Fixed Income Funds

Investment with a non-guaranteed return objective in a specific period

Target Return Funds are funds with a specific non-guaranteed target return, which invest in fixed income and are designed for investors with conservative profiles who are looking to maintain the value of their money and obtain a specific non-guaranteed return within a set timeframe.

Who are target return funds for?

For saver customers who are ready to take the plunge into the world of investing, with a defensive approach and managed volatility.

What are the characteristics of these target return funds?

Target return funds are a simple investment solution which brings together a range of fixed-income assets within a diversified profile. They have the following characteristics:

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FAQs for target return funds

• What are target return funds?
  

• Target return funds are investment funds with a non-guaranteed target return and a set horizon from the outset. For example, in practice, you could get a 2% return in 12 months if you keep your money in a fund until maturity. In other words, if you invest €10,000, you should expect to receive an additional €200 in 12 months, meaning that you would get a total of €10,200 back.
  
  There is active management over the public and private debt selection for these funds in order to take advantage of issuance opportunities.

• What happens if I need to withdraw my money early?
  

• As is the case with other investment funds, you can withdraw your investment from target return funds at any time. Should you do this, your return will be calculated at the market value when you make your withdrawal request, which may be above or below the stated target return at maturity.
  
  There may be a fee or discount incurred for withdrawing money from these funds during the investment horizon for the target return, as set out in its prospectus.
  
  All of the fund's documents are available for you to read at santanderassetmanagement.es.

• What is the difference between guaranteed funds and target return funds?
  

• Guaranteed funds come with the promise of the stated return being delivered at maturity, which is achieved through an insurer, which underwrites the investment. As a result, investors have a guarantee (an insurance policy), which springs into action should the fund's assets not perform as forecasted. This generally results in a smaller return on the investment.
  
  By contrast, with target return funds, the return is an estimate of what investors should expect to get back, with no guarantees beyond the estimate from the issuer of the bonds in which they have invested. As a result, in many cases, target return funds deliver a higher return rate than guaranteed funds.

• Can I invest in target return funds with Santander if I am not a customer?
  

• If you are not a customer, visit any branch in order to learn more about your options or open an Online Account in just a few steps. If you are a customer, you will be able to invest in target return funds online or at your branch.

What are the risks of investing in these 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, so there is a risk of losing all or part of the investment.

In general, investing in funds means undertaking the following risks:

Please note that the investment-fund target return is not immune from the effects of inflation during the time to maturity, meaning that the actual return (i.e. discounting inflation) could be lower or even negative. The fund's fixed-income investment could be lost if interest rates rise, meaning that investors could incur losses if they withdraw their money before maturity.

Investment in short-term deposits, notes and bonds

They seek to mitigate investor risk as they are funds that invest primarily in highly liquid assets.

For this reason, their hiring is usually linked to moments of economic uncertainty

SANTANDER RF AHORRO, FI

For you who have a conservative profile and are interested in diversifying your investment in public and private fixed income, with limited and reduced risk.

Commercial conditions of the fund

(*) A fixed management fee of 0.45%, 0.25% and 0.15% (depending on class) and a variable management fee is applied depending on the fund's performance. The total annual management fee shall not exceed 1.00%, 0.50% and 0.25% (depending on class) of the fund's assets.

There may be other costs associated with investing in the fund. See information on costs, expenses, and incentives.

What risk is involved in investing in these funds?

Investing in 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, so there is a risk of losing all or part of the investment.

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

Investment that seeks to address changes in interest rates

The investment is made, essentially, through the bond market, from both public and private issuers. The objective of this conservative fund is to mitigate the possibility that the invested capital will be negatively affected by interest rate rises in the European market.

SANTANDER RENTA FIJA FLOTANTE, FI

For those looking to make a short-term investment, against a backdrop of potential increases in the Euribor and inflation.

Commercial conditions of the fund

*The management fee actually charged may be less depending on the profitability of the fund at any time, with a minimum of 0.25% per annum on the average equity. The variable management fee actually charged will be calculated based on the table that has been published by Relevant Fact on the CNMV website (www.cnmv.es).

What risk is involved in investing in these funds?

Investing in 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, so there is a risk of losing all or part of the investment."

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