Stable returns is the main characteristic of real estate funds which in Costa Rica have shown annualized growth of 26% in their net assets.
An article in Nacion.com reports that "...Real estate funds spent $284.2 million on the acquisition of 32 buildings between April2016 and March 2017. As of March, net assets managed by the seven investment fund management companies (SAFI) amounted to¢754,255 million, after a year-on-year increase of 26%, according to the Superintendency of Securities (Sugeval)."
Managers from investment funds and pension in Central America will be meeting in Panama City on August 19th.
Marielena García Maritano, president of the Panamanian Chamber of Managers of Mutual Funds and Pension Funds (Casip) told Capital.com.pa that the purpose of the event is "... to give participants information about the platforms and infrastructure for the fund business. "
Through a mutual fund, the World Bank and other multilateral institutions, will be awarding $50 million to finance small and medium enterprises in the region.
With a mix of capital and a long-term soft loan the III Caseif fund, managed by Lafise Panama, will have $50 million for small and medium businesses who require funds to finance their operations.
Investment Fund Managers in Costa Rica are looking to market their securities across Central America.
Some of these companies have many years experience in foreign markets and other started this year in 2013. For example the two funds belonging to Improsa SAFI have been authorized in Panama since 2009, while others such as Interbolsa, resumed this year the work of internationalization in all countries.
93% of the $58 million raised by the securitization of future revenues of the International Airport of El Salvador were provided by Pension Funds.
Editorial
The administrators of the pension funds are obliged to invest mainly in government bonds, and this significantly affects the low returns earned by contributors in those funds.
The case of the securitization by the Autonomous Executive Port Commission (CEPA) to obtain funds to finance the modernization of El Salvador International Airport, is a good example of how we can better invest capital from pension funds, while obtaining better financing for public works, and so that the financial profits stay within the country.
The Inter-American Development Bank will provide $153 million to a new capital investment platform for Latin America and the Caribbean, in partnership with the Export-Import Bank of China.
A statement from the Inter-American Development Bank (IDB) reads:
IDB approves $153 million in loans to establish an IDB and China Eximbank capital investment platform
CoreCo Central America Fund is a $54 million private investment fund, which aims to invest in SMEs in Central America that have potential for growth, stimulating the expansion of industry.
Although not limited by sector, investments are primarily aimed at companies in the following sectors: healthcare, financial services, computer / software, consumer goods, retail, logistics business and telecommunications.
Legally registered companies must also report to the tax authorities of the U.S.
This new measure will be taken to comply with the Foreign Account Tax Compliance Law (FATCA, for short), which requires information disclosure by companies where a U.S. citizen is involved.
In addition, banks who hold deposits belonging to North American clients must also report to the Internal Revenue Service (IRS), and entities that do not will be subject to a retention of 30% on the interest and dividends generated.
Financial companies must provide reports about their clients who are United States citizens under penalty of withholding 30% of the transfers that they make from that country.
The measure, which will apply from July 2013, is a consequence of the Law on Foreign Account Tax Compliance (FATCA), which requires foreign banks to sign an agreement with the Internal Revenue Service (IRS), and report this to their customers, U.S.
The small economies of Central America dictate that small or regional investments are attracting the most private equity interest.
Mark Bishop from The Provident Group explains that: "the problem with Central America was and remains, very fragmented economies, small markets and lack of experience with legal transparency –it makes putting capital in there just much more difficult– there is going to be a couple of selective opportunities but its still a difficult market to get your arms round...We thought there was going to be a lot more consolidation regionally".
Bank credit tightening makes it necessary to look for alternate private capital financing sources.
In the Elfinancierocr.com blog article "En numerous," Edgar Delgado Montoya outlined five options as a source of financing for both start ups and business expansion projects: Emerge Fund, Link Investment Caseif II, E + Co LAC, and E3 Corp.
Delgado Montoya said: "In addition to delving into very different sectors, investment banking operations are quite flexible as to how the manner in which resources can be administered to the receiving enterprise."
The Ibero-American Investment Funds Federation (Fiafin) is meeting in Costa Rica on Wednesday and Thursday of this week. Some 160 members from 13 nations are expected to attend.
Fiafin aims to make investment funds more attractive to the investing public. The meeting aims to study issues such as innovations in collective products, as well as the impact that the US sub-prime crisis will have on the funds industry in Latin America