Santander Chile has added two new structured funds to its range of retail capital-guaranteed mutual funds. Both funds were issued by fund manager Santander Asset Management, Administradora General de Fondos.
Following a recent trend in Chile for medium-term capital-guaranteed structures, Fondo Mutuo Santander Garantizado Bric mutual fund is a three-year uncapped call linked to the performance of the S&PBric40 index. Equity return is based on 50-90% participation in the average underlying growth during investment.
Santander Chile's other fund, Garantizado Matrioska, is also a capital-guaranteed growth product linked to the performance of the Russian Traded index. Likewise, return is based on an uncapped call structure, offering 50-90% participation in the average growth of the underlying over the lifetime of the product.
Both products feature two different levels of investment, with Serie APV aimed at retail investors (with minimum investment of CLP5,000/US$10,000), and Serie Inversionista designed for high het worth individuals (with minimum investment of CLP100,000/US$200,000).
Meanwhile, local investment manager, Administradora General de Fondos Security, is marketing a three-year structured product with 100% hard protection. Fondo Mutuo Security Chile 105 Garantizado guarantees 105% return at maturity, plus 60-90% participation in the average monthly growth of the domestic stock market, the IPSA index, which comprises the 40 strongest shares in the Chilean economy.
These new tranches continue the recent increase in activity in the Chilean structured products market, following multiple launches of capital-guaranteed products by some of Chile’s main players.
