The coronavirus crisis is leaving a trail of funds from banks and boutiques questioned by its behavior in recent months. Santander, Unicaja or Altair Finance They are the last to be forced to change the risk indicator upwards in many of their funds, since the price of these has fluctuated more strongly since March than their brochure had initially marketed to clients. These entities add to CaixaBank and Sabadell, who were the first to alert of these forced conditions changes.
Five Santander Asset Management funds have been affected by this decision, including the famous Santander Small Caps Spain by Lola Solana, which has gone from risk five to risk six. Solana's bottom so far this year is down 19.5%, according to Morningstar. Other funds whose risk indicator has also increased are the Santander Europe Dividend or the Santander Fixed Income Savings.
At Unigest, the manager of Unicaja Banco, about a dozen products have had to go through the ring of ESMA and the CNMV and publicly acknowledge that they had more risk than expected, some such as Unifond Renta Fija Euro, Unifond Small & Mid Caps or the Unifond Bolsa Internacional. Also their profiles. For example, the Unifond Mixto Renta Fija, which fell 2.8% until July, has risen from risk three to four.
One of the flagships of the independent manager Altair Finance, the Altair Heritage II, now it is risk four, when before it was three. In the first seven months of the year, it lost 4.8%.
"This rise is not due to a change in the investment policy, or to a change in the selection criteria for assets, or to a different investment strategy," reflect the relevant events of all these funds, which have suffered an increase in the volatility of its net asset value during last 16 weeks. It is rather an unforeseen situation, such as the Covid-19 crisis, which has led to heavy losses in funds and high volatility in the markets, more than expected in the previous risk models of the entities.
CAIXA AND SABADELL, THE FIRST
The risk indicator that the funds include in their Key Investor Information Document (DFI) and in their prospectus moves on an upward return / risk scale, ranging from from one (low risk) to seven (high risk), as established by the CNMV. All these entities have proceeded according to the 'guidelines' of ESMA, the European supervisor of financial markets. From now on, the risk indicator that these funds have will be more realistic regarding the possible movements of the market when it is stressed to extreme levels, as happened since March.
In the case of Sabadell Asset Management, the risk indicator of almost a dozen funds has had to be revised upwards, such as the Sabadell Europa Bolsa, the Sabadell América Latina Bolsa, the Sabadell Rentas or the ‘hedge fund’ Sabadell Selección Épsilon. For his part, CaixaBank Asset Management has acted on around twenty funds, Practically, among them CaixaBank Flexible Fixed Income, CaixaBank Selection Trends, CaixaBank Smart Variable Income Europe or Albus, which sells among private banking clients.
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