Santander Asset Management, the fund manager of Santander Bank included within the Wealth Management & Insurance division, it continues to strengthen and improve its offer of local and global products. In the first semester, its net sales have broken record with an amount of 4,100 million euros, as indicated in the latest financial report of the group. With this, assets under management now reach 193,000 million, 9% more compared to June 2020. Santander AM’s contribution to the bank’s profit has been 250 million, 2% more, mainly due to the increase in business volumes and the progressive recovery of margins.
“Assets under management are growing at double digits in the Wealth Management area. In private banking and asset management, net inflows have been obtained that are record in the semester with more than 9,000 million euros ”, indicated the financial director of Banco Santander, José García Cantera, in the last presentation of results. “For the remainder of the year, we expect double-digit growth in fees and profits”He added.
By country, Spain, Mexico, Luxembourg and Poland have concentrated the largest inflows of money. In Spain, for instance, the manager has started the year with net deposits of more than 2,500 million euros, if the business in Luxembourg is taken into account (about 500 million between January and June). This is the highest figure in the industry and the highest in seven years. In total, Santander AM manages 10,500 million euros on its Luxembourg platform.
The entity is renewing and simplifying its range of products. This year it has launched the range Santander ON, a set of solutions aimed at satisfying the different investment needs of its clients. This range follows a systematic and quantitative management methodology that incorporates investment themes and the entity’s ESG (Environmental, Social and Good Governance) criteria integration model.
In addition, the bank continues to strengthen the supply of alternative products with several launches aimed at professional clients such as the Trade Finance Real Economy Fund, in collaboration with SCIB, which invests in short-term commercial finance assets, and the fund
Signal Santander European Hospitality Opportunities, in collaboration with Signal Capital, which contributes to the raising of financing funds for hotel chains with the aim of supporting the sector in the impacts they have suffered as a result of the covid-19. In Chile, in February it reached an alliance with Grupo Patio to bring the fund to market Santander Residential Income, in which both entities invest in residential income projects. After a successful roadshow, the fund has managed to finance UF 3.1 million assets (103 million euros) through an investment for at least three buildings dedicated exclusively to rent that are in the development phase. The properties will later be managed by Patio Residencial, one of Grupo Patio’s six divisions.
Within the Alternatives area, it markets two other funds: one for private debt and the other for financing SMEs. In this second fund, called Santander Alternative Leasing, Banco Santander promised to contribute up to 300 million euros from your own balance sheet.
The fund has also started trading Santander Future Wealth, which already has assets of 950 million euros, with Spain, International Private Banking, Chile and Portugal standing out. The fund, domiciled in Luxembourg, allows it to be marketed in the different geographies in which the Group is present. This product, which in
Spain, Chile and Portugal was launched last January, in Brazil in June and in Mexico in July, it identifies three major trends (future society, future technology Y future planet) divided into 18 subtopics such as medical technology, robotics, the energy transition or the future of transportation. The United Kingdom, Germany, the United States and Switzerland are other countries in which this thematic product is sold.
The manager’s strategy also includes investment in multi-asset and quantitative solutions (GMAS), an area that maintains strong growth for example with the range of Santander GO. The assets of these investment funds mandated to third-party managers stands at close to 3,500 million euros.
On the other hand, Santander AM has continued to advance in the ESG strategy, where it has more than 20 products globally, and some assets under management in funds with sustainable criteria above 7,500 million euros. And, in the field of operational and technological transformation, this year the 100% implementation of the Aladdin platform was achieved in all the countries where the entity is present.