BBVA AM puts the affluent customer at the center of its strategy in Peru

BBVA AM puts the affluent customer at the center of its strategy in Peru
BBVA AM puts the affluent customer at the center of its strategy in Peru

After months of lower rates and positive flows, the Peruvian mutual fund industry anticipates a round 2024, and BBVA Asset Management is no exception. Leading the increase in AUM, according to the CEO of the firm in the country, Antonio Cevallos, the firm is focusing on expand the segment called tributary through a complete advisory model they call “prime banking.”

“We are the first in YTD growth, with over 25% growth in total AUM. For five months, that is a quite relevant number,” indicates the executive, in an interview with Funds Society. And one of the differentiating factors, he adds, is that They reinforced their offer for the affluent segmentwhich before they only promoted “timidly”.

“We are putting a lot of focus on our affluent banking, prime banking,” he says, adding that this involved a relaunch of the segment and a new internal structure. More than increasing its commercial staff or financial advisors, the top executive describes that it is “create teams – not so large – of advisors, with a more investment bias“Let them leverage these prime bankers.”

Thus, with a mix of technology – anchored in the BBVA application – and advisors who They incorporated more investment products on its grill, the firm reformulated the offer for customers with a “more holistic approach.” The firm’s strategy is to offer financial and non-financial products, “with an advisory nuance”, with a team of specialized bankers and advisors.

The conquest of the tributary

For BBVA, this customer segment is the ones They are located under the range of traditional private banking, that designate over $500,000. On average, Cevallos describes, They move between 100,000 and 150,000 dollars. The asset class bias, for its part, is inclined towards cash and fixed income.

And the results justify the effort. Of the net flows that add up in the year, around two thirds come from prime banking. “It is a segment that has collected a very good part of the AUM and that is bearing fruit,” indicates the CEO of the manager, adding that clients are evaluating this “more holistic” proposal well.

Furthermore, it is a category that has the potential to grow, according to BBVA AM. “In all mutual funds, our total number of clients is over 100,000,” he explains, while for the prime segment They have 35,000 clients “mapped”.

This is aligned with the historical strategy of the Spanish parent company, which In the past it has already launched itself to attract investors from the retail world. “We have been strong there and we have been gradually climbing the pyramid,” says the professional.

Other focuses

Another segment that they are looking at with interest is that of corporate clientswhich consists of the business of manage the cash of the companies.

“In other parts of the cycle, they have been quite relevant,” describes Cevallos. During 2021 and 2022, the spread between funds and time deposits drove companies towards banks. Today, however, “we have started to see a return at the system level“, says.

At this time, in the segment they value that Mutual funds offer more diversified products and with different terms. “This allows us to stay above what a traditional deposit offers,” at a time when mining companies, for example, which are relevant in the Peruvian market, have “relevant surpluses” as a result of a positive cycle.

At the product level, they are focused on term-defined products, mainly in dollars, taking advantage of the current interest rate situation; and to complement its range of products in currencies, terms and global strategiesparticularly in fixed income in dollars.

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