At Balanz we have a wide variety of funds according to different investor profiles. A option is the FCI Balanz Money Market, which invests mainly in fixed terms and allows you to withdraw the money on the same day. For investors with a more moderate profile and seeking to diversify their weights, the FCI Performance III invests in negotiable obligations of Argentine companies with high credit ratings, such as Pan American Energy, Arcor, Tecpetrol, among others. The interesting thing about the fund is that it is diversified between bonds that adjust for inflation, linked to the official dollar, in dollars and at a fixed rate. It is worth mentioning that although within the fund there are certain bonds issued and payable in dollars, the investment is made with pesos.
The second alternative is invest directly in ONs in dollars. Although there is a lot of demand for this type of instrument and the options are not abundant; There are possibilities of buying negotiable obligations with pesos that will pay us interest and return the principal in dollars on specified dates. Mainly we find options from energy companies, among them, the green and guaranteed bond of Genneia with maturity. 2027 (GNCXO) with an interest of 8.75% and an annual yield of 8% in dollars or Pampa Energía 2026 (MGC9O) with an annual interest of 9.5% payable in dollars and an annual yield of 7%.
The third alternative for investors who are willing to take more risk are the Argentine Certificates of Deposit (CEDEARs), which are shares of foreign companies listed on the local stock market, therefore, they can be purchased with pesos. It is worth mentioning that these assets are exposed to price variations that may be due to: supply and demand, the company’s own fundamentals and/or political and economic context.
From Balanz we highlight the cedear of Berkshire Hathaway (BRKB) whose CEO is the well-known investor Warren Buffett and which represents a conglomerate of 60 wholly owned companies and a huge portfolio of stocks with more than four dozen different holdings led by Apple, Bank Of America and Chevron.
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Berskshire has consistently increased in value and earning power over time. During the third quarter it had a 20% growth in its operating profits, exceeding analysts’ expectations. As a color fact, an investment of USD 1,000 in Berkshire Hathaway in 1964, today would have become more than USD 27 million.
Lastly, and also within the broad spectrum of CEDEARs, we have armed packs according to different themes. We currently prioritize companies value or of value that, in general, represent mature businesses with stable and predictable sales and profits. They tend to have less price variability and distribute dividends to shareholders.
Our value pack is made up of CEDEARs from the following 4 companies:
- Altria: Conglomerate of companies engaged in the global tobacco and beverage industry. It owns the Marlboro, Black & Mild Cigars and wet pipe tobacco brands under a number of trademarks. It also markets various wines and sparkling wines under the Chateau St. Michelle brand and imports and distributes various European brands within the United States. Its high cash generation allows it to diversify its business by financing leases to various industries such as transportation, power generation, real estate, and industrial equipment manufacturing.
- Chevron Corporation: Through its subsidiaries, it is involved in integrated oil, chemical and energy operations around the world. The company operates in the Upstream (extraction) and Downstream (refinery) segments. The company is currently working on renewable fuels, hydrogen and carbon capture. It has carbon capture projects with Enterprise Products Partners (EPD) and with Bunge (BG) for the production of renewable fuels.
- Gilead Sciences: American pharmaceutical and biochemical research company, founded in 1987. It discovers, develops and markets highly specialized medicines, operating globally. It has special developments to treat immunodeficiency diseases such as HIV. It also develops medicines for liver, hematological and oncological conditions. It maintains agreements with other international laboratories such as Arcus Biosciences, Jounce Therapeutics, Janssen, Bristol-Myers Squibb, Merck, Novo Nordisk, among others.
- The Coca-Cola Company: It is the largest non-alcoholic beverage company in the world. It has 135 years of experience, markets its products in more than 200 countries and together with its bottling partners, employs more than 700,000 people. It not only owns the Coca-Cola brand but also has domain of other top-level brands such as Sprite, Fanta, Powerade, Schweppes, Minute Maid, AdeS, etc. It has distributed dividends for 59 years without interruption.
Director of Private Wealth at Balanz
Source: Ambito
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