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Loreto Mutua achieves a 4.43% yield, double the market average

The mutual company achieves an all-time high in assets under management, with €1.377 billion

Madrid, 28 June 2017. Loreto Mutua, a non-profit independent institution specialising in retirement savings products and ranked among the leading institutions dedicated to social welfare in Spain in terms of assets under management, has announced a return on its mutual benefit fund of 4.43%. These figures represent an average return in the last decade of 4.38% and an increase in the purchasing power of its members’ savings of more than 28%.

According to data from INVERCO, the profitability of the mutual benefit fund is twice the average profitability of national market pension plans (2%) and six times the average return on mixed fixed-income pension plans, which last year was 0.71%. According to results from the past decade, the average yield on Loreto Mutua’s mutual fund was three times the average for mixed fixed-income plans (1.33%).

Assets at an all-time high
The mutual benefit fund, which holds its Annual General Meeting on Tuesday 27 in Madrid, has assets of more than €1.377 billion, representing growth of 1.78% relative to last year. This figure represents a record for the mutual benefit fund, consolidating its position as one of the leading Spanish institutions in terms of assets under management under management. At the end of the year, its assets consisted of 46% fixed income, 25% liquid assets, 23% equities and 6% real estate.

A balance between profitability and safety
Jon Aramburu, Loreto CEO, said “2016 was one of our mutual benefit fund’s best years, doubling the market average and outperforming our category of mixed fixed-income pension plans by a multiple of six. We should highlight the fact that since 2016, we have applied the Solvency II standard, comfortably complying with the financial requirements imposed. We have improved both the controls on and the measurement of risks, and in general the governance system, in order to provide the best possible assurance and transparency. In addition to the results, we have signed up to UNPRI, the UN Principles for Responsible Investment and joined ASCRI, the Spanish venture capital and private equity association, which aims to publicise the contribution of private equity to the growth of SMEs in Spain”.

“Our company’s results go beyond the aviation sector. In 2016, Loreto Óptima, our personal plan, obtained a return of 4.35%, the mutual benefit fund’s Plan Asociado posted a 4.56% return, and the newly marketed employment plan, Loreto Empresas, closed its first year with a return of 5.36%,” concluded Jon Aramburu.