PER insurance: mandatory ring-fencing of euro funds on January 1, 2023, what this changes for savers – Savings Guide

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Ring-fenced euro funds for retirement savings

The PACTE Law establishing the PER (retirement savings plan) gave insurers until January 1, 2023 to organize themselves. The portfolios of the euro funds of the PER assurances can no longer be the same as those offered in classic Life Insurance. Thus, the funds in euros of the PER must imperatively be funds different from those offered in life insurance. Moreover, we can already notice that the return on the euro funds of PER insurance companies is already significantly higher than the average for those in life insurance. The euro funds with the least assets are more agile, and as the investment conditions improve with the rise in rates, the performances are significantly higher.

Why make ring-fencing on euro funds?

Simply so as not to mix everything up. Assets held in portfolios, mainly bond lines, can be much more advantageous if the subscription is made over a favorable period. Moreover, the investment horizons are not the same between the two products. Retirement savings are very long term. The investment strategy should therefore not be the same.

Cantonment operations, long delays!

This ring-fencing operation has no consequences on the management, guarantees and operation of euro funds on insurance PERs. However, for PERs whose insurers have yet to carry out this separation operation between the different products, the euro funds concerned will not be able to undergo arbitrage during a given period, while the separation of the portfolios is carried out. And these operations can take a long time! This is why savers must imperatively anticipate their operations.

Operations taking several days!

These euro fund compartmentalization operations can take a considerable amount of time. The impacts for savers are therefore not neutral, since during these operations, no movement on their funds in euros can be made.

Example : With the insurer ORADEA Vie, for the PER MATLA offered by Boursorama bank, this operation of confining the euro fund will take no less than 20 days! The online bank has announced the period of unavailability of the euro fund, from Friday December 23, 2022 inclusive and Thursday January 12, 2023 inclusive, requests for payments, arbitrations and changes of management cannot be executed. The automatic arbitration programs will also be suspended over the period. Furthermore, between Tuesday December 13, 2022 inclusive and Thursday January 12, 2023 inclusive, requests for early withdrawals and liquidation of your savings cannot be executed. Requests received during this period will be registered as of January 13, 2023 at the earliest.

Anticipate your operations, only if they can’t wait…

As you know, the end of the year is not the right time to carry out exit transactions involving euro funds. If you cannot wait for the deadline which will be announced to you by your intermediary for these cantonment operations, you must then anticipate them.

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