BBVA’s mutual funds decrease in Q1 on high volatility

Spain’s Banco Bilbao Vizcaya Argentaria (BBVA) has seen a 2.3% decrease in its mutual funds AUM over the first quarter of 2016, compared to the previous quarter.

The decline in managed assets was due to the high volatility of markets in the first quarter, a spokesperson for BBVA told InvestmentEurope.

“This has led, on the one hand, to a drop in equity linked to a decrease in the value of the portfolio’s assets. On the other hand, volatility has generated net outflows by the more conservative participants, affecting assets under management,” she said.

BBVA’s Spanish mutual funds reached €30.2bn in Q1 2016, which is 3.9% down from Q4 2015, while managed assets of mutual funds from the rest of the world decreased by 0.2%, according to the bank’s latests earnings report.

The BBVA group posted a net attributable profit of €709m in the first quarter of 2016, down 53.8% from the same period a year earlier. Quarterly results were hindered by a number of factors, including the impact of exchange rates, lower results from NTI and the lack of corporate operations.

In contrast, in Q1 2015 profits were bolstered by the partial sale of the BBVA Group’s stake in Chinese bank CNCB. Excluding this factor, profit was 11.6% lower in constant exchange terms, BBVA said.

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