Banca March closes the first half of 2022 with AUM of €2.57 billion under delegated management, up 7% versus June 2021
24 August 2022 Category: Results
- Despite market instability in the first half of the year, Banca March's total assets under delegated management, including DPM and delegated funds, stood at €2.57 billion at the end of June, up 7% year on year.
- Specifically, assets under management through Discretionary Portfolio Management (DPM) services were up 3% versus June 2021 to over €1.75 billion. The steepest increases were registered in the most adventurous portfolio (59%), followed by the defensive (26%), moderate (16%) and conservative (10%) portfolios.
- At the end of June, Banca March had 6,400 DPM contracts in place, clearly evidencing the trust placed in the bank by its customers.
- Assets under management in Banca March's delegated funds stood at €815 million, up 15% versus June last year.
- In the area of sustainable investing, 2022 saw the launch of delegated fund March Green Transition Bond and the Unit Linked product Revitalización Europea, both of which are committed to protecting the environment and investing in sectors which support the ecological transition and digital transformation.
he volume of assets under delegated management by Banca March, including Discretionary Portfolio Management (DPM) and delegated funds, stood at €2.57 billion at the end of June, up 7% year on year. This growth is a clear reflection of the trust placed by customers in the most solvent bank in Spain and among the most solvent in Europe, despite market instability since war broke out in Ukraine and the energy crisis triggered inflationary pressures.
Specifically, assets under management through Discretionary Portfolio Management (DPM) services were up 3% versus June 2021 to over €1.75 billion. The steepest increases in AUM were registered in the most adventurous portfolio (59%), followed by the defensive (26%), moderate (16%) and conservative (10%) portfolios. At the end of June, Banca March had 6,400 DPM contracts in place, clearly evidencing the trust placed in the bank by its customers.
Assets under management in Banca March's delegated funds at the end of the first half stood at €815 million, up 15% versus June last year.
New innovative, sustainable products
In line with the dynamic product innovation which is a hallmark of Banca March's advisory line, in the area of sustainable investing, 2022 saw the launch of delegated fund March Green Transition Bond and the Unit Linked Revitalización Europea, both of which are committed to protecting the environment and investing in sectors which support the ecological transition and digital transformation.
March Green Transition Bond is a multi-sector, diversified fixed income fund, created through the partnership between Banca March and Allianz Global Investors, with a jointly-designed investment strategy. It invests in long-dated bonds with a view primarily to financing projects which contribute to decarbonisation and the environment by helping companies and countries achieve their targets in the transition to a greener world.
The second fund, Unit Linked Revitalización Europea, is a pioneering, exclusive strategy by March Vida which combines liquid and illiquid assets in a single life-savings product with a minimum contribution of €25,000. The vehicle offers investors the chance to secure exposure to the businesses that stand to benefit the most from the deployment of the Next Generation EU funds, investing in the digital transformation, environmental transition and economic and social recovery.
A long-term commitment to mega-trends and alternative investments
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 driven by the outstanding results obtained.
Since its launch in 2019, the Next Generation strategy has put in a highly dynamic performance. This discretionary management proposal is based on global megatrends identified by the bank's team as key drivers of social and economic change: Industry 4.0, sustainability and the environment, and demographics and lifestyle. Despite the turbulent market backdrop, the Next Generation strategy has chalked up a return of 23% since inception. Aimed at customers with an adventurous profile, it is 100% invested in equity funds with a diversified portfolio 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 solution launched by the bank in 2019 through partnerships with K2 Advisors-Franklin Templeton (DPM) and Banque Syz (fund of funds) also continued 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).
At the end of June, the combined alternative investment strategies managed by Banca March accounted for a total of €453 million in assets under management.
The impact and socially responsible investing (SRI) strategies launched with international fund managers such as Amundi-CPR have also posted outstanding inflows since their launch in late 2020, with a 11.5% increase in AUM to a total of €137 million at the end of June. This figure includes the latest addition in this segment: the fixed income fund March Green Transition Bond, which invests in projects that support the green transition and contribute to decarbonisation and protecting the environment, with a view to paring down the carbon footprint of the issuers comprising its portfolio.
The Banca March Product Area said: “Since the beginning of the year, as a result of the Ukraine war and subsequent energy crisis, we have seen a radical shift in the rules of play, moving into a scenario of inflationary pressure and the end of expansionary monetary policy. Now more than ever it is important to entrust the management of assets to specialists who are able to anticipate and harness opportunities to generate returns in complex, constantly changing scenarios. As well as being Spain's most solvent bank, Banca March also offers dynamic product innovation across all customer profiles, from the most conservative saver to the most sophisticated investor, responsible advisory services delivered by the best-trained professionals in the sector, the impeccable reputation and outstanding quality service which is our hallmark, and a leadership position in advisory technology, developing tools for customers and relationship managers to guarantee a state-of-the-art omnichannel advisory experience.”