Investing in SICAVs: A professional solution for asset diversification

Sociétés d'Investissement à Capital Variable (SICAVs) are collective investment vehicles that provide access to diversified portfolios managed by accredited professionals. These instruments offer immediate exposure to multiple asset classes, within a structured and transparent regulatory framework. Popular with both retail and institutional investors, SICAVs offer expert management with a high degree of flexibility.

Like all financial investments, SICAVs carry a risk of capital loss. A rigorous approach, backed up by appropriate advice, is essential.

Definition of a SICAV

A SICAV is an Undertaking for Collective Investment in Transferable Securities (UCITS) with variable capital. It pools the savings of several investors to form a common portfolio, steered by a management company. Each investor holds units or shares in the SICAV, in proportion to their investment, which they can subscribe to or sell at net asset value.

Operation and specific features

• Variable capital : subscriptions and redemptions change the size of the fund in real time.
• Delegated management : investment decisions are taken by a team of professionals according to a precise mandate.
• Regulatory transparency : SICAVs are subject to supervision by the Autorité des Marchés Financiers (AMF), guaranteeing a high level of information.
• Accessibility: they can be integrated into tax wrappers such as PEAs, life insurance policies or securities accounts.

SICAVs offer many advantages for structuring a balanced portfolio.

Natural diversification

By pooling capital, SICAVs provide access to a wide range of assets (equities, bonds, money market, alternative investments) spread across different geographical areas and economic sectors. This diversification reduces exposure to idiosyncratic risks.

Management driven by expertise

Investment decisions are made by specialist managers, based on the economic context, market indicators and allocation opportunities. This delegation allows us to optimise trade-offs while maintaining a strategic vision.

Appreciable flexibility and liquidity

The liquidity of SICAVs means that redemptions can generally be made on a daily basis, at net asset value. This reversibility makes it easier to adjust the portfolio in line with investment objectives or market trends.

Each type of SICAV has specific characteristics depending on its investment strategy.

Equity SICAV

Focused on stock markets, they aim for long-term performance by selecting listed securities. They are suitable for dynamic investors who accept greater volatility.

Bond SICAVs

These funds invest in government or corporate debt. Less volatile than equities, they aim to generate regular income and stability.

Diversified SICAVs

These funds combine several asset classes to achieve a balance between growth and risk control. Suitable for balanced profiles.

Money market funds

Focused on very short-term instruments, they are a precautionary solution for securing part of your capital or managing surplus cash.

Sector SICAVs

Focused on specific themes (health, technology, energy, etc.), they offer potential growth leverage, at the cost of increased exposure to sector fluctuations.

Market risk

SICAVs are exposed to economic, political and financial risks, which affect the valuation of the assets in the portfolio.

Credit risk

For funds invested in bonds, an issuer default may impact the value of the fund.

Interest rate risk

Rising interest rates may cause the value of bond securities held to fall.

Liquidity risk

Some assets may become difficult to trade in times of stress, limiting the manager's reactivity.

Management risk

The performance of a SICAV depends directly on the relevance of the decisions taken by its managers.

Know your investor profile

Your investment horizon, your sensitivity to risk and your return objectives will guide your fund selection.

Evaluate strategy and performance

Although not predictive, an analysis of historical performance can help you to assess the fund's consistency. Understanding the underlying strategy is essential.

Compare fees

Management fees, performance fees and front-end loads have a direct impact on net returns. They need to be set against the quality of management.

Check the quality of information

A transparent fund provides detailed, regular reports on its composition, switching and performance. This is a rigorous indicator.

The tax impact depends on the envelope chosen:

• PEA: tax exemption on capital gains after 5 years (excluding social security contributions).
• Life insurance: advantageous tax treatment on redemptions after 8 years and optimised inheritance framework.
• Securities account : taxed via the single flat-rate withholding tax (PFU) or progressive scale.

A comprehensive approach to wealth management therefore includes tax optimisation of investments.

SICAVs are an effective way of accessing diversified portfolios, benefiting from expert management and structuring resilient financial assets. They are suitable for a wide variety of investor profiles and can be part of short-, medium- or long-term asset management strategies. Personalised support ensures that these choices are in line with your financial ambitions and risk tolerance.

This article was written by Eurazeo Global Investor for information purposes only. It does not constitute a personalised recommendation, a solicitation or investment advice. Past performance is no guarantee of future results. Any investment in SICAVs or private equity/private debt products involves risks, particularly of capital loss and illiquidity. Please consult the regulatory documentation before making any investment decision.