the anxiety of wealth advisors caught up in the real estate crisis

2023-09-30 14:34:33

Pair Jorge Carasso

Published yesterday at 12:21, Updated yesterday at 14:34

Wealth management advisors are falling victim to new competition from profitable, risk-free savings products that savers can take out without anyone’s help. Yuri Arcurs peopleimages.com / Jadon B/peopleimages.com – stock

INVESTIGATION – Macroeconomic upheavals are changing the situation for savers. Cooled by the poor performance of certain financial products, some are learning to manage their investments on their own. A cold shower for wealth advisors.

Triangle sandwiches, cut Serrano ham and glasses of champagne… At the Patrimonia show, the high mass of wealth management advisors (CGP), which is held every year at the end of September in Lyon, the big names in finance have put on dishes in large ones. Their objective: to attract CGPs, these essential partners who distribute their financial products to savers. To keep the atmosphere good-natured in the aisles, it was necessary to put under the table the subjects which could have broken the atmosphere.

In recent months, difficulties have been piling up for wealth management advisors. Rising interest rates, the housing market crisis, recession fears and stock market uncertainties are all stones in their shoes. All of these elements are a game-changer for savers… and all those who wish to sell them financial products. “ It’s not easy right now», recognizes Laurent in the aisles of Patrimonia. Like many of his colleagues, this CGP based in Val d’Oise (95) has sold real estate funds for years. SCPI investments invested in office buildings and businesses which brought in 4 to 5% every year, and whose value appreciated over time. Last year, SCPI subscriptions were record, at nearly 10 billion euros.

But the tide seems to have turned. The real estate market is weighed down by rising rates and values ​​falter. Under these conditions, certain financial products, including best-sellers worth several billion euros, have suffered sharp corrections in recent months (from 7 to 17%) or lack liquidity for savers who wish to sell. Enough to make the CGPs who were advising these products to their clients until a short time ago uncomfortable. “Some of them have to tear down the walls», says a professional.

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