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Banca March - Crecemos con valores, crecemos juntosNews

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At Banca March, we want to keep you always informed, and this section gives you the opportunity to find out whatever you want to know about.

12/13/2019

Banca March adds to alternative management range through partnership with Switzerland's Banque Syz

 
  • Banca March and Syz Asset Management, the asset management business of Swiss bank Banque Syz, have launched BM Alternativos, a UCITS fund of funds that will invest in alternative strategies with target return and risk exposure to be defined by Banca March.
  • Banca March has stepped up its range of non-traditional investment solutions in 2019, seeking new sources of returns through profitable, innovative joint investment, alternative asset and discretionary management products which are tailored to the current market scenario.
  • The agreement with Banque Syz comes in addition to the alternative management proposals offered by Banca March through its partnership with the Franklin Templeton subsidiary K2 Advisors.
  • In the last two years, eight real economy joint investment projects have been approved for a total of 700 million euros.
  • Banca March now provides over 2,000 customers with added-value discretionary portfolio management (DPM) services, totalling over 800 million euros in assets under management. In particular, Next Generation, the discretionary management product based on future megatrends, has enjoyed excellent take-up levels, attracting over 650 customers and 80 million euros.

Banca March and Syz Asset Management, the asset management business of Banque Syz, have launched BM Alternativos, a new fund of funds that will invest in vehicles focusing on alternative assets. The product is intended to offer shareholders access to unique assets and markets under highly advantageous conditions, with a view to expanding their options for diversification and adding value to their portfolios.

Banca March will share its market outlook with Syz Asset Management, which the asset manager will take into account when constructing the BM Alternativos portfolio. Banca March’s equity outlook will determine the fund's weighting in Equity Hedge strategies (Long/Short Equity with net exposure to equities).

BM Alternativos will afford investors access to a series of exclusive vehicles, with investment strategies that seek to generate stronger returns than traditional assets throughout the various market cycles. The vehicle has a target return of Euribor plus 3% and its managers intend to invest in UCITS funds, including Equity Hedge, Event Driven, Global Macro and Relative Value strategies.

Innovative new products with compelling returns

This agreement comes at a challenging time for wealth management advisory services, as low interest rates mean that opportunities in traditional asset classes are limited. Over the last 18 months, Banca March has substantially expanded its range of solutions, offering new products that provide its customers with alternatives to cash and to the meagre yields currently offered by fixed income.

Juan Antonio Roche, Director of Banca March's Product Area, said: “This has been a key year in terms of adding new products and services to enhance our range and respond to our customers' changing needs. Against the current backdrop of low interest rates and economic slowdown, it is increasingly difficult to find compelling returns, which is why portfolio diversification and alternative management are so important. The integration of new options, managed and researched by our team of outstanding professionals, will offer our customers access to different investment channels, whilst prioritising the prudence and long-term approach that are the hallmarks of Banca March.”

Alternative management versus traditional asset classes

Banca March has added a series of hedge funds under the UCITS framework — which benefit from a Europe-wide passport — to its range of investment products; this will help cover the risk-return gap that currently exists between bonds and equities as a result of interest rate shifts throughout the curve and movements in credit spreads.

The partnership with Banque Syz comes shortly after the advisory agreement announced in September between Banca March and K2 Advisors, a US alternative management boutique owned by Franklin Templeton. The agreement with K2 also offers Banca March's wealth management and private banking clients access to a broad selection of funds that were previously only available to institutional investors. Banca March clients can access these UCITS funds and hedge funds under advantageous conditions, expanding their options for diversification and adding value to their portfolios. Under the agreement, Banca March will enjoy access to specialist advice from K2 Advisors in the field of alternative management portfolio construction and will also be able to use its partner's unique risk monitoring and management tools, always in accordance with Banca March's criteria in relation to returns, volatility and risk.

700 million euros in real economy joint investment projects

Over the last two years, Banca March has expanded its joint investment opportunities, with eight new real economy investment projects totalling 700 million euros. These investments seek to harness the illiquidity premium offered by the unlisted sector, and have been undertaken in the logistics, property, hotel and security sectors, covering a broad range of assets and regions.

Joint investment is a core component of Banca March's DNA and is a unique value proposition in the financial sector, unmatched by its peers. This model allows the bank's customers to participate in the same real economy investments as the bank. Over the last 10 years Banca march has undertaken real economy investment projects totalling 2 billion euros, of which 53% was provided by Banca March operations, and in which more than 800 customers have participated.

In the first half of 2019, Banca March stepped up its investments in private equity - traditionally the most heavily weighted asset in its joint investment products - specifically in the international arena, through Carlyle's fifth European private equity fund, Carlyle Europe Partners V. This is the first joint investment initiative in the share capital of unlisted companies outside Spain and Portugal, and will be rolled out over the coming years through additional funds and regions.

We have also stepped up investments in the share capital of unlisted companies through a joint project with Corporación Financiera Alba; through this initiative, we have taken a stake in Verisure, the European leader in monitored alarms for households and small businesses. We have also reinforced our niche alternative financing strategies (unlisted), specifically through the third investment vehicle managed by Oquendo, which will finance growth projects for Spanish companies via mezzanine debt.

In the logistics real estate sector, we have invested alongside Pavasal in projects for the development of a dozen logistics warehouses of substantial size to respond to existing logistics operators' latest needs. These developments, located primarily in Madrid, Barcelona and Valencia, include additional improvements to the access roads and the logistics assets' surroundings, and will generate permanent jobs.

In another real estate investment format, Banca March invests, alongside Azora, in the SOCIMI Adriano Care, which acquires care homes for the elderly and leases them to prestigious operators in Spain's major urban hubs.

Finally, Banca March implemented its second investment in the European tech sector via an investment in the fifth fund raised by Atomico, a key investment group in the European ecosystem, investing mainly in companies from Series A onwards.

Value-added Discretionary Portfolio Management (DPM)

Banca March's Discretionary Portfolio Management (DPM) service now has over 2,000 customers representing 800 million euros in assets under management. This alternative to traditional asset management was created after Banca March identified the need to offer its customers an additional service to its wealth management provision. This high added value service offered by the bank's team of experts means customers have access to a broad range of open architecture, active management products.

The success enjoyed by discretionary management is especially evident in the excellent take-up levels registered by Next Generation, the specialist fund portfolio that not accounts for over 80 million euros of the total assets under management through DPM, and which invests in three mega-trends that will be key to the future of our society: industry 4.0., sustainability and the environment, and demographics and lifestyle. Banca March offers long-term investment in these assets as an alternative for customers looking to secure investment exposure to change and future trends whilst continuing to prioritise prudence, safety and shared growth, the enduring hallmarks of Banca March.

In addition, through a balanced distribution across regions, sectors, styles and market caps, Banca March encourages younger clients - whose interests tend not to be aligned with more traditional asset management - to invest in the financial markets.

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