Small & Mid cap is the focus of the new investment environment

Finances News Hebdo: You recently launched a new mechanism to invest in your multiple support contracts. Can you tell us more?

Samir Berrada: Since 2007, we, as pioneers in the field of multiple support offers in the Moroccan market, have been constantly working to offer our customers innovative solutions to optimize their investments, taking advantage of the benefits associated with insurance products. To this end, we guarantee, together with our partner Société Générale Maroc, to expand and diversify the range of investment support offered in our multiple support contracts to offer a wide choice to our clients, constantly adapting to their needs. and their investor profiles in terms of investment horizon, risk appetite and expected return. Today, we are taking another step towards our goal with the launch of a new block-related support called Horizon Mid & Small CAP, which enriches the range of support offered in our Vital Multisupport and Vital Multisupport Premium offerings. This is the 4th member of the share capital class, which is characterized by investing at least 30% of net assets in small and medium capital companies, ie companies whose weight capitalization in free circulation is less than 5% of the total stock market capitalization. . Thanks to this new fund, our clients now have the opportunity to distribute their funds savings on 11 grants, namely dirham support, which offers a guarantee of capital and a safe return, and 10 grants in units of account, divided into 4 categories (cash, bonds, diversified and equities), which allow access to financial markets to benefit from their performance. Thanks to this diversification of support, our clients also have the opportunity to arbitrate during the term of the contract. tax-free between different media depending on the development of financial markets, thus taking full advantage of the opportunities they offer them.

FNH: Why play on “Medium and Small Capital” (potential and risks associated with this type of action)?

SB: Because these stocks often have great growth potentiallaughter and significant diversification of the represented sectors of activity. As a result, and if you choose your investments carefully, this topic may be more effective for investors. Note, however, that although small and medium-sized capitals are often more profitable than large ones, they are not risk-free. They may be more volatile (their price fluctuates more) and they pose a liquidity risk (ie difficulties in buying or selling in the market). This is where the experts of Sogécapital Gestion, a subsidiary of the asset management company Societe Generale Morocco, which manages the funds provided by La Marocaine Vie products related to divisions, come into play. Thanks to their experience, analysis and, above all, daily market presence, they create reliable and diversified portfolios and manage related risks in terms of volatility and liquidity.

FNH: How do you choose names?

SB: At this stage, the Horizon Mid & Small CAP consists of more than twenty small and medium-sized companies selected by our partner Sogécapital Gestion according to 3 main criteria. First of all, transparent financial communication with companies that are committed to providing reliable and accessible financial information on a regular basis. They must also present a robust business model that can ensure their long-term sustainability. Good sectoral diversification is also guaranteed, with choices being made in the most promising sectors, which offer favorable long-term growth prospects.

FNH: How much did you serve your customers in 2021 in different media?

SB: La Marocaine Vie paid for its life insurance contracts in dirhams for 2021 with a profit rate of 2.8% to 3.5%, which puts us at the top of the market. Specifically, we provided a yield of 2.8% for classic products with mono-support in dirhams and an increased rate of return to support dirhams of multiple support contracts of up to 3.5% for customers who rely on units of account as a reward for risk. In terms of supporting our unit-related products, in 2021 they achieved an annual performance of almost 7% for our diversified funds and up to over 20% for our equity funds, demonstrating that the main argument in favor of units of account undoubtedly remains the return which they contain.

FNH: A few words about the potential of the savings market, in particular the UC segment, which seems to be of interest to more and more companies …

SB: With Morocco’s still low penetration rate of around 4%, the insurance sector as a whole has significant development potential. As for savings, in particular, the situation is identical. We are convinced that there is a huge untapped potential of the market. In this context, together with Societe Generale Morocco, we are pursuing our strategy of winning and strengthening the collection of savings, in particular in relation to divisions, strengthening, in particular, our efforts to communicate and advise our clients to further democratize these investments. while ensuring that our storage products are constantly enriched to always improve meet their evolving expectations. Today we are demonstrating this with the launch of Horizon Mid & Small Cap support, and last year with the launch of Vital Multisupport Distribution, an unprecedented offer that promises customers an annual distribution of contract revenue through Morocco’s first support system. under life insurance contracts. This proposal has also aroused enthusiasm since the announcement of its launch in May 2021, as we have raised almost 200 million dirhams at this stage, of which almost 40% has been invested in block-related support. Moreover, Vital Multisupport Distribution undoubtedly contributed to La Marocaine Vie’s record last year in terms of unit-related products. Thus, it is an important lever to speed up our collection in units of account. Finally, we should note that we view the arrival of competitors in a positive sense in the sense that they will participate in these efforts to democratize unit-related products through stronger connections, for the benefit of a wider clientele that will bring more benefit. opportunities to return compared to the safe dirham fund. There is room for everyone here, especially since we are talking about the further development of chain products in Morocco.