Bankia Takes the Cat out of the Bag at Investment Funds

Bankia's performance is around -15% lower than the sectorBankia's performance is around -15% lower than the sector

Capital Madrid | For the first time in its history, Bankia reached the level of 20,000 million euros in assets managed in investment funds. This was done at the end of January, during which Bankia again led the market in terms of net income, according to data from Inverco.
In this first month of the year, Bankia earned 336 million euros, which meant an increase in market share of 12.7 basis points, reaching a share of 7.18%, very close to the objective set in its strategic plan, which is to achieve a 7.20% market share by the end of 2020. Bankia was already the leading institution in terms of net fund-raising for the whole of 2019, with 1,543 million euros.

“We are very satisfied with these figures, because they are the result of the good reception our customers have given to the various initiatives we have carried out, mainly the portfolio management service ‘Bankia Gestión Experta’. But the most important thing is the confidence they give to us to manage their assets,” says Ignacio Ezquiaga, corporate director of Private Banking and Asset Management.
Among the keys to achieving these results, Pablo Hernández, commercial director of Bankia AM, highlights “the entity’s distribution model, whose priority is to be increasingly close to the commercial network, providing support through training, information and tools”, without forgetting “the alignment of the entire commercial network in advising the client with valuable investment products”.
Among them is ‘Bankia Gestión Experta’, the bank’s discretionary management service for investment fund portfolios, “which has given a big leap in the bank’s proposal of personalized investment solutions to meet the savings needs of each client, since the bank manages the client’s portfolio following consistent and coherent asset allocation parameters, depending on their risk profile,” said Hernández.

With Bankia Gestión Experta, clients can invest their savings in one of the four investment fund portfolios, with different levels of volatility and return expectations depending on the profile (calm, balanced, growing and advanced). The management of ‘Bankia Gestión Experta’ is characterized by the following parameters:
Professional management, carried out by a management team with more than 25 years of experience in the sector. It will be carried out in accordance with the client’s risk profile and investment objectives.
Active management, which adapts the portfolio on an ongoing basis, trying to take advantage of the investment opportunities that arise in the markets, reducing episodes of volatility.

Highly diversified, carried out mainly through funds of funds, which allow access to national or international funds and exclusive products, those which, by their nature, would not be accessible to the retail investor.
At the end of January, Bankia was managing more than 3,650 million euros in this portfolio management service, 18% of the total managed in mutual funds by the bank, in nearly 85,000 portfolios.

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The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.