At the end of January, I joined colleagues and product providers at our annual conference in Monaco. We heard a range of insightful presentations from companies including Evelyn Partners, iPensions, Momentum, New Horizon, VAM Alquity, LGT Wealth Management, Novia Global, Rathbones, Utmost, Prudential and RBC Brewin Dolphin.
French Financial Update February 2026
By Katriona Murray-Platon
This article is published on: 10th February 2026
There is often a difference between what dominates the headlines and what investment managers focus on. While it has become increasingly difficult to ignore what is happening in America, it is important to remember that we maintain a long-term focus for our clients’ investments.
As outlined by the fund managers, markets remain heavily tech-focused. However, although stocks from the companies known as the “Magnificent Seven” dominated markets in 2023 and 2024, there has been some broadening in 2025. Nvidia shares have recently flatlined and Microsoft was down 20%. Even though European stock markets are performing better, fund managers are not yet ready to abandon US equities in favour of European ones.
Unfortunately, the UK economic outlook remains gloomy. For several years now, fund managers have highlighted how little exposure they have to UK stocks within their portfolios. However, the FTSE 100 performed well in 2025, largely because many UK companies generate profits outside the UK.
There was considerable discussion around artificial intelligence.
While some may view AI as potentially similar to the dot-com bubble, our product providers demonstrated how the underlying economic fundamentals are very different.
Many people now use AI, but the key question remains: who is actually making money from it?
AI also requires significant infrastructure, including large data centres and substantial energy supply. Its influence is now extending into emerging markets as well.
Fund managers have reduced their oil exposure as energy prices continue to decline. Sovereign bonds, however, are becoming more attractive, with yields of between 1% and 3%, particularly Norwegian, Australian, New Zealand and Japanese bonds.
Novia announced its new GIA product which, like its SIPP, can hold funds denominated in HKD and Australian dollars, as well as GBP, EUR, CHF and USD. Currently, UK SIPPs sit outside a deceased person’s estate for inheritance tax purposes. However, proposals from the UK Chancellor will bring defined contribution pensions into the inheritance tax net from 6 April 2027.
Evelyn spoke about the digital data boom, describing it not as a fad but as a generational shift (anyone with teenagers will relate). Their aim is to “turn data into dollars” in 2026, and they continue to see opportunities, particularly among companies utilising AI. Stronger earnings and a weaker dollar are also supporting emerging market equities.
In French financial news, from 1 February 2026 the interest rates on French savings accounts have been reduced as follows:
Livret A: 1.50%
Livret de développement durable (LDDS): 1.50%
Livret Jeune: 1.50%
Compte Épargne Logement (CEL): 1.00%
Returns from euro funds in French assurance-vie policies appear to have stabilised. The average rate of return in 2025 was 2.65%, compared with 2.63% in 2024 and 2.60% in 2023.
After social charges taken at source, the average net return is 2.19% — only 1.5 percentage points above inflation.
While these assets are often viewed as safer options, cautious investors may benefit over time from increasing equity exposure to achieve stronger long-term growth.
Local taxes, in particular taxe foncière, are not expected to increase by more than 0.80% in 2026, due to the increase in the rental value of properties.
Other key changes from 1 January 2026 include:
- The annual social security ceiling is set at €48,060 (€4,005 per month).
- The legal interest rate is set at 6.67% for loans between individuals (for example, late custody payments) and 2.62% for loans between professionals.
- The maximum amount that can be withdrawn from a deceased person’s bank account to cover funeral costs is €5,965.
- Medication, treatment or services provided by non-contracted doctors (those who set their own fees) will no longer be covered by social security from January 2027.
- Fees for certain medical specialists have increased (€40 for a gynaecologist, €42 for a geriatrician and €57 for a neurologist).
- Stamp prices have increased, as they do each year, to €1.52 from €1.39. Postal costs for other services have also risen.
- Interest earned on PEL savings accounts is subject to income tax (12.8%) and social charges (18.6%), bringing the flat tax rate to 31.40%. Holding a PEL allows access to a mortgage at 3.2%.
- If you are expecting a baby in 2026, you may be entitled to an additional two months of maternity, paternity or adoption leave.
In January, if you benefited from specified tax credits or reductions (for example, home help), you will have received a payment equal to 60% of the total amount. The remaining balance will be reconciled through your 2025 tax return in September 2026.
After catching up with work following the conference, I will be spending time with my family from 16 to 20 February during the half-term holidays. If you have any questions about the information above, or would like to arrange a time to discuss your financial matters, please do get in touch.