In Uruguaybanks and financial companies are offering an increasing number of “tailored” investment portfolios for their clients, based on studies of their risk profile.
According to Mauricio TchilingirbachianProduct and Market Analyst Nobilisa company specialized in wealth management, this final stretch of the year could mean “a good starting point” for first-time investors, especially those young Uruguayans who are looking to build a portfolio of investments 20, 30 or 40 years.
The company offers, through its Nobilis Digital platform, several diversified portfolios with investment instruments. fixed rent and variable income according to the profile of each investor. Thus, based on clients’ risk aversion, they may choose conservative, more moderate or aggressive investment portfolios.
Historically, the Uruguayan tends to stick to fixed income options. Andreina Rouxhead of Wealth Management & Insurance at Santander Uruguayexplained to Ambit that the national investor usually has the so-called “home bias”, something that leads him to prefer the coupon offered by sovereign bonds or Treasury Bills offered by the government at different terms, “ignoring the benefits that the diversification by investing in other assets, geographies or sectors”.
More aggressive portfolios with returns of almost 10%
At Nobilis they assure that the performance of the portfolios during the last year “was very positive”, with returns of 3% in conservative profiles, and up to 9.8% in the most aggressive portfolios.
The good returns that portfolios with more aggressive tendencies are having in this current context, driven mainly by stocks, could cause more investors to redefine their strategies in the future, risking greater volatility in search of increasing their returns.
In fact, Nobilis commented to Ambit that, today, the portfolio with the largest number of users on the platform is the one that has 50% variable income and 50% fixed income, these portfolios having an expected annual return in Dollars close to 7%.
These expected returns are “historically high,” the company stated, and are also the objective of the most frequently asked questions sent to them by users who are beginning to invest, some even in anticipation of their retirement.
Diversified investments
Rouxexpressed to Ambit that for Santander Bank it is important to first know the risk profile of each client, to be able to recommend the financial options that best suit the investor, but that, through an open architecture modality, they always seek “that the client invests diversified way”, in order to “reduce the total risk of the portfolio”.
To the most conservative clients, who according to Roux “they tend to prioritize the immediate availability of their investments“, they are recommended to “invest in short-term instruments, in order to minimize the incidence of market fluctuations.”
This menu of options ranges from fixed-term deposits to other short-term fixed income instruments such as bills or Uruguayan government bonds and also “monetary or short-term investment funds,” he pointed out. Roux.
For their part, for those with a more moderate or risky profile, who, according to Roux“generally have a medium or long-term time horizon”, variable income instruments are added in search of “obtaining greater long-term profitability.”
“In general, fixed-income and variable-income investment funds are offered with different strategies, as well as government and corporate bonds with a medium and long-term horizon,” he explains. Roux. “There are more sophisticated clients who understand the benefits that diversification provides and prefer investment funds, whether with active or passive management through ETFs,” she explained.
Likewise, he said that “the currency in which it is invested will also be according to the needs of each client”, since, although “clients usually invest in Dollars“, depending on the needs of each one, the bank may recommend “investing a part of the portfolio in local currency“.
“Many times it is thought, mistakenly, that by investing in fixed income of excellent credit quality one is not taking risks,” he said. Rouxsince the credit risk and interest rate risk associated with the duration of the bonds are sometimes overlooked.
“The longer the duration of the bond, the greater the price sensitivity will be,” and because of this, “it is very important to consider the term of the instruments in which it is invested, even more so when it is a conservative profile,” he stated. .
Source: Ambito
