Extension of the Deadline for the Target Portfolio, 4/2026
We have extended the final deadline to invest in our Target Investment Fund Portfolios, maturing in April 2026. The original deadline, set for October 15, 2024, has now been extended to December 9, 2024.
Previously, we communicated that only lump-sum contributions would be allowed until mid-October of this year. However, thanks to the extension of the subscription period for the M&G fund we use, we have managed to extend this deadline to December 9, 2024. This extension provides our clients with the opportunity to benefit from the excellent target IRR of 3.10% (net of fees) for this portfolio, after the adjustment detailed below.
Adjustment of the Target Portfolio 4/2026 Distribution
Additionally, the investment committee has decided to change the weighting of the funds that make up the portfolio. Since its launch, 20% of the weight was assigned to a money market fund to take advantage of relatively high official interest rates in the Eurozone. However, due to the decrease in rates since June of this year, we have decided to reduce exposure to the money market fund to 5%, increasing the weight of the target fund to 95%.
This way, investors can take advantage of the attractive IRR offered by this type of portfolio, without being affected by the successive cuts to official interest rates that could occur before it matures in April of next year, as is forecasted by the market. Specifically, the market is currently pricing in more than 5 rate cuts by the end of 2025, which, if realized, would bring rates down to 1.8%.
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