So far in 2022, meanwhile, negative results can be seen for multifunds, except for E. Types A and B register the most pronounced falls.
So far in June, the multi-funds have recorded mixed results: the riskiest fall and the conservatives rise. In itself, so far this year only fund E makes a profit.
The uncertainty in the markets, the inflationary pressures and the fear of a global recession at the international level -added to the political uncertainty at the local level- have had an impact on the pension multifunds registering mixed results so far this month (with quota values on the 27th).
According to a bulletin from the consulting firm Ciedess, the riskiest funds, A and B, record losses of -0.93% and -0.26% respectively; Meanwhile he fund C, of moderate risk, presents an increase of 0.22%.
Meanwhile, the most conservative funds, D and E, obtain profits of 0.60% and 1.13% each.
Only the E is saved in 2022
According to Ciedess so far in 2022, January to June, negative results are seen for multi-funds, except the e
Funds A and B register drops of -14.86% and -11.18% respectively, while the Fund C presents a variation of -7.17%.
The most conservative funds obtain mixed results, with a fall of -0.61% for D and an increase of 4.74% for E.
Variation in variable income instruments
According to the consultant, the monthly result of multifunds A and B is mainly explained by the variation in the prices of variable income instrumentsin which negative results are observed in the main international indices, being offset by the dollar rise; while at the local level there is a drop.
Internationally, the markets are still affected by the pandemic (the restrictions in China stand out) and the Russia-Ukraine conflictwhere inflationary pressures have driven rate hikes in most countries (the Fed’s historic hike stands out) and the emergence of fears of a possible global recession,” says the consultant.
It also explains that at the local level “the downward adjustments in the economic growth projections for 2023 stand out (likely recession) and higher inflation expected for this year, the fall in the price of copper and the possible inflationary impact due to the strong rise in the dollar.”
Fall in interest rates on fixed income
On the other hand, says Ciedess, the profitability of funds D and E is mainly explained by the results of the investments in local debt securities and the performance of foreign fixed income instruments.
In this regard, there is a positive contribution from international fixed income (LEGATRUU Index rises 5.26% in pesos), while at the local level there is a drop in interest rates on fixed income instruments, positively impacting to conservative funds through capital gains.
