Sabadell Inversión, the asset manager of Spain’s fifth largest bank Sabadell, has registered with Spain’s National Securities Market Commission (CNMV) a new Euro fixed income fund.
The new vehicle, called Sabadell Reserva, is only available to institutional investors who can invest a minimum of €2m, the fund’s prospectus reads.
The fund will invest in fixed income assets which are issued or traded in markets of the EU member states as well as other countries such as Norway and Switzerland, and markets where assets are traded in euros. The fund could also be exposed to emerging markets.
The prospectus warns the fund could invest up to 100% of its assets in fixed income securities of low credit quality. It also says the fund may not be appropriate for investors who want to withdraw their money within less than 1-2 years.
The fund will be benchmarked against the index which measures the average revaluation reached by funds from the category “Fixed Income Short Term Euro”, establised by the Spanish financial newspaper Expansion.
The management fee will range between 0.20% and 0.30% per annum from the fund’s assets, and will be determined each six months.