Wish to invest in CORUM through a life insurance policy?
In order to safeguard the interests of its shareholders, CORUM decided not to be available for investment via life insurance policies. Here is why:
- To keep inflows under control
CORUM's performance is related to its inflows, that is, funds received from new shareholders, which are perfectly coordinated with investments made: the money raised must be invested in a property as early as possible in order to generate rental income, which is distributed to CORUM shareholders in the form of a dividend.
When an investment is made through a life insurance policy, the insurer directly holds SCPI shares and may, without notice, generate significant inflows that could interfere with the fund's performance… at the expense of investors!
- To preserve share liquidity
Insurers contractually guarantee the immediate liquidity of SCPI shares to their policyholders. However, an SCPI is a real estate investment, which means that it is a long-term investment with limited liquidity. Also, it should be noted that insurers generally hold a significant portion of an SCPI, and therefore have a significant influence over it. In order to meet the immediate share liquidity demanded by its policyholders, it will sell its shares: given its strong influence, it may make it difficult for other SCPI shareholders to sell their own shares.
- To save investors from paying fees to multiple companies
Insurers charge significant fees in various forms depending on the policy (entry fees, management fees, performance fees, exit fees…), which are in addition to the fees generated by the SCPI.
By remaining somewhat independent, CORUM acts in the interests of its shareholders. Also, it is noteworthy that the tax effectiveness highlighted by life insurers is similar to that which can be achieved by buying shares as a bare owner.