MAPFRE: Positive Net Flows, Outperformance Driven by Sustainable Funds
MAPFRE AM, the investment management arm of Spanish insurance group MAPFRE reported today that net underwriting for the firm’s mutual funds has been positive year-to-date, despite the significant market turmoil caused by the COVID-19 crisis. Echoing a familiar trend being experienced across the asset management industry, MAPFRE maintains that one of the main drivers of this positive performance has been the momentum experienced in sustainable investment products.
MAPFRE has four funds that meet environmental, social and governance (ESG) criteria, which have recorded net gains of 62 million euros, as of the end of May. Most recently, the company launched MAPFRE AM Compromiso Sanitario, a guaranteed fund with a social impact bond issued by the Madrid local government as its underlying asset, with the funds collected dedicated to the fight against COVID-19.
MAPFRE’s other 3 sustainability-themed funds provide investor’s access to each factor of ESG – Environmental, Social and Governance. MAPFRE Inclusión Responsable (MIR), launched last year, invests in companies that promote the inclusion of people with disabilities, and was cited by the United Nations as an example of best practice. MAPFRE AM Good Governance is a global equity fund that invests in companies with good corporate governance. MAPFRE AM Capital Responsable invests in companies that meet a broad range of ESG criteria.
In addition to generating greater flows, MAPFRE has disclosed that the funds have generated significantly superior performance, with each exceeding their benchmarks both year-to-date, and since the beginning of the market turmoil in late February.
Commenting on the outperformance of the ESG-themed investment products, Álvaro Anguita, CEO of MAPFRE AM, said:
“I am convinced that investments with ESG criteria, with which we not only seek financial return, but are also helping to improve society in some way, will come out of this crisis stronger. You only need to look at how they have performed during these months of extreme market volatility to understand that an increasing number of clients are relying on these types of products.”