Through Balanz, we offer the possibility of invest in a wide menu of Mutual Investment Funds (FCI)whose objectives are subject to the risk profile and horizon of investment.
First of all, in our family of conservative funds we highlight the FCI Balanz Money Market and FCI Balanz Savings. The former is ideal for those who need to manage the a company’s cash or surplus in the short term, since it allows interest to be accrued daily with the possibility of withdrawing it on the same day, which represents a great advantage over fixed terms. This fund invests, mainly, in wholesale time deposits and remunerated checking accounts, thus offering a return that last month was around 4.86% (59.1% annualized).
For his part, the savings fund, is made up of short-term fixed income instruments such as Treasury Bills/Bonds and Negotiable Obligations. It has a 24-hour redemption period and its performance was 4.95% (60.2% annualized). If we compare so far this year, Savings accumulate 41.51% while the Money Market; 32.92%
For investors with a medium-term investment horizon (6 months – 1 year) who are looking for a novel option, we highlight the FCI Performance III, which invests exclusively in bonds of Argentine companies with high credit ratings. One point to highlight is that the investment is made in pesos, but in the composition of the fund there is 25% of negotiable obligations in dollars (which are also listed in pesos), so the fund’s strategy offers us a partial coverage of the evolution of the MEP/CCL exchange rate. The yield of the last month reached 5.61% (68% annualized) and the capital can be redeemed with a settlement period of 48 business hours.
Second, we opt for the National Treasury discount bills (LEDES). Said asset can be acquired through biweekly bids offered by the Ministry of Economy or through stock market operations (secondary market).
A LEDE is an instrument that, by definition, will be worth $1 at maturity, so the interest you pay us will be $1 less the purchase price. For example, the letter due on 12/16/2022 costs $0.8599, so the interest is around $0.1401 for each face value (16% direct at maturity or 75% expressed in TNA). In the case of purchasing the LEDE due 01/31/2023the current yield is approximately 83% (TNA).
Lastly, there are some negotiable obligations under local law with the possibility of acquiring both pesos and dollars from very low amounts (from u$s100). It is worth mentioning that, even if the initial investment is made with pesos, on the payment dates the company will disburse dollars.
An example is the negotiable obligation of Petrochemical Comodoro Rivadavia (PCR) maturing on 01/29/2023 with a yield of 1.7% and a coupon of 9% per year. Another option is the ON of MSU Agro recently issued with maturity on 09/12/2024 that offers an annual yield of 11% and a coupon of 7.5% payable in foreign currency.
It is advisable to look for the best options that the capital market has, in order to efficiently manage the liquidity and surplus pesos of both natural and/or legal importers, and of those who have adhered to the Export Increase Program and/or are beneficiaries of subsidies in public services.
Source: Ambito
