We invest your money in fund portfolios

Openbank’s roboadvisor automated investment service is a new approach to understanding the investment world, allowing you to delegate the management of your money to professionals.

The decisions regarding the composition and transactions of your portfolio are made by our Investment Committee and the corresponding rebalancing is carried out automatically to optimise costs and time.

This service works with investment funds, i.e., the amount of your portfolio is automatically invested in different investment funds according to the strategy you selected when engaging the service.

For further information about our robo-advisor service, click here.

• In order to engage the “We invest for you” discretionary portfolio management service, we need to ask a few simple questions. This will determine the investment strategies that are within your risk appetite so that you can choose the one with which you feel most confortable.
• You decide how much you want to invest, starting from just €500. Plus, you can set up automatic contributions to gradually build your portfolio from only €1. Bear in mind that the order will be executed when the contributions add up to at least €10.
• We manage your money with a medium- and long-term investment horizon in mind, investing in index funds and actively managed funds from the main asset managers, with a focus on sustainable investment funds (ESG).
• The service automatically rebalances your investment portfolio by transferring money between funds, which renders them tax-exempt.
• We engage the advisory services of BlackRock®, which provides us with its market outlook and asset allocation, and Santander Asset Management, which helps us select funds.
• Once you have engaged the service, you can track the performance of your portfolio or investment goal on the website and app 24/7.
• We keep you up to speed with our timely market flashes that we later post on our website.
• Our team of investment specialists is on hand to help by calling 91 177 33 15 or 900 10 29 38. Our professionals have over 20 years' experience under their belt and are AFI-certified.
• You can cancel the service at any time.

The "We invest for you" 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 can only be engaged by individuals residing in Spain and only one single account holder is allowed.

¹ Source: Morningstar 2024.

We apply the following annual management fees for this service:

• For balances below €25,000: 0.85% + VAT (1.03% including VAT)
• For balances equal to or above €25,000 and below €100,000: 0.65% + VAT (0.79% including VAT)
• For balances equal to or above €100,000 and below €500,000: 0.55% + VAT (0.67% including VAT)
• For balances equal to or above €500,000 and below €1,000,000: 0.55% + VAT (0.54% including VAT)
• For balances equal to or above €1,000,000: 0.35% + VAT (0.42% including VAT)

Fees for this service are charged monthly to your discretionary management account and deducted from your cash balance. If this is not enough to cover the fee, it will be charged by selling units of the investment funds in your portfolio. These management fees are calculated on the basis of the daily average of assets under management.

For example, for an investment of €20,000, the fee would be €17.17 (including VAT and fee amount rounded up). Bear in mind that your investment balance is automatically rebalanced on a regular basis; therefore, the calculation of fees may also vary depending on the total investment amount.

These fees are applied to the total amount of money you have invested. For example, if you have invested €20,000, the management fee will be 0.85% + VAT. If you invest an additional €10,000 - whether in the same portfolio or another in order to keep the two portfolios separate - the management fee will drop to 0.65% + VAT for the €30,000 you have invested.

At Openbank, we are 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.

Openbank is responsible for managing the investment of customers who have engaged the "We invest for you" service. In this regard, Openbank has formed an Investment Committee that meets on a regular basis (for example, in 2019 it met 19 times; in 2020, 23 times; in 2021, 15 times; in 2022, 14; and in 2023, a total of 12). This Investment Committee engages the advisory services of Santander Asset Management and BlackRock^®, which provides us with its market outlook and optimal asset allocation for each one of the investment strategies. On the basis of this outlook, the Investment Committee selects investment funds in which the different investment strategies invest.

The Openbank Investment Committee manages portfolios on the basis of a defined risk and its origin (interest rate, equity market, credit risk, etc.) and not on the basis of a predetermined asset allocation (50% equities and 50% bonds, for example). This management approach allows us to stay abreast of market shifts, ensuring that the risk taken on is controlled at all times. It is away to maximise performance for every risk rating.

Portfolios are rebalanced continuously on the basis of market developments. Management decisions regarding portfolios are made by the Openbank Investment Committee.

¹ Source: Morningstar, 2024.

In accordance with the regulations for all retail customers to whom a financial advisory or investment portfolio management service is to be provided, in order to engage "We invest for you", they must answer a few simple questions that make up the so-called Suitability Test.

This test allows us to ensure that we offer you the investment strategies that best suit your needs as an investor. To do this, we will ask you about your knowledge and experience, your investment goals and your financial situation; and based on your answers, we will determine your investor profile.

The Suitability Test is intended to prevent a customer from taking out a product or service that they does not really understand and is not aware of the inherent risks involved, but instead makes the best decisions for the performance of their investment.

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 principal (invested capital) or the 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 priority of this profile is the protection and stability of your assets and we understand that you would only 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 goal 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.

Strategy: The risk of the moderate profile investment strategy should be at the upper end of the 3 to 6% 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 6 to 9% volatility range calculated on the basis of historical data over three years.

DYNAMIC:

Profile: The priority of this profile is to grow your assets and we understand that you would be willing to accept the risks inherent to financial market developments, including potential losses in the medium term.

Strategy: The risk of the dynamic profile investment strategy should be at the higher end of the 7.5 to 10.5% volatility range calculated on the basis of historical data over three years.

AGGRESSIVE:

Profile: The priority of this profile is to grow your assets by maximising return and we understand that you would be willing to accept potential losses to maximise your portfolio’s return over the long term.

Strategy: The risk of the aggressive profile investment strategy should be at the higher end of the 9 to 15% volatility range calculated on the basis of historical data over three years.

It is important to consider that, should market conditions deem it necessary, the investment strategies associated with each investor profile may be subject to occasional deviations from the volatility¹ ranges listed above.

¹Volatility is the price fluctuation of portfolio assets.

Our automated investment service uses passively managed funds (index funds) and actively managed funds to manage your portfolio. With an active approach, a management team selects and analyses the stocks that, at their discretion, have greater appeal and better market prospects, with the aim of obtaining a higher return than that of their benchmark index. Using these funds allows us to diversify our investment strategies even more.

You will only pay taxes when you decide to sell, and not on the rebalancing we will carry out on your portfolio to adapt to the market circumstances at all times, as this rebalancing will be executed through transfers between non-taxable investment funds.

The costs involved in the investment funds that make up the different portfolios vary according to the investment strategy you choose and are deducted from the net asset value of each fund.

You have a comprehensive dashboard from which you can track your investment at all times; for example, by deciding to contribute more money (with ad-hoc or regular contributions), redeem a part the investment, or cancel the service. You can also view your suitability test and even change strategy, always within the range of strategies that are suitable for you based on the test result currently in effect.

You also have information about changes in your assets and the forecast of expected returns, as well as the funds that make up your portfolio and even details of the transactions we perform.

We will notify you immediately if your portfolio drops by 10% or multiples of 10% against the most recent periodic update we sent you, by email or through the Customer Area on the website, and no later than the end of the business day in which the threshold is exceeded, or if the threshold is exceeded on a non-business day, by the close of the next business day.

On a monthly basis, a portfolio statement will be available in your Documentation section, which will contain a summary of your position compared to the last statement, the return of your portfolio against the benchmark index for the different time horizons, the costs and expenses incurred during the period, etc.

Once a year, we will send you a cost and expenses report that will include a section detailing both the service costs (explicit) and the investment fund costs and expenses (implicit), as well as a tax report to help you with your taxes.

In this case, you will need to complete a new suitability test so we can offer you the portfolio that best meets your needs. And that’s it. We make the necessary management decisions to adapt your portfolio to your new circumstances.

You can amend your test by calling (+34) 91 177 33 16, where our AFI-certified investment specialists will be on hand Monday to Friday from 8:00 a.m. to 8:00 p.m., every day that the Spanish stock exchange is open for business.

In order to engage the “We invest for you” service, you will need to make a minimum investment of €500. Once you have made this initial minimum contribution, you can make ad-hoc contributions whenever you want, or even set up a regular contribution from a minimum of €1 on a daily, weekly or monthly basis.

Both ad-hoc and regular contributions will be invested in different investment funds in the proportion necessary to maintain the asset allocation of your portfolio or goal.

Bear in mind that at least €500 must be held at all times to be able to manage the strategy.

Don’t forget that this is 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.

These contributions will accumulate until you have 10 euros, before being invested in the asset allocation model in line with your investment strategy.

You will have access to your money at all times, either through a partial redemption or by cancelling the service, with no cancellation fee. You can also change your investment strategy at any time, with no need for a redemption.

The amount to be redeemed must be more that €10 and the maximum amount will depend on the current value of your investment. A minimum operational balance of €500 has been set so that we can continue to manage each strategy. You can request the cancellation of your portfolio or goals at any time on the website, app or by telephone.

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

Bear in mind that your orders will be executed provided there is no ongoing portfolio rebalancing. In other words, if at the time you place the order your portfolio is being rebalanced, the order (and any subsequent orders) may take several days to be executed until the rebalancing process has been completed.

"We invest for you" portfolios will be rebalanced through transfers between investment funds, not sales (therefore, no tax liabilities apply).

In the event that the customer requests a partial or total redemption of the investment, it will be taxed as an investment fund on an individual basis.

Don't forget that in addition to monthly reports, we will provide you with a tax report to help you with your taxes.

You can make additional contributions whenever you like. All you need to is select which portfolio you would like to make the contribution to, and indicate whether you want to make an ad-hoc or regular contribution. You can choose between daily, weekly or monthly contributions.

Contributions can be made starting from €1, but the execution orders will not be sent until the aggregate amount is €10 (for example: if you add €2 each day, the adjustment will be made on the fifth day, for an amount of €10).

Every time you make a new contribution to the “We invest for you” service, 0.5% of that investment will be kept as cash, so that you can draw on this amount to pay the monthly service fee.

Bear in mind that your orders will be executed provided there is no ongoing portfolio rebalancing. In other words, if at the time you make the order your portfolio is being rebalanced, the order (and any subsequent orders) may take several days to be executed until the rebalancing process has been completed.

Make your ad-hoc contribution now or set up a periodic contribution to continue building a future for your money.

Yes, you can opt for a more conservative strategy or one that entails a higher risk. You will be shown all compatible strategies included in your investor profile, and you can compare the expected return and asset allocation of your current strategy with the one you choose.

We will automatically rebalance your investment once you select the new strategy. This change in strategy is carried out on the total amount you have invested in the portfolio you wish to modify.

Bear in mind that your orders will be executed provided there is no ongoing portfolio rebalancing. In other words, if at the time you make the order your portfolio is being rebalanced, the order (and any subsequent orders) may take several days to be executed until the rebalancing process has been completed.

Yes, you can have up to 10 portfolios (either portfolios or goals associated with a portfolio). A customer may have the portfolio corresponding to their investor profile and any portfolio that is below that risk profile, taking into account the result of the customer’s current suitability test at that time.

These fees are applied to the total amount of your investment. For example, if you have invested €20,000, the management fee would be 0.85% + VAT. If you make an additional investment of €10,000 —whether in the same portfolio or in a new portfolio, in order to keep them separate— the management fee would be 0.65% + VAT for the €30,000 you have invested.