Santander Chile has added a new capital-guaranteed structured fund to its range of retail mutual funds. The product was issued by fund manager Santander Asset Management, Administradora General de Fondos.Fondo Mutuo Santander Garantizado Carioca mutual fund is linked to the performance of the Brazilian stock market. Following the trend for the use of medium-term capital-guaranteed structures in Chile, the fund has a three-year tem, with the Bovespa as an underlying.
The product has an uncapped call payoff and a participation of 65-95% in the underlying growth during the investment term. This product also features two different levels of investment: Serie APV $5,000 for retail investors and Serie Inversionista $100,000 for high net worth individuals.
Santander Administradora General de Fondos said, “[The underlying is one of the] less risky emerging markets, with solid financial indicators. Brazil’s programme for ‘accelerating growth’ will increase investment, particularly since the projected increase in the price of the commodities will benefit a high percentage of Brazilian corporations.”
The investment is denominated in Chilean pesos, and therefore the level of participation will be affected by the the Brazilian real versus the US dollar and the US dollar versus the Chilean peso.
Santander’s new tranche demonstrates the increased activity in the Chilean structured products market, following multiple launches of capital-guaranteed products by some of Chile’s main players.
Fondo Mutuo Santander Garantizado Carioca will be available until 3 May.
