Structured product in life insurance: a response to volatility

There are days with, and days without. In the stock markets, the beginning of the year 2022 was rather marked by “free” days, and especially by a significant volatility, which does not facilitate the activity of investors seeking to capture long-term stock returns. However, there is still room for high-yield opportunistic investments. That’s the whole point of our next structured product.

Structured product assets in a live market

Assiduous readers of Marc Fiorentino’s newsletter (and our daily stock market newsletter) were able to read the stock market performance for the first quarter. Unsurprisingly, the main clues ended in the first 3 months of the year in the red. On the other hand, this counter-performance is explained by geopolitical tensions, exacerbated by the Ukrainian conflict, the soaring inflation in Europe and the United States, particularly affecting commodities, or the tightening of Western monetary policies, and especially that of the US Federal Reserve.

Balance of races between January 1 and March 31, 2022:

  • About 5% off the Dow Jones and S&P.
  • 10% average on the Nasdaq.
  • 7% on the CAC 40.
  • 9% on the Eurostoxx 50.

Under these conditions, using a stock market investment through a structured product is all the more relevant. Actually, the yield of a structured product, in particular in a traditional autocall formula (with reboursement by anticipation), is not directly dependent on volatilité bourse. Thus, even for a period of several months, the final yield of the product is not necessarily misaligned: it is the performance at maturity (after 6 to 12 years depending on the maximum duration, or less in case of early repayment) that will be the justice of the peace.

In addition, a structured product allows the investor to benefit from a more controlled return on risk / risk. The performance is capped (10% per year for example) compared to a classic stock purchase, but it is even more protected : according to the formulas, it is even possible to make a profit, even if the underlying stock market (most often an index) ends up falling from its initial level. Plush, in most structured products provided with capital protection mechanisms, in order to avoid a reserve under the reservation that la baisse du sous-jacent does not exceed a given threshold. (-50% for example). It should also be noted that all performance and capital protection settings are known in advance to the investor.

Our future structured product will be available in the insurance contract with Meilleurtaux Liberté Vie

A dynamic product with a high profit goal

For several years now, Better Placement has been developing structured products that are accessible to all as part of our life insurance contracts (and Retirement Savings Plans). Recently, from multiple savers, including defensive and balanced profiles, have joined our offer M Yield 7, which proposes the distribution of a 4% coupon with a protection of capital and performance up to 50% from the base. A formula of defensive resolution, dedicated to those who seek a return higher than the funds in euros while limiting risk-taking.

Complete our offer, the best teams.. That is, a mechanism with a higher return and, in return, a more significant risk-taking. By chance the profit target is set at 10% * per year until the product is released, at maturity or in advance as soon as the requirements are met. A capital protection net at maturity is provided, as well as an “airbag” that allows to generate performance even in the event of a decline in the index, in search of the two mechanisms will not be fixed at the same level . .

Our future structured product will be available in PER Meilleurtaux Liberté PER

The advantageous framework of life insurance to invest

To enable you to invest in the best conditions, the next structured product will be available in our range of life insurance policies. This allows investors to benefit from excellent conditions to place their savings:

  • No payment fees ;
  • An investment accessible from € 1,000 or less (amount varies according to the contract);
  • Reduced management fees under the contract : în contracts d’assurance vie besttaux Placement actual available at the subscription, they do not exceed 0.6% of the Units of Account.

Added to this are the benefits inherent in the life insurance envelope, and in particular its attractive taxation, especially for contracts over 8 years. The latter allow you to benefit from an annual rebate of € 4,600 for a single person or € 9,200 for a couple subject to common taxation on the part of the interest contained in the redemptions (the capital being systematically exempt from tax).

A note about the next new structured product will be available in a selection of Retirement Savings Plans.

Contact a Best Placement Advisor

Non-contractual communication of an advertising nature

Warning:

This article is not a personalized advice. Before any investment, a prior interview with an advisor is essential to verify that the contract or support presented is tailored to your financial situation, objectives and investor profile. The investment in unit of account holders, whose value is not guaranteed by the insurer but is committed only on the name, presents a risk of capital loss. Past performance does not affect future performance and is dependent, in particular, on the evolution of financial markets.

Structured products present a risk of capital loss and must be considered over an investment period that may run until maturity. Therefore, they are not suitable for investors who want to go out before they are looking for the product or age over 70 years. Placement recommends that any subscriber interested in investing in a structured product contact his adviser to be accompanied in the assessment of its suitability, and in particular the risks inherent in the support incurred, detailed in the legal and commercial documentation available on our website or contact our advisors.

The risk factors are in particular:

– Credit risk: Investors take a final credit risk from BNP Paribas SA as the issuer’s guarantor. Consequently, the guarantor’s insolvency may result in the total or partial loss of the amount invested.

– Market risk: the product may experience significant price fluctuations at any time (due in particular to price changes, the underlying instrument (s) and interest rates). interest), which may in some cases result in the total loss of the amount invested.

– Liquidity risk: This product has a materially relevant liquidity risk. Certain exceptional market circumstances may have a negative effect on the liquidity of the product. The investor may not be able to sell the product easily or may have sold it at a price that significantly impacts the one who reported it. This may result in a partial or total loss of the amount invested.

– Risk of capital loss: the product has a risk of capital loss. The value of the product’s repayment may be less than the value of the initial investment. In the worst case scenario, investors may lose up to their entire investment.

– Risk related to the possible default of the Issuer / Guarantor: in accordance with the regulations on the internal bailout mechanism of financial institutions (bailiff), in case of probable or certain failure of the Issuer / Guarantor, the The investor is subject to a risk of diminishing the value of his debt, converting his debt securities into other types of financial securities (including shares) and changing (including potentially extending) the maturity of his securities. of debt.

* Gain Objectives – Fees:

The objectives set out for the financial and social levy and the management expenditure applicable to the contracts in question, subject to the retention of support until the date of repayment and in the absence of default or non-payment. / or guarantor.

An early exit from the medium (as a result of redemption, arbitrage or premature death of the insured) will take place at a course depending on changes in market parameters at the time of exit (index level, interest rates, volatility, credit risk premiums) and may therefore involve a risk on capital, not a priori measurable).

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