Goal-based investing

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.

To engage the discretionary portfolio management service "We invest for you", it is necessary to ask a few simple questions that are used to assess knowledge about financial markets and customer experience, their investment objectives, their risk tolerance and their financial situation, including its ability to bear losses. The set of these questions is called Suitability Test and determine the risk profile of each investor. Evaluating your answers, you will discover your investor profile, with which we can offer you an investment portfolio adapted to you.

The suitability test is required for all retail clients who are going to be provided with a financial advisory or investment portfolio management service. Once the test has been carried out, you can carry out simulations to see the possible behaviour of your investment, and you can even associate it with an investment objective, if you wish. Depending on your profile, we will provide you with investment strategies tailored to your needs and you will have to indicate the amount you want to invest, from as little as €500. Subsequently, you can make contributions whenever you want. Finally, you will only have to read, accept and sign the contract, and you will already be the holder of a discretionary management account.

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.

You have a complete control panel from which you can monitor your investment at all times, deciding to contribute more money, refund part of the investment or cancel the service. You can also consult your suitability test and even change your strategy, always within those that appear as suitable according to the test you have in force.

In addition, at all times you have information on the evolution of your assets and the projection of expected profitability, as well as the funds that make up your portfolio and even the details of the operations we carry out.

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.

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).

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.

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.

At Openbank, we’re committed to socially responsible and green investing, prioritising investment in funds that follow ESG (Environmental, Social and Good Governance) criteria. In this regard, at least 50% of our robo-advisor automated investment service strategies are invested in ESG funds.

In addition to our responsible commitment to society and the environment, investing in ESG funds enables us to optimise our investment strategies in terms of return and risk in the medium and long term, offering greater efficiency to our customers when it comes to investing.

We are also aware that certain investment activities may cause adverse impacts on sustainability. We actively seek to minimise these impacts, where possible, by applying the criteria set out in internal policies and procedures, as well as those established in Santander Group corporate policies.

We engage the advisory services of Santander Asset Management, pioneers in sustainable investment management in Spain, to analyse the ESG criteria of these funds and carry out the corresponding fund selection process for our investment strategies.


See sustainability-related information on our portfolio management service.

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 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 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.

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.