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There are birthdays that one celebrates without much fuss. Or because it is going through a bad patch or because it feels that not many friends come to the celebration anyway… Something like this could happen to the Spanish stock market, which is not in the best moment from the point of view of popularity among investors.

The Ibex 35, the most followed index of the Spanish stock market, turned 30 this Friday, a period in which it has gone through times of splendor, in which it has become part of the leading group for profitability among world stock markets.

But now the situation is very different. at 3 years, the indicator is even negative, when the European Euro Stoxx gains almost 40%, the US S&P 500 advances 76% and the technological Nasdaq more than 100%.

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If we expand the view to the date of his birth, the revaluation of the Ibex 35 would be close to 4% average annual return or 233% accumulated. Although it should be noted that this most popular version of the index is calculated without dividends, unlike many of the large international indices, which is a clear disadvantage.

To see the real return that an investor would have had, one would have to look at the it does include the remuneration of companies to shareholders, the Ibex with Dividends, but here the comparison period is shorter, since it was born in April 2009. And how has this more realistic indicator done in the last 10 years? 60% up. That is, about 5% annualized average.

A figure that the investor in Spanish equities could have exceeded with some of the investment funds that are specialized in this asset. We share below the 10 with the highest profitability at this term.

Photo: The conversation and activity around SPACs has reached a stage of maturity.  (Photo: iStock) Opinion

The selection was made on Friday, January 14 through the Finect page, choosing only those products belonging to the Spain variable income category and ordered by highest annualized return in the last decade.

Here is the ranking:

1. Santander Small Caps España

The fund managed by Lola Solana, who came to star in one of the first announcements after the chimes four years ago, is one of the largest funds for Spanish equity assets, with a net worth of 376.75 million euros, according to Morningstar data. Accumulate a return of 156.67% in the last 10 years, which implies an annual return of close to 10%.

Invest mostly in small and mid cap companies. The three main positions in this fund are held by Indra Sistemas (with a weight of 6.35%), Laboratorios Rovi (5.94%) and Acerinox (5.71%), according to the product information sheet for December 2021. These companies are part of the Ibex 35, although they have a small weight in the index.

2. Metavalor

Even if falls 10% from highs, the Metagestion fund resists as the second most profitable in the category, with an annualized gain of 8.08% in the last 10 years.

3. EDM Investment

The bronze medal for 10-year profitability goes to EDM Investment, with an average gain of 8.02% per year. “We are looking for companies with competitive advantages, sustainable profit growth and high cash generation,” they explain from EDM. The Luxembourg-domiciled version of this fund has similar returns.

4. Mutuafund Spain

The Spanish stock market fund of Mutuactivos, the asset manager of Mutua Madrileña, has accumulated a profitability of 109.74% in the last decade. If calculated annually, the average profit stands at 7.69%, also clearly above the Ibex with dividends.

5. Gesconsult Variable Income

The management team follows the investment philosophy known as value investing (value investment, in Spanish), which is based on the acquisition of quality securities at a price below their intrinsic or real value. This fund has achieved an annualized return of 7.63% over the last decade.

6. Fidelity Funds – Iberia

It is placed in the seventh position when obtaining a average annual gain of 7.36% in the last 10 years. Currently the main positions in the fund are held by Iberdrola, Amadeus and Inditex, according to the fund’s file as of November 30.

7. Caixabank Small & Mid Caps España

The second fund of large banks that slips into this top 10. In this case, it achieves a annualized return of 7.32% over 10 years.

8. Rent 4 Bag

In very similar figures moves the Spanish equity product of Renta 4 Banco, managed by Javier Galán, with assets close to 64 million euros. Its 10-year annualized return, 7.3%.

9. Bestinver Scholarship

One of thes traditional funds to invest in the Spanish stock market, which has 152 million euros of assets and is now managed by Ricardo Seixas. Its 10-year annualized yield rises to 6.8%.

10. March International Iberia

To finish the ranking, this Banca March product, which moves in a equity less than 23 million euros, but which also exceeds the return of the Ibex 35 with dividends, achieving a yield of 5.9% over 10 years.

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