The Time Is Now (20/03/2020)
We wrote this text in in the morning, 20/3. Since the market is very volatile, it is important to establish the context of the time in the market, the Sief:
- IFIX go on up to 7.5% on the day, falling to 20% in the month, and by 25% in a year (IFIX = Index Funds, real Estate, consisting of about 80% for the funding of the “brick”/real property, and 20% of the funds from the Wallace/fixed income securities backed by real estate);
- RBRR11, our funds from the Wallace High Grade, composed of stocks with a low risk of the loan, up to 6% on the day, falling to 23% for the month, and by 25% in a year;
- RBRP11 our fund in “brick,” which to purchase real estate directly or through a Sief, up 7% on the day, falling by 16% in the month, and 23% for the year;
- RBRF11 our background multiestratégia/FoF, about 9% on the day, falling to 20% in the month, and 30% for the year; and
- The volatility has never been so high, and it clearly showed movement is based on the panic and not rationally.
The vision of the RBR is that the numbers above do not match up with the grounds of the estate in our portfolio and, in general, of the real estate investment funds, which are part of the IFIX. Has been established on the market in a great fear, as a result of fear and uncertainty, with the advance of the virus and its impact on the economy in the short to medium term. The fear of a credit crunch/recession, in our view, may increase the negative effect on the market.
Our Approach
These days, we have been working on a lot more than that in a normal day, via the Home Office, and with the use of the platforms of digital media.
Revalidamos thesis investment, and deepen the analysis of the risk of all of our assets. We're very comfortable with our portfolio. The decision of the management in these last few days have been based on some assumptions.
- Set out a clear strategy for the management to take advantage of the opportunity, however, by increasing the risk of a hurry;
- Discipline in the implementation of the strategy; and
- The focus, as always, on the grounds of the estate, with a time horizon of 12 to 36 months.
In the current prices of the funds, we've identified a number of opportunities for investment, with a return of 20% and 25% of a. a. in the time horizon of 3 years. We find the returns to be expected similar to the one we put in, in 2015/2016, with the number of funds being traded below the cost of a replacement. We are responsible, there's no hurry, purchase the Sief for the notification of the RBRF11 and RBRP11.
Full
More specifically, on each and every one of our funds, we have adopted the following strategies:
- The RBRF11, we've got 30% in Fixed Income securities (Sief Certificates and Certificates directly. We are slowly selling out on a fixed income, and buying Sief “brick” in all sectors, with the main focus in the back of the slab defined by the company.
- The RBRP11, we have approximately$ 200 million in the box and it will be to buy a Sief is listed, it will be nice for the background in a couple of months ago. With the depreciation of the stock, and the brick and indirect (via Sief) was not attractive, and the fund will take advantage of this moment in time.
- Many of the funds in Certificates that are listed are discounted between 10% and 20% of your Net worth. It's like if you buy a bill of$ 100 for$ 80. Don't expect any default, so full of the mortgage loan (RBRR11 and RBRY11).
Job Closing: Open
We strongly recommend that investors do not make sudden changes in your portfolio. This is the time to care, increasing exposures to a few, and with discipline and strategy. The funds of the RBR, as well as a large part of the market that are pretty cheap when you examined the reasons for it. We are convinced that our active management will prove to be of great success over the next few months (12 to 36 months).
We are at your disposal-more than ever before, to meet with the investors. Count us in! Our contact methods:
- RBR – 011 40839144 or [email protected]
- Bruno Franciulli, partner in charge of Investor Relations – 011 999313303
