Banks are pursuing a crucial bottom line objective in these times of negative interest rates: attracting money from customers to funds investment. These products leave you commissions, which translate into more income and benefits, while the savings that remain in checking accounts and deposits even cost them money due to the ECB’s policy.
A challenge in which they are making considerable progress. In the first months of the year, the largest Spanish banks have already registered joint net inflows of more than 8,000 million euros, according to calculations based on data from Inverco, the industry association.
An increase that further exacerbates ‘banking’ in the distribution of financial products in Spain. An increasingly intense concentration despite the rise in the number of independent firms and the increasing strength of insurance managers.
Two entities are leading the attraction of money to their funds this 2021: Santander Y Caixabank, more than 1.6 billion euros and 1,500 million euros, respectively, in these first five months of the year. In the Top 5 with the most entries, Ibercaja, Kutxabank and BBVA, with around 1,000 million euros of net subscriptions.
Alternatives to deposits
The strategy of the entities has sought to attack the different types of investors. On the one hand, to those who seek an alternative to deposits, even with a negligible expected return, but without assuming risk. On the other, those who are willing to assume a little more weight in riskier assets, to seek a higher return.
This is reflected in the case of Santander. Among the most conservative, he has been massively selling his fund Santander Horizonte 2027, with which it has raised more than 800 million euros since January. A product that according to your brochure can offer as maximum APR profitability 0.23% unsecured.
For the most daring, their big bet has been the Santander Future Wealth, a fund that invests in the so-called megatrends and allocates its portfolio to thematic funds of large international management companies. Since January this product has captured more than 700 million euros.
In the case of Caixabank, there has also been a fund of this style among the best sellers, the Caixabank Selection Trends, which since January has captured more than 460 million euros. Although the big bet is being its discretionary management portfolios. Especially the Caixabank Master portfolios.
The funds that make up this range have entered this year more than 1,000 million euros this 2021, which raises its assets at the end of June above 23,200 million euros. A growth that also makes international management companies grow, since a good part of these portfolios are indirectly invested in funds from these firms.
In the case of Ibercaja Management, also the double way of reaching the most conservative profile and the one assumes more volatility has paid off. Among the former, it has raised more than 300 million with its Ibercaja Renta Fija 2026-B fund, according to Inverco data. While among the latter, the growth of its Ibercaja Gestión Evolución and Ibercaja Crecimiento Dinamico funds stand out.
Finally, in this repoker of large entities with more deposits in 2021, BBVA and Kutxabank would enter
Finally, in this repoker of large entities with more deposits in 2021, BBVA and Kutxabank would enter. The funds of the first with more deposits do have a touch of greater search for long-term profitability. Specifically, the entries that have had the funds stand out Quality Mejores Ideas Y Quality Moderate Investment, both with net inflows of more than 400 million euros since January.
In the case of Kutxabank, the inflows of money have revolved around its range of discretionary management portfolios, as before we commented with Caixabank. It is interesting that, within these ranges, the fund with the highest deposits until the end of May has been one of European equities, the Kutxabank Bolsa Small & Mid Caps Euro, a sign that the firm’s management team was positive about the behavior of the European stock market. The other two with more income are already fixed income.