The Mutual funds They are a very useful tool that is used to diversify money that seeks to make profitable, with an asset portfolio that is already predetermined. The Money Market (those behind the payment apps) knew how to be the big stars of the market but, with the decrease in interest rates, they no longer offer juicy returns. Furthermore, in moments where The dollar operates with volatility after 4 months of stabilitymore than one wonders if there are other strategies to protect the money that It’s not just betting on the greenback under the mattress.
Low rates, and volatile dollars: how it impacts stock assets
“We are facing a context of lowering interest rates of monetary policywhere the current level of The remuneration rate for liabilities is 40%, when in December 2023 it was 130%,” he described Yanina SkibaSales Manager of SBS Funds Ambit and added about the context: “Financial dollars showed fluctuations in the last week although it seemed to be explained by flows.”
In this regard, he described that The daily average settled in cash is $77,000 million in Maycompared to $93,000 million in April, $97,000 million in March and $92,000 in February. “Only January was at levels like the current ones (also being the month of the last important jump in FX)”detailed the reasons behind the brief bullish rally and mentioned as important that, “Although agricultural settlements were somewhat better, they are still low, and settlements in other sectors seem to have fallen.”
Regarding equity assets for Skiba “the fall of the Merval last week, added to the FX effect, seems to be related to the delay in the release of the Bases Law”, which has just obtained an opinion in the Senate after arduous negotiations. And finally, among the news that impacted the stock market, he recalled that “in the last week of May, inflation stabilized (stopped falling).”
For its part, for Nicolas CarrerasFinancial Wealth Management advisor at Balanz: “The measures that are being taken regarding monetary policy in recent months they are considered dependent data and consequently the evolution of the economy. “That is why we once again saw a new decrease in BCRA rates with the latest inflation data which, by the way, showed a new consecutive decrease since the December 2023 CPI.”
“The underlying objective is to continue normalizing the debt curve in pesos and reward those who invest for longer terms. With this came an increase in the exchange rate that responds more to the delay in the approval of the Base Law and a slow agricultural harvest that reduces the growth of the Central Bank’s international reserves.”Carreras agreed in the analysis.
FCI: where the pesos went and what to do in this context
In chat with Ambit, Eduardo Herrera, CEO IEB Fundsdetailed how fund flows moved in the last four months: “The scenario of calm in exchange matters and the downward trend in the CPI prompted investors to increase bets on the ‘carry’ in pesos. This was clearly noted in the FCI subscription and redemption flows where strong redemptions were seen in the ‘dollar linked’ and CER funds. and large subscriptions in the T+1 funds that were quite lagging in terms of assets under management”.
“While we continue to see a favorable scenario for continue carrying in pesos through T+1 funds like our IEB Ahorro Plus. In recent weeks, as measure of prudenceand hand in hand with the jump in the quotes of the MEP and CCL dollars, we are recommending increase coverage through dollar linked funds (IEB FIXED INCOME) given that the cost of said coverage is currently at very low levels both on the side of dollar linked instruments and on the side of ROFEX futures,” Herrera closed.
FCI: how to choose the fund according to the investment term
Yanina Skiba recommended for very short term, the SBS Pesos Plus + SBS Ahorro. ““With this strategy we would seek to manage liquidity by investing in conservative assets with a very short duration and exposed to a fixed rate in pesos,” he explained. The SBS Pesos Plus FCI is a fixed income fund that settles redemptions on the day, but at the close of the market and offers a much more attractive return than a “money market” fund.
“The portfolio is invested mainly in Treasury bills (LECAPs) and immediate liquidity instruments. Being a new fund, the expected theoretical interest rate is around 43% TNA,” he explained and expanded that SBS Savings It’s a backgroundmoney market’ and has no associated price risk; currently offers an annualized return of 30% TNA.
For him medium termSkira’s strategy is to add the SBS Income Pesos + SBS Total Return. “It would seek to expose the invested funds to instruments that index by the CER indexthat is, they offer support against variations in the price index and also obtain exposure in dollarized assets.” The SBS Renta Pesos FCI has a portfolio invested mainly in CER sovereign bonds with maturities in the next three years.
For its part, SBS Retorno Total FCI is a fund whose portfolio is 75% invested between frontline hard dollar corporate assets and hard dollar sovereign assets.r. The return for the last month was 9.76%. Finally, for the long term: SBS Balanced + SBS Shares. “With this strategy, the investor seeks to capture the upside that reflects the Argentine equity market and dollarized assets, whether sovereign or corporate,” he explained.
SBS Balanced FCI Being a mixed income fund, it offers diversification among Argentine stocks; negotiable obligations of private Argentine companies mainly in the energy and “Oil&Gas” sectors and “hard dollar” sovereign bonds. From the beginning of the year to date, its return was 43.18%. He SBS FCI Shares It is a variable income fund diversified between Argentine stocks in the “Oil&Gas”, energy, financial services and materials sectors.
FCI: how to choose the fund according to the risk profile
Nicolas Carreras suggested for a conservative profile the new Balanz Performance II Fund that invests mainly in instruments recently issued by the Treasury, LECAPS. “These offer a higher yield than what we currently see in the ‘Money Market’, given that the TNA is higher and does not have the reserve requirements that they do now on paid accounts or fixed terms that pay less and less. In addition, offers a t+0 redemption of the funds. that we can receive the investment money the same day we request it after the market closes.
“If we look for something more performance and being willing to invest a longer timewe suggest the Balanz Performance III Fund (Corporate). The distribution of this fund’s assets is mainly given by bonds that adjusted for the exchange rate, UVA and ‘dollar linked’ corporate or private issuers”broad.
Finally, For the most aggressive investors seeking higher returns, and with higher riskCarreras suggested investing in the Balanz Equity Selection Fund. This fund search contains shares of Argentine companies with growth potential, mainly in the “Oil & Gas”, banking and utilities sectors.
Source: Ambito
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