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It is very interesting to note that the majority of Spanish investors have a very poor impression of the quality of investment fund management in general. So much so that a great many investors opt for simplicity, diversification and the low-cost<\/em> of ETFs, fed up with paying high fees in exchange for sheer mediocrity, to put it politely. But let\u2019s not forget that ETFs are nothing more than pure replicas of indices and benchmarks of all kinds, and their appeal lies solely in their diversity, low fees and lack of active management (assuming that is a virtue)<\/a>. In this way, investors ensure that returns will not fall below the respective benchmark indices, as no mediocre decision on the part of the fund managers can worsen the linked return\u2026 but at the same time they resign themselves to not even having the possibility that active management might outperform the markets. The fact is that, unfortunately, there are an increasing number of disillusioned Spanish investors who have given up on the idea that their investments might outperform the market in a clear and consistent manner<\/a> over time. They regard it as a pipe dream, an unattainable and utopian dream. And the culprits are none other than banking advisers and Spanish regulation.<\/p>\n Unfortunately Most actively managed investment funds, which have consistently and significantly outperformed their respective benchmark indices over many years, are not registered for sale in Spain<\/strong>. And this comes as a surprise to most investors in this country, who believe that simply because their respective banks offer them a range comprising a few thousand funds (some not even that many), there is nothing else out there. But this is not the case at all and, as we say, the vast majority of the leading players in the world of fund management have not registered their funds for sale in Spain, and therefore they do not appear in the sales catalogues of Spanish banks. Fortunately, a few do have European versions that are marketed here, albeit with higher fees (and therefore slightly poorer returns), but unfortunately the majority do not yet, and may never be registered. Note the following: Approximately more than 90% of investment funds from around the world are not registered in Spain for distribution, which means that here we do not have access to even 10% of the total<\/strong>. And so, what a poorly advised investor misses out on is, purely statistically speaking, a whole world of fund management and most of the top performers. Don\u2019t be surprised by the fact that these figures<\/a> y these limitations<\/a> are not known: Neither the banks nor the regulator have any interest in investors leaving their provincial cocoon to see the global perspective and quality they are missing out on, as the Spanish financial sector would shrink considerably.<\/p>\n At this point, one might well ask why so many world-class fund managers do not register their funds in Spain for distribution. And there are essentially two answers: the limited investment volume that our country represents for these fund managers, and the Spanish banks\u2019 voracious appetite for commissions, given that, after all, they are supposed to be the end distributors of these funds to their clients. So much so that some funds, such as Carmignac (whose European focus makes it unthinkable that they should not be registered in all the major countries of the Eurozone) have had to create ad hoc fund classes, with higher fees, to meet the demands of Spanish banks in order to include them in their sales catalogues. And the coincidence<\/em>, or French sarcasm, christened this class \u2013 characterised by exorbitant fees \u2013 with the letter \u2018E\u2019 for Spain. From then on, as many of you will have already experienced first-hand, the banks lie by telling their customers that in Spain they can only buy this \u2018E\u2019 class, or that the other class (A) requires unrealistic minimum thresholds which, coincidentally, the customer never manages to reach.<\/p>\n But let us return to the restriction that, in practice, investors can only invest in funds registered in Spain for marketing purposes, as this poses a tremendous handicap for the poorly advised investor. However, there are other restrictions that make the final range of funds available to virtually all Spanish savers even more limited.<\/p>\n The end result is that investors shun the investment funds available to them, and end up buying the rubbish their banks sell them or, at best, aiming to match the benchmark indices via ETFs. Obviously, the returns on their financial investments in the medium and long term are, at best, very mediocre \u2013 just like the range of funds and products their bank foists upon them.<\/p>\n However, investors with a certain level of wealth (>600k or 1M, as is usually required in private banking), and with appropriate advice, will be able to manage their investments from jurisdictions that are as EU-based, reliable, regulated, fiscally transparent and financially sound as Luxembourg, to name but one. With complete freedom to invest in the world\u2019s best investment funds (which such advisers should be able to identify and monitor over time), without any restrictions on trading platforms, product ranges or registration with the CNMV for marketing in Spain. And doing so through investment vehicles suited to each individual\u2019s personal and family circumstances, which will optimise and defer the tax liability on investments just as any investment fund registered with the CNMV or a Spanish SICAV with more than 500 unit-holders would (including, in addition, private equity investments<\/strong>). And just as importantly: the cost will be moderate and will be more than offset by the huge increase in profitability and the quality of management. These are the advantages of belonging to a Eurozone in which we have a financial centre as powerful and transparent as Luxembourg\u2019s, in contrast to a banking sector and regulatory framework as disastrous and insular as Spain\u2019s.<\/strong><\/p>\n Let\u2019s hope politicians don\u2019t ruin it with Tobin taxes and other such aberrations, because all of us investors in the Eurozone have our very own City \u2013 or European Wall Street \u2013 right on our doorstep and within easy reach. A financial centre at the disposal of investors well advised<\/strong> that they refuse to remain in the darkness, captivity and mediocrity of the Spanish private banking sector. You don\u2019t need tens of millions of euros to invest wisely, but it is a prerequisite sine qua non<\/em> that of being able, no less, to identify the best global fund managers and investment vehicles. And we must also be fully aware that Banks do not provide advice; they simply sell<\/a>, and furthermore, both the product itself and the after-sales service are of appalling quality.<\/p>\n As investors, we must overcome always<\/strong> the markets in the medium and long term. And to fail to do so is to accept poor advice which is, in reality, nothing more than a sales pitch. There are some truly outstanding fund managers out there who have been proving for decades that they outperform the rest \u2013 and, of course, Mr Market.<\/strong> And if someone could help us identify them and get them on board their ships, that would be the best way to sail<\/a> In this perfect storm. Every man for himself, or to hell with them all: it\u2019s up to the investor to decide.<\/p>","protected":false},"excerpt":{"rendered":" Resulta muy curioso comprobar que la mayor\u00eda de inversores espa\u00f1oles tienen una imagen p\u00e9sima de la calidad de la gesti\u00f3n en general de los fondos de inversi\u00f3n. Tanto es as\u00ed, que much\u00edsimos inversores optan por la simplicidad, diversidad y el low cost de los ETFs, hartos de pagar comisiones elevadas a cambio de pura mediocridad, […]<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[54,51,57,39,40,52,48,55],"tags":[],"class_list":["post-1815","post","type-post","status-publish","format-standard","hentry","category-asesoramiento-patrimonial-deportistas-artistas","category-banca","category-funcionamiento-family-office","category-crear-mi-propio-family-offices","category-gestion-financiera","category-asesoramiento-patrimonial-multi-family-office","category-asesoramiento-patrimonial-multi-family-office-crear-mi-propio-family-offices","category-necesito-un-family-office"],"_links":{"self":[{"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/posts\/1815","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/comments?post=1815"}],"version-history":[{"count":0,"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/posts\/1815\/revisions"}],"wp:attachment":[{"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/media?parent=1815"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/categories?post=1815"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/tags?post=1815"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"\"](\"http:\/\/www.epinula.com\/wp-content\/uploads\/2011\/02\/saupload_hedge_fund_cartoon.jpg\")
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Unsurprisingly, Spanish banks only offer this option to their sufferers<\/del> clients to invest in funds registered with the CNMV for distribution in Spain, as otherwise the advantages of tax deferral and transferability become prohibitive penalties. So far, this is relatively correct (although, as advisers who claim to be such, they ought to offer valid alternatives). But the harsh reality is that banks not only limit their offering to the range of funds registered with the CNMV, but also narrow it down to the commercial portfolio that best suits their interests. In other words, under the pretext of the platforms used or supposedly inaccessible fund classes, the reality is that their clients\u2019 investments are restricted to the list of funds that generate the highest commissions for the bank. It is as simple and regrettable as that.<\/p>\n