What shares do they bet on and which are not mutual funds?

The month of November ends and the market is getting ready for the last month of the year. Equities have been major players in the 2018 financial crisis, highlighting significant adjustments and declines in pesos and dollars. In turn, the issuers accompanied the recovery of financial badets as well as the exchange rate stability achieved through the new BCRA measures. During this stabilization process, the mutual fund industry reacted accordingly, showing interesting data on how the last few weeks have worked.

In a report prepared by badysts at Criteria, the volume trend recorded so far in November is remarkable and they maintain that the current month is characterized by low trading volume, volatility and positive returns.

"The long-term trend indicates that exploited volumes are up, but this indicator has reached a stabilizing level over the past year, and November has been a positive momentum for this segment of the energy industry. In spite of the few existing activities, the returns have been positive, "said Sergio González, an badyst at Criteria Asset Management, in a report prepared by the company.

Particularly for the equity segment, the mutual fund industry is dominated by the institutional segment, This is explained by the criteria and also emphasizes that this represents almost 70% of the participation.

"The sector is dominated by institutional investors.The remarkable thing about this is that they chose independent managers and not banks to invest their investments.The opposite behavior is that of the retail investor. He chooses the products of banks to have exposure to the shares, "said Sergio González.

Equity-managed equity totaled 18 610 million pesos and among funds that manage more capital The following areas stand out: Consultatio Acciones Argentinas, Compbad Growth, Variable Schroder Renta, Renta Varibale Superfund, Galileo Acciones, Variable Income Fima PB, Alpha Mega and SBS Acciones Argentinas, among others.

Regarding the evolution of the equity sector in the mutual fund industry, the Criteria report points out that the long-term trend indicates that investors are paying equity in the equity sector of the industry CFI.

For the current month, González said that "November shows aligned behaviors of retail and institutional investors.Threatened by the uncertainty and interest rates offered by fixed income securities, both types Investors have decided to recover capital from this segment of the industry.In total, they withdrew more than 100 million pesos.This is a considerable slowdown compared to last month. On the other hand, the funds generate value for their investors.To date, this month has generated 900 million pesos.

More long-term, the criteria report highlights that "In 2017 and the year pbaded in 2018, the sector has created value for its investors for a value of 5.317 billion pesos. more than 1,500 million pesos and individuals reporting subscriptions of more than 1,500 million pesos ".

The interesting thing is to be able to observe what is the positioning in the stocks that use the funds. "The fund portfolios that aim to outperform the Merval index are finding value in the energy sector." Motivated by current valuations, stock managers have decided to start moving away from the real estate market. Benchmark: On this occasion, TGSU2 is repeated and the CEPU between preferences, but the funds with the best performance of the year are those who have chosen to stand out from the index. the strong fund tracking error with the best return in the last 12 months, "added Sergio González.

As for the funds following the Merval Argentina index, we can see that these funds are more distant compared to their benchmark index. "More specifically, they chose the energy sector, highlighting with greater conviction that TGSU2 ranks among the bets.YPFD, PAMP, FRAN" were also chosen by the directors of this sub-segment " , commented González.

An interesting conclusion that Gonzalez answers is that, no matter what index to beat, all managers agree not to invest in the financial sector. "In this context, managers see value in roles dedicated to the real economy and leaving banks out."

Julian Yosovich