Frequently Asked Questions

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.