All life insurance contracts will have to propose from January 2022 of solidarity funds that devote from 5 to 10% of their investments to companies working for employment, housing, health, etc.
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The world of solidarity finance is boiling. From 1 e January 2022, all life insurance contracts will have the obligation to minimize a solidarity fund, that is to say a product devoting from 5 to 10% its assets to the financing of social and solidarity economy structures (ESS). These funds are nicknamed “90-10”. This should give an accelerator to these products so far mainly distributed as part of the salary savings: their outstanding amounts reached 13.78 billion euros at the end of the year 2020, of which 85% with the Salary savings, according to the association Fair.
In total, the solidarity funds spend about 800 million euros to the financing of the ESS. “The impact of these products is tangible: the structures supported by our solidarity funds have made it possible to provide 6,400 homes and to accompany 25,000 people to employment in 2020,” says Beatrice Verger, Socially Investing Development Manager. Responsible (ISR) of BNP Paribas Asset Management.
Concretely, how are these actors selected by the managers of the solidarity funds? Each management company develops a specific approach, even if some heavy goods weights, such as the Foncière Habitat and Humanism, France Active Investment or Adie, are present in most funds.
“Mutualize Investments “
For about ten years, the trend is at the creation of a specific product that serves as a “solidarity pocket” to all “90-10” funds of the same house and may even be distributed with Other management companies that do not have this expertise. “Gathering our solidarity investments in one fund allows us to pool our investments, therefore to be able to finance up to several million euros for the same structure of the ESS in some cases,” explains Laurence Laple-Rigal, Director of Social Impact Investment at Amundi, whose “Pure Solidarity”, Amundi Finance and Solidarity Fund alone weighs about 410 million euros.
“We accompany these companies, cooperatives or associations, in their size change, when passing on a local level, or from the region to the national territory,” says M me Laple-Rigal, citing Living in Beguinage (accommodation accompanied for seniors), Homnia (housing for people with disabilities), the VARAPPE (insertion by employment) or MY Retail Box (bulk distribution). Amundi finances a total of 43 structures of the ESS, for tickets between 800 000 euros and 5 million euros, or more, in the form of debt or capital contribution.
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