The financial advisory market is highly regulated in France, in order to protect the client as well as possible. Client/advisor relationships are structured on the basis of recommendations and obligations issued by the AMF in France. They are comprehensive and protective.
2 to 3 meetings (Zoom or Teams meeting) are necessary in order to know the characteristics of your assets: its past performance (notion of benchmark), its concentrated nature (over-representation of real estate and lack of diversification), and then to develop a strategy. All this information is the subject of a written document signed by both parties. In some cases, you may want a 2nd eye in addition to your current manager in order to analyse the structure of your assets and its medium and long term performance. It is also important to assess your tolerance for volatility in your investments, i.e. risk, as well as possible.
For most savers, determining their level of risk tolerance, or in other words, the volatility of their investments, is the most important and tricky part of setting up an investment strategy. Your risk tolerance may change over time.
The composition of your current assets and the following series of questions help to identify your investor profile with regard to risk.
For example, questions such as:
Question A
1 You can never be too careful
2 When in doubt, I err on the side of caution
3 Nothing risked, nothing gained
Question B
1 I attach great importance to the security of my investments
2 I don't put my eggs in one basket. Diversifying your investments is important to me
3 I invest almost all of my money in my best investment ideas
The well-known American financial analysis firm "Value Line" offers three profiles as part of a medium- and long-term approach.
The following data are the weights between risky and non-risky assets in the total investments of a financial nature (excluding real estate investments, this nuance is important):
Conservative investor
Shares and unit-linked life insurance: 32%
Bonds and life insurance in euros: 36%
Cash and cash funds: 32%
Moderate Investor
Shares and unit-linked life insurance: 55%
Bonds and life insurance in euros: 30%
Cash and cash funds: 15%
Bold investor
Shares and unit-linked life insurance: 67%
Bonds and life insurance in euros: 33%
Cash and cash funds: 0%
It should be noted that an equity-type risk can be taken even for an age close to retirement. A 60-year-old couple has a 50% chance of seeing one of its members live beyond the age of 97 and 25% beyond the age of 101 and these figures continue to rise. An investment in equities makes sense in the face of such a lifetime. The percentages reported above are at the level of
It should be noted that an equity-type risk can be taken even for an age close to retirement. A 60-year-old couple has a 50% chance of seeing one of its members live beyond the age of 97 and 25% beyond the age of 101 and these figures continue to rise. An investment in equities makes sense in the face of such a lifetime.
The percentages communicated above refer to financial investments. They do not take into account real estate. As the share of real estate is preponderant in the savings of the French, we generally recommend a moderate or bold profile.
Finally, Alpha Performance Conseil is in the process of becoming a member of the trade union chamber whose code of ethics we have signed.
We are committed to:
- comply with regulatory provisions and ethics with regard to our customers and prospects
- acting with loyalty, competence, diligence and independence in the best interests of our clients
- to maintain our knowledge and skills at all times at the level required by technical and regulatory developments (e.g. anti-money laundering and countering the financing of terrorism obligations)
- inquire about our clients' situation (income, level and organisation of assets, debts, ability to absorb a loss), their experience of the financial markets, their risk tolerance, their objectives in order to have a wealth approach adapted to their situation
- engage other professionals when the client's interest requires it (e.g., complex tax issues)
- communicate in an appropriate manner the information useful for our clients' decision-making as well as information concerning the terms of our remuneration: 20% of the gains we make you and a percentage of 0.5% of the assets under management
In addition to reputational risk, the IFA advisor incurs disciplinary and criminal sanctions if it does not comply with these regulatory obligations which help to protect the client.
Finally, your funds are deposited in a securities account that only you have access to.