Developments in the collective investment industry in Spain between 2008 and 2019

11 Pages Posted: 21 Oct 2020

Date Written: October 13, 2020

Abstract

This article shows that collective investment undertakings (CIUs) have grown notably in recent years, both in Spain and other European countries. These developments have come in step with greater sector concentration and a rising percentage of assets managed by entities registered abroad. In line with the evidence documented internationally, the investment portfolios of CIUs domiciled in Spain reflect an increase in risk-taking over the last few years, although the weight of lower credit quality fixed-income instruments is very low. There are very close links between the Spanish banking sector and CIUs. First, a very sizeable share of the assets of Spanish CIUs is managed by subsidiaries of Spanish deposit-taking institutions. Second, a very significant proportion of CIUs’ investment portfolios comprises financial assets issued by the banks themselves. Therefore, in-depth analysis of these interconnections is essential to assess the resilience of CIUs and that of the financial sector as a whole.

Keywords: collective investment undertakings, market structure, interconnection with the banking system, portfolio composition.

JEL Classification: G23

Suggested Citation

Mayordomo, Sergio and Álvarez Román, Laura, Developments in the collective investment industry in Spain between 2008 and 2019 (October 13, 2020). Banco de Espana Article 32/20, Available at SSRN: https://ssrn.com/abstract=3716217

Sergio Mayordomo (Contact Author)

Banco de España ( email )

Alcala 50
Madrid 28014
Spain

Laura Álvarez Román

Banco de España ( email )

Alcala 50
Madrid 28014
Spain

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