Frequently asked questions

What is Azvalor?

We are boutique asset management company, an independent Spanish organisation founded by a group of professionals with extensive experience in the world of investment and with a distinguished track record in making sound investments. The mission of the company is to maximise the long-term return on investments while minimising the risk of permanent losses and to share this mission with our co-investors.

What is our investment philosophy?

At Azvalor, we invest according to a single investment philosophy: “value investing”. We use a pure style of investment, choosing companies without restrictions in terms of their size, sector or the country in which they are based.

We believe that the most reliable way to yield consistent returns is through long-term investments in well-managed, undervalued companies with a comprehensible business, significant potential for appreciation and sufficient safety margin. We apply this philosophy through investment funds, which we believe is the best avenue through which to channel the investments.

When can I consult my investment online via INVESTOR ACCESS?

As soon as the transaction has been finalised, we will send you a confirmation via email, at which point you will be able to consult your personal profile via CLIENT ACCESS.

How can I access my personal investor profile?

Via the INVESTOR ACCESS tab of our website, all you need to do is enter your Tax Identity Number (NIF/CIF) and the password with which you registered.

If you cannot remember or do not have a password, you can obtain it in the “Password reminder” tab of INVESTOR ACCESS, by providing your identity document number and typing RECOVER in order to receive a temporary password (valid for one hour) with which you can immediately access your account and change the password to one of your choice.

What is an investment fund?

An investment fund is an asset formed by the contributions of any number of savers, known as shareholders.

A management body gathers these contributions and invests them in various financial assets (fixed income, equities, etc.) following some predefined patterns.

Each shareholder owns a part of the fund asset in proportion to the value of their contribution. This fund will increase and decrease according to the profitability of the different financial assets that comprise the fund.

The shareholder pays commission to the management body for presiding over the fund. The law regulates the upper limits of the commission.

What is Net Asset Value?

This is the unit price of participation in an investment fund.

How is Net Asset Value calculated?

It is calculated by the dividing the fund asset by the number of participants contributing to the fund at that point in time. In turn, the fund is calculated in relation to the market prices of the shares and transferable securities incorporated in the fund portfolio (and which are mostly negotiated in secondary organised markets) on that date, subtracting fees and commissions. The management company calculates and publishes the Net Asset Value of the fund on a daily basis.

What types of commission does an investment fund charge?

The Azvalor funds charge the following commissions:

management commission: A commission that Azvalor charges for managing the fund:

  • Azvalor Iberia
  • Azvalor Internacional
  • Azvalor Blue Chips
  • Azvalor Managers
  • Azvalor Capital

 

Depository Fee: A commission for the functions of depositing and holding the fund asset. This commission is paid by the fund assets and is already deducted from the Net Asset Value of the share.

Redemption Fee: A commission of 3% (on the asset to be redeemed) on Azvalor equity funds will only be applied to the redemption or transfer of shares that take place under a year.

Along with the management and deposit commissions, the fund, and therefore the shareholder, bear other fees that affect the final return. The TER [Rate of Return] denotes the percentage of the total expenses borne by the fund in relation to its average assets, from the start of the year to the present date. Expenses include management and deposit commissions, external services and other operating expenses (audit, brokerage, royalties, etc.).

All commissions applied to the funds are within the legally-established limits

Who keeps the 3% redemption commission?

The redemption commission is a penalty for redemptions and transfers for shares held for less than a year. It serves to protect our co-investors over the long term, acting as a disincentive for unreasonable and speculative movements on the part of investors that require us to leave positions at moments that are possibly not appropriate.

If we need to apply this commission at any time, investors who remain in the fund will benefit from it, as it is not passed to the manager but returned to the assets of the fund itself, increasing its net asset value.

How are commissions applied?

Management commission and depositary commission are discounted daily from the net asset value, proportionately and at the expense of the fund.

How can I join an Azvalor fund?

Azvalor investment funds can be managed exclusively via www.azvalor.com or by making an appointment to visit our offices.

How can I make a redemption from an Azvalor fund?

Azvalor investment funds can be redeemed via www.azvalor.com, by visiting our offices, or by sending a signed scan to our referenced contact, or to management at operativa@azvalor.com.

Subscription, transfer or redemption orders made by the participant from 14:00 or on a non-business day will be processed together with those made on the next business day. For these purposes, a business day refers to Monday to Friday, excluding holidays in Madrid. Net asset value will not be applied to any operation until the appropriate corresponding documentation has been correctly received. In addition, for the entry subscriptions and transfers, the prior reconciliation of the sum in the fund’s current account is required, together with the documentation. Business days are not considered to be those in which there is no market for assets representing more than 5% of the assets.

 

When can I expect to receive my money after making a redemption?

Redemption payment of participations will be made by the Depositary within a maximum of three business days from the date of the net asset value applicable to the request. As a result, you can expect to receive your money in your current account four business days later, including the business day of the bank transfer.

What withholdings are applied to redemptions?

Income gained by individual residents as a result of the redemption or transfer of their shares is considered to be capital gains and is subject to a withholding of 19% or asset loss. Income gained by non-resident individuals as a result of the redemption or transfer of their shares will be included, for the effects of personal income tax, in the taxable savings base. The taxable savings base, on the part that does not correspond, where applicable, to the personal and family minimum referred to in the Income Tax Law, will be taxed at the rate of 19% for the first €6,000, 21% from that figure to €50,000 and 23% from €50,000. All this is without prejudice to the tax system established in the regulations in force on transfers between IIC. For the treatment of income gained by companies, non-resident individuals or those under special systems, this will be according to that established by the legal regulations.

What are the initial and additional minimum contributions?

The initial minimum contribution is €5,000 per fund (for individuals aged under 23 it is €500 and €40,000 for Azvalor Managers). Any additional contribution must be less than €500

What are pension funds?

These are long-term savings instruments whose objectives is to build up capital to cover specific contingencies of the fund, such as retirement, various degrees of disability, severe or major dependency or death, among others.

What are Azvalor's pension funds?

  • Azvalor Global Value, PP: A pension fund that can invest up to 100% of its assets in equities, assigning approximately 80% of the investment to our International portfolio and the remaining 20% to our Iberian portfolio.
  • Azvalor Consolidación, PP: may invest up to 50% of its assets in equities and the rest in fixed income, principally public and short-term fixed-income securities.

What sort of commissions do Azvalor pension funds charge?

 

  • Management commission: 1.5% of the assets.
  • Depositary commission: 0.09% of the assets.

 

How do I register as an Azvalor pension fund client?

Azvalor pension funds can be managed exclusively via www.azvalor.com or by making an appointment to visit our offices.

How can I redeem a pension fund?

In the event of any of the circumstances included in the specifications of the funds, such as: retirement, disability or death (redemption by one of the beneficiaries).

How can I receive my pension fund?

 

  • In the form of capital or financial income
  • In mixed form (financial income + capital)
  • In another form (payments made without a regular frequency)

 

Are there any tax benefits for taking out a pension fund?

Contributions to pension funds can be reduced in the taxable base for calculating personal income tax, to the limit of the lowest of the following amounts: 8,000 Euros per year or 30% of the income from employment or economic activity.

What are tax implications apply to the redemption of the fund?

All the benefits derived from a pension fund, including those of widowhood and orphanhood, are taxed as income from work in the beneficiary’s personal income tax.

The rights of a participant/beneficiary in a PPI are exempt from income tax. Therefore, in the event of their death, inheritance tax is not applied to the investment as it does not form part of the estate.

Do I need to pay any taxes as a result of holding a pension fund?

No, until you begin drawing payments from the consolidated rights of the fund, tax is deferred until the payment of benefits effectively begins.

Is there a limit to the contributions that can be made?

The annual contribution is limited to €8,000 for the whole of the Pensions Fund and other social benefits systems that a person may participate in. However, there are various limits on tax reduction according to the legislation that may apply in the participant’s country of residence for tax purposes.

What are the minimum and maximum contributions to Azvalor's pension funds?

The minimum monthly payment is €30 for regular contributions. This rises to €150 for ad hoc payments. The maximum annual contribution is €8,000 (provided that this legal limit is not exceeded by contributions by other means).

Can I change my pension fund? How much does it cost?

Yes, you can transfer your vested pension and/or financial rights from one fund to another whenever you wish without incurring any tax or financial costs.