What is a fixed-income investment fund?

Fixed-income investment funds are collective investment products that invest savers' capital in fixed-income assets, i.e. debt issuances such as funds, debentures, government bonds or promissory notes from governments or companies.

Fixed-income investment funds are savings and investment instruments associated with a low risk and lower return when compared to other funds.

The name "fixed-income" does not mean that these debt issuances are not listed in the stock markets (just like shares) or that their price does not change. On the contrary, their price will vary depending on the changes in interest rates and the credit risk of the issuing governments or companies. "Fixed" refers to their maturity term and their "coupon", the interest paid by the debt issuer if this is held to maturity.

Classification of fixed-income funds

Depending on their exposure to currency risk (stemming from the change in exchange rates for investments in foreign currencies), these funds may be:

Euro fixed income: up to 10% total exposure to currency risk
International fixed income: possibility of more than 10% of total exposure to currency risk.

Also, mixed investment funds (combining exposure to equities and fixed income in different percentages) include:

Mixed euro fixed income: less than 30% of the total exposure to equities; the sum of investments in equities issued by entities outside the eurozone plus exposure to currency risk is 30% or less.
Mixed international fixed income: total exposure to equities is still less than 30% but the sum of investments in equities issued by entities outside the eurozone plus exposure to currency risk may be more than 30%.

Find out more about how fixed income works and about the fixed-income investment funds managed by Santander Asset Management. Remember that you can find out more information about our fixed-income investment funds on our website.

Preguntas frecuentes

Titulo pregunta frecuente 1

Titulo pregunta frecuente 2