Cecabank held an event to commemorate the four decades of the European initiative
Assets under management of collective investment undertakings have grown from 11 billion euros in 1991 to more than 460 billion euros
Next 20 December marks 40 years since the approval of the UCITS Directive, a set of European Union regulations governing investment funds. It was created with the aim of protecting investors and strengthening the capital markets. To commemorate the occasion, Cecabank held an event yesterday under the theme Past, present and future of collective investment in Spain.
The event was attended by Ainhoa Jáuregui, CEO of Cecabank; José Marcos, Director General for Institutions at the Spanish National Securities Market Commission (CNMV); Aurora Cuadros, Corporate Director of Securities Services at Cecabank; Brenda Bol, CEO of Cecabank’s Luxembourg Branch; Ángel Martínez-Aldama, President of INVERCO; and Sergio Escobedo, Deputy Director General for Financial Legislation at the Ministry of Economy, Trade and Enterprise.
Cecabank’s CEO was responsible for opening the event and did not hesitate to praise what the regulation has meant for the sector over the past four decades: “It fostered a thriving industry which, as of today, has reached 15 trillion euros,” Jáuregui highlighted during her speech.
“The UCITS framework has turned investment funds into an internationally recognised brand, synonymous with transparency, strength, security and prosperity. Cecabank, as the Iberian leader in depositary services, with almost 300 billion euros on deposit from hundreds of management companies, aims to continue supporting the industry, contributing to its robustness and dynamism by promoting new activities such as securities lending and by leading the digital transformation,” the CEO of Cecabank stated.
The opening address was delivered by the Director General for Institutions at the CNMV, who provided a retrospective view of the advances in collective investment over the last 40 years, as well as future challenges. “It was the first time a European passport was regulated for a product, based on compliance with a set of common rules at EU level. The European passport was created with the aim of allowing the same product to be marketed in any Member State of the European Union”, Marcos emphasised.
“Thanks to UCITS, European investors gained access to a wider range of products and benefited from greater cost competition among service providers. The directive constitutes a comprehensive regulatory framework”, concluded the CNMV executive.
What this regulation has meant for the Spanish market can be quantified. “Over these years, assets under management of CIUs have grown from 11 billion euros in 1991 to more than 460 billion euros today; that is, they have increased forty-twofold in nominal euros and more than seventeenfold in current euros”, noted the CNMV representative.
Despite this important milestone having been reached 40 years ago, there is still a long road ahead. Evidence of this lies in the many changes and updates made to the regulation over the past four decades. During his address, Marcos outlined the challenges that, from the supervisor’s perspective, are being addressed in the short and medium term. “One of the challenges is the strategy for the Savings and Investments Union, an initiative of the European Commission aimed at encouraging saving and investment by European households and channelling that investment through the capital markets”, he explained.
Sector challenges
The event also featured two roundtable discussions. The first focused on the current challenges of collective investment and included Ramón Cardil, Corporate Director of Operations at Trea AM; Miguel López, Director of Business at Ibercaja Gestión; Jesús Pinilla, Director of Administration and Resources at Kutxabank Gestión; and Rafael Valera, CEO of Buy&Hold.
Given that the regulation has been in force for four decades, one might consider whether obsolescence would require a new framework to be created. However, “it was created a long time ago, but it is very well designed”, Pinilla of Kutxabank Gestión stated during his presentation. This view was reinforced by the rest of the participants, who also highlighted the efforts made by management companies in recent years. Specifically, in the risk, compliance, and audit departments.
According to the experts, dynamism, product sophistication, the professionalisation of industry personnel, and digitisation have been some of the factors that have enabled management companies to overcome obstacles. “The speed at which we have adapted is impressive”, stated López of Ibercaja Gestión. In conclusion, the experts noted that the sector is in good health and predicted a brighter future, thanks to collaboration, teamwork, and investment confidence.
Meanwhile, the on-the-ground assessment of collective investment and its distribution shaped the discussion of the second panel. This session included Laura Comas, Director of Development and Transformation at Caixabank Wealth Management; Ignacio Izquierdo, Regional Manager Iberia at Allfunds; Emilio Mejía, CEO of Unicaja Asset Management; and Jesús Sánchez-Quiñones, Managing Director of Renta 4 Banco.
Although investment types and the role of distributors have evolved substantially over the past four decades, “in the next four years, this change will likely be even greater than what we have experienced so far”, said Mejía of Unicaja AM. Similarly, the investor profile is no longer the same as in the past, although it remains “very conservative”. Factors influencing this include the population pyramid and the perception of property as a source of wealth.
Regarding the role of distributors, all speakers agreed that advisory services are essential, because “for the client, it is very difficult to make choices in the investment supermarket”, explained Comas of Caixabank. A case in point was during the Covid outbreak, when markets experienced significant volatility. “At that time, clients with market portfolios were calm because they understood that professionals were looking after their assets”, she noted.
Looking ahead, participants predicted a revolution both in the short and long term. They mentioned concepts such as tokenisation, which will shorten timelines and risks to real time. They also highlighted human talent, which will bring value like never before.
Luxembourg, a key market
Luxembourg plays a crucial role in the investment fund sector. It has established itself as a global leader in cross-border fund distribution, with assets of 26.649 billion euros from Spanish and Andorran firms as of May 2023, spread across 52 groups. The trend continues upward, with 14% of funds launched over the past five years issued with a Luxembourg ISIN.
This market offers efficient taxation and a flexible structure for creating financial products, supported by a stable legal framework. This regulatory environment allows investment funds to expand their investor base, access institutional investors and international markets, and increase fund visibility. Luxembourg law provides a wide range of financial vehicles, from UCITS and AIFs to structures specialised in private equity, infrastructure, or private debt.
Against this background, Cecabank has set up in Luxembourg with the goal of cementing its footprint in the global market, supporting its current customers in driving its investment fund business and diversifying its offering. Thus, Cecabank is positioned as a strategic partner delivering bespoke solutions meeting the needs of each institution regardless of its size, helping them to build and grow their business in a competitive environment.
“We launched the strategic plan to open a branch in Luxembourg, supporting clients through outsourcing processes. We aim to assist both Spanish and European clients”, highlighted Brenda Bol, CEO of Cecabank’s Luxembourg Branch.
The success of the initiative was reflected in the speed with which the Luxembourg branch licence was obtained. “At the start of 2024, we decided to go ahead with its opening, submitting the applications to the Bank of Spain. We obtained the banking and notarial licence in just nine months”, Bol explained. According to the executive, this process normally takes between 18 months and two years. This efficiency allowed them to become operational and open in 2025.
A story of trust
The closing of the session was led by Ángel Martínez-Aldama, President of INVERCO, and Sergio Escobedo, Deputy Director General for Financial Legislation at the Ministry of Economy, Trade and Enterprise. Both agreed in defining the UCITS Directive as a success story.
“Spain was one of the first countries to adopt it, even before joining the European communities”. Looking at the figures from 1985, there were 895 million and just over 1,000 million in investment companies. This week we learned that subscription alone in November reached 2,700 million; in other words, in one month we captured the entire accumulated assets of 1985. This shows UCITS as a triumph based on trust, protection, and global recognition in the quality of asset management”, noted the President of INVERCO.
In a very similar vein, the Deputy Director General for Financial Legislation at the Ministry of Economy, Trade and Enterprise described UCITS as “a story of trust”. “In Spain we know it well; for millions of households it has been the gateway to investment”, he added.
According to Escobedo, Europe records one of the highest savings rates in the world; however, its full potential is not being utilised. “Since 2010, the gross savings rate has been 12.9%, reaching its peak in 2020 at 18%, but a very large portion is held in deposits, around 10 trillion euros. It is estimated that greater household participation could generate around 2,500 million in a single year and up to 750,000 million in 10 years. These figures show the potential for mobilising savings”, the expert explained.
A situation that is also applicable to Spain. “In Spain, the characteristics are similar. Household savings are in line with Europe, around 13%”, said the Deputy Director.
Household assets still represent a very high weight, approximately 75%, and the diversification portfolio remains substantial. Within this portfolio, 35% still corresponds to deposits and cash. “These figures show the great potential for mobilising savings among Spanish households”, Escobedo argued.
