Big disappointment for the remuneration of the euro fund of Axa. It increases to 0.9% for the year 2021 even if it can reach 1.35% thanks to the bonus. On the other hand, Axa highlights the results of its eurocroissance fund which uses 3%.
We are a turning point. Here is the analysis of Patrick Cohen, the general manager of Axa France, when announcing the 2021 performance of the life insurance contracts managed by his group. Indeed, the insurer has decided to highlight, not the returns of the fund in euros, but those of its eurocroissance fund which offered +3% net (before tax), after +2.60% in 2020, +3% in 2019, +2.40% in 2018 and +3.25% in 2017. Result, a cumulative performance of 15% over the last 5 years.
In a context of lasting low interest rates that are hurting the returns of euro funds across the entire market, eurocroissance is in a position to become a new basis for the life insurance policy. In addition to a 10-year capital guarantee and the prospect of a resilient return, the “growth fund” offers to invest in the real economy, in an ethical and sustainable way, says Patrick Cohen, with a target of 50% investment green by the end of the year (forts, wind turbines, solar infrastructures, etc.).
Eurocroissance funds: operation and taxation
To entice customers to bet more on eurocroissance, the insurer promises them to see the net return of their support in euros allocated as part of the profit sharing of 2022 multiplied:
- by 1.3 if the portion of the growth fund support is greater than or equal to 30% of the savings invested in the contract;
- by 2.5 on discretionary management (pilot management) including a portion of savings invested in growth fund support.
Life insurance: is your euro fund healthy?
The money deposited in a Eurocroissance fund is not blocked until maturity, 10 years in the case of Axa. The saver can recover his stake beforehand but, in the event of early withdrawal, he does not benefit fromno capital guarantee. Unlike euro funds.
How to improve the return of the fund in euros?
Axa’s flagship euro fund is precisely seeing its remuneration drop further in 2021 for the main life insurance contracts (Arpges, Excelium, Privilge, Figures Libres, Odyssiel, Expantiel and Optial). She passes from 1.20% in 2020 only 0.90% in 2021. This return, lower than the expected average of 1.10% for the entire market, can reach 1.35% depending on the size of the savings invested in unit-linked products, which are more risky and do not benefit from capital guarantee. The rate is port:
- 1% when 40% of the savings is invested in unit-linked vehicles,
- 1.10% when 40% of the savings is invested in units of account, and the outstanding amount of the contract amounts to at least 50,000 euros,
- and finally 1.35% if the contract is managed under mandate (pilot management).
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As for the yield of the support in euros of the PER My retirement and PERP contracts, it is fixed 1.00%.
Life insurance: all 2021 rates, from best to worst