Santander Money Market fund reaches €2bn AuM

Santander Money Market Funds EUR VNAV, Santander Asset Management’s debut money market fund in Europe, has topped €2.1bn in assets under management (AuM) in just eight months. Banco Santander’s asset management arm unveiled the new fund to meet perceived demand among the Group’s corporate, institutional and high-net-worth clients for short-term liquidity and cash management. The move doubles down on Santander’s commitment to provide clients with tailored solutions.

Registered in Luxembourg, the fund actively invests in euro-denominated money market instruments and other short-term assets such as deposits, commercial paper, certificates of deposit, sovereign notes and repos.

Santander Money Market Fund EUR VNAV is available in European countries where Santander caters to companies, institutional investors and high-net-worth individuals: Spain, Portugal, Switzerland, France, Germany and the United Kingdom.

Unlike other fixed-income funds, money market funds can be booked by corporate investors as cash equivalents. This means a company can improve its balance sheet and leverage ratios and potentially attract a better credit rating. In this regard, the Spanish Institute of Accounting and Auditing (ICAC) has responded positively to the query raised by Santander Asset Management Luxembourg regarding the possibility of investments made by companies in this fund being considered equivalent to cash, pursuant to Spanish accounting regulations.

Managed with the aim of delivering consistent performance, minimising volatility and preserving clients’ capital, since its launch the fund has provided a return net of commissions in its class I above the €STR, euro short-term rate, the one-day interbank interest rate published by the European Central Bank.

Santander Asset Management CEO Samantha Ricciardi says, “This product enables us to meet growing demand among companies and institutions for investment solutions in treasury management. In addition, the new offering positions our firm in the European money market fund segment. This market, which has seen the largest increase in net flows in the European fund industry over the past two years, has posted net sales of more than EUR 245bn in the last twelve months, of which €118bn corresponded to euro-denominated money market funds.*”

*Source: Broadridge

Data as of 31 March