The large Spanish debt funds, those with a capital volume greater than one billion euros and which also concentrate the largest number of participants in conservative vehicles, face the last part of the year with a good face, after having managed to overcome the summer. with a additional yield of 141 basis points on the profitability with which they reached the month of June.
This group of “billionaire” funds arrived this summer with a revaluation of 0.90% on average and two months later they were offering 2.31%, with funds such as Trea Cajamar Fixed Income Securities A gaining 3.97%, with Morningstar data from September 4, after increasing its yield by 231 basis points. It follows Mutuafund Dwith 3.34%, and Caixabank Master RF Recommended bywith 3.24%, after having experienced increases of just over 200 basis points.
This is not the fund that achieved the highest increase in profitability after the holidays, since My Sovereign Fixed Income Portfoliofrom Santander AM, and CaixaBank Master RF Public Debt 3-7increased their profitability by 317 and 316 basis points respectively, to offer 0.78% and 1.42%.
It is not surprising that vehicles focused on public debt, especially European debt, were those that benefited the most from the summer break, given the increasingly clear expectation that central banks are heading towards a new stage of rate hikes. The purchase of sovereign bonds was concentrated on the short sections of the curve and, consequently, the reduction in their profitability, which had an impact on an increase in their price on the secondary market, in the opposite direction. The German two-year bond, for example, lost 17 basis points over the year to settle at 2.20%, while the Spanish bond settled at 2.52% after a reduction of almost 40 basis points.
Thus, this type of collective investment vehicle, which has a portfolio built exclusively with this type of short-term assets, has benefited, as have others classified as having objective profitability, such as Santander 9M May-25 Objectivewhich gained 2.29% over the year, after experiencing a rise of 68 basis points.
Since the ECB initiated the first rate cut in the eurozone in early June, investors have been exploring the possibility that monetary institutions will be forced to change strategy once inflation has eased and macroeconomic data such as unemployment have started to top the agenda. The Fed has already stressed this as a major concern for entities such as the Fed, as its chairman Jerome Powell has already stressed at the annual meeting of central bankers in Jackson Hole, and after the latest known data on US employment, investors are testing the possibility that the rate hike could even reach 50 basis points.
This sudden aid from the central banks has allowed important Spanish debt funds, such as Santander Renta Fija Privada A, CaixaBank Master RF Public Debt 1-3 advised by, CaixaBank Master RF Public Debt 3-7 (with 6.756 million euros, the Spanish Fixed Income (the vehicle with the most assets under management) or the My Sovereign Fixed Income Portfolio, which were in negative territory at the end of June.
He Public debt 3-7 CaixaBank, for example, lost 1.74% as of June 30, but is now offering a revaluation of 1.42%, above the 0.78% of the My Sovereign Fixed Income Portfoliowhich suffered a drop of 2.39%.
If expectations of rate cuts, both from the ECB and the Fed, finally come true, they will constitute an important revaluation lever for the portfolios of the most conservative investors, at a time when Treasury bonds will no longer be able to guarantee a profit of more than 3%, as has happened so far, so we will have to choose between other options. And here, bond funds, which play with the duration of portfolios, can be a good alternative for the most defensive profiles.
