity and return.

These two new vehicles, available as part of Spirica’s life insurance policies, are designed to continue offering policyholders access to a euro fund on a long-term basis, with the prospect of higher returns than traditional euro funds yet without increasing the unit-linked threshold currently required to access them, in addition to offering a new type of diversified vehicle with a higher return objective than euro funds and with partial protection of capital at maturity.

For any new life insurance or endowment policy taken out with Spirica, from 15 September it will be possible to invest in two new vehicles:

  • Fonds Euro Nouvelle Génération, a new euro fund with diversified asset allocation (around 30% of diversified nonbond investments against 15% to 20% for current euro funds), therefore offering higher return potential, traded off against a lower annual capital guarantee of between 97.7% and 98%, depending on the product.
  • Croissance Allocation Long Terme, made possible under the French “Pacte” law. It targets an annual return net of management fees of between 3% and 5% over an 8year horizon thanks to a diversified allocation between different asset classes decorrelated from the markets (Real Estate and Private Equity), in addition to an equity and bond compartment. It guarantees 80% of the invested capital net of fees at maturity in 8 years.

Daniel Collignon, Chief Executive Officer of Spirica: “The creation of these new vehicles aims to protect both our current and future policyholders by limiting the impacts of the fall in interest rates and by increasing the level of diversification in euro-denominated funds in order to benefit from higher performance. Like any paradigm shift, the evolution of insurers’ euro-denominated funds requires us to rethink our usual practices, but we are convinced that it is inevitable. It should also be regarded as an opportunity to take advantage of the vast range of unit-linked products found in life insurance policies that safe assets may have overshadowed, such as real estate, private equity and socially responsible investment, which are starting to resonate with investors who want to give meaning to their savings.”