The T+0 Common Investment Funds that invest in Lecaps broke in in the market to provide an alternative to FCI Money Markey, which are behind virtual wallets, and the rates paid by fixed terms. Although they have better rates than the aforementioned instruments present some risks which is important to know. Ambit compiled the main questions that investors ask themselves and the options available in the market.
What are T+0 Common Investment Funds?
The new ones T+0 mutual funds invest in Lecap. These funds invest in assets of high liquidity (this is generated when there is a high demand for an asset and therefore it is easier to buy and sell) such as Lecaps. These funds are designed for those investors with Conservative profile and short-term horizon. Your redemption is T+0, which means a cut is made at the market close.
What are Lecaps?
The Capitalizable Treasury Bills (LECAPs) are financial instruments issued by the Government, designed to offer a fixed return over a given period, usually short-term. Among the risks is that the national administration faces difficulties in refinancing its debt, which may affect the payment of interest and capital.
What are the advantages and disadvantages of investing in T+0 Funds?
Among the advantages is that these FCIs pay Better rates than fixed terms and Money Market fundsBesides that The rescue is on the day. Among the disadvantages is that they invest in an instrument issued by the Government that presents certain risks.
Why did you become a highly sought after FCI?
Since Javier Milei took office, efforts have been made to heal 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 28/34% of TNA.depending on the bank.
What offers are there today in the FCI market that invests in Lecaps?
Yanina Skiba, Sales Manager of SBS Funds he told Ambit that he FCI SBS PESOS PLUS has Lecaps for 75% of the total portfolio and the remaining 25% is in money market mutual funds. Within the Lecaps, those chosen are those that expire in June and July 2024. That is, they have a maximum maturity is 50 days”. He also revealed that the fund’s current assets are 41 billion. It has a duration – that is, the average maturity period of the instruments included in the fund – of 0.04; 40 days. “The projected TNA is 38%”Skira told this media.
For its part, MegaQMalso has a fund that invests in Lecaps (four letters and a money market). “The objective of the Fund is to maximize the return on investors’ transitory liquidity, investing in a diversified portfolio of capitalizable bills issued by the national treasury,” they highlighted. “This FCI is a intermediate investment alternative in duration and performance in relation to a Money Market Fund and an Interest Rate Fund (T+1)“, they expanded. IRR current is 47.1%, The duration is 45 days.
At the same time, Adcap Asset Managementthe mutual investment fund manager (FCI) of Adcap Financial Group launched its new Adcap Lecaps Fund 100% Balanced XVI. The Fund invests 100% Lecaps and would reach a TNA of 44%, with a duration of 0.10 years. “The Lecaps today have a return close to 50% annually for the shortest tranche, exceeding what the market currently pays after the last rate drop. Therefore, we consider it an opportunity for these returns to reach individuals,” they explained.
“These Funds are more attractive than a money market because they invest in fixed terms and stock bonds that have a return of around 30%. That liquidity today is being channeled through this type of funds, the T+1 or the dollar,” they detailed.
The Balanz stock brokerto its turn, 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. The objective 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).
“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,” he indicated Gabriela FriedlanderAsset Management Director of Balanz.
Source: Ambito
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