The Mutual Fund industry already exceeds $40 billion in assets under management. This implies growth of 13% (above inflation of 4.2%) since the beginning of May.
The fund industry already exceeds $40 billion in assets under management
Courtesy: More investments
The industry of the Mutual funds (FCI) rearms in a context of low interest rates, inflation still at a high floor, and a very volatile dollar. Despite this complex and changing situation, its assets under management grew by 13% in recent weeks to exceed $40 billion, which implies an expansion above inflation of 4.2% in May. Now, investors are wondering: Where are the funds going and what opportunities does the market see?
For PPI“in May, unlike April, this growth was not only explained by the net flows, but also by the returns (of the assets that make up the portfolios)”. Last month, according to the same report, “immediate liquidity channeled a large part of themalthough unlike April it did so to a lesser extent.” Thus, The T+0, which represented 60% of the industry until not long ago, today account for 58%.
What happens is that the Money Market (MM)the famous backgrounds behind the digital wallets that provide paid accounts, started last month with Reference TNAs of around 54% to end with rates close to 33-34%, levels that have been maintained so far in June, and that They are in line with or slightly below what a 30-day fixed term offers. Given this situation, some opportunities appeared in the market to compete for this podium.
FCIs gaining market share
In May, interest grew in Short-term Fixed Income FCIs, and the new Lecaps T+0 have gained ground in recent weeks. On the other hand, Money Market flows decreased, in line with their returns. According to PPI, “daily liquidity funds, unlike a classic MM of sureties, fixed terms and remunerated accounts, add to your portfolio Lecaps (Treasury Capitalizable Letters) in a percentage that usually ranges between 70/90%“.
This same report also clarified that Their greater risk compared to a classic T+0 has its correlation in performance, since they offer 10 points higher rates than these Money Market funds. “Precisely the latter are the ones that today basically explain the decline in the industry, although the arrival of the bonus at the end of the month will put even more pressure on its volatility,” they expanded.
On the other hand, it is important to highlight that CER and Dollar Linked coveragewhich at one time represented a great demand due to the inflationary escalation, on the one hand, and the fear of a devaluation, on the other, were losing their weight within the flows of funds that go to the FCI. Thus, as mentioned PPI“the first weighs only 5%, and the second 3%.”
FCI: what reading does the market make towards the end of June
A report of IEB Group Over the FCI last week revealed that, for assets that incorporate Lecaps“short yields compressed, and the fixed rate curve is lower. However, “the forward rates for Lecaps and Bonceres for July (T2X4) grow”.
As for the Dollar Linkedthey explained that The effervescence after the approval of the Bases law “has already diluted” and now the market expects news from the exchange front.
Refering to CER coveragefrom IEB, said that “private consulting firms reported insignificant increases in prices during the third week of June, which Market sentiment changes on a slight rebound in the price index in June“.
Regarding the FCI that incorporate variable income assets, this broker said that “Falling interest rates are the ideal scenario for stocks.”
Source: Ambito
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