The MAPFRE solidarity fund set up to fight COVID-19 reaches 50 million target in just two weeks
MAPFRE Compromiso Sanitario has raised 50 million Euros for the Madrid health authority to use in battling the pandemic
Fund attracts 2,150 investors
MAPFRE Compromiso Santiario, an investment fund created by the insurance group’s fund manager MAPFRE AM to assist in the fight against COVID-19 has raised 50 million euros and is now closed to new investment having been launched just two weeks ago on the 27th April.
MAPFRE AM believes significant interest in the fund was generated lies not only by its altruistic nature but also because of the attractive return it offers. The fund’s underlying asset is a social bond issued by the Community of Madrid and offers a total of 3 percent guaranteed, which the client will receive on maturity in 2023. This is a much higher return than might be expected (0.36 percent per year), thanks to an additional contribution from the fund manager, which is close to one million euros. In addition, the fund does not apply any type of opening or management commissions, custodial or marketing charges.
The maximum contribution allowable per investor was limited to 50,000 euros, in order to facilitate broad participation, principally from private clients, thereby serving as a bridge between savings and people, and much-needed current healthcare financing needs. In total, more than 2,150 participants have joined this solidarity initiative with an average contribution of around 20,000 euros. The Community of Madrid, which will receive the money for healthcare on May 29, will provide the fund manager with an impact report showing details of how the money was used.
MAPFRE Group has been involved in the fight against COVID-19 from the outset, and has taken measures to protect all its stakeholders (clients, employees, provider), supporting society and mitigating to the effects caused by this disease in the economy to the greatest extent possible.
In total, the group has mobilized more than 200 million euros, mainly for the benefit of SMEs and the self-employed. The Compromiso Santiario fund underpins MAPFRE AM’S contribution to the Group’s ESG commitments in both funds and in pension plans. MAPFRE AM manages nearly 40 billion of the 65 billion managed by the Group in more than 26 countries.
Fortuna Asset Management Communications Ltd.
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