INVESTMENT FUNDS

Income Generation Range

A range featuring two Global investment funds offering quarterly payments via redemption of units¹ and semi-annual payments in the form of dividends¹.

1. WARNING: neither the returns nor the initial investment in these funds are guaranteed, meaning that the investor could lose money. The periodic payments for Santander Defensivo Genera, FI are reimbursements of your investment, i.e. they are not the yield or return obtained by the fund. The fund may be incurring losses, even though you are receiving periodic payments. In the case of Santander Equilibrado Income, FI, the amount you receive will depend on the distributable income obtained by the portfolio, which may vary depending on prevailing market conditions.
2. Quarterly payments via redemption of units. Each redemption will be 0.25% of the net asset value of the unit in the fund on 31/03, 30/06, 30/09 and 31/12, or next business day if any of those days falls on a non-business day. The effective amount of the payments you receive will depend on the performance of the net asset value and the return will not necessarily be equal to the initial amount invested.
3. The unitholder may receive, via semi-annual dividend payments, a variable amount at the discretion of the fund manager, subject to the legally applicable withholding tax. The fund manager has a NON-GUARANTEED target dividend payout of 1.50% semi-annually (3% per annum) of the net asset value of the fund at the date of the dividend accrual. On the day the dividend is paid, the net asset value of the fund will be reduced by an amount equivalent to the amount of the profit paid out.
Before taking the decision to invest, you must consult the fund’s prospectus and KIID, which are available from the supervisory body concerned and can also be found on the fund manager’s website. The decision to invest in the fund must be taken in due consideration of all the characteristics or objectives of the fund described in the fund’s prospectus and KIID. The investment hereby promoted refers to the acquisition of units in an investment fund, and not in a certain underlying asset. Past performance is not a reliable indicator of future results, and if the fund is denominated in non-euro currencies its performance may rise or fall in response to monetary fluctuations.
The taxation of returns obtained from investments will depend on the tax legislation applicable in your case and may vary in the future. In the case of Collective Investment Undertakings (CIUs), individuals subject to personal income tax can benefit from the tax deferral regime on transfers between CIUs, which take place in accordance with current legislation.
Fund manager: SANTANDER ASSET MANAGEMENT, S.A., S.G.I.I.C., filed with the CNMV under number 12. Depositary institution: CACEIS BANK SPAIN, S.A., filed with the CNMV under number 238. Fund marketed by: BANCO SANTANDER, S.A., filed with the CNMV under number 49.
This is an advertising communication, for commercial purposes. The information contained herein is not contractually binding and is not a legal requirement; nor should it be treated as a recommendation to invest or any form of advice, and it is not sufficient in itself as the basis for a decision to invest.
© BANCO SANTANDER, S.A. All rights reserved – Registered office: Paseo de Pereda, 9-12. SANTANDER. Tax number: A-39000013.

SANTANDER DEFENSIVO GENERA, FI

for conservative profiles

SANTANDER EQUILIBRADO INCOME, FI

for moderate risk profiles

TWO INVESTMENT FUNDS

for different risk profiles

Funds that offer you a periodic income¹

SANTANDER DEFENSIVO GENERA, FI

If you have a conservative risk profile and would like to receive a periodic income, through the repayment of shares¹, this fund may be of interest.

Global fund with an annual volatility target of around 2% (maximum: 5%), which pays a mandatory 0.25% quarterly² via redemption of units.
It invests in a selection of both traditional assets (fixed income, equities and other investment funds) and alternative assets (dividend futures, merger and acquisition arbitrage, relative value strategies between investment styles, positioning in sover eign debt curve (Eurozone and US), among others), all capable of generating recurring income over a long-term horizon.
Indicative investment term of four years.
Fund listed in the CNMV register at entry number 4935.
See the prospectus, the KIID and the full fact sheet for the Santander Defensivo Genera, FI fund here.
This fund may invest a percentage of 100% in fixed income issues of low credit quality, i.e. carrying a very high credit risk.

Minor risk
Potentially lower return

Major risk
Potentially greater return

1	2	3	4	5	6	7

Category "1" does not mean that the investment is risk-free.

Commercial terms and conditions of the fund

ISIN	Minimum initial investment	Management fee	Deposit fee	Quarterly distribution²
ES0174742009	1 unit	0.8%-0.9% annually on equity (*)	0.04% annually on equity	0,25%

(*) Annual management fee on fund equity, subject to a minimum of 0.8% and maximum of 0.9%, depending on the fund’s performance.

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SANTANDER EQUILIBRADO INCOME, FI

A fund to receive periodic income, through the repayment of shares¹, if you are willing to assume a moderate risk.

Global fund with an annual volatility target of around 7% (maximum: 10%), with semi-annual payment of income in the form of dividends³.
It invests in a selection of both traditional assets (fixed income, equities and other investment funds) and alternative assets (dividend futures, merger and acquisition arbitrage, relative value strategies between investment styles, positioning in sover eign debt curve (Eurozone and US), among others), all capable of generating recurring income over a long-term horizon.
Indicative investment term of five years.
Fund listed in the CNMV register at entry number 5055.
See the prospectus, the KIID and the full fact sheet for the Santander Equilibrado Income, FI fund here.
This fund can invest a percentage of 100% in fixed income issues of low credit quality, so it has a very high credit risk.

Minor risk
Potentially lower return

Major risk
Potentially greater return

1	2	3	4	5	6	7

Category "1" does not mean that the investment is risk-free.

Commercial terms and conditions of the fund

ISIN	Minimum initial investment	Management fee	Deposit fee	Quarterly distribution³
ES0170382008	1 unit	1.1%-1.3% annually on equity (**)	0.1% annually on equity	1,50%

(**) Annual management fee on fund equity, subject to a minimum of 1.1% and maximum of 1.3%, depending on the fund’s performance.

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What risk is involved in investing in these investment funds?

Investing in mixed investment funds implies assuming a certain level of risk that will depend on the composition of each fund, market fluctuations and other factors associated with investing in securities.

In general, investing in funds involves assuming the following risks:

CREDIT RISK
Risk that the issuer may not be able to pay the principal and interest due. Credit rating agencies assign probable solvency ratings. High rated issues feature reduced credit risk, while no credit rating or a low credit rating means that you will be assuming high credit risk. These funds have a maximum exposure to low credit quality fixed income issues of 10% (Defensivo Genera), 25% (Equilibrado Income).
MARKET RISK
General risk of investing in any kind of asset. Asset prices depend on how financial markets perform, on the world’s economy and on the political and economic circumstances in the countries concerned.

Risk of investing in equities: volatility. Prices of equity assets can experience significant fluctuations.

Interest rate risk: interest rate fluctuations affect the price of fixed income assets. Rising interest rates can cause fixed income prices to fall, while falling interest rates can cause prices to rise. Fixed-income assets are more sensitive to interest rate fluctuations the longer their maturity term.

Foreign exchange risk: when investing in assets denominated in currencies other than the investment’s reference currency, you assume the risk of exchange rate fluctuations. These funds have a maximum foreign currency risk of 30%.

Risk of investing in emerging markets: these investments may be more volatile than those made in developed markets if the government’s situation is precarious, or there is risk of nationalisation or expropriation, or of social, political and economic instability. Additionally, trading in these assets is considerably lower, resulting in lack of liquidity and high price volatility. These funds have a maximum exposure to emerging countries of 10% (Defensivo Genera) and 25% (Equilibrado Income).

Risk of geographic or sectoral concentration: concentrating investments in a single country means that the country’s economic, political and social climate will have a significant impact on the return on the investment. Likewise, the return earned by a fund that focuses its investments on a specific economic sector will be closely tied to the performance of the companies operating within that sector, as they all face the same obstacles and problems and are subject to the same regulations. This concentration may mean that these securities will respond similarly or in a more harmonised fashion to these or other market conditions. However, this impact could be mitigated by investing in a more diversified portfolio since not all assets would perform in the same way at the same time. Note also that liquidity risk can affect the fund’s trading conditions.

LIQUIDITY RISK
Investing in low cap securities and/or small sized markets with limited trading volume may reduce the liquidity of the investments and, as a consequence, affect the fund’s trading conditions.
SUSTAINABILITY RISK
These risks correspond to environmental, social or governance events or conditions. The sustainability risk of investments will depend, among others, on the type of issuer, the sector of activity or its geographical location.
RISK OF INVESTING IN DERIVATIVE FINANCIAL INSTRUMENTS
Derivative financial instruments can be used to hedge against investment risks, but they also carry the risk: imperfect- correlation between the value of the derivative instrument and the hedged item may result in the expected outcome not being achieved. - leverage, or price variations affecting the underlying asset may multiply the portfolio’s loss of value. - derivatives not traded in organised markets may carry the risk of non compliance by the counterparty, since there is no clearing house to ensure that the trades are cleared and settled.

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