- It will have fixed, variable-income securities, and perhaps derivatives and other portfolio funds, but not the liquidity of Banco Madrid's portfolios in assets
- From next week onwards, a period will be opened which may last between two or three weeks, until Cecabank is designated as a depositary
- This would allow the funds to operate in the markets again, under the management of Banco Madrid Asset Management.
- But for transfers and reimbursements, one more step is needed: having a marketer (which will probably be the Manager of Renta 4)
- The process in the SICAVs does not begin until they accept Cecabank as custodian
Shareholders in the investment funds of the Banco Madrid Manager and deposited in the bank continue to have their savings blocked. Although a faster solution was predicted, the processes are complex. Progress has been made in the last few days and the reactivation of the operation seems to be getting closer and closer, although the complete unblocking could still take weeks.
Cecabank, the depositary appointed by the CNMV to take charge of the funds and SICAVs, began the process of transferring the assets to the 22 blocked investment funds on Monday, which will end at the end of the week. On Friday, most of the assets in which the funds invest (fixed and variable-income securities, etc.) held by RBC and totalling 934 million euros, could already be in the hands of Cecabank. There may also be other positions in derivatives (held by Altura Markets), third-party funds (Allfunds Bank) or current accounts and deposits in other banks. What there will not be is liquidity in assets of Banco Madrid (the transfer of which has not been set in motion due to the refusal of the bankruptcy administrators and which is regardless of the decision they make).
Be that as it may, it is foreseeable that most of the funds' assets will be in the hands of Cecabank on Friday, in a process that is taking longer than usual due to the exceptional situation. From next week onwards, a period will be opened which may last between two or three weeks but which no longer depends on Cecabank, until the bank is designated as the depositary. A very important designation, since it would allow the funds to operate again in the markets, meaning, managed by Banco Madrid Asset Management (under the same conditions as the Liberbank and BMN funds which are not blocked and whose management continues under Banco Madrid Asset Management).
However, that would not mean a go-ahead to make transfers and reimbursements because these funds would still have no marketer (whereas there is one for Liberbank and BMN). In order to have a marketer that allows the redemption or movement of savings by the shareholders, a fund manager must be appointed, which will foreseeably be Renta 4 if an agreement is reached with the CNMV. Only then will the shareholders have the go-ahead to make decisions with their savings.
Regarding the SICAVs, their assets will subsequently arrive in Cecabank, as they will not be transferred until their shareholders accept Cecabank as custodian. Some have already done it but not all. Their assets amount to around 600 million euros.
Although the processes seem lengthy, experts are talking about deadlines as usual and say they are doing their best to operate as quickly as possible. Since funds and SICAVs operations came to a standstill in March and repayments and movements were prohibited, portfolios have been revalued by the market effect at around 4%, according to calculations of some market forces.
