When it comes to investing, Uruguayans historically maintain quite a conservative profile, either due to risk aversion or simple ignorance, have traditionally turned to the store of value and fixed income instruments that are within their reach. Within this rigid panorama, the local financial system seeks to generate a new dynamic and capitalize on the concerns of increasingly younger investors.
in dialogue with scope.com, alan babicfinancial advisor of Uruguayan Balance, argued that the Uruguayan adheres to the fixed income options for the security that it gives him to have “an annual coupon” that generates some return facing minimal risk. The struggle of the companies dedicated to providing investment solutions is that this feeling, almost homogeneous and even natural to society, does not intensify due to the pressure of an international context that is presenting a high volatility in the markets.
Babic said that Balanz is focusing on expand a range of instruments that present a greater diversification, with the aim of being able to counteract the current situation. In turn, he commented that the company has noticed “a growing interest in the concept of financial education” among young people, who also show a “greater receptivity”, compared to the predisposition that previous generations presented.
The senior consultant of the Economic Analysis and Forecasting Service of C.P.A. Ferrere, Giuliano Cantisaniexplained to scope.com that the reduced investment vision presented by the vast majority of Easterners could be directly linked “to the little development of the financial market in Uruguay”, where the predilection for “more tangible goods”, such as doing business within the real estate sector, seems to be a more reasonable option.
However, this could change in the future, to the extent that the local financial market, which seeks to expand, manages to channel the increasingly recurring inquiries from young investors who, according to Babic, could be encouraged to “risk a little more” if they continue to be more open-minded to counseling and coaching.
As if it were a paradox, Cantisani recalls that, almost unconsciously, a large part of the citizens “maintains pension savings investments through its AFAP ”, an option that, although it represents a low risk, is more sophisticated.
Corporate plans focus on investment in Indexed Units
Even though that him dollar continues to be, by a great difference, the main axis of the financial apparatus, the strength that has been showing the Uruguayan Peso with respect to the US currency has not gone unnoticed in recent times. Thus, both companies and individuals begin to look favorably on investments in financial instruments tied to the native currency.
Both analysts consulted by this medium affirmed that bets on tools in Indexed Units (UI) (tied to the inflation) have begun to be seen more regularly among locals, especially to protect their purchasing power.
Babic, pointed out that “Several companies with surplus working capital in pesos place that money in government instruments, such as Monetary Regulation Letters”, an option similar to US T-Bills.
Balanz seeks to promote the fund industry in Uruguay and offer the possibility of accessing top-line funds abroad, as well as advising on the tailor-made assembly and monitoring of investment portfolios that will depend on the areas of interest of the client. , your goals, and of course your risk aversion.
Along the same lines, the democratization of the offer of products to the public is sought, as well as the search to generate an incentive in the Uruguayan worker for access to a monthly savings plan that allows him to plan his retirement.
Among the assets most traded through the company by experienced investors, investment funds, bonds, stocks, exchange-traded funds, trusts, and negotiable obligations stand out.
However, despite the increase in the supply of alternative assets, the efforts to encourage financial education in the population that have emerged since the Central Bank of Uruguay (BCU), and the renewed interest of the youth, the world of investments continues to be, for the majority of Uruguayans, a terrain to discover.
Source: Ambito
