Santander Asset Management (SAM) has taken a big step in investment outsourcing with the launch of a range of funds that will be managed by third-party firms Amundi, Morgan Stanley Investment Management, Robeco, JPMorgan Asset Management and Pimco.
Santander’s newly launched GO range offers absolute return, US equity, global equity, global flexible fixed income and US short-term fixed income funds. SAM chose to outsource portfolio management as it believes these firms are the “most suitable specialists” in each asset class or strategy.
“These partners were chosen keeping in mind profitability and consistency over time and status within the asset management industry, particularly with regards to operational and control capabilities,” SAM said.
The Spanish company will retain control over the risks of each vehicle, while the third-party managers will be responsible for the daily management of the funds. This includes investment decisions and order execution.
Mariano Belinky, SAM’s global chief executive officer, said that outsourcing management on the funds will allow clients to benefit from global macro movements without giving up profit.
The move is an attempt to offer the “best options in asset types which require greater specialisation for efficient management”, he said.
Santander GO, launched in Luxembourg but available throughout the firm’s 11 “operating geographies”, is made up of five funds:
- Santander GO Absolute Return, managed by Amundi
- Santander GO North American Equity, managed by Morgan Stanley
- Santander GO Global Equities ESG, managed by Robeco
- Santander GO Short Duration Dollar, managed by JP Morgan
- Santander GO Dynamic Bond Fund, managed by Pimco
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