www.amfie.org
N° 63 - Janvier 2017

Lettre d’information

ASSOCIATION COOPÉRATIVE FINANCIÈRE DES FONCTIONNAIRES INTERNATIONAUX

RATES FOR SAVINGS AND FLEXIBLE ACCOUNTS


In an uncertain geopolitical environment and in the face of downward pressure on interest rates, AMFIE continued its prudent investment policy in 2016. This is characterised by the quest for an optimum regular yield without jeopardising our key aim of safeguarding the assets entrusted to us by our members. In accordance with the management mandate conferred on us by our members, we favour money-market investments and investment grade fixed or variable-rate instruments in the diversified portfolio administered by our Secretariat.

As a result, the Secretariat has carefully monitored the potential consequences of the major political events of 2016, primarily in the United Kingdom and United States.

Brexit initially led to a fall in the value of the pound and, more importantly, ushered in a period of macroeconomic uncertainty which will continue until the exit negotiations have been finalised. AMFIE has aligned the sterling assets of members with holdings in this currency while simultaneously reducing the counterparty risk relating to the British economy.

For its part, the election of Donald Trump in the United States has generated considerable expectations of economic revival through infrastructure investments that have already had perceptible upward effects on American short and medium-term interest rates. AMFIE’s dollar liquidities are progressively being reinvested in securities earning higher rates than those offered in the euro market and continue to be aligned in volume terms with the invested assets of members with holdings in this currency.


For their part, the key euro interest rates remain at historically low levels, which have been languishing for many months in negative territory in a way never seen before. Despite this, the autumn saw long-term rates climb back into positive figures. On the eve of this change in trends, AMFIE took advantage of a brief window of opportunity to undertake a number of beneficial arbitrage operations consisting of taking the profits on a certain number of items in its bond portfolio, in particular among its financial stocks. Since then, the Secretariat has remained extremely attentive to the opportunities offered by the bond market in Europe in order to gradually reposition the generated liquidities as the interest rate curve returns to normal.

In the face of the likelihood that interest rates will remain low in Europe over the coming months, with the continuation, albeit at a reduced level, of the ECB’s accommodating monetary policy, AMFIE is aiming to diversify its assets by complementing its capital-guaranteed products with new financial instruments offering fixed or variable rates and by continuing with the ongoing revaluation of its bond portfolio within the limits defined by its management mandate.


Any members who wish to adopt a more dynamic personal investment policy can open a Keytrade account via AMFIE with which they can perform stock market operations directly.



In addition, the PEP offers individuals who wish to structure or complement their pension savings a range of à la carte investment products enabling them to balance their personal risk between share funds and bond funds in order to boost their asset holdings as retirement approaches.
AMFIE’s Secretariat is available to provide you with any help you require.

2016


In addition to the quarterly interest rates announced at the beginning of the period, the Board has approved a bonus for all deposits held in savings accounts :

EUR  USD  GBP  AUD CAD  DKK  CHF
0.15% p.a. 0.21% p.a. 0.05% p.a. 0.10% p.a. 0.20% p.a.  0.00% p.a. 0.00% p.a.



   

Therefore the total interest rates on savings account for 2016 :
EUR  USD  GBP  AUD  CAD  DKK  CHF
0,61% p.a. 1,05% p.a. 0,78% p.a. 2,04% p.a. 0,70% p.a. 0,00% p.a. 0,08% p.a.


 For information, yields from the Libor* 3M for the same period were -0.26% for EUR, 0.74% for USD and 0.50% for GBP. No data is available for the other currencies.


The additional bonus :
a) is calculated pro rata temporis for deposits held during the period 1 January 2016 to 31 December 2016,
b) and will be credited to accounts on 31 December 2016.



2017
Interest rates on savings accounts and on term deposits account (AMFIE Flexible)

Please find the returns on the savings accounts for the 1st quarter 2017 :
EUR  USD  CHF  GBP  CAD  AUD  DKK 
0,30% 0,85% 0,10% 0,30% 0,60% 1,80% 0,00%

   

Members who are willing to place funds for a specified period of time can obtain higher yields through our AMFIE Flexible term-deposit accounts.


The following annual rates (per annum) are currently offered (01 January 2017) on term deposits with the AMFIE Flexible formula :

Term EUR  USD  GBP 
12 months  1,00% p.a. 1,40% p.a. 0,70% p.a.


 

* Libor is a set of money-market reference rates for various currencies.