Not all the news from Spain’s financial sector is downbeat. Family-backed firm March Gestión de Fondos is pushing out across Europe.
Jiménez says it has been proven over and over that the quality of management of an investment product, and its future performance, are closely related to the ethos among the professionals involved in its day-to-day running.
He identifies “experience, humility, teamworking and commitment in the pursuit of profitability for customers” as key drivers for those individuals. Each person’s “unique perspective” is exploited to the full in the investment process.
After joining the March Group in 2009, one of the things that impressed Jiménez was the business mission as put to him by family member Juan March: “What I want is for my grandchildren to be doing business with the grandchildren of our clients.”
MGF’s investment philosophy combines long-term value creation with wealth protection, based on the conviction that active management (not replicating benchmark rates or managing with high “tracking errors”) is an important source of added value.
The combination of macroeconomic and financial markets analysis, together with the valuation of companies, is the most critical process for the success of investments.
Jiménez says the team can only achieve great results in the medium and long term if it can systematically detect inefficiencies in the price of assets and make the most of the opportunities those generate.
Analysis of macroeconomic environment and financial markets is derived from a recognised number of information sources, both private and public, as well as the experience of the investment team, which includes invited lecturers from universities and prestigious business schools. An investments committee is regulated by MGF’s Terms of Reference and is chaired by the firm’s chief investment officers.
All MGF funds to be registered in the UK are Ucits structures, offering daily liquidity and a well understood and globally recognised framework. The three funds have institutional and retail share classes in euros and dollars, and there are no subscription or redemption fees.
Jiménez says the commitment to simplicity means that most MGF funds are “plain vanilla equity funds”.
“We do not use structured products or any sort of currency or credit derivatives and we are always aiming to keep costs low. Investment starts from as little as €10 in some share classes.”
Transparency is reflected in the opportunity for main shareholders to participate in the quarterly investment committees.
On the flagship €455m Torrenova fund, a global balanced equity structure which most clearly reflects the experience and historic involvement of the March Group, the annual management fee is 0.7%, and there are US dollar and sterling share classes, both hedged back to the base euro currency.
The dynamic asset management model follows two basic concepts: value investing and a long-term commitment. Torrenova is managed with an absolute return strategy, with an objective return of IPC Euro +2% and volatility of less than 6%.