The coronavirus crisis practically paralyzes the production of new investment funds, with just a dozen products registered in the National Securities Market Commission (CNMV) since the declaration of the alarm state. With some exceptions, the trend of the new offer in the sector is a firm commitment to fixed-income maturity strategies … but seasoned with greater risk.
This bet coincides with the movement of flows in the market where, according to Inverco data at the end of April, bulkier refunds occurred in funds that invest in short-term sovereign debt, compared to those of mixed fixed income, which also include the stock market in the strategy and are the ones that have raised the most money this year, with close to 1,300 million euros of net subscriptions.
The idea is that the volatility derived from the crisis does not end up passing a hard bill to more conservative savings, introducing into the new active funds with the capacity to generate more profitability at the cost of assuming that touch of risk.
In the same way, the opposite effect occurs with clients invested in the stock market so far. Most products registered in the last month and a half are structured and guaranteed, with the aim of offering something more secure to those investors who have also suffered heavy losses with the stock market crashes.
In this sense, the strategy is to offer an alternative for clients who think about withdrawing from the market in moments of volatility.
Mixed fixed income
It is the case of CA Selection Strategy 10 Conservative, an international mixed fixed income fund categorized by the manager as ‘risk 3’ (on a scale from 0 to 7, 7 being the highest risk). In her admission brochure, she herself CNMV includes the caveat that the strategy may invest a 35% percentage in emissions from low quality fixed income “So it has a very high credit risk.”
Another product registered in the last month and a half is the Kutxabank RF Horizon 13, a fund with an unsecured return objective, which can invest up to 25% in low-income fixed income.
In exchange for a profitability target (of 1.58% upon maturity of the strategy), the fund establishes that redemptions that occur before maturity will not benefit from said target, so participants may register losses if they withdraw their money ahead of time.
A similar strategy employs the Sabadell Fixed Warranty 17, this time with less risk, or the Santander Horizonte 2025, with a target profit not guaranteed that distributes dividends, as in the case of the new product from Sabadell.
Its objective is to give an APR of 0.55% and five annual dividends of 0.60% on capital by investing in corporate bonds, mortgage bonds and public bonds.
The CaixaBank manager has also opted for this strategy with its CaixaBank Fixed Income January 2026, in which the maximum volume of assets to be managed has been increased from 100 million euros to a limit of 125 million, with the idea that new clients could enter the product, which invests in European public and private debt.
The most at risk
Other managers have opted directly for new equity funds, with the idea of seeking new opportunities in the market dips. It is the case of True Value Samll Caps, which invests in small stocks on world stock markets, or the range Singular Multiactives of Inversis.
The latter is a compartment strategy with five risk profiles: Multi-Assets 20, with a maximum volatility target of less than 5% per year and up to 20% exposure in equities; Multiactivos 40, which invests between 20% and 40% in the stock market with a maximum volatility of 10% and Multiactivos 60 (up to 15% volatility and between 40% and 60% invested in stocks).
To complete the customer profiling, include the Multi-asset 80, which invests between 60% and 80% in variable income and, for the most risky, the Multi-assets 100, with a maximum volatility of 30% and exposed between 80% to 100% to the stock market.
Although you can no longer invest because you have reached the equity of 50 million euros established in your brochure, Mapfre At the end of April, it also registered a guaranteed fixed return fund with a peculiar characteristic: it has, as its underlying asset, solely and exclusively, a bond issued by the Community of Madrid intended for the fight against the coronavirus.