The fees and the investment world open to the manager are important points to study when you want to entrust the management of its investments within life insurance.
By Aurélie burden
Management controlled as part of life insurance is an attractive management mode, because it allows you to free up the charge to place your capital yourself. In order to finance, you entrust an expert to the task of selecting the right funds, distributing savings on the various media and ensuring follow -up in the time of these products. The professional at the controls generally reviews the distribution of capital every month, and even more frequently in the event of a crisis. If the model is attractive, it is better to validate a few key points before signing.
First of all, it is interesting to study the universe in which the professional manager will be able to work. What is the choice of funds at its disposal? Can it invest in areas as varied as American actions, European values and emerging markets? International diversification is a plus, because the heritage of French savers is already often largely invested in France. Above all, we must ensure that the manager works in open architecture: this means that it is not limited to the funds of the house which employs it, but that it also uses the best strategies available on the market.
Furthermore, look at what type of media is invested in the without risk or little risky part of the allowance. Some opt for the fund in euros when others favor bond or monetary funds. The first is guaranteed, but not the latter, even if they can in certain market configurations provide higher performance. Finally, are interested in the freedom left to the manager. The mandates are controlled to respond to a risk profile (prudent, balanced, dynamic, etc.), but the latter must not be too rigid. 2>
combine several investment pockets
Another important point: costs. Management or mandate management is a paid option. It is generally necessary to add between 0.20 and 0.40 % in addition to the annual management fees of the life insurance contract. If it may seem modest, it is not really. Added to a contract also taking 0.70 or 0.80 % per year, the note reaches, or even exceeds, easily the 1 % annual. It is expensive in the long run!
Be careful, however, not to limit yourself to the expense of the mandate. You have to look at the total note and analyze it with regard to the subjacents used in the mandate. Thus, the controlled management carried out with ETF (Exchange Traded Funds), very inexpensive funds which reproduce the performance of an index, are generally more expensive but the total price – product included – will remain less than a conventional controlled management. Finally, check that the price of the controlled management option only applies to the share in account units. This layer of fees is not intended to apply on the share of funds in euros while the added value of the manager is zero.
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