25 July 2023

Cecabank, rated the best depositary bank in the open tenders for public pension funds

Cecabank will be the depositary bank of three of the five winning management entities: VidaCaixa, Ibercaja Pensión and Caser Pensiones

Cecabank was the best positioned of all the depositary institutions, particularly due to its procedures to ensure service quality

MADRID, 25 JULY 2023. The Ministry of Inclusion, Social Security and Migration has appointed five management entities and their depositary institutions to manage public pension funds for a maximum of 5 years.

These funds are the new tool through which the Government seeks to boost pension savings amongst companies and freelancers (Pillar II). It is estimated that these funds will have €3,956 million in assets at the end of the five years, although every three years, the Ministry will be able to consider the possibility of establishing new funds by selecting fund managers. The Ministry has awarded five tranches, one for each manager, together with its depositary institution. Each one has a specific proposal for three pension funds: one conservative, for fixed-income; another mixed, with up to 30% in equities; and a riskier option with exposure to stocks in excess of 30%.

Of the seven management companies that submitted a bid, the Single Contracting Authority of the Ministry of Inclusion, Social Security and Migration proposed awarding five of them in one tranche, with VidaCaixa, Ibercaja Pensión and Caser Pensiones, depositing in Cecabank. It should be noted that while the management companies were announced for the tranche, the depositary institutions could be from multiple tranches.

Cecabank will thus be the depositary of three of the five tranches, with each one consisting of three pension funds of the designated investment types: fixed-income, mixed fixed-income and equity

The depositary institutions were assessed on the bases of the price bid and another series of technical criteria such as infrastructure, cybersecurity, procedure for reporting to the management institutions and the procedures to ensure the quality of the service. Cecabank was the depositary institution that received the best overall rating, notably due to the procedures it uses to ensure the quality of the service provided to its customers, while the price was the same for the three awardees.

For Aurora Cuadros, Corporate Director of Securities Services at Cecabank, "this process is a clear example of Cecabank's commitment to offer its customers the best service. We are very satisfied with the result of the evaluation because it shows that we are prepared to serve our customers-management companies however they need us to".

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