Bankia Asset Management will enhance its impactful and sustainable investment business, which is now three years old, and one of its pillars will be to offer it to institutional investors. To do this, it will continue to count on the advice from Portocolom, with whom he has already been working for half a year, as announced by Bolsamanía.
The bank has published the first impact report of a socially responsible investment fund (ISR) under ESG criteria (environmental, social and corporate governance) that is carried out in Spain. Its about Bankia Futuro Sostenible, the first impact fund to be marketed in the Spanish market among retail clients. The product invests in companies and funds that have a direct and measurable impact on nine of the 17 United Nations Sustainable Development Goals (SDGs), such as end of poverty, health and well-being, quality education, gender equality, water clean and sanitation or affordable and clean energy, among others.
The Bankia Futuro Sostenible celebrates its third anniversary this summer, which is the minimum time that institutional investors – insurance, pension funds, companies, foundations and NGOs or 'family offices' – require funds to check their performance in different situations of market and be able to introduce them into their portfolios. "We do not have an equity objective in the medium term, but we are ambitious and we foresee that the equity will increase significantly", said Augusto Caro, director of Equity, Mixed and Employment of Bankia AM and head of the management team From the bottom. “We are going to expand the range with more sustainable and impactful strategies. It is a growth path and we want to offer our participants a diversified range of sustainable investment solutions ”, although the manager has not specified how many more funds or what type they will launch.
According to Ana Guzmán, Impact Director of Portocolom, "In a few years, nobody is going to talk about profitability without talking about sustainability." In his opinion, this is the greatest revolution in the world of investment since, in 1952, Markowitz developed his optimal portfolio model in terms of profitability and risk, a stage in which this second variable began to be used. "We have gone from a two-dimensional investment to a three-dimensional", he says.
Thus, the Bankia report indicates that the companies that make up the portfolio have cut their carbon dioxide emissions by 132.56 tons. This reduction is equivalent to emissions from 18 round-trip flights between Madrid and Sydney, 300 train trips around the world, or the avoidance of melting of 86,300 tons of glacial ice. The document includes other extra-financial metrics. For example, regarding water consumption, the companies in which the fund has invested have managed to lower it by 7,086.21 cubic meters. "With this amount, we could fill two Olympic pools," he reflects.
Its flagship rose 23.1% last year and this year, despite the sharp drops by the Covid-19, only loses 1.8%. In addition to this fund, the entity also has the Bankia Mixto Futuro Sostenible, both products framed within its Responsible Management Plan.
IBERDROLA AND THE 'CASE VILLAREJO'
Asked about the fund's investment in Iberdrola, one of its main positions, and the problem faced by the listed company with the Villa Villarejo case ’, Guzmán believes that now is not the time to take any action in this regard. "Iberdrola is a world leader in sustainability and its fundamentals are very good. In the rest of the issues ”, referring to the aforementioned judicial process, "We want justice to rule on it to make a decision", Explain. In any case, points out the expert from Portocolom, “the determining factor in deciding whether to hold a position or sell is not the possible conviction that there is in a trial of past acts of fraud or any other crime in your organization, the determining factor are the measures that are adopted in the future so that these events do not occur again ”.