Frequently Asked Questions

Finletic charges you an annual investment management fee. This fee is calculated based on the amount of money managed daily applying these cumulative bands: 0.6% from €0 to €100,000, 0.5% between €100,001 and €500,000 and 0.4% from €500,001 upwards. VAT will be added to the fee and this will be paid monthly.

Moreover, as with any other entity, you must pay for the management of your investment funds.

Finletic takes advantage of its business volume to negotiate excellent conditions for you. You can save up to 93% on costs, compared to the average costs of the investment funds marketed in Spain. See below.

Average portfolio implementation cost for an individual investor:

• WITHOUT Finletic - Money Market: 0.25%, Fixed income: 1.04%, Variable Income: 1.82%
• WITH Finletic - Money Market: 0.09%, Fixed Income: 0.15%, Variable Income: 0.13%

Average costs of Money Market, Variable Income and Fixed Income for retail Spanish investors in 2020, according to Morningstar. The average cost for each class of asset held by Finletic is calculated using the average OCF (Ongoing Charge Figure) of the investment funds that are currently held in the portfolio.

Finally, your investment portfolio is in a securities account under your name in Inversis bank and separate from your balance sheet. Inversis charges you 0.10% plus VAT annually on your average balance, settled quarterly pro rata.

Your current account does not have any maintenance, brokerage, subscription, refund, fund transfer or national transfer fees. You only pay 0.2% if you make a transfer outside of the euro zone (with a minimum of €9 and a maximum of €100).

No investment is risk-free, but Finletic’s financial experts design your portfolio in order to minimize them, using the following criteria:

• Investment Strategy: Finletic diversifies by different managers, geographic territories, asset subclasses and by currency. In addition, we pay special attention to the liquidity of your portfolio.

• Markets: Market risks can involve paper losses or real losses relating to your portfolio. The former refer to temporary changes in value and market fluctuations. These generally recover over time. However, Finletic porfolios are diversified by different asset classes and sub-classes, and therefore, during market corrections, some will be affected positively and some negatively.

  Finletic portfolios are invested in numerous investment funds which, in turn, invest in shares and bonds in over 9,000 companies and governments. This broad diversification means that we can significantly reduce the possibility of having irrecoverable losses.

• Currencies: The Finletic investment portfolio has access to international companies, not always valued in euros, which can cause variations between currencies. We reduce this risk to a great degree by selecting around 50% of our FOREX funds with currency hedging. This means that the value of the fund will not be affected by the behavior of different currencies. This hedging cost is reduced through euro-hedge mutual fund classes since, in this case, the fund manager can negotiate the cost, taking advantage of the aggregated volume to reduce it.
• Interest rates: All financial assets are valued at discounted rates directly related to rates free of risk on the market. However, by having different classes of financial assets, there are normally variables that offset these variations in different ways.
• Economic and geopolitical factors: By investing globally, Finletic portfolios are exposed to risks relating to economic and geopolitical factors that can affect your gains positively or negatively. As before, by having access to different geographic territories, the effect of this can be reduced somewhat by the broad diversification of the investments.
• Liquidity: Finletic invests in funds with daily liquidity and with minimum volumes under management in order to reduce the risk of illiquidity at times of market difficulty.
• Credit: Finletic carefully selects products by looking at the credit rating, amongst other criteria. Finletic portfolios are exposed to risks involving financial credit and can affect the value of fixed income investments positively or negativel. In any case, the average credit rating of their underlying issues will be at least the average Investment Grade, with a minimum grade of BBB-/Baa3.

• Finletic: Finletic, as a management company, has all its capital in liquid form and does not have any debts. Its function is to coordinate the various organizations in your investment process. Your money will never enter the financial balance sheet of Finletic.

  Likewise, your investments will be channeled through investment funds that are outside of the balance sheets of the organizations that manage or hold them.

  Finletic uses Banco Inversis as the holding bank, which in turn is owned by Banca March Group, a Spanish bank with the highest capital ratio. Banco Inversis holds and values the portfolio funds independently under strict regulatory supervision.

  Your investment portfolio is in a securities account in your name in Banco Inversis and is held separate from its balance sheet.

  However, the cash associated with your securities account is held in a current account which is within the balance sheet of Inversis, consequently it is exposed to a balance sheet risk and, therefore, Inversis adheres to the Deposit Guarantee Fund for Credit Institutions (Fondo de Garantía de Depósitos de Entidades de Crédito - FGD), as all financial institutions .

• Operability: The investment portfolios in Finletic are made up of investment funds which, both in the process of subscription and payment, have settlement periods (time from when they debit or credit the clients current account) of up to 5 working days. During this period, the investor will have their money within the balance sheet of the bank. However, when you ask to withdraw money, Finletic will offer you the option to do so in either the most tax-beneficial way or in the quickest possible time.

Finletic designs each portfolio according to the needs and personal circumstances of each client. This is 100% personalized, so it is difficult to provide a specific answer as regards potential profit, without knowing your goals.

Each of your goals will have a different set of asset classes according to your investor profile and the period defined. But in most cases, you will have a combination of international money market, fixed income and variable income.

Long-term asset classes tend to have a historic average measured according to the inflation rates of each region, because inflation is very volatile and is not homogenous from one period to another in order to compare nominal results. However, in short time periods, there are great deviations compared to this average. These deviations are less defined in money market funds, slightly more so in fixed income assets and substantially more so in the variable income class.

In the very long term, the returns on the money market funds are linked to the inflation of the period without generating real financial profit. This means that, in exchange for a slight variation in annual returns, you will have a reduced yield that will not beat inflation over lengthy periods.

Fixed income returns have been inflation plus 1.5 – 2% annually, but with greater volatility than the money market funds, registering negative returns on multiple occasions.

Historically, the returns for variable income in the very long term have been inflation plus 5% annually, registering large year-on-year changes, which is why they are better as long-term assets because they could register negative returns in short periods. However, this greater volatility also brings greater returns.

The Finletic investment team decides what type of investments are most appropriate for each client according to their personal goals and investor profile. This team is formed by professionals who have over 30 years’ experience in managing investments.

Once the investments have been chosen by our investment team, the Finletic platform will execute the investment strategy and will verify and monitor it continually.

The Finletic platform makes all the necessary adjustments so each client portfolio is perfectly in line with thee personal goals and profile of the investor.

There is no a minimum amount to start investing, but we recommend that you start investing with at least €2,500 in order to be able to create an efficient diversified portfolio.

If you invest less than €2,500, we will leave the money in your current account until you reach this minimum, and then we will start investing according to the goals you have previously defined. We won’t charge you any commission until your money is invested.