Collective investment funds (FICs) have established themselves as one of the financial vehicles preferred by investors who want to access the market stock market (and non-stock market) in Colombia.
Currently the FICs industry in the country represents a value close to 90 trillion pesos in assets under management (AUM for its part) acronym in English), with a growth of 17% compared to the previous year. This type of vehicles have contributed greatly to improving the indicators of inclusion flexibility since this industry currently has more than 1.9 million investors among whom there is a large participation of natural persons.
Within the product offer that fund management companies have investment, the most representative are the fixed income funds which have close to 49% of the total volume of resources managed by the industry. For their part, the funds of shares (local and international) have a share of 11%, while the Balanced funds (a mix of fixed income and stocks) barely have a share of the 8%.
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Recently, stock brokerage firms have focused on creating FICs that invest in “non-traditional” assets (or non-stock market) which have entered into compete directly with traditional savings alternatives such as CDTs, savings accounts, and even with the same profile collective investment funds conservative.
The interesting thing about this type of vehicles is that they offer the investor a diversification alternative where they can obtain excellent returns according to your risk profile. Real estate funds, for example, invest mainly in commercial properties that have high appreciation potential and so same generate recurring income for the investor derived from the leases that perceives the same fund. These vehicles have obtained net returns close to 8 and 9% throughout 2019. On the other hand, funds that invest in credit assets (invoices, drafts, sentences, etc.) have become an alternative for the investors looking to generate competitive returns taking into account the credit risk inherent in this type of investment.
In conclusion, although the FICs industry in Colombia has evolved recently, We believe that there is a high growth potential considering that the The national government, through the financial superintendence, is committed to doing grow this industry through the flexibility of processes and motivation to create innovative products.
