The business of retrocesiones continues in the genetic code of the Spanish investment industry. Despite the obstacles that the European regulation has imposed for this practice, seven national managers they still distribute more than 80% of the commissions that they receive from their clients within their network marketing.
In the first full year of the MiFID II Community Directive, the total volume of these commissions assigned for product marketing It has fallen 4%, to 1,281.27 million euros, but this practice continues to be the driving force behind the fundraising business of many companies in the sector in Spain. This is reflected in the 2019 Statistics on Collective Investment Institutions that the National Securities Market Commission (CNMV) has released this week.
The supervisor’s study shows that, over the past year, 28.5% of Spanish managers distributed at least 50% of the management fees among its network of marketers that he collected from the participants of his funds. In round numbers, they are 35 signatures. This represents one more than at the end of 2018, an exercise in which the European regulations that seek to limit these retrocessions were only partially in force.
The most ‘generous’
At the top of this ranking is the manager Imantia Capital, that throughout last year destined to pay its marketers more than what it received from management fees. Compared to the 23.81 million euros raised among its participants, the firm was spent on retrocessions up to 29.98 million euros. 113.5% of the first figure.
With these figures, the manager Gonzalo Rodríguez directs anticipates March AM, the asset management division of Banca March, which according to the data aired by the CNMV distributes 96.4% of the commissions it receives from its clients among its marketers. In other words, of the 29.95 million euros that it receives from the participants of its funds, pension plans and investment companies, only 1.07 million euros remain in their safe. However, sources of the entity reduce the percentage of pure retrocessions to 69.82% of its volume of management fees.
At a distance of more than 10 percentage points, but very close to each other, they are placed Unigest -the fund manager of Unicaja Banco-, Management Labor Fund and Crédit Agricole Bankoa Gestión. Respectively, the volume of retrocessions reaches 85.6%, 85% and 84.9% of the total management fees received. Of course, the amounts are very unequal with each other: 32.7 million, 17.1 million and 3.5 million euros.
The next two in the ranking of the most ‘generous’ in the award for their product marketing network are subsidiaries of two international managers. Lombard Odier distributes 83.9% of its commissions (682,000 euros), while Amundi distributes up to 83.4% (20.6 million), according to the data recently published by the CNMV.
The latest data from Popular
You have to go down to position number 11 in the table to find the first manager dependent on a large Spanish financial group in terms of commissions assigned for the marketing of their own products. Is about Santander AM, which distributes 70.9% of its volume of commissions in compensation for the marketing of its products. No less than 266.21 million euros.
Only one place behind, the manager Allianz Popular, whose control Santander has assumed in the first quarter of this year 2020. With 62.7 million euros distributed over a total commission of 88.9 million, the weight of the retrocessions in the former manager of the disappeared Banco Popular reached 70 , 6% of the total.
The focus, out of the competition
Regarding independent firms, the first one in the table is Abante, with 71% of commissions distributed, a sum of 15.4 million euros out of a total of 21.7 million received from its clients. You have to drill down nine positions further in the ranking to reach the second of the group, Meta-management, with a percentage of 63.5%, according to the numbers provided by the CNMV.
The figures for the first full year of MiFID II give an average for the industry of 25.25% of the commissions received. The previous year, the rate increased to 53.56%, while two years ago a ratio of 61.6% of the management fees charged to the participants was reached.
In the CNMV statistics, the same managers recognize revenue from retrocessions for a total of 39.85 million euros. The previous year, the figure rose to 68.82 million euros. The decline between the two figures is no less than 42%, which gives an idea that the assignment of management fees for marketing has not had third management companies as a preferred destination, but rather other actors in the financial system.