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The sicav reduce their investment in Spain to 18% and complicate survival

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The sicav have shot themselves in the foot by reducing their investment in Spain. Plagued by politicians since 2015, these societies, which use great fortunes, have always used three arguments to guarantee their survival. One of them is its high historical propensity to invest in local assets. However, recent data from the CNMV debunks this statement: the sicav only have 18% of their assets invested in spanish securities.

Institutions such as the CNMV and the employers' association, Inverco, have repeatedly defended that the sicav industry has many benefits for the economic and business fabric Spanish: they employ managers, depository banks, lawyers and auditors, contribute taxes to the treasury and administrative fees to the CNMV itself, and invest a lot of money in Spanish companies. Regarding this last point, they have even shown that if the PSOE and Unidas Podemos load the vehicle, they will not be ending the sicav, but the sicav of Spanish law, and that will imply a significant decrease in investment in Spanish securities.

According to these organizations, a third of the assets of the sicav are invested in Spain, a figure that rises to 50% in all the funds, pensions and sicav. But that was before. According to the latest annual report of the CNMV, with data from 2019, the sicav barely have 18% of their assets under management in Spain, although the body chaired by Sebastián Albella still considers it to be "a significant part of its portfolio". In an increasingly globalized world when it comes to stocks and bonds, these companies have widened their sights. This downward trend detracts from the credibility of one of the last cartridges still held by sicav advocates vis-à-vis the left-wing coalition in government.

In its "progressive" government agreement, PSOE and Unidas Podemos agreed to return control of these vehicles to the Tax Agency, with regard to the requirement of 100 participants and a minimum of 2.4 million euros to qualify for their beneficial tax regime, as well as to put a cap on the percentage of capital that can be held by a single shareholder. What these two parties are looking for is end the unipersonal or family sicav and the famous practice of ‘straw men’ or ‘mariachis’.

As ForexNews.online published, 75% of local sicav are in danger because they do not meet the necessary shareholders to guarantee being collective or they meet this requirement by the minimum. If to this is added its ever-decreasing investment in Spanish assets (-8.8% from one year to the next, where its internal portfolio of financial investments falls to 15.9%), the path is clear to PSOE and United We Can. There are fewer excuses to hold on to defend them.

THE SICAV TYPE: 11.2 MILLION

In 2019, there were low 147 sicav and there were only three discharges, until the total number of sicav stood at 2,569, according to the annual report of the CNMV. This decrease was also reflected in the number of shareholders, which fell 3.8%, to reach 400,359. However, its assets rose 3.4% due to the revaluation of portfolios and the market effect, to 28,793 million.

In this way, the middle equity by sicav has increased from 10.3 million to 11.2 million, Meanwhile he average equity per shareholder He has done it from 66,909 euros to 71,917 euros.

The CNMV recognizes a "Some level of uncertainty" about these vehicles, about their possible regulatory changes. Since that year, the number of sicav has been reduced by more than 20%, 2017 being the year in which the greatest decrease occurred, with 406 sicav less than the previous year. According to Inverco data, almost 800 sicav had closed at the end of 2019 since politicians besieged them in 2015.

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