2023-05-29 18:07:44
Market instability caused by the war between Russia and Ukraine, inflationary pressures and rising interest rates, among other factors, are causing investors to look for new forms of savings. Now, it is possible to put the money earmarked for savings to work by investing in products that seek a more sustainable future.
The situation of instability experienced during 2022, in the midst of the recovery process after the health crisis, affected the management of the heritage in Spain. This does not stop savers and investors from continuing to look for useful tools to obtain profitability effectively, rather the opposite. In order to achieve good results, the experts place funds as a trend for 2023 with respect to fixed income products, both in the short, medium and long term.
A trend that can be seen in the fact that more and more investors want to hire more savings products, encouraging the same person to hire several types of funds. This means that people who want to get a return on their money, maintain their trust in funds as a way to channel savings, as Luis Megías, CEO of BBVA Asset Management Europe, points out. This is also a good alternative to gradually build a heritage that will give them peace of mind in the future.
New financial products
“We have accumulated 29 consecutive months of money inflows in the investment fund industry”, Megías emphasizes. But to get good savings returns in a situation as unstable as the current one, the expert recommends a strategy of what is called active management on behalf of the client, in which the investor decides how he wants to distribute his savings, how much they allocate to fixed or variable income, in which countries or what type of products they want to do so. From the real estate sector to raw materials, the offer is wide.
Financial institutions have long seen the need to include sustainability and best practices in their business policies. In addition, aligning corporate strategies with the EGS criteria (Enviromental, Social and Governance, i.e. environmental, social and governance), allows the development of new savings products that are in line with the demands of the society
According to the CEO of BBVA AM Europe, “introducing non-financial criteria, i.e. environmental, social and good corporate governance when making investment decisions, results, in the long term, in an improvement of the binomial of profitability and risk. Investing with sustainable criteria in the medium or long term will have a positive return for investors.” For this reason, products related to sustainability are a fundamental part of the entity’s strategy.
Savings with social commitment
BBVA has been introducing sustainability criteria in its investment policies for years. As an example, it has created an internal ranking to evaluate companies from a sustainability point of view and make investment decisions. Thus, “in companies that do not reach a minimum, we no longer invest directly”, says Megías.
Nowadays, the number of savers who not only seek to obtain good results with their investments, but also want to work with committed entities, continues to grow. And they are aware that all human activity leaves a mark, and it depends on each person to be positive.
Therefore, as a response to this search for a positive footprint, there are products like the BBVA future ISR that unites sustainability and solidarity. It is the largest Solidarity Fund in Spain (it has 2,075 million euros), which gives an indication of the interest that Spanish investors have in this type of product that offers a good return and a real positive impact on society.
This fund is associated with an annual initiative to donate a percentage of the management commission to solidarity initiatives, and this year (it is the fifth year that it has been done) the donation has been 1 million euros distributed among 23 oenagés. Since its launch, the fund has benefited more than 300,000 people.
A good year to invest
“The news is good”, says Megías, because the United States has avoided entering a recession and inflation has hit the ceiling. This means that 2023 will be a good year to invest in fixed income products, which offer more security, and equity products that help riskier investors eliminate the long-term consequences of inflation. The goal is to have diversified 3- or 5-year portfolios that help get through this time of market volatility.
In this context, sustainable investment is one of the best ways to channel a need for savings in the medium and long term, and to support responsible companies that are looking for a change in the economy.
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