Portfolio management: choose your investment roadmap

What are the risks of investing through My Portfolio Selection?

Putting money into investment funds through this service means undertaking a certain level of risk that will depend on the funds we invest in from time to time, the composition of each fund, market fluctuations and other factors associated with investing in securities. Therefore, there is a risk of losing all or part of the investment.

In general, investing in funds means undertaking the following risks:

Due to the quality of the assets invested in and of the issuers of those assets. It is the risk that the issuer may not be able to honour its payment obligations.

The financial instruments we invest in may be listed and their value may drop below the price we paid for them. More precisely, the investments may be affected by:

Investing in derivatives (futures, options, etc.) may carry a higher risk in view of the nature of these products.

The risk that no counterparty can be found in the market, meaning that the investment cannot be sold.

Risks relating to environmental, social or governance (ESG) events or conditions. The sustainability risk of the investments will depend, among other factors, on the type of issuer, the sector of activity and its geographical location.

FAQs among customers of the portfolio management service

• What is the portfolio management service?
  

• Discretionary portfolio management is a service model for customers who wish to delegate the management of their assets to a team of experts. By delegating the management of the portfolio, the investment strategy can be adapted to changes in the environment without losing sight of the targets set. Enjoy peace of mind by entrusting your investments to our professionals, who will always have your goals in mind.

• What are the requirements for taking out the My Portfolio Selection service?
  

• Arranging the My Portfolio Selection service couldn’t be easier. You just need to be a Banco Santander customer, have access to your personal section or the Santander App, and reside in Spain. If you are not yet a customer, here you can learn more about all the current accounts we offer on the path to becoming a customer.
  
  Customers must have completed the suitability assessment to arrange this service.
  
  You need only €5,000 to start investing. You can also schedule automatic periodic contributions, from €100 per month.

• What is an investor profile?
  

• An investor's profile is defined by the relationship between the risks he or she is willing to take and the returns he or she expects to obtain.
  
  Determining the investor profile is the starting point for any decision-making process and it helps determine which financial products best suit the investor's needs and preferences.

• What is the suitability test?
  

• The suitability test is a set of questions required of all investors who wish to hire a delegated management service. It is carried out to understand your knowledge and previous investment experience, as well as your financial position and investment objectives, and to assign you an investor profile.
  
  This suitability test allows us to offer the most suitable investments for the investor.

• Can I modify my suitability test?
  

• Yes. You can modify the test if you wish. If you already have a valid suitability test, you can update it during the My Portfolio Selection arrangement process or in your Private Area.

• How do the results of my suitability test affect my investment?
  

• In assessing the suitability of the investment strategy, we will take into account your knowledge and experience, objectives and financial position.

• How long is the suitability test valid?
  

• The suitability test is valid for one year and can be extended for a maximum of three years.

• How can I find out which portfolio risk profile suits me best?
  

• We will propose the risk profile that best suits your needs, based on the characteristics of your investment, the results of your suitability test and the accounts/products held by you in the bank. In addition, you can select other profiles if you wish, provided that these are in line with your investor profile.

• How can I gain access to my money?
  

• My Portfolio Selection has no minimum investment period, so you can cancel the portfolio management service at any time.

• Can I take it out with another person?
  

• Santander Activa is an exclusive digital service for single account holders, meaning you cannot take it out with another person.
  
  If you wish to invest with another person and share ownership of the product with them, please pop into your nearest Santander branch and we will tell you the best way to go about this.

• How much does it cost, and how is it paid?
  

• Portfolio of €5,000  or more:
  
  
  • Fixed management fee charged quarterly and accrued daily on the portfolio's equity, from 0.70% to 1.50% + VAT annually on the capital you have invested.
  • Variable management fee (5% of profits + annual VAT): charged annually on the positive difference between the effective value of the portfolio each year, taking into account contributions and drawdowns from the portfolio made during the period.
    
  Portfolio of €60,000  or more:
  
  
  • Fixed management fee charged quarterly and accrued daily on the portfolio's equity, from 0.50% to 1.30% + VAT annually on the capital you have invested.
  • Variable management fee (5% of profits + annual VAT): charged annually on the positive difference in the net asset value of the portfolio each year, counting contributions and portfolio withdrawals made during the period.
    
  You can cancel at any time and without cancellation fee for the portfolio management service. View the costs and expenses for the service, as well as the financial instruments taken out and held through it.
  
  The costs associated with the provision of the portfolio management service take the form of a fixed fee, which accrues daily and is settled quarterly on the net asset value of equity of the managed portfolio, with no minimum fee, as well as a variable management fee payable annually on the positive difference in the net asset value of the portfolio each year, less contributions made and plus any portfolio withdrawals made during the period. There are certain other costs and expenses associated with the service and with the financial instruments taken out and held via the portfolio management service, which you can consult.

• How can I gain access to my money?
  

• Santander Activa has no minimum investment timeline, so you can cancel the portfolio management service whenever you want. View the costs and expenses associated with the service, and the financial instruments taken out and held through it.
  
  So it’s not a case of not being able to touch your money, which will always be available to you.

• What will my savings be invested in?
  

• Your money will be invested in funds that will change over time, depending on prevailing market conditions and your investor profile. We will determine your profile by carrying out a simple test (suitability assessment).
  
  We will manage your investment for you and decide on the right composition of your portfolio according to your profile. Adjustments will be made automatically.
  
  Even though we manage your money for you, you can find out where and how it is being invested at any time via the Santander app or website.

• How do I track the performance of my investments, and what happens if my circumstances change?
  

• You can track your investment at all times via the Banco Santander app or website, where you will find all the information on the performance of your portfolio and the funds it is composed of.
  
  We at Santander will also give you regular information on the performance of your investment, and the main action taken by our experts.
  
  If your circumstances or investor profile change, you are also free to change how you want to invest your money by modifying your risk appetite at any time.
  
  In a nutshell, you always have control over your investment.

• How long does it take for my money to be invested?
  

• When you arrange the My Portfolio Selection service, we will start managing your portfolio that same da. Your money will be invested within a maximum of eight business days.
  
  When you make additional contributions, bear in mind that these orders may take a few days to go through, if your portfolio is being updated by our managers at that time. In this case, the money could take a few days to be invested.

• Who manages my money, and how is it managed?
  

• We have a team of Santander Asset Management experts with over 51 years of investing experience, who will monitor your investment, and your portfolio will be updated automatically. We carry out monthly rebalancings (i.e. portfolio readjustments). Adjustments may also be carried out occasionally in response to prevailing market conditions.

• Can I make further contributions at a later stage?
  

• Yes, you can make further contributions whenever you like. You can check the performance of your portfolio on the Banco Santander app or website, you can check the evolution of your portfolio and can make as many contributions as you want, with a minimum of €100 each.
  
  You can also set up automatic regular contributions from €100 per month, allowing you to invest gradually and with less effort on your part.

• Can I have several investment strategies running simultaneously?
  

• Yes, you can as long as the risk profile of each portfolio is consistent with the risk that corresponds to the result of your suitability testtake out as many portfolios as you like.

• How do I know what my investor profile is?
  

• The first step is getting to know you better. To gain access to this service you will need to complete a simple test, which will only take a few minutes. It is known as a suitability assessment, and we use it to find out your knowledge and investment experience, your financial position, investment targets and sustainability preferences, and also to assign you an investor profile.

• How do I add this service to my income tax return?
  

• Investment fund tax will be applied to those carrying out the various transactions: arrangement, redemption, transfers, etc.
  
  When redeeming fund units, you will need to report and include any capital gains or losses on your investment. Any capital gains will be subject to tax withholding, according to prevailing law and regulations.
  
  Remember that the tax treatment of your investments will depend on your personal circumstances as an investor, and may change in the future.

• How can I invest without having to be an expert?
  

• A good option when it comes to investing without having to study different products, markets and so forth is to entrust the management of your portfolio to the team of experts of the My Portfolio Selection service.
  
  Via a simple and completely online process, we will ascertain your investor profile and come up with an investment strategy to suit you. This strategy will be adapted over time in response to prevailing market conditions, at all times adhering to the risk you feel comfortable with.
  
  In short, it is an “all-in-one” solution so that you can invest without having to be an expert.