The proof that they are superstar products is that the guaranteed funds are the only ones accumulating more purchases than sales throughout this year. According to the latest data from Inverco, these products have amassed net subscriptions of 6.539 billion euros during 2011 while the industry lost more than 5 billion euros in general terms. What explains the difference?
For one thing, fund managers commanded high interest rates when the products were sold. And the 185 investment firms that offered the funds this year, 60 are guaranteeing fixed returns. Management teams justify the guaranteed funds by pointing out that more and more investors demand security.
This kind of risk aversion made for good news in J.P. Morgan's most recent report, which shows that the percentage of Spaniards that have some money in no-risk vehicles such as bank deposits and savings accounts has reached a high of 94%.
Certainly, these guaranteed fixed-return funds are enticing for fund managers, especially those working within financial firms. "Sales of these products are very desirable for managers considering that they are using them to buy bonds from their own firm," affirmed Ricardo Sánchez, an analyst from Gestiohna.
