Set yourself an investment goal

Goal-based investing is a discretionary portfolio management service in which you will link your investment with a goal. You can choose between any of the goals offered by us, or create your own. Once you have engaged the service, you will be able to exhaustively track your investment and consult different information, including the probability of reaching your goal within the period you set. This service is designed for a medium- to long-term investment horizon. At Openbank, we believe that a medium-term (3-7 years) or long-term investment (+7 years) is the most efficient and optimal way to invest.

This service, as with any investment, has certain risks inherent to the financial markets, including the potential risk of loss of invested capital or lack of return. We have created five different investor profiles according to the risk you are willing to take on, as well as other specific factors.

CONSERVATIVE

PROFILE: The aim of this profile is capital protection and stability. We understand that you would be willing to accept very low risks and potential losses in the short term.

STRATEGY: The risk of the conservative profile investment strategy should be at the lower end of the 2 to 5% volatility range calculated on the basis of historical data over three years.

MODERATE

PROFILE: The aim of this profile is to maintain stable capital, while also seeking protection against inflation. We understand that you would be willing to accept limited risks, with potential small-scale losses and that you would divest if there were widespread market falls.

STRATEGY: The aim of the moderate profile investment strategy should be at the upper end of the 2 to 5% volatility range calculated on the basis of historical data over three years.

BALANCED:

PROFILE: The goal of this profile is to achieve a balance between stability and capital growth. We understand that you would be willing to take risks in your financial investments and accept potential losses in the medium term.

STRATEGY: The risk of the balanced profile investment strategy should be at the lower end of the 5 to 10% volatility range calculated on the basis of historical data over three years.

DYNAMIC:

PROFILE: The aim of this profile is to achieve capital growth. We understand that you are willing to accept the natural risks that are part of the financial markets, including potential losses in the medium term.

STRATEGY: The risk of the dynamic profile investment strategy should be at the higher end of the 5 to 10% volatility range calculated on the basis of historical data over three years.

AGGRESSIVE:

PROFILE: The aim of this profile is capital growth by maximising return. We understand that you would be willing to take on potential losses with the long-term objective of maximising the return on your portfolio.

STRATEGY: The risk of the aggressive profile investment strategy should be within a 10 to 15% volatility range calculated on the basis of historical data over three years.

If necessary due to market conditions, the portfolio's risk profile may deviate from the volatility ranges¹ indicated above.

¹Volatility is the fluctuation in the price of assets in the portfolio.

To apply for the discretionary portfolio management service, you must first complete the suitability test. We will determine your investor profile based on your answers and recommend an investor profile adapted to your requirements.

After completing the test, you can run simulations to see the potential performance of your investment, and you can even link it to a goal if you wish.

Once you have read, accepted and signed the contract, you will be the holder of a discretionary management account.

“Green” or sustainable investment is referred to as ESG investment, which stands for environmental, social and good governance; as well as “SRI”, for Socially Responsible Investment. In addition to contributing positively to the environment and society, this type of investment offers greater efficiency and stability in the medium and long term. It also helps to sustain returns, reducing volatility and potential maximum declines. With our Robo-Advisor automated investment service we seek to generate returns for customers who engage the service, prioritising investment in ESG funds since November 2019. For example, more than 60% of our Shanghai strategy is invested in ESG funds, as of 6 April 2020. We engage the advisory services of Santander Asset Management, pioneers in sustainable asset management in Spain, in order to carry out an in-depth analysis of the ESG criteria of these funds prior to their selection .

Openbank is responsible for managing the investment of customers who have engaged the “We invest for you” service. To do so, Openbank has set up an Investment Committee that meets on a periodic basis. This Investment Committee is advised by Santander Asset Management and BlackRock, the world’s largest asset manager*, which provide us with their vision of the market and optimal asset allocation for each of our investment strategies. Based on this vision, the Investment Committee then selects the investment funds to implement the different investment strategies.

The Openbank Investment Committee manages portfolios based on a defined risk and origin (interest rates, stock market, credit risk, etc.) as opposed to a default asset allocation (50% equities and 50% fixed income, for example). This management approach enables us to better adapt to changing market conditions, ensuring that the risk taken on is controlled at all times. It is the best way to maximize results for each level of risk. Portfolios are reviewed on a continuous basis, taking into account the evolution of different markets. Changes to portfolios are always decided by the Openbank Investment Committee

*Source: Morningstar, 2019.

We apply the following anual fees to this service:

• For balances under €25,000, the management fee will be 0.85% + VAT (1.03% included VAT).
• For balances over €25,000 and under €100,000, the management fee will be 0.65% + VAT (0.79% including VAT).
• For balances over €100,000 and under €500,000, the management fee will be 0.55% + VAT (0.67% including VAT).
• For balances over €500,000 and under €1,00,000, the management fee will be 0.45% + VAT (0.54% including VAT).
• For balances over €1,000,000, the management fee will be 0.35% + VAT (0.42% including VAT).

Fees will be charged monthly to your discretionary management account, deducted from the available cash balance; or, if your balance is insufficient, by selling shares from your portfolio’s investment funds. These management fees are calculated based on the average daily assets under management.

For example, for an investment of €20,000, the fee would be €17.17 per month (VAT included).

Please note that your investment balance is periodically and automatically adjusted, so the fee calculation will also vary according to the total investment value.

You have a comprehensive control panel that you can use to track your investment at any time; for example, you can add more money, redeem part of the investment, cancel the service, etc. You can also consult your suitability test and even change your strategy (provided the new strategy is within the scope of strategies available according to your current test result).

We will also keep you up-to-date on the performance of your assets and the forecast of expected return, as well as the funds that make up your portfolio and the details of the transactions we carry out.

You will have to carry out a fresh suitability test so that we can offer you the portfolio that best suits your needs. That's all there is to it. We take care of making the necessary management decisions to adapt your portfolio to the new circumstances.

You can edit your test by calling (+34) 91 177 33 16; our investment specialists will be available to take your call from Monday to Friday from 8 a.m. to 8 p.m.

You must make a minimum investment of €500 to use the “We invest for you” service. Once you have made this minimum initial contribution, you can make occasional contributions whenever you want, or establish a periodic contribution (from €1* or more) on a daily, weekly or monthly basis. Both one-off and periodic contributions will be invested in the various investment funds in the proportion necessary to maintain the portfolio weights required by your mandate. Please note that a minimum amount of €500 euros has been set in order to manage each strategy. Remember that this service is designed for a medium or long-term investment horizon. At Openbank, we believe that a medium (3-7 years) or long term investment (+ 7 years) is the most efficient and optimal way to invest.

* These contributions will accumulate until a total of €10, before being invested in the asset allocation model in line with your investment strategy.

You can access your money at any time by either requesting a partial redemption or by cancelling the service. You can also change your investment strategy whenever you wish, without any need to request a redemption.

The minimum amount to be redeemed is €10, while the maximum amount will depend on the current value of your investment. A minimum amount of €500 has been set in order to manage each strategy. You can request the cancellation of your portfolio at any time, either from the website, the app or by phone.

Once the service cancellation order has been processed, the corresponding orders will be generated to settle your positions. Your money will then be transferred to the current account associated with your portfolio, minus any pending management fees and applicable tax withholdings.

Please note that your orders will be executed if there is no rebalancing of your portfolio in progress. In other words, if at the time you place an order your portfolio is in the process of being rebalanced or adjusted, that order (and any subsequent orders) may take a few days to be executed until all adjustments are made.

To make contributions you can access the make new contribution option at any time. You will then be able to choose which portfolio to contribute to, and decide whether you want to make a one-off or periodic contribution. The contribution can be daily, weekly or monthly.

Please note that contributions can be made from €1 and above, but no orders will be sent until the amount reaches €10 (e.g. if you contribute €2 each day, the adjustment will be made on the fifth day, for an amount of €10).

You can redeem amounts from your portfolio whenever you want, but you must always maintain a minimum balance to carry out the necessary rebalancing, which will vary depending on your portfolio. The minimum balance is set at €500, which corresponds to the same amount required for your initial investment.

Go to options in your investment control panel to change your portfolio's investment strategy. It displays all strategies included in your investor profile, and you can make comparisons between your current strategy and the one you select before confirming the change.