The funds of the 'Active Management League', 15% from recovering their pre-Covid level

Madrid

17/12/2020 – 19:58–
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In the absence of nine trading sessions to the end of the year, the Spanish equity funds present in the Liga de la Gestión Activa de the Economist They lack only 14.77% on average to recover the net asset value they had a few weeks before the sharp falls in the markets caused by the pandemic.

The Ibex touched 10,083 points on February 19, its maximum in the year, and since then the news that had been arriving about the coronavirus in Italy and its spread to the rest of European countries was making a dent in the index, until the generalized confinements they sank markets globally. In just one month, until March 18, active funds on the Spanish stock market lost 34.5% of their average net asset value, which stood at 117.4 euros in mid-February. And now, with data up to December 15, it is already at 112.5 euros.

Although the investor always looks at the profitability of the funds, it is important to take into account the net asset value of the product where it is invested, because it is the reference price to buy a share of the fund and it is what the participant will receive if they make a redemption . The profitability does not stop being the variation in a given period of that net asset value, which results from dividing the fund’s assets by the total number of shares.

And this data is important because, although due to revaluation Investors in the Spanish League funds lose 12.6% on average in the yearAt least they are managing to reduce the gap in the loss of the value of their shares, which could still narrow a bit further if the upward trend of the stock market continues between now and the end of the year, as some firms predict.

In fact, there are active funds that not only lack little to recover their pre-Covid net asset value but, by performance, can close the year even without losses. It is the case of Caja Ingenieros Iberian Equities, Gesconsult Variable Income, Bankia Small Caps and Unifond Small & Mid Caps, which are below 5% of falls in the year.

This is the case of the Caja Ingenieros and Gesconsult funds, which are very close to recovering the net asset value they had before the stock market catastrophe, only 1.25% and 2.60% of recovering their pre-Covid price. Gonzalo Sánchez, manager of Gesconsult Renta Variable, emphasizes that it is very difficult to say if they will achieve it in the little remaining of the year, but that “we are so close to achieving it in a year as complicated as 2020, it speaks highly of the companies in the that we trust and the potential that exists in a portfolio, once the current situation normalizes. ” Among its bets are CAF, Navigator, Ferrovial, Grifols and Sacyr.

Metavalor, which is at the top of the League for profitability in the year, is 8.90% from recovering its pre-Covid level. Miguel Méndez, CEO of Metagestión, explains that cyclical values are what have allowed this comeback. “It is true that, from time to time, certain doubts could arise in the evolution of the pandemic and, therefore, in the continuity of the recovery, and that these types of companies will take a breather, but in general we see that the flows of money are focusing mainly on the cycle and, in addition, with a vocation to remain there, “he says.

Back to cycle

This return of investors to cyclical stocks is what has allowed the ‘small caps’ and more ‘value’ focus funds to benefit above all. It is the case of Horos Value Iberia and Bankia Small Caps, which are other of the funds that are closest to the net asset value that reached the maximum of the Ibex in the year. Javier Ruiz, investment director of Horos AM, points out that companies such as Catalana Occidente, Merlin Properties or Semapa are “some of those that have suffered significant falls in this period and continue to have significant weight in our portfolios.”

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Iciar Puell, manager of the Bankia fund, assures that “the vaccine is getting closer and closer, which will help the values most penalized by the pandemic. Our main position continues to be Rovi, a company that can be boosted by its agreement with Moderna and an accelerated procedure for the approval of vaccines in Europe. We also bet on ideas such as Euskaltel or CAF, without forgetting companies linked to the energy transition such as Solaria, Solarpack or Soltec “.

Similar ideas for which they have bet on Mutuafondo Spain, which is 8.4% from returning to its net asset value in mid-February. “We have strengthened positions in companies that are going to benefit from an energy transition process that seems unstoppable, such as Talgo, Red Eléctrica, Solarpack, Solaria or Soltec, apart from investing in firms that have been severely affected by the pandemic, whose businesses they are more directly exposed to mobility restrictions, as is the case with Inditex, Amadeus, Aena, IAG “, they assure the manager.

Ricardo Seixas, head of the Iberian portfolio at Bestinver, believes that with the few sessions remaining for the end of the year it will be difficult to end positively. “Our portfolios are now clearly more cyclical than in February, which implies that if the good news about vaccination and reopening is visible and strong, in the second half we should exceed those levels at some point not too distant,” says the manager.

An opinion shared by Javier Galán, Income 4 stock manager, who is optimistic that the all-time highs will be achieved in the coming sessions or during the first quarter of 2021, “once again demonstrating that patience in equities and in investment in mutual funds, it always pays off “.

Worst in class

Among those who find it difficult to offer their shareholders the net asset value they had before the falls caused by the pandemic are the funds of José Ramón Iturriaga. Okavango Delta it should go up about 38%. And the funds of azValor, Cobas, Santalucía or Dux have the same problem, although with lower percentages.

Rodrigo Utrera, head of European stock market at BBVA AM prefers not to make predictions because “it is a very short-term guessing exercise in which we honestly cannot participate, since in our opinion such a short term basically depends on random factors.”