The returns on the Savings Portfolios have been, as expected, in line with what we have been communicating.
The Savings Portfolios have been designed to replicate the interest rates of central banks with an optimized composition of monetary funds that have this function. That is why we communicate that the Yield is variable, that is, it varies at the same time as the central banks raise or lower their official interest rates. For the Euro, according to the European Central Bank (ECB) or the US Federal Reserve for the dollar.
The table above shows the current (variable) Yields updated to the end of January 2025. The Yield in euros has dropped as of 12/06/2024 and is 2.35% minimum (2.53% maximum for more than 5 million). For the dollar version, the Yield is 4% (maximum 4.13%).
As can be seen in the following table, a client who had started investing in the EUR and USD Savings Portfolios on 11/30/2022 would have accumulated 6.3% or 10.2%, respectively, by the end of 2024.
Important note: past performance is no guarantee of future performance.
Annualized yields (CAGR) have been 2.9% in euros and 4.8% in dollars. These CAGRs are obviously above the current Yields because the latter has been falling as central banks have been cutting interest rates.
Risk-adjusted returns reaching ratios of 6 in euros and 7 in dollars are impossible to achieve in other types of portfolios at the moment.
Important note: past performance is no guarantee of future performance.
As can be seen in the chart above, one of the virtues of the savings portfolio is its predictability, that is, the profitability accumulates in an almost constant manner. Its volatility (see first chart) has been close to 0%: specifically 0.5% for the Savings Portfolio in euros and 0.7% for the Savings Portfolio in dollars.
Looking ahead to 2025, we may continue to see central banks lowering interest rates. However, in the coming months and years, returns are likely to remain positive. Therefore, the savings portfolio will continue to be one of the most attractive alternatives for both immediate savings and for managing an emergency fund.
The returns on the Savings Portfolio are clearly above the interest rates on deposits
Since we launched the savings portfolios, the profitability has always been higher than the interest rates on deposits of up to 1 year from banks and, on average, a client would have obtained 1.7 percentage points more, accumulating 5.9% (instead of the 4.2% that an average deposit would have accumulated) until the end of November 2024, as we can see in the following graph.
Important note: past performance is no guarantee of future performance.
During the same period, the Yield of the Savings Portfolio has been 1.45 times higher than the interest rate on term deposits of up to 1 year.
Important note: past performance is no guarantee of future performance.
