- Conservative profile: This investor has a high level of risk aversion. He is willing to lose little or no money. Generally, he seeks to maintain his investment regardless of whether his return will be very low.
- Moderate profile: This investor has a moderate degree of risk aversion. He would be willing to take a higher loss than the conservative investor, since he seeks to earn a somewhat higher return.
- Aggressive profile: It is the investor who is willing to assume considerable losses on his investment in exchange for achieving high returns.
Once the profile has been considered, we move on to the recommendations in pesos to invest the bonus:
conservative profile
For people with a conservative profile, an option may be a fixed-income portfolio in which the aim is to beat the estimated inflation in the next twelve months. In recent times, there has been a high inflationary context, which has led to price rises above 50% year-on-year for twelve consecutive months.
In this context, instruments that adjust for CER (for inflation) are usually good options to protect the value of capital. However, these instruments, and especially the short-term ones, had a strong increase in their price in recent months, leading them to have a negative return with respect to inflation and therefore losing coverage.
Maximiliano Donzelli, Head of Research at IOL (Invest Online) It considers a good option to position itself in fixed income instruments that mature within two years.
- 50% bonus adjustable for inflation TX24
- 50% bond whose interest rate is variable whose symbol is BCD24
In the first case, the expected return (IRR) is 60.1% based on the projections of the Market Expectations Survey (REM) published by the Central Bank (BCRA).
Another good option that stands out is the bond issued by the City of Buenos Aires maturing in 2024, the BDC25, whose expected yield is 59.4%.
Florencia Bonacci, Team Leader of FCIs of PPI (Portfolio Personal Inversiones) assured that “when putting together an investment portfolio in pesos, the key is to diversify.” In this sense, he advises “maintain a relevant proportion in dollar-linked assets as a hedge in terms of the official dollar”. Another option considered may be the purchase of the MEP Dollar and “if you want to take a step in terms of risk/return, you can opt for a high credit quality “ON” negotiable obligation, for example Tecpetrol maturing in 12/2022.”
Finally, from Banza they offer Adcap Pesos Plus Common Investment Funds (FCIs), for the most conservative, with rate accrual who want to beat the traditional fixed term; the Balanced AdCap II, which offers coverage for inflation, and the Total Return AdCap, to cover against a possible devaluation. “We believe that a well-diversified portfolio must be hedged against devaluation,” explains Pablo Juanes Roig, co-founder and CEO of Banza.
moderate profile
From IOL they consider that it would be a good idea to aim to protect themselves from inflation in the United States. Currently, US inflation is the highest since 1981, which means that saving in liquid dollars generates a significant loss of value in the coming years.
While there are traditional fixed income investments that used to match inflation in dollars, today none work as a hedge.
For those interested in fixed income, it might be a good idea to have investments in Corporate Bonds. Those that are most convenient are those that present returns above inflation in dollars of the US economy, which is currently at 8.3% year-on-year.
- ON Pampa Energía (PTSTO): has an estimated annual yield in dollars of 6.6% and matures in July 2023.
- ON YPF (YCA60): estimated annual yield in dollars of 17.0% and maturity in July 2025.
These two investments can be considered for those who want to invest between one to two years.
From PPI, they also propose to diversify the portfolio in the following way:
– Corporate ONS
– Common investment funds with bonds that adjust for inflation or Badlar.
– 20% (no more) opt for Cedears or Argentine shares.
Argentine shares recommended by PPI: look at the energy sector, YPF, PAMPA, TGSUR2, TGNO4. Some bank, Galicia or Macro.
Cedears: Mercado Libre, Alibaba, Bioceres, Oil Vista, Facebook, Amazon, or Visa.
To dollarize, Banza points out that the Cedears of ETFs (Exchange Traded Funds) are convenient to diversify risks by not investing in an individual company.
- SPDR S&P 500 (SPY AR): represents 500 stocks that make up the S&P500 index and pays quarterly dividends.
- Energy Select Sector ETF (XLE AR) formed by US companies with high market capitalization and produce crude oil and natural gas, or provide services to companies in those industries.
- Financial Sector Select (XLE AR): due to the rise in interest rates, the US banking sector could have a better performance. It contains financial services firms whose businesses range from investment management to commercial banking to investment banking.
aggressive profile
For this profile, IOL suggests taking into account the panorama of the North American financial market. A first point to take into account has to do with the more aggressive stance of the Federal Reserve (FED). In this sense, it advises:
– Value Stock ETF (IVE): concentrates its participation in US companies with large market capitalization that are believed to be undervalued by the market in relation to other companies. It is positioned in companies in the health sector (16.5% stake), financial sector (15%) and industrial and basic consumer products that share 11%.
Among some of the CEDEARs that are needed to be able to replicate it in the local market, a portfolio should be assembled with the following:
– Pepsico (PEP)
-Disney (DIS)
– Berkshire Hathaway (BRKB)
-United Health (UNH)
In this case, they are for long-term investments.
PPI proposes a portfolio made up of 50% CER-adjusted instruments, corporate ONS and the other 50% in local stocks, betting on the country’s recovery in the medium term. “You should balance this last portion with cedears, selecting a certain foreign company that has suffered in the last market downturn,” they conclude.
Some of the recommendations of Corporate ONS by PPI are: Pampa 2023, Capex 2024, Telecom 2025, CGC 2023, Vista 2024. For moderate or aggressive.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
