Spain’s Banco Bilbao Vizcaya Argentaria (BBVA) has seen a 5% decrease in its mutual funds AUM in the first half of 2016, compared to the same time a year ago.
BBVA’s Spanish mutual funds reached €30.5bn in H1 2016, which is 2.9% down from the end of 2015, while managed assets of mutual funds from the rest of the world decreased by 0.4%, according to the bank’s latest earnings report.
Funds have declined in the half year due largely to the “difficult situation” in the markets, although there was a positive performance over the quarter of net sales of mutual funds, above all in Spain, which points to a change in trend over previous periods, BBVA said.
In Q1, BBVA saw a 2.3% decrease in its mutual funds AUM, which was due to the high volatility of markets during the period, a spokesperson for BBVA told InvestmentEurope at the time.
“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,” the spokesperson said.
The BBVA group posted a net attributable profit of €1.8bn in H1 2016, down 33.5% from the same period a year earlier, due to the impact of exchange rates and the lack of corporate operations. Stripping out these two factors, profit grew 5.8% y-o-y.