Gérard Bekerman, the president of Afer, the largest life insurance association in France, did not hide his satisfaction this afternoon in front of the press: the performance of his fund in euros came out in 2021 at 1.7 % net of management fees, at the same level as that recorded in 2020.
In a context of still very low bond rates, the Afer fund certainly did not manage to return to its pre-crisis level of return, but managed to stabilize it at 60 basis points above the average. of the market, which specialists anticipate at 1.1%.
A record supply
Composed of 44.5% sovereign bonds, 15.5% corporate bonds, 6.6% equities and 4.8% real estate (these last two pockets have been increased compared to 2020) Afer’s euro fund will have managed to provide a return identical to that of last year while sharply increasing its reserves (the “provision for profit sharing”) from which it had drawn slightly in 2020 to cushion the shock of the health crisis.
In 2021, its net allocation amounted to €132 million, increasing the total envelope to €401 million, representing 0.93 points of the total amount of outstandings via a ” spectacular increase of nearly 50% “.
High performance equity UCs
On the unit-linked side, the performance was also generally on point. “With the exception of three funds, all of our CUs recorded positive performance “, welcomes the president of Afer. On the equity markets, some have exceeded 20%, such as the World Actions fund, which can thus boast a return of 26.55% after 27.53% in 2020, or Actions America (24.15%) , Euro SRI Actions (23.32%) or Afer Index CAC 40 (31.11%).
Its benchmark multi-support contract, Afer Sfer (equities, bonds) also did well with a performance of 17.29%.
Logically, it was bond UCs that provided negative returns: Afer Index Sovereign Bonds fell by 3.8%, World Corporate Bonds by 2.03% and Afer Convertibles by 1.96%.
56 billion euros in assets
Over the whole year, overall, nearly 2.3 billion euros were collected in 2021 by Afer contracts (89% repayments and 11% new business), increasing their outstanding at €56 billion and close to €61 billion in market value (including accrued coupons).
Unsurprisingly, the proportion of members with unit-linked accounts – thus seeking more performance among the 24 CUs in the association’s catalog – continued to rise.
Although still nearly one in two members does not have one, the share of these CUs in collection at the end of 2021 has risen to 35%, and Afer is confident that this quickly reaches 50%.
No UC obligation in the boxes
On the question of a possible modification of the contractual conditions of its fund in euros, the position of Afer remains unchanged: the association will never make it compulsory to subscribe to units of account to access its general contract, reaffirmed Gerard Bekerman.
If the president of Afer considers that it is today in the interest of savers to diversify their life insurance contracts towards these supports, ” it is by conviction more than by constraint that we will make this trend evolve “.