Santander AM launches its first monetary fund in Europe
7 OCT, 2024
Santander AM announced today the launch of its first money market fund in Europe for institutional, corporate and high net worth clients, to meet the demand in short-term liquidity and treasury management.
Santander Asset Management Luxembourg will be the ultimate responsible for the portfolio of the Santander Money Market Fund EUR VNAV and the risk control of the fund, managing the product in partnership with Amundi AM, the largest manager in Europe of money market funds. Santander Money Market Fund EUR VNAV will be marketed in the European countries where Santander has business with corporate, institutional and high net worth clients, markets that have experienced increasing flows in recent years. Initially, it has been registered in Spain, Portugal and Germany and later it will be done in other European countries where the Group is present.
Fund features
The Santander Money Market Fund EUR VNAV, domiciled in Luxembourg, invests in short-term assets, mainly in euro-denominated money market instruments such as deposits, commercial papers, deposit certificates, short-term sovereign bonds and repos. These instruments are actively managed to offer regular returns and daily liquidity with the purpose of preserving clients' capital and minimizing their volatility. The fund will maintain a maximum weighted average maturity of up to 6 months and its portfolio will have a weighted average life of less than 12 months.
The product is characterized by its high liquidity, diversification, risk control, high credit quality of its issuers, and by the low volatility of its portfolio, which implies a high stability of its net asset value. This type of funds -money market funds-, unlike other fixed income funds, can be used by corporate investors for accounting purposes as a cash equivalent, which provides companies with advantages in terms of balance sheet, leverage ratios and rating.
This fund allows us to complete our product offering and meet the growing demand for investment solutions for the treasury management of companies and institutions. With this, we are taking advantage of the opportunity that has opened up in this market in Europe, being the type of asset that has registered the highest net inflows in recent years, with more than 253,000 million euros of net flows since September 2022.
Samantha Ricciardi, CEO of Santander AM
