Throughout 2024, global markets faced challenges due to fluctuations in monetary policies and an uncertain economic environment. However, the overall picture showed moderate resilience in the major economies, allowing for a gradual recovery, especially in Europe and the United States.
The European Central Bank (ECB) adjusted its interest rate in December, lowering it from 3.25% to 3%, supported by ongoing disinflation in the region, which helped the economy approach the ECB’s targets. Inflation in Europe closed at 2.2% in December, while core inflation remained around 2.7%.
In the United States, the Federal Reserve also reduced its policy rate by 25 basis points in December, bringing it to 4.5%, with the aim of normalizing economic conditions and aligning economic indicators with its goals. The U.S. economy continues to show signs of moderate expansion, with GDP growth at an annualized rate of 2.8% in the third quarter of 2024, reflecting stability in economic activity, though with signs of cooling in the labour market. In December, U.S. economic indicators also showed slight deceleration compared to projections, prompting the Federal Reserve to adjust its interest rate projections upward for the near future.
In this environment, the Pensions Caixa 2, F.P. Fund achieved a positive return of +11.9% in 2024, surpassing its investment target (Euribor 3-months + 3.5% annualized over a 5-year period). The annualized return over 5 years stands at 5.6%, above the target of 4.8% and the 3.5% CPI, demonstrating consistent performance against both indicators. In terms of the fund’s assets, equities have been a key area of positive performance, followed by alternative credit and fixed income categories. Private markets, which had underperformed in previous years, experienced a notable recovery in 2024, positively contributing to the fund’s overall return.
Compared to other pension funds in the Employment System and the Associated System, the Pensions Caixa 2, F.P. Fund remains among the top 5% of funds over 5 and 10 years, and among the top 25% of funds over 1 and 3 years in Spain. This solid performance reflects an investment strategy that continues to generate long-term value consistently.
In conclusion, the Pensions Caixa 2, F.P. Fund has continued to demonstrate favourable progress, achieving returns above the established objectives. This performance reflects the success of an investment strategy that continues to deliver consistent long-term value. The outlook for 2025 remains positive, with dynamic markets that will continue to respond to monetary policies and global economic adjustments. Despite short-term volatility, the medium and long-term projections remain favourable for investors with a diversified strategy.