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Henderson Reaffirms its Commitment to Building a Global Credit Franchise

Henderson reafirma su apuesta por la construcción de una franquicia global de crédito — Stephen Thariyan, Corporative Debt Responsable at Henderson.. Henderson Reaffirms its Commitment to Building a Global Credit Franchise

Henderson is investing resources in building a global credit franchise, led by Stephen Thariyan. In February 2013, Henderson announced the appointment of Kevin Loome as manager of U.S. corporate bonds, and his team of five specialists. With these engagements Henderson built a U.S. credit team based in Philadelphia that complements its European fixed income franchise. As confirmed by Thariyan during an interview with Funds Society, the next step will be the hiring of a specialist emerging fixed income team. “That way we will have all the resources to position ourselves in the credit subclass, which offers the best prospects for profitability,” says Henderson Global Investors’ global head of corporate debt.

The next few years will be quite different to what we have seen in the credit markets during the last five years; a period in which “everyone did well without doing anything special, other than being in the asset class,” says Thariyan. The outlook is more complicated now, mainly because investors are “accustomed to double-digit returns.”

A reduction in returns which ultimately did not happen had been expected for 2013. In fact, most experts predicted that the high yield credit market would see a year in which the investor would earn “the coupon” rate, about 5.5%, for the European high yield market. However, as Thariyan points out, the reality was different and the high yield market favorably surprised investors by giving them returns of 11%.

Looking to 2014, the expert points out two focal areas in the credit market. “First, there are still some interesting returns in some sub-asset classes such as high yield and emerging market debt. Moreover, unlike what happened in recent years, this period will not be dominated by the actions of central banks, so this is a year in which the selection of securities becomes important once again.”

Given this much more complicated scenario, Thariyan emphasized that “more than a great rotation from debt into stock, it is internal rotation which is occurring within the credit market”, both geographically, favoring regions where monetary stimuli remain, and in absolute return management products, “which offer protection against duration risk.”

Thariyan explains that, his team’s goal is to provide an additional market return exceeding 50 bp for the entire credit range by selecting appropriate strategies and emissions. “Now is the time to have a good credit analyst team generating the most value,” he added that for performanceit is very important to access the largest possible universe of securities and “to be willing to leave the index if it is suitable for the portfolio.”

Since the year 2009, Henderson has applied four levers in order to obtain alpha in their fixed income portfolios: a good selection of securities, ignoring the index, using credit derivatives and performing active duration management.

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Thus, Henderson has already achieved great success in European IG Credit where it has a strategy which leads the market with 1,700 million dollars in assets under management, as well as in its absolute return strategy, Credit Alpha, which has had a soft close in November to approach the figure of 1,000 million pounds, an amount which the credit team considers the limit in order to optimize fund performance considering the operational costs involved in the strategy. Just over a year ago they launched their strategy for European high yield, which is ranked among the most profitable in its category, and three months ago, relying on Kevin Loome’s team in Philadelphia, Henderson launched a global high yield strategy. Overall, Henderson manages 20,000 million dollars in fixed income strategies.

“We hope to be ready to complete this deal with emerging fixed income strategies soon so that in two or three years we will have a truly global deal on credit, and have accumulated a significant track record for investors,” he concludes.

The First Funds Society Golf Tournament in Miami Kicks off with 50 Participants

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El I Torneo de Golf Funds Society en Miami arranca con 50 participantes — . The First Funds Society Golf Tournament in Miami Kicks off with 50 Participants

The First Funds Society Golf Tournament was held at the Biltmore Hotel’s golf course in Miami last Thursday, the 27thof February. The tournament was attended by over 50 participants of the Wealth Management sector in Southern Florida and was supported by the Henderson management company and by Goldman Sachs AM.

Although the weather was not in our favor for a few days leading to the tournament, and it seemed that the golf tournament would be a wet affair, the rain held off on the date, and all participants were able to enjoy a great day of golf.

The session was preceded by a presentation by fixed income managers Jason Singer, Managing Director of Global Fixed Income at Goldman Sachs Asset Management, and Stephen Thariyan, head of Global Credit at Henderson Global Investors. Both speakers exposed the reasons why they believe it is important to participate in this asset class and answered the questions of those present, who were especially interested in the reality of emerging markets and in particular in Latin American countries.

The tournament’s kick-off was held just after midday, and it was played under the Stableford system in two separate categories. The first category was for players with handicaps of 0 to 18.4, and the second for those with handicaps from 18.5 to 36.

Following is the list of winners of the Funds Society First Golf Tournament:

Flight 1:

1º – Daniel Eulate – Andbank Wealth Management – Director
2º – Luis Cardenas – Banco Sabadell Miami Branch – Assistant VP Credit Department

Flight 2:

1º – Javier Martín Pliego – Santander International – VP Business Development
2º – Mauricio Armando – BCP Advisors – Managing Partner

Henderson Awards:

Closest to the Pin:

Rodolfo Milani – DOMINICK & DOMINICK – Managing Director

Longest Drive:

Nicolas Seigal – RBC Wealth Management – Branch Director Miami

GSAM Awards:

Closest to the Pin:

Eduardo Rodríguez – Intercam Securities – VP

Longest Drive:

Lola Cortezo – Santander International – Product Analyst Private Wealth

The Opportunity in Private Debt

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Fixed Income investors have heard the same story repeatedly over the past few years: there is no juice in traditional fixed income products, and investors will have to look elsewhere to earn any meaningful yield. We see an opportunity for our clients in private debt, as the risk premium of over 5% above comparable high yield bonds nicely compensates for the illiquidity of this asset class, which is arguably the most common barrier to investing. However, we find that most of our clients hold over 85% of their family portfolio in highly liquid securities (i.e. with less than a week of liquidity). The expansive monetary policies of central banks, coupled with some distortions formed by the 2008-2009 financial crisis, have created a great opportunity to lend to middle market private companies.

Brief Overview of Private Debt

Private debt is often utilized by small and mid-sized companies looking for capital or financing. These firms are known as “middle-market” companies- broadly defined as those firms with EBIDTA of $15mm to $100mm and capital needs of $50mm to $500mm. [1] Because of their size, these middle-market firms have limited access to liquid capital markets, which have high minimum issuance sizes. The average issue size per bond in the iBoxx High Yield Corporate Bond index is currently $855 mm.[2]

There are different types of private debt securities- the most typical are in the form of senior loans (first and second lien); unsecured and subordinated debt; and hybrid instruments (combining senior and subordinated debt). The two principal sources of private debt deals are private companies and private equity sponsors. Private companies may look for funding to make acquisitions, to refinance or for growth capital. Private equity sponsors also look to the private debt markets when a transaction such as leveraged buyout or add-on acquisition occurs, or a company needs refinancing.[3]

Investors in private debt earn returns from two factors: 1) contractual return components and 2) equity upside. The contractual return component is the base of the return stream (consisting of high coupons typically 10-15%), plus up-front commitment fees and sometimes premiums relating to early redemptions. Equity upside can be a source of return in some private debt deals. A private debt investor will usually have the opportunity to make equity co-investments in a deal to enhance returns; or sometimes have warrants which potentially benefit from capital appreciation. Private debt investments are positioned higher in the capital structure than equity, giving investors a priority on cash flows of the company.

To understand the risk/return profile of private debt investments it can be helpful to compare this asset type with high yield bonds and private equity (see Table 1 below). While private debt is illiquid when compared to high yield bonds, when compared to private equity we see two main differences: 1) Private debt has a shorter investment period (usually 3-5 years); and 2) Private debt generates attractive cash flows (today we expect around a 9% current yield).

TABLE 1

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Current Opportunity in Private Debt

We like the attractive yields and risk profile of private debt. Private debt is a highly specialized market. Thus, it requires managers with a strong track records as well as a solid network to gain access to deals. We believe the best way for our clients to invest in private debt is through a high quality third party manager. Over the past few months, we have been looking into different managers in the space, focusing on these core qualities:

Track record through multiple credit cycles. We’re looking for managers with a long track record through different market cycles. There are many funds which boast a 0% default rate- but have only been investing since 2009, a period of low defaults across the board. We want to see a team that has proven itself to invest in difficult market and credit environments.
Access to private equity sponsors/ deal flow. We want to work with managers who have direct access to private equity sponsor and deals. This access is important because it ensures the manager is seeing the best deals first- and has first choice in participating. Managers with good access also avoid paying fees to a middle man – which would otherwise be absorbed by the investors in the fund.
Strong investment process/ due diligence process. We want to see a proven track record as well as a strong investment process. We like to see highly experienced teams with the right firm infrastructure to allow for in-depth due diligences.
Alignment of interests. We are always looking for a meaningful alignment of interests when we invest, in this case a capital commitment to the fund from the fund senior managers and or the firm.
Dividend Distributions. In line with our investment philosophy, we look for managers that pay distributions of around 75% of their gross yields. That means at least 9% current yields with expected gross returns of 13% to 17% per annum.

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Report by Ignacio Pakciarz, CEO and Ilina Dutt, Research Analyst, BigSur Partners. You may access the full report through this link.

[1]Rocaton Insights, “Opportunities in Private Middle Market Lending”, January 2013

[2]iShares, data as of January 31, 2014

[3]ICG, “Introduction to Private Debt,” January 2014

Threadneedle Exposes its Outlook for European Equities in New York and Miami

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Ann Steele es gestora del fondo de bolsa paneuropea de Threadneedle Investments.. “Estamos en el mejor escenario posible para la renta variable”

Ann Steele, Senior Fund Manager European Equities at Threadneedle, is visiting the US this week to give her view about European equity markets. Steele will meet with institutional investors in New York and Miami, on the 4^th, 5^th and 6^th of March.

“The economic outlook for Europe continues to improve. Rhetoric from the European Central Bank remains supportive, while the economic backdrop across the single-currency zone has improved, notably in Germany and to a lesser extent in some of the peripheral economies”, highlights Steele. At the company level, Steele believes that the outlook remains encouraging, and continues to find good long-term opportunities in selected European equities, particularly those with robust earnings prospects and pricing power. “There is increasing interest in companies with strong domestic European operations which can benefit from the improving environment, rather than relying on stronger growth in emerging markets and elsewhere.”

Ann Steele joined Threadneedle in 2009 as a senior fund manager in the European equity team. Ann manages the Threadneedle Pan European strategy and various segregated mandates. Prior to joining Threadneedle, Ann worked at Pictet Asset Management, where she managed a number of institutional funds and oversaw significant growth in assets. She has also held senior investment positions at Gartmore and Henderson.

Ann graduated with LLB (Hons) and BMus (Hons) at University of Glasgow.

BNY Mellon Names CEO of Alternative Investment Services Business

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BNY Mellon, a global leader in investment management and investment services, has appointed Frank La Salla as Chief Executive Officer of its Alternative Investment Services (AIS) business.

La Salla will report to Samir Pandiri, BNY Mellon Executive Vice President and CEO of Asset Servicing. He was most recently Managing Director at Pershing LLC, a BNY Mellon company, where he was responsible for all of Pershing’s business outside of the U.S. and led its global growth strategy.

La Salla assumes a role Pandiri has held the past two years. He will be based in New York and oversee a team of more than 2,000 AIS professionals worldwide.

“Client demand for alternative investments is growing, as institutions and individuals seek to enhance returns and manage risk in a low-interest rate environment. At the same time, we’re helping hedge fund managers deal with the host of new regulations and reporting requirements around those assets,” said Pandiri.

“This is a strategic growth initiative for us,” said Tim Keaney, BNY Mellon vice chairman and CEO of Investment Services. “We’ve seen a marked expansion in serving our alternative investment manager clients in recent years and continue to see tremendous upside potential in this business.”

Alongside his new role, La Salla will remain on the board of Pershing Limited in the UK and continue to represent BNY Mellon on the Board of Directors of Euroclear PLC and Euroclear SA.

Before BNY Mellon’s acquisition of Pershing in 2003, La Salla was President and Chief Operating Officer of BNY Clearing Services LLC. Prior to that, he served as Managing Director and Chief Operating Officer at Societe Generale Securities Corp. in the U.S.

Hispania Announces its Intention to Float on the Spanish Stock Exchange

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Hispania Activos Inmobiliarios, a recently incorporated Spanish limited liability company, has announced its intention to seek a primary listing for its ordinary shares on the Madrid, Barcelona, Bilbao and Valencia stock exchanges. Listing is expected to commence before 31 March 2014.

The Company is seeking to raise gross proceeds of €500 million (plus a 10% overallotment option) through an institutional placing. Hispania has already received commitments of €314 million from a number of cornerstone investors and other investors including Quantum Strategic Partners (George Soros), Paulson and Co (John Paulson), Moore Capital Management, APG, Cohen & Steers and the Canepa group.

Hispania intends to deliver capital growth by taking advantage of investment opportunities that may arise in the Spanish real estate market. In particular, the Company is aiming to create a high quality portfolio that generates both recurring income as well as capital gains from asset appreciation.

Hispania intends to invest primarily in multi-family residential properties, offices and hotels in Spain. This means quality assets that are well located and with yield potential, that require either some repositioning, capex investment or active asset management.

The Company’s initial investment strategy is to invest over three years and then to liquidate the portfolio and to return value to shareholders over the following three years. Where the Investment Manager proposes a different course of action, for example if there are merits for Hispania to become a permanent capital vehicle in full or in part, the Company would submit such proposal to the shareholders for approval.

Hispania will be externally managed by Azora Gestión SGIIC, S.A.U. and will benefit from Azora’s long-term expertise and successful track record of real estate investment and its extensive and long-standing relationships with key decision makers in the Spanish real estate market.

In line with best corporate governance practices, Hispania will have an experienced Board, with a majority of independent directors -4 out of 6- and which is chaired by Mr. Rafael Miranda Robredo, the former CEO of Endesa. Board members include Mr. Joaquin Ayuso, former CEO of Ferrovial, Mr. Jose Pedro Pérez-Llorca, founder of Pérez-Llorca Abogados and Mr. Luis Mañas, Board Member of Aviva, as well as Concha Osácar and Fernando Gumuzio from Azora. To ensure close alignment with the interests of all shareholders, the management team has agreed to invest capital in Hispania representing 2.28% of the expected initial offering proceeds.

Hispania has appointed Goldman Sachs International and UBS Limited as Joint Global Coordinators and Joint Bookruners in the offering. The Company has appointed Freshfields Bruckhaus Deringer as its legal advisor.

Commenting on the announcement, Mr Fernando Gumuzio of Hispania said: “The Spanish real estate sector currently presents an interesting opportunity for those investors with the expertise to navigate this complex environment in order to select the right assets. We have established Hispania Activos Inmobiliarios to take advantage of these opportunities by leveraging Azora’s strong track record and expertise in the market to build a high quality portfolio that creates value for shareholders.”

Fibra Inn Announces Investor Events in New York City and Mexico City

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Fibra Inn celebrará un evento con inversionistas en México DF y Nueva York — Wikimedia CommonsFibra Inn's hotel.. Fibra Inn Announces Investor Events in New York City and Mexico City

Fibra Inn, a Mexican real estate investment trust specializing in the hotel industry serving the business traveler, will host an Investor Day at the St. Regis Mexico City, on March 4-5 and at The Hotel Intercontinental Barclay Midtown in New York City on Wednesday, March 19, 2014.

Both events will feature presentations by management, featuring Mr. Victor Zorrilla, Chief Executive Officer; Mr. Joel Zorrilla, Chief Operating Officer; and Mr. Oscar Calvillo, Chief Financial Officer.

This event is by invitation only for portfolio managers and sell side analysts. For electronic registration and the agenda, please visit www.fibrainn.mx

For more details please contact i-advize Corporate Communications at (212) 406 3691 or by emailing mbarona@i-advize.com.

Fibra Inn is a Mexican trust formed primarily to acquire, own, develop, operate and rent a broad range of hotel properties in Mexico. Headquartered in Monterrey, Fibra Inn has a portfolio of high-quality hotels and geographically-diverse located in twelve states throughout Mexico, comprising approximately 4,118 rooms, which 664 are under construction. The Company has signed Franchise Agreements with IHG to operate its global brands Holiday Inn, Holiday Inn Express, and Holiday Inn Express & Suites; with Hilton to operate its brand Hampton Inn by Hilton; and is in the process with Starwood Hotels & Resorts Worldwide to operate the brand Aloft. Additionally, Fibra Inn has agreements with IHG, Marriott International and Wyndham Hotel Group.

IEB and WSBI Launch an International Initiative to Build a More Responsible Financial System

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IEB y WSBI ponen en marcha una iniciativa en busca de un sistema financiero más responsable — Photo: JLPC. IEB and WSBI Launch an International Initiative to Build a More Responsible Financial System

IEB, centre focused on financial training, and WSBI (World Saving Banks Institute), in collaboration with the London School of Economics (LSE), launched the first international initiative aimed at building a more responsible financial system: the ‘Responsible Banking Challenge’.

The main objective is to encourage financial professionals to send their proposals to contribute to the development of a financial system that is more responsible society, the environment and the world economy. This is an opportunity to build a more ethical system worldwide, in which banking professionals are committed to social development.

Some of the fields where these proposals can be developed are, for example; financial integration (according to the World Bank, universal access to financial services contributes to poverty reduction); CSR activities; improvements in a bank’s good governance strategy; financial entities’ good practices manual; or the creation of indicators capable to of evaluating the ethical and responsibility level of financial institutions.

The best initiative will obtain a scholarship to study the Master in Responsible Banking from IEB and WSBI, an online programme in English, taught in collaboration with the London School of Economics Executive Education (LSE). The other selected candidates will be awarded a 30%-50% scholarship to study the programme.

Furthermore, the Master Programme alumni will receive during the course coaching sessions in order to put in practice the knowledge acquired during the lessons and to improve their personal development, and will be part of a mentoring course with professionals specialized in the field.

Financial professionals interested in taking part should submit their proposals to mrb@ieb.es by April 22th. Written formats should not exceed 1,500 words (4/5 pages) or 10 Power Point slides. An audiovisual should not last longer than 3 to 5 minutes. Further information can be obtained at twitter @IEB_Spain / @IEB_Alumnos

Latam Equities’ Piñata

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Brazil will take centre stage in June when the FIFA World Cup kicks off. Stadium construction delays and concerns that the country’s poor infrastructure will be unable to cope have led to accusations that the country is ill-prepared for such a big event. Later in the year there will be elections. Dilma Rousseff is predicted to hold on to the Presidency, but an embarrassing World Cup or a renewal of the social unrest that marred last year’s Confederations Cup could quickly change her fortunes.

In general, the business community would welcome political change, but fear of defeat could prompt the current government to resort to populist policies that lead to a further deterioration in the fiscal deficit. One crumb of comfort is that persistently high inflation has put the central bank ahead of the curve in raising interest rates compared to other countries with vulnerable currencies. Hence, although this will ensure economic growth remains muted in 2014, Brazil is further through the adjustment process than most.

In Mexico, last year was characterised by positive reform headlines but disappointing economic activity, resulting in Mexico’s economic growth being below that of Brazil. This makes 2014 critical for two reasons. First, in the face of higher taxes, Mexico has to deliver on expectations for a rebound in growth, through an increase in government spending and aided by continued recovery in the US. Second, the hard work of ironing out the finer details of the reforms, in particular the energy reform, needs to be completed. Success on both these fronts will give investors confidence in a structural improvement in Mexico’s long-term growth rate.

Elsewhere in the region, the peripheral countries of Venezuela and Argentina have created headlines for the wrong reasons already this year, both having effectively devalued their currencies. This has added to the nervousness surrounding exchange rates in Latin America that began last summer with talk of the US Federal Reserve tapering its quantitative easing programme. Although this is painful in the short term, it is happening because growth in the US is on a firmer footing, which will lead to stronger demand for the region’s exports.

Valuations in Latin American equities are approaching very attractive levels: like a Mexican piñata, the more hits they take, the closer we get to a gift in the form of a compelling buying opportunity being opened up.

Nicholas Cowley, Investment Manager, Global Emerging Markets at Henderson Global Investors

International Investors Rush to Spanish Real Estate Through SOCIMIs

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Los inversores internacionales se lanzan a por el ladrillo español a través de las socimis — Soros has committed to be anchor investor of Hispania socimi, by contributing 50 million euros. International Investors Rush to Spanish Real Estate Through SOCIMIs

The bursting of the housing bubble in Spain and the subsequent financial crisis have left Spanish real estate prices at levels which, for the first time in years, investors are beginning to consider attractive. Therefore, the asset’s positioning begins to pick up, either directly or through listed vehicles such as the SOCIMIs, the Spanish REITs.

“The question which investors were asking themselves in recent years, on whether the time was right to invest in Spanish real estate or not, is no longer relevant. The question now is the type of asset in which to invest, and in which market. The response will depend on investors’ risk profiles, their expectations on the return and the investment term,” as told to Funds Society by Juan José Zaragoza, managing partner of Exan Capital, a real estate advisory and management independent firm based in Miami. The expert believes that “property deals currently offered in Spain and investors’ return expectations finally fall together.” And, in his opinion, some of the clearest opportunities are “in some types of assets which offer investors attractive returns with adjustments in both asset prices and rents or leases in prime areas of Spain’s two main markets (Madrid and Barcelona).”

Bankinter also points out that the Spanish property market will be an attractive investment opportunity over 2014. The recovery will begin this year with a stabilization, followed by a significant recovery in demand and prices in 2015, and development reactivation in 2016. They particularly mention that there will be structural changes: the demand will not be the same as it was in the past and the prices of poorly located homes will continue to fall. They remind investors to consider a long-term vision. “It will be an attractive investment opportunity once again but taking a five to ten year timeframe into account.”

Gross and Soros, the Interested Gurus

This period of recovery is attractive to all investors. “It is not just international vulture funds or foreign real estate investors who wish to invest in the Spanish real estate market, but also the local investors,” Zaragoza pointed out. Nevertheless, the recovery is currently relying on large institutional investors and international fortunes.

Thus, over the past few weeks, we are seeing how the big international investors have put the Spanish real estate sector in the spotlight. Just days ago Bill Gross, guru of the largest fixed income manager in the world, Pimco, agreed to purchase five million shares in the new Grupo Lar SOCIMI, or REIT, which will begin trading on the Spanish market on March 6 in the hands of the Pereda family; representing an investment of 50 million Euros and a fund weight of 12.5%.

More recently, it was made known that George Soros, the U.S. investor who bought 3% of FCC some months ago, has committed with the Azora team, to be anchor investor of Hispania Activos Inmobiliarios, its 500 million Euro SOCIMI, by contributing 50 million euros, equivalent to 10% of the fund. Currently, and as explained by the institution, Hispania is undergoing talks with several major global financial investors in connection with their participation as anchor investors.

On Thursday, Hispania Activos Inmobiliarios, a newly established Spanish real estate company, announced its intention to launch an offer for subscription of shares to obtain a capital of 500 million Euros through global positioning for qualified and sophisticated investors, with Goldman Sachs International and UBS Limited as coordinators for the offer. The company intends to build a portfolio of quality real estate assets by investing primarily in residential properties, offices and hotels in Spain. The company, which prompted the listing of its shares in the Spanish stock market after having obtained the approval of the prospectus by the CNMV, will be managed and advised by a company of the Azora Group (over 2,000 million Euros in assets under management).

The Appeal of the SOCIMI (REIT)

These last two are a couple of examples of the appeal which the SOCIMI have as a vehicle to channel investors’ interest for Spanish real estate beyond direct investment. “It can be a very interesting vehicle for families as well as for the international investor. Now is the time to have SOCIMIs within the product portfolio,” said Juan Antonio Gutiérrrez, CEO of the Wealth Management Company Mazabi Gestión de Patrimonios, at a recent conference organized by iiR. These vehicles are fit “for investors in Latin America and elsewhere.”

Experts believe they have already laid the legal and taxation foundations for their development and that they shall continue to grow in numbers. According to Mazabi, there are international investors with Spanish real estate who are considering entering or forming a SOCIMI; and he estimates that by the end of 2015 there could be between 15 and 20 companies of its kind in the Spanish market, both of domestic and international investors. “There are currently many families working on the establishment of SOCIMIs” confirms Enrique López de Ceballos Reyna, RHGR-ONTIER partner. One of the key advantages is the liquidity which they can provide in the future, when they go public, an activity for which there is a two year margin. Taxation wise they are very advantageous, although they are required to distribute 80% of rental earnings in dividends, which are taxable.

It is precisely those dividends which could be the attraction for investors. “A lot more money will flow in when SOCIMIs are clearly invested: pension plans and other institutional investors will want to access the coupon provided by the SOCIMI,” explains Gutierrez.

Two Types of SOCIMIs

In late November, the new segment trading SOCIMIs in the Alternative Stock Market (MAB) was launched in Spain, with the addition of Entrecampos Four SOCIMI S.A., and Promorent a few days later. Although at Mazabi they believe that there are two types of SOCIMI: those promoted mostly by families with low assets of less than 100 million euros and which seek tax status or liquidity for their real estate, and others promoted by institutional investors, with assets above 300 million, seeking tax breaks and as Soros does, seeking to benefit from the rules of a game which is well known to them to enter the asset. As the cost of the SOCIMI is around 100,000 euros, scalable depending on the volume, and they require great administrative work, Gutierrez relies more on the development of the latter, or SOCIMIs formed by integrating several family groups with higher volumes.