EXCLUSIVE. You have a retirement savings contract (PER) and have opted for horizon pilot management. You have chosen to entrust the management of your savings to experts. Concretely, how much does it bring you? According to the figures that the French Association of Financial Management (AFG) transmitted MoneyVox, the annualized performance ranges from 2% to 8.2% depending on the profile and the duration chosen.
When you open a PER by yourself or via an employer, defaultthe insurer or asset manager managing your plan must apply the pilot management called horizon. This is a novelty inherited from the Pacte law: unless you specifically request it, your money is partly invested in risky assets, while reducing your share of risk over the years. Until repatriating the majority of the assets on funds without risk at the approach of your departure of retirement.
But how much does this horizon management bring in? The federation France Assureurs does not yet communicate, at this stage, average performance. On the other hand, last year, the French Association of Financial Management (AFG) delivered average annualized performances of the pilot management of the retirement savings plans (PER) MoneyVox. These average performances were between 1.7% and 5.3%.
This year, by stopping the accounts end of 2021 (therefore the end of an excellent stock market year), yields are on the rise and fluctuate between 2 and 8.2%, according to figures provided exclusively by AFG Moneyvox. What explains such a gap between the different profiles? Simply your risk appetite profile and the duration chosen (5, 10 or 15 years).
On 15 years old (2007 2021) | |||
| Profile careful | Profile balanced | Profile dynamic | |
| Total Performance | 42.6% | 59.7% | 76.8% |
| Annual return | 2.4% | 3.2% | 3.9% |
On 10 years (2012 2021) | |||
| Careful | balance | Dynamic | |
| Total Performance | 41.7% | 80.7% | 119.7% |
| Annual return | 3.5% | 6.1% | 8.2% |
On 5 years (2017 2021) | |||
| Careful | balance | Dynamic | |
| Total performance | 10.6% | 24% | 37.3% |
| Annual return | 2% | 4.4% | 6.5% |
Source: AFG. Performance net of management fees.
How are these profiles established?
The AFG is part of a model portfolio of pilot managementwhich broadly corresponds to what is proposed in the context of horizon management (1) applied by default to PERs, for a 10-year investment horizon. In other words: rather for a man or woman in his fifties about 10 years from retirement:
- cautious profile: 20% equities, 60% bonds, 20% monetary funds;
- balanced profile: 50% equities, 40% bonds, 10% cash;
- dynamic profile: 80% equities, 20% bonds, 0% money.
On the basis of these allocations, the AFG therefore calculated the return net of management fees obtained over the last 15, 10 and 5 years. Result: the balanced pilot management will have achieved an annualized performance net of management fees of 3.2% over the period of 15 years oldof 6.1% over the period of 10 years and of 4.4% over the period of 5 years. And be careful, as the saying goes so well: these past performances are not indicative of future performances…
More specifically, in the absence of a choice on your part, on a PER the sums invested are placed, defaultaccording to a profile said balanced retirement horizon. Initially, the savings are invested in risky but (potentially) more profitable equity funds. As retirement approaches, the money is placed in less risky vehicles, in order to secure the gains. The share invested in low-risk funds goes from 20% ten years before retirement to 70% less than two years from maturity.
The free management option
Investors always have the option of managing the allocation of their assets themselves, by opting for a free management. Warning: by choosing this option, you will have to secure your earnings yourself as you approach retirement.
PER: the fees you need to compare
Pay attention to fees
In addition to the management fees for funds in euros or units of account (estimated at 0.87% on average), an additional cost may be invoiced for the arbitrage carried out and for the managed management.
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According to a report published last July by the Financial Sector Advisory Committee (CCSF), there are different practices between insurers. An additional fee may be requested to be entitled to pilot management or to modify one’s risk profile.. Payment fees can also be significant: estimated at 3.18% on average, they can reach 5% depending on the contract. Since this summer, savers have been able to compare fees using a standardized summary table.
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(1) As AFG primarily represents managers of employee savings plans, the performances quoted (average and theoretical) are above all representative of the collective PER subscribed via your company. Even if horizon management will probably deliver very similar performances for an individual PER managed by an insurer.