What is the level of risk of the units of account accessible within my life insurance policy or retirement savings plan (PER)? It’s hard to answer the question without going through each Key Information Document (KID). In order to make the units of account more readable for savers, a summary table has been set up.
New measures come into force on July 1 to make units of account more readable within life insurance contracts and retirement savings plans (PER). Units of account (UA), these vehicles that are more risky than guaranteed funds in euros, must henceforth be classified in specific categories and a synthetic risk indicator must be mentioned in a table accessible before subscription.
The new unit-linked categories
- Fonds actions.
- Fonds obligations.
- Mixed funds. These media mix several financial products (bonds, shares, structured products, currencies, etc.);
- Real estate funds. These are account units defined as funds invested in real estate, such as SCPIs, SCIs and OPCIs;
- Hedge funds;
- Private equity funds. This category includes vehicles invested in companies, most often unlisted, which have a need for equity;
- Monetary funds also called Organization for Collective Investment (OPC);
- Others. This category concerns units of account that do not belong to any other category.
Taxes, return… Life insurance or PER, what is the best investment to prepare for your retirement?
The synthetic risk indicator, what is it?
Each unit of account available via a life insurance or PER contract is potentially more profitable than a guaranteed capital fund in euros, but presents a risk of capital loss. The risk level can range from 1 (low risk product) to 7 (high risk product) and is usually indicated in its Key Information Document (KID).
From July 1, insurers will have to display this indicator and the CU categories on the asset performance chart provided before the opening of a pension or life insurance contract, which will be updated annually.
Finally, the retrocession rate, that is to say the share of fees paid to contract distributors, up to now displayed in a dedicated column, will be entered in the column for management fees and total fees.
Already last year, a summary table of fees was introduced to improve the readability and transparency of entry fees and annual and one-off fees.
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2023-06-29 10:04:28
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