Gilles Ulrich, the CEO of French mutual insurance company Conservateur, said he believes the firm's structured products range offers better prospects for high returns than its euro fund contract, Arep.
Ulrich made the remarks while announcing to French newspaper L'Express that Conservateur has decided to close Arep as a standalone contract for new investors. He pointed out that the company's first ever structured product, Conservateur Opportunité, has already performed twice as well as Arep. The structured product was called by the issuer after one year at a price of 110% (an annualised return of 10%) in April this year.
It appears some would-be Arep investors will now be redirected towards Conservateur's structured products range. Others might be redirected towards Conservateur's multi-support contracts, enabling investors to allocate their investment between various funds throughout the term, one of which is the Arep euro fund.
Arep euro fund was sold for 25 years as a standalone fund. It has delivered consistent returns of between 4% and 5% pa over the past few years, and received a large number of industry and best-buy awards as a result. However, Conservateur believes that current market conditions, in particular the decrease in long-term rates, mean the contract should not longer be marketed separately. The fact that returns are not protected against any mid-term increases in inflation was also explained as a reason for the closure of the fund.
The third Conservateur Opportunité will be open until the beginning of September.
The Conservateur Opportunité range of products is available on the French database.