Rubén García Páez (Columbia Threadneedle): "The end of the year is presented by Movidito"

Threadneedle has been.So, the British firm was a practically unknown entity in Spain.Time has passed, with several economic crises that have not undermined the manager's commitment to the Spanish investor.And today the Anglo -Saxon entity is one of the international reference firms in Spain, with a volume that already exceeds 3.000 million euros.It is a heritage that has distributed among 10 funds, all of them with assets at the local level above 100 million.

"Having achieved this growth by diversifying the business is, for me, one of the great hits of the office," acknowledges Columbia Threadneedle in an interview with Fundspeople.Páez is clear that the commitment made at the time by the company opening office in Madrid was key.They did it in 2006.From then on, the hard years of the financial crisis began.The sector had to endure the pull.And it was not easy but, after the drink, it served to show that the manager's will for being close to the Spanish client was real."If you don't have an office in Spain, this business is impossible," he says.

And, although it is true that fund analysis processes have become more quantitative, being now more thorough and methodological, there is also a qualitative part with an important weight."I have not seen any purely quantitative selection process.And, when the qualitative part comes into play, that is where the Spanish investor values the service you provide with someone who speaks your language, that you help you, to help you when you need it ... ", asserts.This is what would explain that more than 90% of the heritage currently treasure.

The fund sold is not always the best

Páez acknowledges that, although this business is not sold bad products, the best does not always win.“Sometimes, even if your fund is very good, there is no demand.In others, the recommended list can be left out of technical issues.For example: our clients usually type us as an Anglo -American firm specialist in the European Stock Exchange and Small Caps.However, if you started searching in other categories, such as emerging variable income, you would see that our funds have obtained better results than those of others sold in Spain.And, despite this, they do not capture because they do not meet a size requirement, ”he argues.

Thus, the fact that a background is sold does not always mean that it is the best.In addition, not all customers have the time and structure necessary to do the corresponding analyzes.Nor are they paid to defend in an investment committee ideas that move away from the big and most popular.However, that does not mean that the manager lacks instruments with which to fight.In fact, that local presence that Páez previously commented is what allows, sometimes, to send the client proposals that he does not have in his radar and that, however, can contribute value to his wallet.

“I see it clearly with the Threadneedle (Lux) Global Technology, a technology fund that, for the highest bias towards small and medium capitalization companies and for the great knowledge of the team of professionals that is at the controls, provides true diversification toThe technological products that the customer has in its portfolio.In this case, we have the necessary and technical resources to carry out our analysis.The manager, Paul Wick, is in Silicon Valley and is a true expert in the field.This background is a great personal bet.If as I think technology is the future, this strategy is ideal for investing in the long term ”.

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Who has the reason?

Determine what the investment horizon is, for Páez, something crucial.“The fundamental problem of this industry is whether we are talking to three months or three years.We do not play short -term bets, but to the knowledge of companies.We want our funds to generate long -term alpha.In fact, from the point of view of which companies they will do well in the coming years, our vision has not been modified by what is happening with inflation or rise in energy prices.Despite the post-opening rebound, the macro environment that we are going to have in the coming years will be very similar to that prior to COVID-19.The central banks will continue to be lax, especially the ECB.Is that they have no other ".

According to the head of Columbia Threadneedle for Iberia and Latin America, in this scenario of moderate growth and low inflation, it is advisable to look for companies that have differential products with which they can grow and maintain margins.“It is what does, for example, Dave Dudding in Threadneedle (Lux) Global Focus: Select the 40 best companies in the world, maintain a long -term vision and take advantage of volatility to increase positions in those values in which you have a greaterconviction.In the market there is always noise.Even in very bullish years we have had it, but we must not fall into the Market Timing ”.

The end of the year is presented "Movidito"

And that is precisely what the Spanish investor could fall in this final stretch of 2021."The end of the year is going to be movidito.The portfolios have done very well and some clients are already telling us that they are getting more defensive to protect profitability.In recent weeks we have seen some punctual conservatism movement.The results of the year are made.If there was no noise, the investor would assume more risk but, as there is, that ends up conditioning its positioning.It is understandable.No one is paid for being a super hero.In the market nothing is crystalline so that you are relaxed.However, in the long term, I remain very positive ".

Páez has perceived that, little by little, the Spanish client has become more patient with his investments.And also that has diversified more outside of Spain.“The Ibex 35 has done it wrong.And that has helped the Global Variable Income Funds.Five years ago these products barely appeared among the products with more heritage.Today that has changed.The Spanish client has delegated the Asset Allocation and a lot of strategy of this type has been sold.In general, the Spanish investor has more equity than in the past and, within this kind of asset, more international stock market.It is one of the great transformations that industry has lived in the last five years, ”he says.

In his opinion, there are some structural trends that have benefited the industry."The banks have been forced to move the deposits to vehicles that gave them margin, which has favored the background product," he says.In addition, the sector has become more innovative and creative in its offer, with strategies that, such as themes, have helped connect with the final investor.Within the industry itself, some interesting trends are also occurring, which are conditioning the evolution of flows.The most obvious case is that of sustainable investment, which is hitting very strong.

If in Europe your fund is not article 8 or 9, you have a problem

“In countries like Germany, France or Holland, if your funds are not included in article 8 or 9 it is more difficult for them to capture money.There is great pressure for the entire SICAV offer to 8 or 9.France has become very hard with this issue.In Spain it has not yet arrived, but we are going in that direction.Customers are preparing lists in which, if the product is not in these articles, it cannot enter.However, they are not as radical as in Europe.Do not exclude it only for this reason.Spain is going to the Europe level very fast.Banking concentration favors it because entities have the necessary resources and analysis equipment to apply the pertinent ASG methodologies, both quantitative and qualitative ”.

On the other hand, Páez recalls that, in some asset classes, investment based on purely ASG factors is more difficult to apply.It happens with fixed income.“If you do a negative screening in the bond market you keep a very small universe.Here it is impossible to be diversified and, at the same time, be a rigorously asy.In addition, the investor wants sustainability, but also earn money.In my opinion, it is not just the ASG factor: it is the ASG factor plus profitability ”.Although it has funds that have managed to emerge, such as Threadneedle (Lux) European Social Bond, the entity is about to make a very important leap at the sustainability level.

Assessment of the purchase of BMO Global AM

This same quarter will be expected, when the purchase operation of the Canadian BMO Global AM is closed, an integration that Páez sees with very good eyes."The BMO business is very pure and complementary.They are experts in ASG and have an institutional business in Europe very strong, especially in Germany and the Netherlands.However, the funds of the BMO SICAV in Europe have barely sold, a part of the business that we have developed.On the other hand, Columbia Threadneedle is very powerful in Real Estate in the United Kingdom.Outside, no.And with bmo the opposite occurs.Integration will make us stronger, ”he concludes.