This is the Performance II Fund that invests in a diversified portfolio of short-term Lecaps and other immediate liquidity instruments.
The stock broker Balanz announced the launch of the first T+0 fund composed of Lecaps. Thus Balanz Management Company of Common Investment Funds (SGFCI) gave birth to the Performance II Fund. This common investment fund is distinguished by being the first in Argentina composed mainly of Capitalization Letters (Lecaps), offering an attractive alternative for conservative investors.
The objective of the Performance II Fund is to achieve capital appreciation through investment in a diversified portfolio of short-term Lecaps and other immediate liquidity instruments. With liquidity of T+0, this fund becomes an intermediate option between the Balanz Money Market Fund (BCMM) and the Balanz Savings Fund (BCAH).
Fund Features
- Risk Profile: Conservative
- Investment Horizon: Short term
- Liquidity: t+0, with a cut-off at market close
- Yield (TNA) Theoretical Portfolio: 44%
- Target Duration: 40 days
- Currency: Pesos
- Valuation of Assets: To market
- Depositary: Banco de Valores
- Minimum Investment: $1000
In what context was this FCI composed of Lecaps born?
Currently, Argentina is in the process of cleaning up the central bank’s balance sheet. In this context, the current government lowered the liability remuneration rate 7 times in 5 months, from levels of 130% of TNA in December 2023, to the current 40%, in May 2024. This collapse translated into lower retail fixed term rates, which today hover around 30/33% of TNA.depending on the bank.
“The Balanz Performance II fund offers an excellent opportunity for individuals and companies seeking to maximize their returns in pesos with an investment option that remains conservative and short-term.. Thanks to its composition of Lecaps and its liquidity policy, investors will be able to access their funds quickly and efficientlycharging on the day, after the market closes,” said Gabriela Friedlander, Asset Management Director of Balanz.
Source: Ambito
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