When looking at his life insurance portfolio right now, the conclusion is clear: euro funds yield more than they did two years ago, and the adjustments to be made for 2024 require dealing with parameters very different from those of 2022. Between the historic outflow from the Livret A, the resurgence of SCPI, and the new European regulatory constraints on carbon, investment decisions are being made on unprecedented grounds.
Life Insurance and Livret A: a tangible shift in French savings
The significant event of 2024 is the decline of the Livret A. The outflow recorded in May 2024 reaches a particularly high level, indicating a significant reallocation movement. In concrete terms, savers are withdrawing money from their regulated savings account to redirect it elsewhere.
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The main destination for these flows is life insurance. The inflow into contracts (euro funds and multi-supports) has reached levels not seen in several years. The rise in bond rates has restored the attractiveness of euro funds, whose yields had been depressed during the low-rate period.
For those looking to track these market movements over the weeks, the analyses published on the infos-investisseurs.com website allow for cross-referencing various sources before making a decision.
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What we observe on the ground: savers are balancing between security and real yield. The Livret A remains guaranteed, but its rate no longer keeps pace with the inflation perceived by households. Multi-support life insurance contracts allow for a mix between secured euro funds and units of account exposed to equity or bond markets. The risk increases, but so does the potential for yield.
SCPI in 2024: a new cycle of real estate investment
SCPI is going through a phase of reconfiguration since the beginning of 2024. Several new vehicles have been launched to take advantage of a very specific context: the decline in prices of commercial real estate combined with the rise in rates.
The new SCPI are buying undervalued assets with higher rental yields. These management strategies emphasize opportunistic approaches, whether through repositioning existing assets, targeted regional themes, or specific sectors such as logistics or healthcare.
France SCPI speaks of a “renewal” of the market during the 2024-2026 period. In practice, this means that recent SCPI do not have a portfolio of assets purchased at high prices during the 2021-2022 period. For an investor, this is an advantage: the share price reflects the current market value, not an inflated historical value.
What to check before subscribing
- The creation date of the vehicle: an SCPI launched in 2024 buys at corrected prices, unlike those still holding assets acquired at the peak of the cycle
- The stated acquisition strategy: opportunistic in a specific sector (converted offices, local commerce, healthcare) or generalist without a clear angle
- The entry and management fees, which vary significantly from one vehicle to another and impact net yield in the early years
- The financial occupancy rate of the existing portfolio, which gives an indication of the manager’s ability to find and retain tenants
Returns vary on this point, but recent thematic SCPI seem to attract more inflow than older diversified vehicles.
European carbon adjustment mechanism: what it changes for financial markets
The European carbon regulation has direct repercussions on investment portfolios in 2024. The European Union will implement the carbon border adjustment mechanism (CBAM) in 2026, which requires the purchase of carbon certificates for certain high carbon intensity imports (steel, cement, aluminum, fertilizers, electricity).
For individual investors, this has direct consequences for several listed sectors. European companies already subject to the carbon market (ETS) see their compliance costs rise, but the CBAM restores a form of fairness with importers who, until now, paid nothing.
ETFs and equity funds: the ESG angle is tightening
Traceability and quality rules for carbon credits are being strengthened in parallel. For ESG-labeled funds, this means a stricter selection of eligible companies. An ETF labeled “climate” in 2024 does not contain the same values as in 2022.
Investors holding sector-specific ETFs (heavy industry, energy, materials) need to check whether the companies in their portfolio are positively or negatively exposed to the CBAM. A European “green” steel company could benefit from the mechanism, while an importer relying on non-European suppliers will see its margins squeezed.
Stocks, ETFs, and risk management: concrete adjustments for 2024
In the equity markets, the CAC 40 and European indices are evolving in a context of high but stabilized rates. Risk management involves diversification across asset classes, not concentration on a single index or sector.
Some concrete adjustments to consider:
- Strengthen the bond allocation (euro funds, investment-grade corporate bonds) as long as rates remain at these levels, as a future cycle of decline would reduce available yields
- Maintain equity exposure through broad ETFs (global or European) rather than overly concentrated sector bets
- Incorporate a share of recent SCPI to capture the low real estate cycle, accepting lower liquidity than on a PEA
Leaving savings in a Livret A with a stagnant rate while life insurance and the markets offer documented alternatives represents a measurable opportunity cost. Regulatory data and historical yields are accessible: each adjustment benefits from being confronted with the numbers before any subscription.