Investment Funds

Fixed Income Funds

Learn more about these investment funds if you want to invest in public and private fixed income assets in a diversified way.

Aimed at conservative investors.
Aimed at those who do not want to invest in the stock market.
For those who wish to invest in multiple issuers.

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:

In its current form, the portfolio is composed of public debt issued by European Union Member States and corporate debt.
They are short-terminvestments. The investment terms are usually less than a year.
They entire investment portfolio matures within the same time period. This means that you will be able to plan your investments as soon as you invest in the funds.
You know the potential return at maturity from the outset, but it is not guaranteed.

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FAQs for 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.

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.

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.

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?

IInvesting in investment funds involves 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 your investment.

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

Credit risk

Due to the quality of the assets invested in, as well as the issuers of these assets. This is the risk that the issuer may not be able to make payments.

Market risk

This is the possibility that financial instruments will be listed or fall below the price we paid for them. In this regard, the investments may be affected by:

Interest rate risk: interest rate fluctuations affect the price of fixed-income assets. Sensitivity to this risk depends on the duration of these assets.
Currency risk: fluctuation of the exchange value in the case of assets denominated in currencies other than the share reference currency.
Market risk due to investment in equities: arising from variations in the price of equity assets.
Risk from investing in emerging markets: political changes or economic circumstances can affect the value of investments.
Geographical or sectoral concentration risk: the concentration of our investment in a single area or sector increases market risk.

On investing in financial derivatives

Investing in derivatives (futures, options etc.) may entail a higher risk in view of the nature of these products.

Liquidity risk

The risk that no counterparty is found in the market and, therefore, a product cannot be sold.

Sustainability risk

These risks correspond to environmental, social or governmental events or conditions. Factors contributing to the sustainability risk of an investment will include the type of issuer, sector of activity, geographical location and more.

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 funds involve certain risks (market, credit, liquidity, currency, interest rate, sustainability risk etc.), and therefore some or all of the investment may be lost. The risks are set out in the fund's prospectus and Key Investor Information Document (KIID).

Before taking the decision to invest, you must consult the fund's prospectus and KIID, available from the supervisory body concerned, and also from the fund manager's website (www.santanderassetmanagement.es). 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 advertised refers to the acquisition of stakes 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 currencies other than the euro, it may experience increases or falls in performance as a result of monetary fluctuations.

The taxation of returns obtained from investments will depend on the tax legislation applicable to the personal situations of investors, and may vary in the future.

Management Company: SANTANDER ASSET MANAGEMENT, S.A., S.G.I.I.C., registered in the CNMV under number 12. Depositary Institution: CACEIS BANK SPAIN, S.A., registered in the CNMV under number 238. Marketing Company: BANCO SANTANDER, S.A., registered in the CNMV under number 49. This is an advertising communication, for commercial purposes. It is not information that is contractually binding, it is not information that is required by any legal stipulations, nor should it be considered an investment recommendation or any form of advice, and it is not sufficient to take a decision to invest.