The robo-advisor has decided to work with BlackRock to offer a solution dedicated to precautionary savings. This portfolio, invested in a diversified basket of bonds, targets a yield of 3%, above inflation.
Nalo launches a solution dedicated to precautionary savings
Returns on euro funds and Livret A passbook accounts have fallen sharply this year. Indeed, the average rate of return on euro funds is around 1.40%, according to experts, compared with 1.70% in 2018. As for the Livret A, its interest rate has been lowered to a record low of 0.5%. This situation is prompting the French to rethink the way they manage their savings.
Against this backdrop of low interest rates, French startup Nalo, launched in 2017 by two asset management veterans, is offering savers a solution designed to capture the sums invested in passbooks and life insurance policies. The portfolio is a blend of BlackRock ETF products and Generali's Netissima euro fund. In a press release published on February 6, 2020, Guillaume Piard, CEO of Nalo, explains that to "get out of 100% secure", the French need to be accompanied.
Collaboration with asset manager BlackRock
The portfolio, launched in collaboration with BlackRock, will be accessible within the Nalo Patrimoine life insurance contract, and targets a 3% return. The allocation is made up of low-volatility supports, and the funds are available within 72 hours on the customer's current account.
The fintech specifies that, in line with the principle of goal-based investing, each customer's portfolio is associated with a life project. The aim is tooffer higher returns than those offered by euro funds, based on savers' conservative allocations.
Henri Chabadel, Chief Investment Officer at BlackRock, comments that the portfolio developed with Nalo is aimed at customers seeking higher yields in a context where interest rates are set to remain low for the long term. This solution has the advantage of adding a third dimension to profiled management: cost. With lower fees, it's easier to offer a return higher than inflation.
The launch of this portfolio comes a few months after the robo-advisor announced the expansion of its service offering. Indeed, in 2019 and after two years of testing, Nalo announced its private management offer, which now enables customers who so wish to be accompanied by an advisor for their financial, legal and wealth management issues. The offer is aimed primarily at a high-end clientele, including executives, self-employed professionals and company directors. However, the fintech did not disclose the number of customers.