The new Santander ‘Trade Finance Real Economy Fund I’, which invests in short-term trade finance assets and is registered in Luxembourg, will receive an initial capital contribution of EUR 25 million from Banco Santander.
Its investment committee will have two world-renowned, independent members: Jean-François Lambert and Tom Jack.
The fund will be managed by Bertrand de Comminges, global head of Trade Finance Investment at Santander AM and member of its Illiquid Alternative Investments team led by Borja Díaz Llanos.
Madrid, 31 May 2021.
Banco Santander’s asset manager is boosting its alternative investment proposition with its new Santander ‘Trade Finance Real Economy Fund I’, which invests in international trade finance assets. The bank, which has invested 25 million euros in the fund, is securing part of the risk and allowing institutional investors co-invest on an equal footing.
The assets in the fund -which is registered in Luxembourg and ideal for institutional investors such as pension funds, insurers, sovereign wealth funds, corporations and family offices- provide investors with a countermeasure for today’s record-low interest rates that offers returns above treasury solutions and money markets.
The fund is another example of the synergies between Santander’s business areas and the collaboration between the Wealth Management & Insurance and Santander Corporate & Investment Banking (Santander CIB) divisions to come up with new investment products, solutions and services for Grupo Santander customers.
Thanks to its Global Transaction Banking (GTB) team, Santander CIB is a world leader in Trade Finance products. GTB used its vast experience and state-of-the-art technology, not to mention its access to global Trade Finance assets through its solutions for customers in Europe, the US, Asia and Latin America, to help create the fund.
The fund’s highly diversified portfolio will span Europe, the US and Asia, consisting of over 350 companies and with individual losses capped at 10%. Its average credit rating will be approximately BBB+ and it will have weekly exit windows. The fund will be managed by Bertrand de Comminges, global head of Trade Finance Investments at Santander AM and member of its Illiquid Alternative Investments team led by Borja Díaz-Llanos.
Its investment committee will have two world-renowned independent members: Jean-François Lambert and Tom Jack. With a career spanning over 40 years, Jean-François Lambert held executive roles in HSBC’s Trade Finance division from 2000 to 2015. Tom Jack’s 35-year career has taken in such areas as treasury management, risk assessment and M&A in the consumer goods, telecoms, public services and mining industries.
SAM’s Illiquid Alternative Investments team was created two years ago and is part of the vast transformation the company began in 2018. The 30-strong outfit spans Spain, the UK and Latin America. Last October, Santander AM launched the Alternative Leasing hedge fund, which invests in financing SMEs (mainly from Spain, but also Portugal, France and Benelux-based). In a show of its support to SMEs, Banco Santander pledged to contribute EUR 300 million from its own balance sheet when the fund launched.
Santander Asset Management is a global asset manager with firm roots in Europe and Latin America. Stretching back 50 years and operating in 10 countries, it has EUR 181 billion in assets under management across all types of investment vehicles, from mutual funds and pension plans to institutional mandates and alternative investments. Its investment solutions include tailor-made Latin American and European fixed-income and equity mandates.
It has 775 employees dotted all over the globe, 230 of which are investment specialists with over 10 years’ experience in asset management. Its investment methods and local teams’ analysis capabilities, coupled with stringent risk control, give it a unique insight into market opportunities and its clients’ needs. Figures as of 30 December 2020.
Santander Corporate & Investment Banking (Santander CIB) is Santander’s global division that supports corporate and institutional clients, offering tailored services and value-added wholesale products suited to their complexity and sophistication, as well as to responsible banking standards that help our communities prosper.