One of the priority projects of the association

Following a decline of 6 in 2008, the stock of investments of French institutional investors would have bounced 8 last year, according to estimates of Seeds Finance (see illustration below). Progress of the order of EUR 150 billion, with nearly half (80 billion euros) is attributable to the collection flows, especially in life insurance, the savings...

The rest of this increase has its source in the general uplift of markets that had started in the month of March. The institutional French are structurally little invested in shares, interest rate products (bond and monetary) representing on average between 70 and 75 of their assets. Thus, they have been much less affected than other European investors by the vertiginous fall in the awards in 2008.

This year, "the net collection of new savings institutional will be probably stable, despite the rise trend of benefits, particularly if short-term interest rates remain very low," notes the Seeds Finance firm in a study conducted in the fall.

Near 1.780 billion euros end of 2008, this sector is largely dominated by the insurers, facing to 1,400 billion EUR, of which the overwhelming majority for life insurance and mixed (1,240 billion euros). Mutual and provident institutions has accounted for respectively 39 and 45 billion euros and the savings 71.4 billion euros. In total, the institutional market grew all the years since 1996, with the exception of 2008. Even in 2002, the year of all the disasters, the institutional assets remained stable (up 1).

Today grouped in the Association of French institutional investors, Afii (read the box), seven years old, these investors want voice, next to their providers, asset managers. The members of the Afii went from 45 in 2004 to 75 today.

Distribution review

"The pace of accession to our association has not decreased despite the crisis and the concentration of worldwide institutional, in particular the cases of retirement, notes Jean-Pierre Grimaud, Chairman of Afii and President of Swiss Life Asset Management (France).". Today, our association is sought in all the major discussions and debates in place. "And including the revision of the directive on markets in financial instruments (MIF). One of the priority projects of the association. She wants so with others, such the French Association of financial management (AFG), improve "the Organization of secondary markets bond (transparency" post trade "...)", said Jean-Pierre Grimaud.

Information on transactions and obligations, which are processed on over-the-counter markets, is a challenge to properly valuing portfolios and appreciate the different securities liquidity risk. The crisis has shown that this risk, very difficult to estimate, was well caught by all investors. Some of them, the insurers must cope also with a regulatory and supervisory environment ("Solvency II") very binding. According to a survey conducted in September, 6 institutional French out of 10 believe that "solvency ii" will lead them to review the distribution of investments between the various assets and expertise. They will walk away from the shares, equity and alternative investments for the benefit of the asset less risky as State bonds, more by default than by conviction.