Large Traditional Banks Manage 75% of Spanish People’s Investments in Funds

Spanish investors rely on large banks for fund management. Or at least that is what the data show. In May, Spanish mutual funds registered an increase in assets of €2.5 billion, an increase of 0.76%, bringing the total assets under management at the end of the month to €33 trillion. But who manages this money? 75.6% is managed by banks, especially traditional banks.

According to asset management provider VDOS, banks maintain, for yet another month, their dominant position with €2.5 trillion under management. The increase in mutual fund assets is mainly due to net fundraising of €1.55 billion, and there is also the performance of portfolios, albeit to a lesser extent, amounting to €937 million.

In fact, these net deposits were mainly concentrated in banking groups, with €1.34 billion, followed by cooperative credit societies with €144 million and independent groups with €124 million. However, cooperative credit societies recorded the highest percentage increase in assets, 1.69%, followed by banks with 0.88%.

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There are three main reasons why Spaniards prefer traditional banks to manage their investments in funds

The first of these is due to the large presence they have. Spanish financial institutions have a commercial structure throughout the country. The second reason is the convenience of having several services in the same entity. In addition, the third reason could be that it is a well-known and recognizable brand.

By financial group, BBVA obtained the largest net fund-raising of €493 million, followed by Kutxabank and Ibercaja, with €368 and €295 million. Caixabank maintained its position as the largest national institution by assets under management, with €79.8 billion and a market share of 24.18%, followed by Santander with €49.5 billion and a market share of 14.99%, and BBVA, with 14.69% and €48.5 billion.

In terms of profitability, among the main fund managers by assets under management, Gescooperativo stands out with 0.98%, followed by Mapfre Asset Management and Caixabank Asset Management with 0.77% and 0.71%, respectively. Among the independent managers, Brightgate Capital stood out with a weighted average return of 3.79%, followed by Abaco Capital with 3.21% and Acci Capital Investments with 2.98%.

Beyond who investors manage their investments with, May has been marked by a more conservative profile

According to data from Inverco, the mutual fund association, vocations with a more conservative profile recorded increases in assets, continuing the trend registered since the beginning of the year. Thus, in absolute terms, mutual funds with a more conservative profile recorded increases in assets, continuing the trend seen since the beginning of the year.

Thus, in absolute terms, Fixed Income Funds, with an increase of €1.26 billion, led the ranking of asset growth by category (€12 billion in the year) due exclusively to the inflows recorded. The interest shown by investors in this category was once again reflected in increases in all fixed-income categories, both short- and long-term.

International equity funds saw their assets increase thanks to positive returns from the stock markets, as all of these vocations recorded negative outflows, mainly focused on the European continent. Passive Management and Money Market Funds also recorded growth (€1.09 billion overall) due to the net inflows recorded during the month, with Money Market Funds posting the highest growth in percentage terms for the month (5.2%) and 25.7% growth for the year as a whole.

However, Passive Management Funds lead in percentage terms (85.8%) for the year as a whole. On the other hand, the Mixed Funds experienced the largest declines in assets (€635 million), with those focused on fixed-income securities showing the largest decreases (€557 million), due both to the outflows recorded during the month and to the negative returns generated in the fixed-income markets. Global and Guaranteed Funds also recorded small declines in assets (€384 million and €175 million respectively), as a result of net redemptions in these categories.

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(Featured image by julientromeur via Pixabay)

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First published in EL INDEPENDIENTE, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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