The Spanish fintech Finizens turns seven years old and does so for the first time with a positive ebitda (earnings before interest, taxes, depreciation and amortization) of 78,000 euros. The automated investment manager reaches this anniversary with 21,000 clients and 400 million euros in portfolio with a philosophy focused on passive management through indexed investment funds (ETF), pension plans and savings plans.

The ‘roboadvisor’, participated by the venture capital fund Axon Partners, the insurance company Caser and Mutualidad de la Abogacía, avoids market trends and wants to continue betting on traditional stock market assets, bonds, REITs and gold. “Our style is boring, slow, constant… We are committed to less volatility and more diversification. We have not entered bitcoin nor do we plan to enter it. In fact, it cannot be defined as an asset due to the continuous bubbles it has,” comments its CEO Giorgio Semenzato in a meeting with ‘assets’.

In 2023, Finizens indexed portfolios obtained an average net return of 10.6%, 6.9% in the case of its most conservative funds and 14.9% in the most exposed, most aggressive ones. The ‘roboadvisor’ equity portfolios have accumulated a net return of 70.2% since its launch in 2017. “We expect an improvement in returns compared to the previous decade due to the greater contribution of fixed income. What is expected are annual figures 4%-4.5% in bond portfolios and 7% in the stock market,” adds Semenzato.

Finizens portfolios have access to the largest passive funds in the world, such as Vanguard, iShares or BlackRock… In Spain, the market share of ETFs is still 2.5%, while in the rest of the European Union it reaches 26.7% and in the United States it already exceeds funds in which the manager selects each company or bond and reaches 50.02%, according to Morningstar data. In the US, nine of the ten largest funds track an index. This growth comes hand in hand with returns, but above all due to low commissions.

“To date we have saved our clients more than 11 million via commissions compared to traditional entities. Every year we reduce commissions for our clients who continue with us. In Spain, there are few incentives for banks to offer products with low commissions , although we have the most competitive ‘roboadvisor’ market in the world,” says Semenzato. Finizens’ main competitors are Indexa Capital, Inbestme y Myinvestor.

Seeks to compete with deposits

In December, they also launched a portfolio of monetary funds with an interest of 3.6% per year aimed at savers and companies seeking to make their cash assets profitable in line with the current interest rate. The objective pursued by the manager is to attract people and companies dissatisfied with the remuneration offered by current accounts or deposits from traditional banks.

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According to Finizens, in fact, the average remuneration of current accounts and bank deposits in Spain is respectively -55% and -25% below the European average.

With these percentages and, despite the fact that the interest rates set by the European Central Bank (ECB) are the same for all countries, the Spanish saver is receiving remuneration for his cash much lower than the average citizen in Europe. Even more so considering that today in Spain there are around one trillion euros – according to data from the Bank of Spain “parked” in checking accounts and bank deposits with zero or very low remuneration, an amount that represents 40% of the wealth of Spanish households excluding housing.

Source: www.epe.es



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