MAPFRE AM to boost institutional business in 2022 by entering new markets
MAPFRE Asset Management (AM), which manages assets of more than 40 billion euros, announced in a press conference with industry journalists a growth plan based mainly on developing the institutional business. According to Álvaro Anguita, MAPFRE AM's CEO, net fundraising is expected to be 500 million euros in 2022 from retail investment, similar to this year’s figure, and the same level from institutional investment, “an area that will receive a strong boost next year.” "We intend to leverage the relationships we have in the Group with large clients, not only in Spain but also internationally," he added.
Eduardo Ripollés, MAPFRE AM's director of institutional business development, who joined the Group at the end of 2019, will lead this initiative with the help of a team. As Anguita explained, the company intends to explore new markets, something made possible by the asset manager's SICAV in Luxembourg, with capital currently exceeding 1.2 billion euros. After starting sales in France, for which it relies on the partner La Financière Responsable (LFR), and domiciling the funds in the United Kingdom, in this case exclusively for institutional investors, it will take the leap into Latin America. "We want to take advantage of the Group’s strength in the region, and we have already initiated our first contacts with countries like Colombia and Peru."
The company has other projects underway, such as launching a private debt fund, MAPFRE Private Debt. In the pensions area, it is accelerating its efforts to be the first to have the new collective pension plans. It already launched a first joint promotion vehicle for SMEs and self-employed workers two months ago, and another one focused more on the Group's customers is being prepared.
In addition to MAPFRE AM, growth is also underway at MAPFRE Gestión Patrimonial (MGP), an area that offers financial investment solutions to customers in order to make their savings profitable. Its first portfolios just celebrated their fifth anniversary with returns of up to 70%. At the same press conference, Miguel Ángel Segura also stressed that 2021 has been a "great" year for both returns and fundraising despite the correction in the markets in recent weeks. In October, the volume of assets managed in open architecture exceeded 1.2 billion euros, which represents more than 55% year-on-year growth. Segura pointed out that MGP has over 100 agents and five offices. “In addition to doubling the number of agents, the company plans to open five more offices during the 2022-2023 period,” he said.
Keeping an eye on inflation
Finally, José Luis Jiménez, MAPFRE's chief investment officer, emphasized during the press conference that the past year has been positive for the group in terms of both returns, close to 20% in most of its funds, and growth. Next year, he believes the impact of higher prices "will depend on whether they can be controlled." But the European funds will also influence activity in the coming months, while the pandemic “is already subsiding” despite the new COVID-19 variants. Additionally, Jiménez highlighted the role of interest rates, which he expects "to continue rising gradually.” Therefore, he does not rule out the possibility of a 1% rate of return on Spanish bonds.