Bankinter is undergoing a major overhaul of its investment fund offering. It has abolished some families, has given access to certain products from lower levels of wealth and, above all, has begun to include distribution funds within its profile category, with a dividend ranging from 1% to 1.5 Annual%.
The vast majority of investment funds that are marketed in Spain are accumulation . What does this feature consist of? Basically, when they receive a dividend from a company that they have in their portfolio or a coupon from a fixed income issue, this income is integrated into the fund's assets and is not distributed among the participants.
In contrast, distribution funds do regularly pay a dividend to their participants. This varies greatly depending on the type of assets in which the fund invests. If it is in the Stock Market, it can exceed 5%, on the other hand, in fixed income funds it is difficult to reach 2%.
In the case of Bankinter, it has just registered two new distribution funds within the profiled funds category. Specifically, for conservative and moderate profiles.
The funds with the most generous distribution
When the distribution-class fund invests in shares of companies with high dividends, it has the possibility of distributing higher income to its participants. Among the large managers, the fund that has been offering a more generous distribution in recent months is Mutuafondo Dividendo. In 2019 it was giving a return of 5.78%, according to the specialized portal Funds People. Of course, by investing most of it on the Stock Market, in 2020 it is losing 22% of its value.
Santander Dividendo Europe offered in 2019 an income of 4.14% and Mediolanum Real Estate a 3.25%. Of mixed funds, the best placed was the Bankia Mixto Dividendos Universal, which rented 2.99% (which in 2020 has avoided losses and rises 1%).
“We believe that there is a lot of interest in the Spanish investor. We have many clients who have become accustomed to collecting a deposit or checking account rent every year , and they miss it ”, explains Javier Turrado, commercial director of Bankinter Gestión de Activos.
The peculiarity of Bankinter's proposal is that it has launched it for a very prudent type of funds. In the conservative profile, investment in the Stock Exchange never exceeds 15% and in the moderate one it does not exceed 50%. Normally, in the few investment funds for distribution that are for sale in Spain, they have higher levels of risk, with investments focused on the Stock Market, emerging fixed income or high yield bonds ( high yield , in the jargon).
Annual payment
The Bankinter Premium Conservador fund will distribute a dividend annually, equivalent to 1% of the invested capital. In the Moderate Premium Bankinter it will reach 1.5%. It will be paid in December.
The plans of the Bankinter manager are to extend this modality of profiled funds with distribution class to other vehicles. By the end of the year there could be a total of six funds with these characteristics.
The profiled funds of the Premium range are aimed at private banking clients , since the two existing classes require investment minimums of 50,000 and 500,000 euros. They are funds that invest directly in stocks and bonds.
Bankinter also has the Platea profile range , which does not invest directly in stocks or debt, but invests in other funds. In this case, the entity has decided to make it more accessible, so it has launched a new class that allows investment from one euro, when before the minimum in Platea funds was 50,000 euros.