NEWS & EVENTS 2016
Af2i Alternative Investment Management Guide
Af2i (the French Association of Institutional Investors) has published a new edition of its “Alternative Investment Management Guide”. The increase in the number of hedge fund assets (which doubled between 2008 and 2014) and evolving regulatory developments led to the revised edition of the original 2012 guide.
The financial regulation of pension institutions approved for the management of AGIRC-ARRCO pension schemes in April 2014 allows them to hold alternative funds within the limit of 10% of quotas. For insurance companies, the implementation of the "Solvency 2" Directive requires either transparency, which is possible for simple strategies (such as "event driven" or "long / short actions"), or higher capital requirements.
For more information, visit Af2i's website (French only).
17 March 2016, OEE Conference: Intermediation in Family Economics
The Observatoire de l’Epargne Européenne’s upcoming conference focuses on the economics of intergenerational family relations. Robert Gary-Bobo, researcher at ENSAE, will present the conclusions of his study on this subjet, including:
- Results of a survey on the contribution of inheritance and bequests on the financial wealth and property holdings of Europeans.
- Cross-country comparisons of transmission tax in different countries.
- Objectives and family risks: Risk of parent longevity, market risk concerning the value of property being transmitted, the next generation’s search for finance to buy a home, the tax costs of different forms of transmission.
- The management of these risks is usually handled informally by family members. This study provides an integrated solution for family contracts that are intermediated between family members.
Patrice Ponmaret, an associate at Partners Patrimoine and ex-President of the Chambre Nationale des Conseillers en Gestion de Patrimoine, will put these proposals to the test from the real-life perspective of an experienced wealth management advisor. What role could intermediaries play in providing integrated solutions to a large number of families?
Christian Gollier, professor at Toulouse School of Economics, Visiting Researcher at Columbia University and President of the OEE’s Scientific Council, will conclude in relation to the OEE’s continuing work on savings in Europe.
Conference Timings & Location : 11am - 1pm, Salle Degas, Club Confair, 54 rue Laffite 75009 Paris, France
To register, please email email@example.com or call +33 1 43 12 58 00.
February 2016, Households’ real estate and financial asset holdings:what differences in investment behaviour within the euro area? by Luc Arrondel et Frédérique Savignac, Banque de France’s letter « Rue de la Banque » n°19
In the Banque de France’s letter « Rue de la Banque » n°19 of February 2016, Luc Arrondel and Frédérique Savignac summarise the findings of some initial studies on the composition of household wealth conducted using the Eurosystem’s Household Finance and Consumption Survey (HFCS). Consistently with a previous OEE’s study, they disentangle the effects of household socio-demographic characteristics and the effects of institutional environment in each country on investment behaviours. Among other, they find that the overall level of wealth and the value of the main residence are linked to the functioning of the mortgage market and that risky financial investments tend to rise as the average replacement rates of pension systems decline.
To read Rue de la Banque n°19, click here
On the same topic, presentations by Sebastien Perez-Duarte (ECB) “Introducing the Eurosystem Household Finance and Comsumption Survey” and Florence Legros "Household structure and household wealth: Evidence from Germany, France, Spain, Italy and Portugal” at the conference organised by the OEE on 22 January 2014, are available on our website at the page Conference.
OEE and IODS are part of the project FinKit led by CeRP Collegio Alberto. FinKit will provide trainers in Economic Financial Literacy with pedagogical tools focused on “wealth rich-cash poor” elderly women (55 years +) in Mediterranean countries. To learn more: FinKit Project website
January 2016: INSEE publishes study “French households financial wealth: Which changes in 20 years?”
INSEE has just released a study entitled “French households financial wealth: Which changes in 20 years?” by Jean-Baptiste Bernard and Laura Berthet. The study uses macro data from national financial accounts and micro data from the wealth survey conducted by INSEE from 1992 to 2010. The authors disentangle financial wealth-lifecycle profiles from birth cohorts and period effects.
The main findings are as follows:
- Total wealth increased from generations born in the 1910s to those born in the 1950s, and was stable afterwards. Inversely, there was no cohort effect on financial asset accumulation.
- In line with previous studies, there was no decumulation after retirement: Financial wealth increased from 25 to 55 years of age, and remained stable afterwards. Rather than age, the level of education, inheritance and legacy explains the main differences across households.
- The majority of savers reallocated a major part of their savings toward life insurance in the 1990s and this trend continued into the 2000s for the most wealthy households.
The study includes many additional findings that will be of interest to retail banking, insurance and asset management professionals.
To read the study, click here.