The fund manager rankings, especially that of Morningstar (as an independent provider of financial information), are very useful for investors, The quality of the different fund managers can be seen. Therefore, it is no coincidence that the big banks are never at the top of the charts. We will explain why in this post.
Current ranking of major fund managers
Here is an example of the ranking of May large management companies; They call it the “All-Star League”:
We can see how a bank as important as BBVA, is located in last place. Or the cases of Kutxabank, Santander or Caixabank, which are among the LAST PLACES of these “large” fund managers (so called because they manage at least €1 billion in assets).
Let's look at why this happens:
Managers such as Aviva Gestión, since 2018 Santalucia Gestión (which is in first place, with a score of 4.7 out of 5) are very independent, The main objective is to obtain funds from the banks' management companies. Their main objective is to obtain the the greatest possible benefit to the participant. On the other hand, banks also have a series of particular interests which, on many occasions, do not represent the best investment option for their participants.
Why is banking not 100% independent?
The main reason is the business linkage banks can have with certain companies or corporations. For example, the management company of a banking institution such as La Caixa will go before a bond issue of Repsol, Abertis or Gas Natural, rather than a bond issue of other companies that may give a higher return, but do not have that industrial linkage. Or how Banco Santander, will prioritise helping companies such as Isolux or Abengoa as it has a high debt contracted with them.
The same goes for local or regional corporations, which have a high level of debt contracted with banks, which will help in the various debt issues.
A fund manager would need to have absolute independence to focus investments, and unfortunately for investors this is rarely the case.
Our advice
The best thing is that we seek advice from independent professionals, that work with different management companies, and not entities that only work with one. As we have always said, that is the reason why we are an insurance brokerage: the opportunity to work with the best companies and entities, and to be able to offer the best products from each one.
We leave a link to the article in which we pointed out how we commit a error if we leave the money on account, We are losing purchasing power in the face of inflation.
If you need advice from our Savings and Investment Department, call us or write to us. Choose the investment funds of leading managers.
