Spanish lender Bankia has launched its first megatrends fund aimed exclusively at private banking clients.
Bankia Megatendencias seeks value generation through the investment in assets and geographical areas with positive trends towards any revaluations, whether in the social, political, economic or technological field.
The Fund, which counts with the financial consulting firm AFI as its adviser, has selected demographic transformation, emerging markets development, innovation and sustainable planet as its four main investment areas, also known as megatrends.
With interest rates at record lows, we are aware of the complications that asset management and financial advisory are going through. In this context, the concept of megatrend has been developed as a form of long-term investment."
AFI will help Bankia Asset Management on the identification of trends in which to invest, in addition to analyze the funds segments that are best suited for such purpose.
The new strategy is a fund of funds that will invest from 75% to 100% in companies without any constraints in terms of market capitalisation, sectors, currencies or geographies.
"With interest rates at record lows, we are aware of the complications that asset management and financial advisory are going through. In this context, the concept of mega-trend has been developed as a form of long-term investment.
"We think it is a good time to offer our clients a fund with these characteristics," says Marta Alonso, private banking director at Bankia.
The megatrend related to the demographic transformation has to do with ageing population aspects and their impact on infrastructures and the real estate market. Sectors like health, pharmacy, or biotechnology are also areas of investment related to this megatrend.
Since emerging economies currently account for almost half of the global GDP - and the figure is expected to further increase - investing in the development of these countries means finding opportunities arising from economies with higher growth expectations, in which trends like the consumption of middle and upper classes become a broad investment universe.
New technologies encompass investing in various areas including robotics, digitalisation, internet of things, big data, blockchain, fintech, etc.
The sustainable planet megatrend refers to the scarcity of natural resources and the impact of climate change on the environment and the society.