Nalo stands out from its competitors by offering delegated life insurance management based not on risk profiles, but on its customers' projects. This strategy seems to be paying off, as shown by the excellent performances recorded by the robo-advisor in 2019.
Nalo Patrimoine: a new-generation life insurance policy
Founded in 2017, the fintech offers a euro-denominated and/or unit-linked life insurance contract whose insurer is Generali Vie, enabling it to benefit from the Eurossima and Netissima euro funds. The fees charged by Nalo are low and transparent, averaging 1.65% a year, compared with 2.5 to 3% on traditional life insurance policies.
Nalo's life insurance offer is based on a simple idea: each project corresponds to a different capital allocation. Thus, at Nalo, there are no generic profiles ("Dynamic", "Balanced"," Prudent"). Each investor's capital is invested in unique allocations, according to their personal situation, assets and projects. Customers can also choose the theme of their portfolio: "standard", "ecology and sustainable development", "without real estate", "complementary to PEA".
Nalo's returns in 2019
The robo-advisor reported excellent performance last year. The data presented takes into account a 95% equity content in the portfolio.
The "standard "standard returned 22.9% in 2019, net of fees but before tax. The "ecology and sustainable development (SRI)" portfolioportfolio, made up of ETFs invested in sustainable companies, achieved a net annual performance of 30.9%. The "without real estateportfolio, which excludes residential and commercial real estate, also posted an increase in annual performance, to 23.1%. Finally, the "PEA-complementary" portfolioportfolio, an allocation designed to exclude European equities, returned 22%.
Nalo has compared its performance with that of other asset managers. The fintech relied on the average performance provided by Morningstar of 1,648 asset funds divided into three portfolios: "cautious" (equivalent to 25% equities), "moderate" (50% equities) and "aggressive " (75% equities). This analysis shows that, in 2019, Nalo outperforms the average asset fund in all three profile categories studied. For example, for a "moderate" profile, the average performance of Morningstar funds is 11.7%, compared with 15.6% for Nalo's "standard" portfolio, composed of 50% equities. The robo-advisor explains its excellent performance by applying quantitative management to its investment portfolios, and by offering management fees 2 to 3 times lower than its competitors.