Santander Asset Management has announced it will limit the entries to the Santander Small Caps Spain fund following its 220% rise YoY.
The initiative – by which the fund becomes the first in Spain to announce a closure – implies that investors will not be allowed to buy more than one share per order from now on(the nominal value per share stands around €250), and aims at protecting the fund’s current participants by controlling the new money poured into the fund and its liquidity.
The decision –communicated to the Spanish CNMV earlier this year but not made effective until now – comes after the fund rose by 220% year-on-year climbing from €405m of AUM in February 2017 to €1.32bn in assets managed now.
Santander Small Caps Spain, managed by Lola Solana, closed 2017 with a return close to 30% positioning itself as the most profitable Spanish stock market fund with one of every four euros invested in Spanish equities.
The number of participants has also increased substantially, going from 8,500 to 25,500 through the same period.
Santander Small Caps Spain fund manager Lola Solana said: “ I am 100% invested in equities since I do not make shorts, nor derivatives, nor I move the stock market drastically because the market direction is sometimes unpredictable. I bet on companies, especially on SMEs companies with high cash generation, low debt, attractive valuation and solvency management team.”