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Seven MAPFRE AM's mutual funds beat the 20% return mark

Jan 18, 2022

Redacción Mapfre

Redacción Mapfre

Equity markets generally performed well during the past year, despite episodes of high volatility due to the pandemic, the upturn in inflation, and the change of course at central banks. In addition to this more favorable backdrop, the good work of the management team of MAPFRE AM, MAPFRE’s asset management firm with more than 40 billion in assets, has led to spectacular results during the last fiscal year.

Consequently, in equities, seven funds have achieved 20% returns or even exceeded those levels. The best performing product was MAPFRE AM Inclusion Responsable, a fund that invests with ESG criteria, i.e., environmental, social, and governance. In his speech at Spain Investors Day, Antonio Huertas, Chairman and CEO of MAPFRE, recently pointed out that reality has shown that financial returns must go hand in hand with social returns. And there is no better example than what is happening in the company itself: this fund’s portfolio contains companies committed to the labor market inclusion of people with disabilities.

The fund is closely followed by two products focused on the other side of the Atlantic: the United States: Fondmapfre Bolsa America and MAPFRE AM US Forgotten Value. The latter arose from an alliance with the US boutique Boyar Value Group.

In addition to equity funds, MAPFRE AM has mixed and fixed-income products that can be adapted to each customer’s risk profile. All of them are managed through an efficient process aimed at identifying market opportunities. The ultimate goal is to build portfolios composed of securities in which the management team, composed of more than 100 professionals, can place its confidence. To do this, a value investment philosophy is adopted, which means that opportunities to maximize long-term profits are actively sought by betting on companies whose market price is below their real value.

Below are the main characteristics of the seven equity funds that have posted returns close to 20%:

MAPFRE AM Inclusion Responsable (+26.74%)

A mutual fund that invests in companies committed to issues of disability, that make it easier for this group to enter the labor market. Because companies that are financially solid tend to be the ones that are most committed to social work. The fund has a bias for quality and for large-caps.

The fund’s portfolio has found its greatest source of returns in its larger growth-style exposure. This has been achieved with less volatility than its benchmark index.

Fondmapfre Bolsa América (+26.59%)

A mutual fund that follows the value philosophy. The fund is mainly invested in large-cap companies, as is the index. The fund has had lower volatility than the S&P 500 during the period.

In addition, the fund’s portfolio is tighter in terms of valuations than the U.S. market. This means lower risk in the event of a potential market correction due to a more-than-likely rise in interest rates.

MAPFRE AM US Forgotten Value (+23.35%)

A mutual fund that follows the value philosophy, and specialized in the analysis of companies that are undervalued in the markets (≈50% medium-sized and small caps).

The fund’s main source of returns this year has been its value investments SMID caps. In addition, the fund’s portfolio is tighter in terms of valuations than the U.S. market. This means lower risk in the event of a potential market correction due to a more-than-likely rise in interest rates.

MAPFRE AM Good Governance (+22.37%)

A global equity fund that invests in companies with good corporate governance. It invests in large-cap companies. Its main source of returns has been the good performance of the large companies in this year of economic recovery.

Fondmapfre Bolsa Europa (+21.41%)

A mutual fund that invests in quality European companies (large caps). The fund is fairly balanced in terms of the style of investment. We could consider that the fund has a defensive profile with respect to the current market by investing in quality companies, as these protect the company’s portfolio from inflation due to these pricing power.

MAPFRE AM Behavioral (+19.53%)

A mutual fund that applies the theory of “behavioral economics” as a source for finding companies that are undervalued by the market. It mainly invests in small and medium-sized companies. Its major source of returns is explained by its greater weighting in the sectors of consumer discretionary, industrial and technology.

Fondmapfre Global (+19.24%)

A fund of funds that invests globally and aims to control risk. Its source of returns lies in its in-depth quantitative and qualitative analysis of funds worldwide. The volatility of the period has been lower than that of the market.

More information on the product range can be found at www.mapfream.com

Timeless lessons on wealth for retail investors

Timeless lessons on wealth for retail investors

Taking your first steps in the world of investing can be daunting, whether because of a limited knowledge, confidence, or fear of missteps. However, a wealth of information awaits those who know where to look. One of the highly most recommended books is “The Psychology of Money: Timeless Lessons on Wealth, Greed, and Happiness”, by Morgan Housel.

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