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Frequently Asked Questions

About azValor

Investment funds

Pension plans

What is azValor?

We are an independent Spanish asset management boutique,* founded by a group of experienced investment professionals, who adopt a value investing philosophy. Our basic goal and that of our co-investors, is to maximise long-term return on investment and minimise the risk of permanent losses.

Who is in azValor?

The founding partners are Fernando Bernad and Beltran Parages. They head a team of 19 professionals with extensive experience in the sector. Alvaro Guzman is the Chief Investment Officer and Sergio Fernández is the Chief Financial Officer. Together they have more than 35 years of investment experience

What is the investment philosophy?

At azValor we invest according to a single investment philosophy - "value investing". We use a pure investment style, choosing companies without restrictions in terms of company size, sector or country of origin.

We believe that the most reliable way of obtaining a consistent return is through long-term investment in well-managed companies that are easy to understand, are undervalued but with significant upside potential and with a sufficient margin of safety.

We apply this philosophy through mutual funds - a vehicle we consider most efficient for channelling investment.

When will be the online access available?

The website login is enabled when your investment has been made. You will receive an email confirming your investment.

How can I log in?

You can log in by introducing your ID number and your password. If you do not have a password, or if you have forgotten it, you can generate a new one through our recovery process.

By introducing your ID number and selecting the option RECOVER, you will receive a temporary password so that you can login and immediately change it for one of your choice.

What is a mutual fund?

A mutual fund is professionally managed pool money that has been collected from a number of investors to purchase company shares, bonds or both. The advantage for investors is that their money is spread by professional investment managers across a range of investment in order to reduce risk. By pooling their money in a mutual fund investors can also benefit from the lower costs associated with buying stocks and shares.

The shareholder pays fees to the manager for the management of the fund. The law regulates the maximum level of the fees.

What funds does azValor offer?

  • - azValor Iberia FI
  • - azValor International FI
  • - azValor Capital FI

What is Net Asset Value per share?

It is the unit price of a share in a mutual fund. An investor in a mutual fund buys units with the money they invest. The value of units varies according to the daily value of the underlying assets.

How is Net Asset Value per share calculated?

It is calculated by dividing the net asset value of the fund by the number of shares outstanding at any time. The net asset value is calculated according to the market prices of the assets and securities that at any particular date make up the fund's portfolio (and which usually are traded on organised secondary markets), minus costs and fees. The managing entity calculates and publishes the net asset value per share of the fund every day.

What type of fees does a mutual fund charge?

azValor funds charge the following fees:

Management fee: This is the fee charged by azValor for managing the fund:

  • - azValor Iberia FI
  • - azValor International FI
  • - azValor Capital FI

Custody fee: This is the fee paid for the deposit and custody of the fund assets. This fee is paid against the fund assets and is included in the net asset value per share.

Redemption fee: azValor charges a redemption fee of 3% for investments made for less than one year. The fee is not applied to transfers between mutual funds and other funds managed by azValor except azValor Capital.

Together with the management and custody fees the fund and therefore the shareholders have to bear other expenses that affect its final return. The Total Expense Ratio (TER) indicates the percentage of total fund expenses as a proportion of its average net asset value, from the start of the year until the date in question. Total expenses include management and custody fees, external services and other operating costs (audit, brokerage, stock exchange fees, etc.).

All the fees applied in the funds are within legal limits.

Who gets the 3% redemption fee?

The redemption fee is a penalty for repayments of shares held for less than one year. It acts as protection for our long-term co-investors and is designed to create an incentive against irrational and speculative moves by investors which could oblige us to reverse positions at times when it is may not be appropriate.

If we have to apply this fee it is the investors who remain in the fund who benefit not the fund manager as the fee is added to the fund assets, so increasing the net asset value of the fund as a whole.

How are the fees applied?

Management and custody fees will be daily discounted and charged proportionally against the net asset value per share of the fund.

How can I subscribe to an azValor fund?

Currently, all azValor mutual funds can be bought exclusively through and in person in our offices in Madrid.

How can I receive a redemption from an azValor fund?

All azValor mutual funds can be redeemed exclusively through and in person in our offices.

Orders for subscription, transfer or redemption issued by a shareholder after 2 p.m. (CET) or on a non-working day will be processed together with those made on the next working day. For these purposes a working day is understood to be a working Monday to Friday in Madrid.

The Net Asset Value per share will not be applied to any operation until the correct documentation is received and the corresponding credentials recognised. In addition, in the case of subscriptions and entry transfers, apart from the documentation, the cash in the fund's current account has to be reconciled first. Days where there is no market for assets that account for more than 5% of the total assets will not be considered working days. A 3% redemption fee will be applied to all shares held for less than one year that are redeemed.

How long will it take for me to receive my money in case of redemption?

Redemption payment will be issued by the Custodian within a maximum of three working days from the date of the new asset value per share applicable to the request. It will therefore take four working days to receive your money in your current account, counting from the working day of the bank transfer.

What withholding tax is applied to redemptions?

Returns obtained by Spanish residents are considered capital gains subject to withholding of 19%, or equivalent asset loss. Returns obtained by Spanish residents as a result of the reimbursement of shares will be included for purposes of personal income tax in the savings tax base. The part of the savings tax base that is not covered by the personal and family allowance referred to by the personal income tax law will be subject to a rate of 19% for the first €6,000, 21% from €6,000 to €50,000, and 23% above €50,000. All this is without prejudice to the tax regime included in the law applicable to transfers between collective investment schemes. The treatment of returns obtained by legal entities, non-residents or persons subject to special tax regimes will be subject to the provisions of applicable law.

What are the minimum initial and additional subscriptions?

The miminum initial subscription is 5.000 € per fund (for investors under 23 years old, 500 €). Any additional subscription must be at least 500 €

What are Pension funds?

Pension funds are a useful investment vehicle to build up an amount of capital and to generate stable growth over the long term, in order to be protected against the contingencies included in the vehicle, such as retirement, disability and death among others. 

What Pension funds does azValor offer?

  • azValor Global Value, PP: This fund invests totally in equity, allocating 80% of its assets in our International portfolio and the remaining amount in the Iberian portfolio.
  • azValor Consolidación, PP: invests half of its assets in equity and the rest mainly in public and short term fixed income.
  • What are the applicable charges?

  • Management Fee: 1,5%
  • Depositary Fee: 0,09%.
  • How can I subscribe a Pension fund?

    Currently, all azValor mutual funds can be bought exclusively through and in person in our offices in Madrid.

    How can I recover my Pension fund?

    Once one of the contingencies contained in the specifications of the fund takes place, such as retirement, disability or death (in this case, reimbursed by the beneficiary). In addition, there is a possibility of recovery in case of long term unemployment (once contributive rents have expired), or in case of severe disease of the investor or its relatives.

    How can I collect my Plan?

  • Capital or Income
  • Mixed income (Capital + Income)
  • Other combinations (non-regular payments)
  • What are the advantages in this product taxation?

    Contributions to pension funds are reducible in the holder’s tax basis on the Income Tax. The annual limit of this reduction is the lower of the following amounts: 8000 € or 30% of employment income

    What is the taxation of the Plan redemption?

    All economic benefits/rights arising from the pension fund (including orphan & widowhood pensions) are taxed on the Income Tax as employment income.

    For the participant/beneficiary, all economic benefits of the plan are exempt of Net Worth Tax. Furthermore, in case of death, investment is not taxed by Inheritance tax.

    By the fact of holding a pension fund, do I have to pay an extraordinary tax?

    No. tax payment is deferred until the redemption of economic rights.

    Are annual contributions limited?

    Capital contributions are limited to 8000€ for the whole group of Pension funds and other social prevision systems of which the investor is a participant.

    What are minimum and maximum contributions?

    In case of periodical contributions, the minimum amounts to 30€ per month. For non-periodical contributions, it increases up to 150€. The annual maximum contribution is 8.000€ (provided this limit is not exceeded by other concepts)

    Can I transfer my Pension fund? What is the cost of this operation?

    Yes. Pension funds can be transferred without any economic or tax cost at all. You can always transfer your consolidated/economic rights from one plan to another whenever you want to.