According to the latest resolution of the agency, mutual funds will have to calculate their holdings at the official exchange rate
The National Securities Commission (CNV) it established that the mutual funds will have to calculate the value of their shares at the official exchange rate, and thus limited one of the tools that savers have to protect yourself from a devaluation.
Through a resolution published this Thursday in the Official bulletin, The agency modified the valuation criteria for mutual funds, which together handle 1.2 trillion pesos, both for individuals and companies.
For the CNV, “in order to unify the methodologies applied in the valuation of the portfolios of Mutual funds, it becomes necessary to review the applicable regulations, setting parameters that allow achieving the aforementioned objective. ”
Pursuant to the provisions, for the determination of the daily value of the share, numerous valuation criteria must be applied, including the applicable exchange rate.
Thus, the conversion between the peso and the dollar, both for the valuation of its holding and for other portfolio assets denominated in said currency, will be carried out according to the wholesale closing exchange rate that arises from the Electronic Operations System (SIOPEL) of the Electronic Open Market to arrange operations in the Single and Free Exchange Market.
The exchange rate with cash settlement term must be taken and in the event that it is not available, and in the event that it is not available, the exchange rate must be taken with settlement period in 24 hours, according to the official text.
In addition, when it comes to valuing the possession of foreign currency or assets denominated in currencies other than the dollar, the rate of pass in US dollars per unit provided by the Central Bank should be considered as a basis for its conversion.
The CNV It also introduced modifications regarding the valuation methodologies applicable to equity and fixed income assets with admitted trading in local and foreign markets, “tending to strengthen uniformity in the criteria to be implemented by the different administrators.”
The regulatory body clarified that the entry into force of the modifications will take place from October 15, 2020 inclusive, with the exception of the valuation of the possession of foreign currency, whose entry into force will take place from July 29, 2020 inclusive.
The investment funds that experts watch today
The alternatives of investment current are very few, especially in a context of economic uncertainty and exchange clamp. In this framework, the common funds are in the sights of all kinds of savers, including the most risky.
This is deepened in the instruments denominated exclusively in Dollars, known as “hard dollar“, and also in those who are still in pesos to devaluation (linked dollar). In short, a way to position the savings in US currency.
That is why they are in high demand and become an instrument closely followed to dollarize and protect the money in public titles with anchor in a “safe” currency. Especially at a time when there is an official impediment to acquire green bills in cash.
Is that Mutual funds (FCI) provide managed diversification in wallets, with a wide variety of possibilities in currencies and income (fixed, variable or mixed).
The FCI in Dollars can subscribe, depends on their conformation, both in pesos as in own American currency.
For example, among denominated bonds in Dollars, if a mutual fund has its entire portfolio in securities Bonar 2024 (AY24), “it is most likely that it admits subscriptions in pesos, because this paper can be easily bought against pesos,” he details. iProfessional Roberto Gerettobank economist CMF.
Even if, lately the usual thing is that if they are nominated in US currency, they must be purchased with banknotes of the same sign.
In this sense, Eduardo Herrera, CEO of Invest in Stock Market (IEB) Money, clarifies that there are funds denominated in Dollars that “they can only receive subscriptions in US dollars, not currently being allowed subscriptions in pesos”.
There are also FCI in dollars at different terms placements and combining various titles.
On the side of the cost effectiveness, the national and global situation generates that most of the alternatives of fixed rent provide a limited profit. In fact, short-term US currency funds are yielding less than 1% a year. Although there are exceptions, and some alternatives came to yield up to 6% only last June, as the funds that were positioned in corporate debts first quality.
“The context affected all investments and papers. The appeal of a FCI in dollars is in the recovery of the post-covid global and local economy and in Argentina leaving the default. There are prospects that will be able to recover their earnings“complete Geretto.
At the same time, the other fortress that is betting on these investment funds is that it is about buying hard currency positions at future and protect yourself from the devaluation constant of weight.
That is, although you do not have the Dollars in banknotes in hand, they are bought Titles they provide a rent fixed and that they can be sold in said currency within a certain period.
“These highly conservative-profile funds are primarily aimed at preserving capital in hard currency and invest in instruments rent fixed of very low duration and high credit rating “, summarizes Herrera.
Mutual investment funds in dollars
The consensus of the different sources of the City consulted by iProfessional, about alternatives for invest in dollars In Argentina, there are few options that use the US banknote as the currency of investment and of change exclusively.
“He problem is that some of the options that continue to exist now have a different level of risk: everything that the State offered through the bonds and letters (Letes), amid the renegotiation of the debtIt is much more risky than it was a couple of years ago. With which, these alternatives exist but they are not for any investor “, alerts José Ignacio Bano, manager Research from InvertirOnline.
About, Herrera indicates that the market for Mutual funds is currently undergoing a “rapid adaptation to the latest regulatory changes“.
On the one hand, the expert graphs, he limited himself to 25% of equity the possibility of to invest in assets in Dollars for those funds whose currency is weight.
“This means that currently only those funds that have as coin to the dollar can invest up to 100% of their heritage in assets denominated in said sign, as long as at least one 75% of its assets be cast by entities (or countries) domiciled in countries of the Mercosur expanded (includes Chile) “, complete Herrera to iProfessional.
Thereto Bath states that the regulations establish caps on what the portfolio of these Latam Funds may have:
-As minimum, 25% of the portfolio must be in Argentina. “What is sought is to lower the minimum possible exposition to the local risk reason why it has that 25% of floor and, in general, it is liquid in dollars “, maintains.
-On the other hand, up to a maximum of 25% of briefcase in assets outside Mercosur and in general, that maximum is used and is basically invested in bonds of the United States Treasury, also as protection against international volatility.
-Finally, the Remaining 50 is invested within Latin America, generally in Brazil and Chile in corporate bonds or state.
Investment fund alternatives in dollars
The few options available on the market in Dollarsfundamentally focus on regional investments or “Latam”
Regarding Herrera cites the case of IEB fixed income dollar fund, invested in sovereign and corporate bonds of Chile and Brazilbonds of treasure American and negotiable obligations in US dollars of Argentine issuers of high credit quality.
Specifically, the portfolio of this fund is currently positioned at bonds of the Banco del Estado de Chilesovereign bond of Brazil 2021 and corporate bonds of Bradesco 2021, Falabella 2023, Itaú 2021, Pan American Energy 2023 and AES Energy Argentina 2020.
In the case of invest online, Bano adds to the AdCap Rent Dollar. That fund is subscribed and redeemed in dollars only, and the minimum amount to subscribe is five dollars. “So it is very accessible,” he says.
And complete: “it is a fund with low level of risk that seeks to protect the capital of the investor in Dollars. Being fairly safe, the performance is in line with that. It is not a portfolio that is going to yield a lot because the rates in the world are low. ”
While, Daniel Vicien, commercial director of Balance, adds that for a moderate investor, they have the Balanz Savings Fund Dollars that “it had a return in June of more than 4% in dollars, and that it invests in first-rate corporate bonds.”
For Geretto, details that currently in CMF, and also other entities, are offering the following money of investment in dollars:
-Fixed Income USD Liquidity:
He objective of these is to provide a minimum return to the surplus of liquidity in Dollars. Thus, they invest in very low assets risk and tall liquidity, where the bonds of the United States Treasury, being “the main element of this portfolio”.
“Throughout the year, he performance of these in Dollars has been minimum. Given the tax impact and the low pre-tax return, it is not advisable for individuals, “says Geretto.
–Fixed Income USD Short Term:
These are FCI that invest in instruments short term. Although they have assets in their portfolios of high liquidity and low performance, they have a margin of maneuver for daily operations and redemptions and subscriptions to the fund.
Most of the portfolio that counts bets on debt of maturities not too far away. For example, Argentine bonds such as the AO20, AA21 or even AY24, as well as other types of dollar debt from countries of Latam or corporate debt of U.S or local. “But everything in the short term,” he says. Geretto.
Additionally, it may also have to a greater or lesser extent assets in pesos linked to dollar, which are the so-called assets dollar linked.
-Long Term USD Fixed Income:
This type of FCI provides a greater return potential, but also with greater risk, measured as the volatility in the value of dues bottom parts. “Therefore, they are oriented towards a horizon of investment longer that allows to face said risk “, details Geretto.
Like his peers over short term, in their portfolios they have assets (public or private) of Argentina and Latam (Latin America) or corporate debt of U.S. The difference is that bonds in portfolios are longer term, such as Bonar 2037 (AA37) and the Discount in dollars (DICA), which expires in 2033.
“Losses exceeding 10% can be found, but also the post-Covid recovery potential could be greater“stresses Geretto.
-Link Dollar Fixed Income:
Without a doubt this type of money are the star“of the moment because they are established in pesos, by allowing surpluses of these banknotes can be invested in instruments that provide a return associated with devaluation of the official dollar.
“Broadly speaking, they have dollar-linked corporate bonds in their portfolio, as well as peso-denominated bonds at fixed rate (Badlar rate, Letters to Discount of the treasure, among others), but taking hedges in the futures market “, clarifies Geretto.
Thereto, Vicien complete that for a small investor who wants to invest in Dollars, “today the most advisable thing is to invest the pesos in a Linked Dollar Bond Fund, which in our case had a return in June of more than 5% in pesos, and that it has its portfolio invested in very good quality corporate bonds that adjust according to the dollar official”.
So far this year, they have accompanied and even exceeded the official devaluation rate, where there are average increases greater than 30%.
“Momentum aided by expectations of a devaluation of the official exchange ratel, who have driven these assets to gain value, “he explains. Geretto.
These FCI invest in local actions or of Exterior. “Given that the volatility of the assets of rent variable it is higher than those of fixed rent, so the investment horizon to which these FCIs point is long “, warns Geretto.
Also, these FCIs can count on ADR (Argentine shares that are quoted abroad), something that allows investment in pesos get a return associated with exchange rate.
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