Proprietary collective investment undertakings and advice on the management of investment vehicles.

As the management company we are, we have our own collective investment undertakings. At present, they number two:

Afi Gobal: a global investment fund whose portfolio composition depends on Afi’s outlook for the economy and the financial markets. On average, its exposure to equities is around 25%, with the bulk of the portfolio in fixed income securities (with a range of ratings and maturities). The portfolio is complemented by alternative investments, including absolute return, long/short, commodity and REIT strategies, for example. The fund takes direct positions (particularly in public debt, private fixed income and financial sector fixed income) and indirect positions, via funds and ETFs (in the latter instance to build exposure to global equities and emerging market fixed income). Although not managed on the basis of volatility, that parameter is taken into consideration, with the goal of keeping VaR at under 5%.

Bolsa Social: es un fondo de venture capital this is an impact venture capital fund that invests in early-stage startups (seed and development capital) with high growth and development potential, stories that present scalability, strong teams and innovative business models. The investees’ mission has to include having a measurable positive impact on society and/or the environment. The venture fund is aligned with the Sustainable Development Goals (SDGs) and is agnostic in terms of sectors; however, it does emphasise projects related with health and wellbeing, inclusive education, education quality, responsible production and consumption, climate action and social integration and development. It mainly invests in Spain but also in Portugal. In invests anything between €50,000 to €1 million, depending on the stage of development of the investee, and is open to participating in follow-on rounds.

We also advise numerous entities on managing their investment vehicles:

Mutual and unit-linked funds: We advise third-party funds, whether multi-asset or specialist (fixed income, equities, megatrends, factor investing, SRI, etc.). In the process of advising those vehicles we issue recommendations on portfolio allocation (breakdown between liquidity, equities and fixed income), credit and duration risk, geographic allocation, investments styles and topics, and other positioning matters such as currency risk, hedging and fund vega and beta.

We also provide selección de fondos y ETF fund (and ETF) selection services for vehicles, guaranteeing that any collective investment undertaking we recommend is a match for the fund’s objectives. In providing these services we rely on qualitative (internal due diligence) and quantitative analysis (in-house scoring based on returns and volatility, portfolio look-through, etc.)

Employer pension plans: Here too we issue portfolio allocation and asset selection recommendations. We advise both the control committees and the management companies. Note that we also advise on the pension plan for Afi professionals (Afi Empleo).