SPAIN - Spanish defined contribution plans posted positive annual results for the first time since 2007, data from the Asociación de Instituciones de Inversión Colectiva y Fondos de Pensiones (Inverco) revealed.
According to the trade body, the rolling weighted average profitability of these funds is 0.43% for the 12 months ended August 31.
Inverco's statistics are based on data from 1,090 Spanish DC plans, which have €48.8bn (US$71.1bn) of assets under management.
In 2009, profitability improved nearly seven percentage points - from -6.44% at the end of 2008 to 0.43%. On a monthly basis, it steadily gained ground towards positive territory since the beginning of the year.
Spanish equity funds (renta variable) are still in negative territory with average weighted profitability of -10.2% for the last 12 months. However, returns have improved from 2008 figures, when the equity funds were down 38.4% for the year.
Mixed equity fund (renta variable mixta) improved from -23.8% to -6.45% in the year ended August 31.
Fixed income funds performed best. Short term fixed income funds posted an average profitability of 2%, while long term fixed income funds gained 4.3%. Guaranteed funds' profitability was 4%.
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