The pension plan for companies designed by Francisco García Paramés it is already a reality. The founder and head of Cobas Asset Management has enabled the Cobas 100 Employment Plan, with a 1% management fee and a pool of more than one ten SMEs as potential clients.
As Paramés announced at the last annual investor conference of its manager, this same year it would enable its first employment pension plan, a project that, however, has taken practically two years since it was registered, coinciding with the Covid crisis -19. But it is already here.
Cobas has launched this long-term savings product at the request of the firm’s own clients, a solution that solves a problem: supplementing the public pension that workers will receive from Social Security upon retirement, which each time will go to less.
The Cobas 100 Employment Plan is aimed “at any company that wants to contribute to complementary savings to provide coverage to its employees, from large multinationals to small and medium-sized companies, regardless of the number of employees,” they explain from the manager. It can be hired by adhering to the Cobas 100 Employment Plan, which is launched with a 1% commission.
At first, the interested parties are SMEs, without prejudice to the fact that they may also be large. “Have [en los fondos de inversión] many business clients who know the current pension problem and care about their employees. Let’s think that it is a market that is almost entirely covered by banks, which have no commercial interest in marketing their products to SMEs because they have little margin, ”explains Gonzalo Recarte, commercial director and head of Investor Relations, Marketing and Communication at Cobas.
Replica Cobas Selection
The business plan will try to replicate the fund’s strategy Cobas Selection and it will have at least 80% of the total exposure to equities of any capitalization and sector of OECD issuers, with the possibility of investing up to 40% in emerging countries. Paramés’ flagship fund, which combines the international stock market with the Spanish stock market, rises by about one 27.5% so far this year, although its annualized average profitability since 2017, at which time started operating, it is -3.2%, as a result of the significant losses that occurred up to the third quarter of 2020.
Following the management model and philosophy of investment in value (value investing), aims to build capital for retirement by selecting “assets undervalued by the market, with high potential for revaluation.”
Since 2021, the maximum annual contribution to individual plans is not 8,000 euros, but 2,000. Also, the maximum to contribute in employment plans has risen from 8,000 to 10,000 euros.
The Cobas plan is inserted into an employment pension system that, at the end of June, managed almost 37,000 million euros from 1.9 million participants in Spain, with data from Inverco.
‘Online’ training for companies
In addition, Cobas, in its efforts to promote knowledge in long-term savings and investment, makes available to companies a free financial education course 100% online for your employees. This training will include audiovisual content prepared and produced by Value School in collaboration with Cobas AM.
“We want to bring companies a complete financial planning solution that allows them to provide complementary coverage to their employees, from investment to training. Companies must take a leading role in the change of the pension model that, inevitably, is yet to come ”, confides Recarte.
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