Bankinter – the first Spanish bank to launch ETF-based pension plans via their digital investment manager

Bankinter today announced the launch of a new pension plans offer based on exchange-traded funds (ETFs) via Popcoin, its digital investment manager. This makes the Bank the first Spanish bank to include this type of service via a robo-advisor.

As with Popcoin investment funds, the pension plans provided by this manager may be arranged by investors who are not Bank customers and also with an investment starting from EUR 1,000.

These pension plans strengthen Popcoin's current offering, which was already the most comprehensive and diversified on the robo-advisor market. They also extend Bankinter's current range of services, which now includes ETF-based pension plans that it will also offer its customers via its digital manager.

Investors will have three pension plans to choose from for three risk profiles, with greater or lesser exposure to equities, and all with a global scope, i.e. that may invest in assets around the world. The plans are as follows:

Popcoin global conservative: with exposure of up to 25% in worldwide equities (stocks and shares).
Popcoin global moderate: with a worldwide equity weighting from 30% up to a maximum of 50%.
Popcoin global dynamic: with investment in worldwide equity securities from 30% up to a maximum of 75% of the total.

What led Bankinter to base its plans on ETFs is that it offers customers benefits such as the possibility of accessing more geographically-diversified investments through this type of fund, which also provide lots of flexibility and liquidity, allowing highly dynamic investment management. This is combined with a technological aspect: the fact that these plans are distributed via Popcoin, which is a 100% digital manager, means providing investors with a very competitive offer as regards pricing and top ETFs from renowned management companies, including Blackrock, Amundi and BNP Paribas.

Customer costs are structured into a simple, transparent fees format, just like the one that currently governs Popcoin investment fund portfolios. There is a fee of 0.80%, which breaks down into 0.70% for management and 0.10% for depositary services and is discounted from the net asset value of the pension plan on a daily basis.

Although these pension plans are index managed, i.e. investments are based on funds that replicate those with outstanding market indexes due to their good performance at any given time, that does not mean that Bankinter may not actively select and change the make-up of the plans. These are not automated investments offered statically to investors. A team of Bank professionals, including experts from Bankinter Asset Management, periodically make changes to the exchange-traded funds included in the plans to try and increase the expected return on these assets at all times. These reviews will be every three months or whenever market events make it advisable to make changes to the exchange-traded funds included in the plans.

Incentive

The launch of this new Bankinter service is also accompanied by an initial incentive. Until 31 July, Popcoin will give an additional 2.5% bonus to pension plans containing more than EUR 5,000 transferred, with the condition that the investment remain in place for at least five years.

Popcoin – a pioneer in the sector

Popcoin was the first robo-advisor launched by a Spanish bank and has been in operation since 2018. It groups together the best combination of the use of algorithms and management by a human team with more ten years of experience in the selection and creation of fund portfolios. It is also the first automated digital manager to provide active and index management for investment funds, along with its new pioneering role providing ETF-based pension plans. This makes its digital investment offer the most comprehensive on the market, backed by the most profitable and one of the most solvent Spanish banks.