Banca March launches a fixed-income fund maturing in 2026 that aspires to have a net APR return that equals the return of the best deposits marketed in Spain. However, these funds are not guaranteed at 3% APR, as reported this Wednesday in a statement to which he has had access to Europa Press.
For its part, the entity has indicated that the product will be marketed through its online platform Avantio and that it will be managed by March Asset Management. In addition, this fund, called Fixed Income March 2026, is determined for moderate risk profiles that seek to protect their capital but at the same time be on the move.
The Spanish bank has indicated that the fund will invest its entire portfolio in public or private fixed income assets in OECD markets and with up to 15% exposure to emerging countries. However, it establishes some requirements that must be respected in order to obtain daily liquidity, such as, for example, that the minimum of the fund is 1,000 euros, with a maturity set for the beginning of June 2026. For its part, the marketing of the fund continues to until September 5, 2023.
Equals the profitability of Spanish deposits
The increases in interest rates by the European Central Bank (ECB) encourage deposits in the euro zone. In this race to attract customers and liabilities, European banks have taken the lead and are offering one-year fixed-term deposits that break the 4% barrier and even make it possible to offset the rise in Euribor. Regarding the number of deposits that they make available to customers, 76% of those that can be contracted today are from entities -most of them market their deposits in Spain through the online platform raisin- and s. with Spanish entities.
These time deposits behave in the same way as the Spanish ones. The investor must place an amount of money depending on the minimum amount that each bank requires and similar, respecting the maximum allowed. After the expiration of the determined term, the amount delivered plus the agreed interest will be obtained.
Inflation and the banking crisis trigger the arrival of money
Strong rises in bond market yields over the past year have strengthened buffers against rate volatility and led many investors to conclude that fixed income is back. To know whether investors have missed the moment or not, there are two main factors: the flows of funds and the entry point for the institutions. The first quarter flows of 2023 are likely to reverse the net aggregate negative fund flows into active bond funds that occurred in 2022.
Although the picture varies from one category of active bond funds to another, the total net inflow of $43 billion in the first quarter of 2023 was a fraction of the median quarterly net outflow in 2022 of $163 billion. But it is an important trend change that marks the new boom in this space. Investors have been cautious amid concerns about weaker growth prospects, the potential impact of the banking sector’s woes on the broader credit market and lingering inflation.
