Bankinter launces a new investment fund: ‘Bankinter Euribor Rentas II Garantizado’
Over 7 years, the fund guarantees 100% of the initial investment, plus additional returns linked to the 3-month Euribor.
The subscription period for this guaranteed fund is until 24 March 2017 (or until the committed amount has been reached).
Bankinter has started to market a new guaranteed investment fund, ‘Bankinter Euribor Rentas II Garantizado’, which completes the offering of investment products from Bankinter Gestión de Activos, the group’s asset management company.
A key feature of this fund is that, over a period of seven years and one month, it guarantees 100% of the capital initially invested, plus additional returns linked to the 3-month Euribor that will be paid out through mandatory unit redemptions on 23 April between 2018 and 2024.
To calculate each redemption amount, the fund takes the average 3-month Euribor rate on four quarterly observation dates. On these dates, if:
- the Euribor is less than 0.40%, invested capital will yield 0.40%.
- the Euribor is greater than, or equal to, 3%, the fund will yield 3%.
- the Euribor is between 0.40% and 3%, the fund will yield the same exact rate.
Therefore, on maturity, the fund guarantees, in addition to the full investment amount, a minimum AER of 0.40% and up to a maximum 2.98% AER.
The subscription period for this guaranteed fund is until 24 March 2017 (or until the committed amount has been reached).
Even though it is a guaranteed fund, it will have monthly exit windows to redeem units without fees and at the current market price. These exit windows are set for the seventh day of each month, between 7 April 2017 and 7 March 2024.