News

• The number of customers taking out DPM services increased by 33% last year, exceeding 6,230 contracts. During the first three months of 2022 they recorded net growth, even in March despite the market volatility caused by the war in Ukraine. 
• At the end of the quarter, delegated funds totalled 900 million euros, 87% up on the first quarter of 2021, and the total with DPM increased 44% to 2.78bn euros. 
• In the first quarter of 2022 two innovative and sustainable produces were launched: the March Green Transition Bond and the 'UL Revitalización Europea' unit-linked fund. Both are committed to protecting the environment and supporting sectors that promote environmental transition and digital transformation. 
• Assets under management in Next Generation, the DPM strategy investing in global mega-trends, were up by 18% to €590 million in March.  

New innovative and sustainable products 

In the first quarter of 2022 two innovative and sustainable produces were launched. One was the March Green Transition Bond, a fixed-income, multi-sector and diversified fund born out of a strategy between Banca March and Allianz Global Investors with the main aim of financing projects committed to decarbonisation and the environment. In just two months since its creation, the fund has already accumulated more than 20 million euros in assets under management. 

The second is the UL Revitalización Europea unit-linked fund, an exclusive March Vida product and which is the only one on the market that offers savers the opportunity to invest in the sectors and companies set to benefit most from the deployment of the Next Generation EU funds: digital transformation, environmental transition and European economic recovery. The vehicle is also pioneering in that it allows investors to combine liquid and illiquid assets in a single life-savings product with a minimum contribution of €25,000.

Next Generation continues to outperform, channelling investment into future megatrends 

Discretionary portfolio management (DPM) services, which are characterised at Banca March by their unparalleled added value, were launched in 2018 to provide customers with a selection of open-architecture products that are actively managed to generate returns in any market context. The growth figures reported evidence the strong investor take-up levels thanks to the outstanding results obtained.

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 18% to March to stand at a total of 590 million euros. Aimed at customers with an adventurous profile, the service invests 100% in equity funds with a portfolio based on diversification and underpinned by the principles that comprise 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 fund of funds March Next Generation F.I., a megatrend strategy with a minimum investment of just one share.

Growth in alternative, sustainable and impact investing 

The alternative investment solutions launched by the bank in 2019 through partnerships with K2 Advisors-Franklin Templeton (DPM) and Banque Syz (fund of funds) continue to outperform. 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.

Recently, the range of alternative investment solutions has been reinforced with the launch of the fund Dynamic Alternative Strategies, designed in partnership with Dynamic Beta Investments (DBI) which tracks the performance of a basket of hedge funds comprising the 50 largest funds in the Event Driven, Equity Hedge and Relative Value strategies and 20 CTAs (systematic global macro).

By the end of March, the group of alternative investments managed by Banca March accrued assets worth 451 million euros, up 140% year on year. 

The Sustainable and Responsible Investment (SRI) and impact investing strategies launched with international fund managers such as Amundi-CPR have also posted outstanding inflows since their launch in late 2020, with a 70% increase in AUM to a total of €200 million. This figure includes the latest addition in this segment: 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 euros. 

The Banca March Product Area explained: “Against this background of inflationary pressure caused by the war in Ukraine and with interest rate hikes expected in the near future, we need to offer products that curb risks and guarantee return. We lean towards mega-trends, which seek growth through transformation, or alternative management which provides moderate-risk liquid solutions. What's more, in a world which is increasingly aware of social and environmental issues, the analysis of non-financial factors is now essential, and has revealed tremendous investment opportunities in the field of sustainability. Our strategy of partnering with global specialists in alternative, sustainable and impact investments is proving highly effective, and the number of investors placing their trust in Banca March to manage their investments is constantly growing.”