Common Investment Funds: bailouts accelerate and add pressure to the dollar

Common Investment Funds: bailouts accelerate and add pressure to the dollar

Common Investment Funds, especially money markets, became a strategy widely used by Argentines to start investing. However, weeks before the presidential elections, A migration of flows towards more conservative alternatives such as the free dollar began to be noticed.

From Adcap They explained that Last week, net redemptions continued in the CER, dollar linked and T+1 funds. “We consider that, from now on, more than ever, the market will position itself according to the program presented by the winning candidate of the general elections,” they expressed.

In fact, Paula Gándara, CIO of Adcap Asset Managementanalyzed “there is an important change in the market. The entire fund industry is showing redemptions, except in the Money Market segment. There is a migration of flows; “The investor moves to more conservative products due to the electoral scenario.”

Specifically since Aurumthey warned that from September 19 until the end of last month, The FCI T+1 and CER suffered bailouts of almost $100 billion a day. A trend that continues in the first days of October.


Mauro Cognetta, managing partner at Global Focus Investments, in its weekly report, also warned of this situation. “What is happening these days is a rescue outlet for funds that are not the money market“, it should be noted that half of the flows of this industry correspond to these transactional funds that invest in fixed terms, remunerated accounts, sureties, etc.

“It is transactional money that companies, institutions, and others, place to meet commitments in the very short term,” Cognetta explained, and said that this is because “in our system there is no medium-long term.” “The T+1 Funds, the fixed income funds, etc., are having massive bailout rounds and those pesos are going to the dollar, basically to the free dollar”he added.

It should be noted that this day, he Dolar blue closed at $845, suffering new pressure on its price due to a buying wave. In this way, the gap with the official it exceeded 140%. After rising $10 on Tuesday, the informal exchange rate climbed another $33 to $843 after touching the $850 during the wheel, new historical nominal record, according to a survey by Ámbito in the caves of the City.

Source: Ambito

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