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Assets Under Management in Banca March's Discretionary Management Portfolios up 71.5% year on year to €1.72 billion at the end of June

14 July 2021 Category: Results

The assets managed by Banca March in Discretionary Portfolio Management (GDC) increased by 71.5% year-on-year, reaching 1,722 million euros at the end of June 2021.

  • At the end of June, the volume of assets managed by Banca March through this service rose to €1.72 billion, up 71.5% year on year. Customer numbers increased by 82.5% over the same period to total over 5,200 contracts. Growth has been steady and constant throughout the first six months of 2021, evidencing investors' unwavering confidence in Banca March to identify investment opportunities against a highly complex market backdrop.
  • Next Generation, the DPM strategy based on global megatrends, posted outstanding year-on-year AUM growth of 164% to a total of €560 million at the end of H1 2021.
  • The alternative investment strategies integrated into the bank's range of investment solutions through partnerships with K2 Advisors-Franklin Templeton and Banque Syz have attracted more than €300 million euros in AUM, up 140% versus June 2020.
  • The division's final launches of 2020, the sustainable and responsible investment (SRI) and impact investing solutions offered in partnership with J. Safra Sarasin and Amundi-CPR, also continued to generate outstanding inflows, attracting a combined total of €135 million, up 22% versus last quarter. A further €45 million was generated by the fixed income fund Robeco Global Climate Bonds, which seeks to pare down the carbon footprint of the issuers comprising the portfolio and is the latest addition to the ISR/Impact Investment range.
  • The fund of funds March Alternative Strategies, which was launched back in May by March Asset Management in coordination with Banca March and affords conservative investors access to a diversified portfolio of vehicles specialising in alternative strategies, registered AUM of €80 million at the end of June.

The assets managed by Banca March through Discretionary Portfolio Management (DPM) increased by 71.5% year on year to a total of €1.72 billion at the end of June 2021. The growth in customer numbers was even steeper, with 5,200 contracts at the end of H1 2021, up 81.5% year on year.

Banca March's discretionary portfolio management (DPM) services, which offer unrivalled added value in the market, were launched back in 2018 to provide customers with a selection of open-architecture products which are actively managed to generate returns in any market conditions. These impressive growth figures evidence the strong investor take-up levels thanks to the outstanding results obtained.

Strong performance by Next Generation, channelling investment into future megatrends

The Next Generation strategy – which invests in global megatrends rooted in social and economic change (industry 4.0, sustainability and the environment, and demographics and lifestyle) identified by the bank's team – put in an outstanding performance, with AUM climbing over 164% year to June to stand at a total of €560 million. Aimed at customers with an adventurous profile, the service invests 100% in equity funds with a portfolio based on diversification and the principles that underpin the bank's entire philosophy: prudence, long-term goals and shared growth with customers, employees and shareholders.

Another route to this value proposition is through the March Next Generation F.I. fund of funds, which allows both customers and non-customers to access the megatrend strategy with a minimum investment of just one share.

Growth in alternative investments

The alternative investment solution launched by the bank in 2019 through partnerships with K2 Advisors-Franklin Templeton (DPM) and Banque Syz (fund of funds) continues to outperform, with year-on-year gains of 140% and over €300 million in assets under management. In addition to these solutions, the fund of funds March Alternative Strategies -was launched by March Asset Management in coordination with Banca March under the alternative investment advisory agreement with K2 Advisors- Franklin Templeton-. This product affords conservative investors access to a diversified portfolio of vehicles specialising in Long Short Equity, Global Macro, Credit/Relative Value and Event Driven strategies. This strategy had generated total assets under management of €80 million at the end of June.

The Sustainable and Responsible Investment (SRI) strategy launched in tandem with J. Safra Sarasin and the impact investing strategy with Amundi-CPR also maintained the outstanding investment inflows registered since their launch in late 2020, with a 22% increase in combined AUM versus March to a total of 135 million euros. The latest addition to the ISR/Impact Investment range is the fixed income fund Robeco Global Climate Bonds, which seeks to reduce the carbon footprint of the issuers comprising its portfolio and currently has assets under management of €45 million.

The Banca March Product Area explained: “Over recent years, Banca March has undertaken a thorough review of its comprehensive range of solutions in response to a different economic cycle, a more digital world with greater awareness, and changes in the best-performing sectors and regions. Negative interest rates have driven us to seek alternatives to traditional fixed income and instant liquidity is no longer a priority for many investors, which has allowed us to integrate new products which were previously only accessible to institutional investors. Traditional investment options have not lost their appeal, and this has been clearly evidenced in 2021, but they need to be complemented with other sources of returns that can harness the potential of long-term trends”.

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