Santander Asset Management (SAM) has launched Santander Eurocrédito, a fixed income fund which will focus on European credit.
The fund will be managed by the London-based unit of Santander AM, Santander Asset Management UK.
In a note to the Spanish regulator CNMV, SAM said that the fund will refer to the Bofa Merrill Lynch 1-3 Year Euro Corporate Index and will invest 100% of its portfolio in both public and private fixed income.
Currency risk could go up to 10% of total exposure, SAM said. The issues will target a credit rating between BBB-/Baa3. Only 15% of total exposure will then be invested in low quality issues, lower than BBB-/Baa3.
The average duration of the portfolio will be between 1 and 3 years. Investors will be able to change the duration of approximately 1 year, SAM also said.