FINANCE | 05.14.2020
The MAPFRE solidarity fund set up to fight COVID-19 reaches 50 million target in just two weeks
- The success of the fund will allow the Madrid health authority to receive the 50 million euros to use in battling the pandemic over the coming days
- The MAPFRE Compromiso Sanitario fund has generated great interest, attracting 2,150 participants
MAPFRE Compromiso Santiario, an investment fund created to assist in the fight against COVID-19, which was launched by MAPFRE AM on April 27, has already raised the forecasted 50 million euros. The insurance group’s fund manager is now closing this vehicle in just two weeks from the start of its commercialization.
The significant interest that the fund has generated lies not only in its altruistic nature, but also the attractive return it offers. The fund has as its underlying asset 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 three years time, in 2023. This is a much higher return to that of the bond (0.36 percent per year), thanks to an additional contribution from the fund manager itself, 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 health care on May 29, will provide the fund manager with an impact report showing the details of the investment made.
MAPFRE AM, which manages nearly 40 billion of the 65 billion managed by the group in more than 26 countries today, has been able to underpin its social commitment and boost its commitment to ESG (environmental, social and governance) and socially responsible investments, both in funds and in pension plans.
MAPFRE 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.