Bankia’s new guaranteed income fund offers return of 3.00% AER

11-4-2013 — /europawire.eu/ — Bankia Fondos has launched a new guaranteed income fund offering a return of 3.00% AER until maturity in February 2017. At maturity, investors will receive their initial investment, plus the projected returns for the period.

Investors in the new fund, called Bankia Garantizado Rentas 9, will receive an amount equivalent to 15 quarterly interest instalments. The first instalment, which unitholders will receive next June, will consist of 3.75 euros for every 1,000 invested, while the rest of the instalments will be of 7.5 euros for every 1,000 invested.

“This is a fund aimed at savers who want to ensure an excellent return, known beforehand, over the next three years, irrespective of market conditions,” says Rocío Eguiraun, Bankia asset management business director.

In the current interest rate environment, our customers have understood that this is a good opportunity to secure a guaranteed return of 3.00% AER for the next few years,” Eguiraun explains.

The product will be available from 10 April, with a minimum investment of 10 euros.

2,000 million under management

This is the ninth income fund the Bank has launched in recent months. Bankia already manages more than 1,900 million euros in this fund family and with the Bankia Garantizado Rentas 9 fund expects to bring the total to more than 2,000 million.

“Guaranteed income funds have been very well accepted by our customers because they meet certain requirements: for instance, they’re perfectly understandable, they’re not unnecessarily sophisticated, they’re transparent, and they have an understandable pattern of expected returns,” says Eguiraun.

Cash fund with 2.1% target

In addition, the Bank has launched Bankia Rentabilidad Objetivo Fondepósito, its first fund specialising in investment in bank deposits, with a return target.

This fund invests all its portfolio in fixed-income assets and more than 50% in bank deposits. The main novelty lies in the fact that the Bank has announced that its management strategy is to achieve a return of 2.10% AER by the end of April 2014 for funds invested one year earlier.

“This is not a guaranteed fund, as there is no commitment to deliver a particular return. But the fund manager does have a return target, which gives the customer an approximate idea of the return he is likely to achieve with this product,” explains Eguiraun.

The new cash fund will be available from 10 April, with a minimum investment of 100 euros.

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