Positive balance for the MAPFRE AM Capital Responsable Fund — a mutual fund driven by ESG criteria. Within three years of its launch, the fund now exceeds 100 million euros in assets and comes with the prestigious French SRI Label, created and endorsed by France’s Ministry of Finance to support the most sustainable and responsible investments
The MAPFRE AM Capital Responsable Fund is a conservative mixed fund that seeks to preserve capital and long-term growth through a balanced portfolio of bonds and European shares, favoring companies that meet ESG (Environmental, Social and Governance) criteria. This strategy aims to contribute to the growth and sustainable development of society, while also generating returns with lower volatility than the market average.
This fund, which has accumulated 23 million euros in subscriptions so far this year from retail investors, is “optimal,” according to Álvaro Anguita, CEO of MAPFRE AM, thanks to both its prudent investment profile and the fact that it incorporates responsible investment criteria for clients who seek balance and a controlled level of risk.
“Investors are moving away from traditional fixed income in pursuit of greater returns“, explains Anguita, who adds that “The fund’s yield—2.6 percent in 2020 and remaining above 2 percent in 2021—is very satisfactory. We’ve beaten its benchmarks and exceeded 100 million in assets.” In the March-to-March comparison, return is around 12 percent. “We are confident that we will exceed 150 million this fiscal year and attract institutional investors,” he said.
This success is owed to the relationship with a partner such as La Financière Responsible (LFR), in which MAPFRE acquired a 25 percent stake at the end of 2017, and with which it comprehensively manages the fund, incorporating environmental, social and governance criteria in investment decisions for both equities and fixed income.
The MAPFRE AM Capital Responsable Fund focuses on the European market both for corporate and government fixed income and for equity in mid- and large-cap companies.
The fund employs LFR’s methodology in relation to both equity and corporate fixed income. In the case of Public Debt, we follow MAPFRE’s own methodology, based on our experience and the volumes we have managed historically.
MAPFRE AM already opts for sustainable investment products out of principle, but new EU regulations mean it is now also a requirement for asset managers to adapt their practices to incorporate the Sustainable Finance Disclosure Regulation (SFDR). Accordingly, they must provide explanations of their position as a fund manager and in relation to each product, in order to differentiate investments that are socially responsible from those that are not. This is a big step forward that will certainly aid investors’ decision-making.
“In a few years nearly all managers will have to incorporate ESG criteria.” Mr. Anguita explains that “As soon as the EU directive was finalized, we decided that we were going to incorporate these criteria for all funds and portfolios that we manage, whether or not they were considered ESG, as is the case with Capital Responsable and MAPFRE Inclusión Responsable, the two flagship products in this area.”
It is worth highlighting that, at the end of 2020, both these funds were also awarded the “SRI Label” a seal of approval created and endorsed by the French Ministry of Finance that aims to make SRI (Socially Responsible Investment) products more visible to investors in France and Europe.
The “SRI Label” is awarded following a strict audit process, which is carried out by independent organizations and is a unique benchmark for investors looking to participate in a more sustainable economy.
MAPFRE Inclusión Responsable—the fund that invests in companies committed to people with disabilities and which has been cited as an example by the UN—also has a very good return of more than 30 percent over the last 12 months.
Thanks to the joint project with LFR and the opportunity for us to benefit from the French company’s experience, “We have managed to buy back a lot of time; time we would otherwise have had to spend creating a database and a methodology of our own as LFR has done over the last 20 years.”
MAPFRE Asset Management (AM) is Spain’s largest independent asset manager, with more than 40 billion in assets under management. One of our main objectives is to manage and maximize the group’s balance sheet assets, as well as its pension and mutual fund portfolios, thus ensuring the highest returns for our shareholders and our clients.