PER: reduce your risk thanks to this new contract entrusted to artificial intelligence

5 YEARS OF PER IN 3 INNOVATIONS (2/3). The insurer Generali and the fintech Avnear have just launched a new PER with an arbitration mandate entrusted to artificial intelligence. How does this innovation work and what are the advantages for your savings?

It is not because it is used to prepare for retirement that it must be old-fashioned. Since its launch five years ago, the retirement savings plan (PER) has been able to adapt to innovations in its era. In particular, new ways of saving – for example via a “cashback” system -, new classes of assets in which to invest – such as cryptocurrencies -, or even by integrating cutting-edge management methods. This is for example the case of the new contract launched by the insurer Generali and the fintech Avnear, which incorporates artificial intelligence (AI) into the management of your portfolio.

Called e-PER, this 100% digital product is marketed by fintech and insured by Generali. How does it work? The part of the portfolio in units of account (UC) – supports exposing the saver to a risk of capital loss – is invested in ETFs (or “trackers”), financial instruments intended to faithfully replicate the variations of a index (CAC 40, Nasdaq, etc.), both up and down. This is where AI comes into play: to determine how much to bet on this or that ETF, it evaluates whether the associated stock indices are overvalued or undervalued. The logic is as follows: undervalued indices have every chance of rising, while those that are “overpriced” present a greater risk of falling.

Avoid betting everything on an index that presents a greater risk of falling

“This is an algorithm which, using AI, and using metrics over 30 or 40 years, makes it possible to detect market overvaluations. The goal is to avoid as much as possible risking our clients’ money on ETFs when we believe that they are excessively overvalued. summarizes Charley Arod, co-founder of Avnear.

Concretely, the AI ​​therefore does not choose the investment vehicles, but determines a progressive investment plan, depending on the price of the stock market indices. Note that this technology applies to one-off payments from 5,000 euros, and therefore in principle allows you to avoid betting the entire amount on an index which statistically risks falling.

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What are the advantages of this new management method for you? First, the use of AI makes it possible to automate a risk management service, “service which is in principle provided by professionals and reserved for wealthy individuals, family offices and wealth management”specifies Charley Arod. The promise is also to optimize the investment of savers who wish to bet on ETFs. They thus benefit both from their low fees and must theoretically avoid their usual disadvantage: that of being heavily exposed to an index which falls and which the ETFs automatically replicate.

Recent illustration: “Our clients, for example, suffered less from the volatility of August (yen carry trade): the markets which fell the most were at rather high valuation levels; our clients who entered in June were therefore less invested in it (thanks to progressiveness). On the other hand, they were invested in markets, like China, which were already undervalued, and on which the crash did not have much impact.”details Charley Arod.