Factoring Investment Funds: An Alternative For Small Investors to Grow Their Surpluses

2024-04-04 17:00:54

Investment funds are now seeking to massify factoring through the Lima Stock Exchange (LSE), which will make it possible for more small investors to have other alternatives to place their surpluses.

This was stated by the CEO of Anka Investment Fund Management Company (SAFI), Joel Villanueva, who indicated that this firm will introduce its two public factoring funds, Yaku soles and Yaku dollars, to the local stock market to extend these investment options. to people, who will be able to access them with amounts from S/ 1 and US$ 1, respectively, starting today.

“Before the launch of these funds (on the stock market), the minimum entry ticket for investment funds of this style in the market was between US$5,000 and US$10,000,” he added.

These funds will be placed on the stock market first through a preferential public offering for the same participants – which begins today – and then there will be an offer for the general public, which will begin on April 10, he detailed.

In addition, investors in these stock market factoring funds will be able to sell their shares at any time, if they need to, despite the fact that these funds have an exit mechanism, although limited, and free of penalties every three months, through the repurchase of quotas, he said.

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Factoring funds remunerate more than term deposits

In the years 2022 and 2023, the average annual profitability of factoring investment funds in soles was 12% and in dollars, 9%, with which they compete and are above time deposits in the financial system. that provided attractive returns due to the situation of high reference rates (from the BCRP), said the head of Investments at Red Capital Perú, Omar Chávez.

“Last year, participants in the factoring funds (Yaku soles and Yaku dollars), managed by Anka SAFI, obtained returns of around 15% in soles and 14% in dollars,” Villanueva said.

Based on this and considering the coverage of operating expenses of the funds, the financing cost for supplier companies that request factoring ranges between 18% and 22% annually, which is the average market cost, Chávez indicated.

READ ALSO: Rich Peruvians are attracted by unregulated factoring and real estate funds

Companies migrated towards investment funds and factoring companies due to contraction of lines in banks

Villanueva said that last year, due to the economic situation, banks reduced their credit lines and large paying companies (buyers) gave priority to using their lines for other financing, while supplier firms (SMEs) were left without power. discount invoices from your large buyers.

This caused large purchasing companies to migrate to factoring companies and investment funds, since the gap in financing costs for companies between banks and investment funds and factoring companies was also reduced, he said.

There was a “significant reduction of more or less 50% of the lines (of credit in banks) occurred between 2022 and 2023,” he noted.

So, “what happened in the last two years is that there were more and more large and corporate companies looking for discount lines for their suppliers (in investment funds and factoring companies), since these companies also look for credits for their purchases.” , said.

However, factoring companies and investment funds do not have the capacity to take this entire position (reduction in the line of credit in banking), and that is why the arrival of funds from abroad and also fintechs was observed, he stated.

Likewise, although factoring has been centralized in Lima in recent years, it has been observed that it is also offered in provinces such as Arequipa, Trujillo, among others, Villanueva and Chávez agreed. “It is expected to continue growing, since there is a market to expand,” they projected.

In this context, Villanueva estimated that the use of lines will continue (in investment funds and factoring companies), since banks have not expanded their appetite for credit placement. “I don’t think that in the short term, banks will double their lines (of loans) to companies,” he added.

What Anka SAFI does is select and acquire the best invoices from the factoring companies with which it works, and then puts together the investment portfolios to sell them to institutional investors, he highlighted. “These invoices are from various economic sectors, such as services, industrial, commerce, technological services, mining, metal-mechanical, among others,” he added.

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Wari Funds will buy invoices for the firm’s other funds

Likewise, he said that the Wari investment fund will be dedicated to buying invoices from public funds (Yaku), so its strategy is basically to attract institutional investors who want to carry out operations with Anka SAFI and enter this fund, mainly with quotas of direct way.

“This fund will keep the risk until the end of the duration of the debt (invoices). (…) The intention of this fund is that we can take charge of the comprehensive management of the collection (of invoices) for the institutional (investor). The placement stage is in April,” he said.

For his part, Chávez said that the risk areas of the funds carry out a constant review, since the quality of the debtors can deteriorate quickly due to sectoral, political or social events. “For example, fishing and agricultural companies were hit hard by the El Niño Phenomenon (FEN), or mining companies with adjacent social conflicts, or public-private firms that are affected by decisions of the Executive,” he noted.

READ ALSO: Large companies with fewer lines for factoring use

Anka evaluates launching real estate fund this year

At another time, Villanueva pointed out that Anka is evaluating launching a real estate fund during the course of the year, for which it is in talks with various construction companies that have portfolios both in Peru and abroad.

“That (that construction companies have portfolios in the country and abroad) makes it a little more attractive for investors because it diversifies country risk,” he said.

READ ALSO: Anka SAFI creates private investment fund, how much is it?

Related notes:

Real estate funds now bet on homes in Spain due to high demand

Faro Capital will soon request permission to manage investment funds

Sigma SAFI will apply to also manage mutual funds

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