Types

Since 1990, the year when Investment Funds in Treasury Securities(Fondtesoro) first appeared, there have been two types of Fondtesoro: Fondtesoro FIMs and Fondtesoro FIAMMs. These types of Fondtesoro invested almost exclusively (90%) in the different securities issued by the Treasury.

In June 1999, three new types of Fondtesoro were created: Fondtesoro Renta FIM, Renta FIAMM and Fondtesoro Plus FIM, which widened the possibilities of investment in securities other than Treasury Securities, allowing investment up to a set percentage of their portfolio in equity or private fixed-income securities which enjoy a sufficient credit rating.

At the end of 2006 a series of modifications to Fondtesoro were made :

  •  The five types of agreement were reduced to only three: long term FONDTESORO FI (which comprised the Fondtesoro FIM and Rentas FIM), short term FONDTESORO FI (the former Fondtesoro FIAMM and Renta FIAMM) and FONDTESORO PLUS FI, which makes them easier for the investor to understand. They also benefit from greater transparency.
     
  •  Greater freedom is provided to the managers of this type of fund with regard to investment policy, added to a reduction of the maximum fees to be applied in line with market trends. See fees.
     
  •  The creation of subfunds in the Fondtesoro is allowed, as is the admission of different types of shares in the same Fondtesoro.

At the end of 2008 the possibilities for investing in the Fondtesoro had been widened, allowing investment in bonds issued by the “FTVPO” guaranteed by the ICO (Instituto de Crédito Official).

AT the end of 2012, in addition to investing in bonds issued by the “FTVPO”, Fondtesoro are allowed to invest in the “Fondo de Reestructuración Ordenada Bancaria (FROB)”, in bonds issued by the“Fondo de Amortización del Déficit Eléctrico (FADE)”, in bonds issued directly by the Instituto de Crédito Oficial (ICO) and in the loans to the “Fondo para la Financiación del Pago a Proveedores (FFPP)”, as soon as these are converted into bonds, up to a maximum of 30% of the assets of the fund .

Hence, the Fondtesoro can currently benefit from a wider variety of assets in which to invest, allowing them to diversify their portfolio and improve their profitability without affecting any of their main characteristics , maintaining a high level of liquidity and security.

The fund may operate in forward markets or financial derivatives markets. The latter may be used as hedging instruments, as a mechanism for optimum portfolio management, or be directed towards the pursuit of a specific profitability objective.

The principal difference between the different types of funds is the investment policy that they must follow:

  •  1.- "Long term Fondtesoro , FI".
  •  2.- "Short term Fondtesoro , FI".

The Prospectus of the long term and short term Fondtesoro requires that 70% of the assets of the Fund is invested in Government Debt in Euros in any of its forms: Government Bonds, Treasury Bills, transactions with agreement to repurchase on Treasury Securities or deeds issued by FTPymes guaranteed by the Government and/or bonds issued by the FTVPO which are guaranteed by the ICO (Instituto de Crédito Official); these last two up to a maximum of 20% of the assets of the fund.

Additionally, the Fund may invest a maximum of 30% of its total exposure in other fixed-income securities apart from Government Debt, as long as they have a credit rating not lower than that of the Kingdom of Spain. They may also invest in deposits in credit institutions and in money market instruments that fulfill this requirement. All of these investments must be in Euros .

The initial minimum investment on entry may not exceed 300€. The participant may liquidate his or her investment (requiring the repayment of their shares) at any moment. Once notification has been provided to the Managing Institution, the Managing Institution must repay the corresponding amount to the participant within a maximum period of 72 hours.

The fund may operate in forward markets or financial derivatives markets. The latter may be used as hedging instruments, as a mechanism for optimum portfolio management, or be directed towards the pursuit of a specific profitability objective.

What differentiates long term Fondtesoro FI from short term Fondtesoro FI is the duration covered by their portfolio: for the long term Fondtesoro FI it will be longer than twelve months while for the short term Fondtesoro FI it cannot exceed twelve months

 "Fondtesoro Plus, FI"

70% of the assets of the Fund must be invested in Government Debt or in deeds issued by FTPymes guaranteed by the Government and/or on bonds issued by the FTVPO which are guaranteed by the ICO (Instituto de Crédito Official); and/or in the “Fondo de Reestructuración Ordenada Bancaria” (FROB) and/or in bonds issued by the “Fondo de Amortización del Déficit Eléctrico” (FADE) and/or in Bonds issued directly by Instituto de Crédito Oficial (ICO) and/or in the loans to the “Fondo para la Financiación del Pago a Proveedores” (FFPP) as soon as these are converted into bonds, up to a maximum of 30% of the assets of the fund.

A Additionally, the Fund may invest a maximum of 30% of its total exposure in equity securities which are listed on the IBEX35 and in other fixed term securities, other than Government Debt,, as long as they have a credit rating not lower than that of the Kingdom of Spain. They may also invest in savings in credit institutions and in money market instruments, always in denominations of the currencies of European Union countries

The fund may operate in forward markets or financial derivatives markets. The latter may be used as hedging instruments, as a mechanism for optimum portfolio management, or be directed towards the pursuit of a specific profitability objective.

The initial minimum investment required of participants will not be greater than 300€.