When defining a investment portfolio It is essential to analyze two questions: investment term and risk profile of the target investor. On this occasion, we will take as examples two investment portfolios composed only of Argentine assets.
If we assume that both portfolios focus on the long termwe have the risk aversion as a parameter to define the investment strategy.
Consequently, using the volatility as the main risk factor (given that the Argentine risk would be implicit in both portfolios), we can divide between an exclusive portfolio of variable income and another of fixed income.
fixed income portfolio
Within what is the portfolio of fixed rent, whose time horizon is the long term, distinguishes the negotiable obligations of Argentine companies. This instrument allows you to invest both pesos and dollars, in order to obtain an annual income in dollars.
Currently the New York law ONs, although their yields have contracted in the last month, they are still more than interesting.
Assuming that we have a million investment pesos, we can divide it between two ONs in order to diversify the individual risk of each company.
In this case, it is essential to take into account the level of leverage and the level of interest coverage. We highlight: YPF 2025 (YCA6O) and AA 2000 2031 (ARC1O).
Equity portfolio
When it comes to designing a portfolio of equitiesIt is essential to consider some issues.
The argentinian shares they were part of a rally since the beginning of the year, with the Merval in dollars Cash With Liqui (CCL) (implicit in YPF’s prices) revaluing +42.4%.
Currently, the index stands at around 840 pts, matching the returns obtained by emerging markets (EEM) since the beginning of 2019.
On the other hand, the macroeconomic situation in Argentina is becoming more complex, and although Argentine companies are solid at the microeconomic level, they are not oblivious to macro issues that may affect their income in the medium term.
Taking this scenario into account, and being an election year, The portfolio assembly with Argentine shares may be affected by great volatility throughout these months.
With a long-term view, we select those that have the possibility of exporting, and whose flows are not tied to price controls, such as Aluar (ALUA) and Ternium Argentina (TXAR).
Master in Finance. TSA Stock Market Financial Advisor.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
