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Banks recover guaranteed funds and open more liquidity windows

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The guaranteed funds return to the grids of the financial entities, especially in the banks. In the same week, Mapfre, CaixaBank and Banco Sabadell have registered products of this type. The increase in spreads on bonds due to the coronavirus crisis has created an opportunity managers to structure maturity funds. In addition, other entities such as Cooperative Bank -the rural savings banks- have opened windows of extra liquidity in the guaranteed ones that have assets.

CaixaBank Asset Management is one of the leading managers, although in its case has not made a guaranteed as such, but an expired euro fixed income, which in practice acts as an objective pseudo-guarantee or pseudo-profitability. His new fund, the CaixaBank Fixed Income January 2026, pursues to reach on its horizon date "The maximum appreciation for the participant" investing in public or private fixed income in euros, in such a way that at least 90% of its portfolio will expire within the year before or after January 22, 2026. Its fixed management fees vary between 0.16% and 0.3%, depending on the type of share in question.

However, Sabadell Asset Management has set up a fixed performance guarantee -Sabadell Fixed Guarantee 17- taking advantage of the increase in reads spreads ’in European bonds due to the uncertainty caused by Covid-19. As of July 31, 2028, the bank guarantees 100.3% of the capital after making eight mandatory repayments between 2020 and 2027 in the form of periodic income, one each year, with a fixed amount of 0.30% on the investment as of June 15. 2020, adjusted for possible refunds or voluntary transfers made. So, the guaranteed APR for holdings held to the end will be 0.33%. In line with the above, you can invest in public or private fixed income, deposits or monetary assets in euros, and your management fee is 0.27%.

In both cases, there are subscription and redemption fees, although in the Sabadell fund there will be quarterly liquidity windows where the redemption fee will not be applied. These windows take on importance in the new guaranteed ones, but also in those that are already active. There are many clients who, due to the Covid-19 health and economic crisis, may need to liquidize their fund positions to draw on their savings in the face of an emergency in the short term, and guaranteed funds are beginning to show you as a last resort.

Gescooperativo, the manager of the associated rural savings banks at Banco Cooperativo, has taken a step forward in this regard and has included Additional liquidity windows in its Rural 2027 Stock Market Guarantee, Rural Guaranteed 2027 and Rural 4 Fixed Income Guarantee funds. The first two have added new liquidity windows to their brochures on November 10 of each year, until the expiration of their respective strategies, while the third has done the same on January 15 of each year. Thus, these funds will now have semi-annual exit points with no refund fee, doubling until between 14 and 16 total liquidity windows.

NEW STARTING GUN AFTER THE 2012 PEAK

Guaranteed fixed-yield funds skyrocketed in the great financial crisis of 2008. In 2007, they managed nearly 17.6 billion euros, according to Inverco. A year later, when the crisis exploded globally after the bankruptcy of Lehman Brothers, its assets already amounted to more than 21,250 million, and in 2012, the year in which Mario Draghi delivered his famous “Whatever it takes”, his assets had climbed to close to 36.4 billion, its all-time high. Since then, the risk premium in the countries of the euro zone has been relaxed and progressively stopped building. Today, its assets barely touch 4,800 million.

The renewed starting pistol shot was given by Mapfre Asset Management, with the Mapfre Sanitary Commitment. It is a three-year guaranteed fund (until 2023) which has as its underlying asset a bond issued by the Community of Madrid intended exclusively for the fight against Covid-19. It will offer a 3% return in the three years payable at maturity, at a rate of almost 1% a year, "well above bond yield", which has been issued at 0.36%, thanks to an additional contribution from the manager itself, close to one million euros. The bond issue has been fully subscribed by Mapfre AM, which has been the promoter of the initiative.

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