Monetary funds for those who see the dollar at maximum

The dollar has become this year the refuge par excellence. Its strength has brought currencies such as the euro to parity. For those who think that the greenback has not yet peaked, there are up to three money market funds that invest in fixed income in dollars (denominated in euros) that have achieved double-digit returns this year.

This is the case, for example, of BBVA Bonds Dollar Short Term , which invests in money market instruments and short-term fixed-income assets and floating bonds in US or Canadian dollars and has obtained a return of 17.46% since it started. the year, according to Morningstar data.

”The long position in the dollar has been the main driver of the fund’s profitability,” explained its management team in the last semi-annual report, at the end of June. “For the moment”, they said then, “we continue to bet on the greenback although it is approaching somewhat extreme levels and we are vigilant to adopt a more neutral position. The long position in the dollar has been crucial for the good performance of the fund”, they described .

César Pérez, global director of investments at Pictet WM, believes that “with interest rates in the United States much higher than in the rest of the economies, it is difficult to see a collapse of the dollar, although it is overbought.”

In the manager OFI AM they also consider that the dollar is beginning to be expensive due to fundamentals. They estimate that it is overvalued by 10% against the euro. “If the ECB is more aggressive and inflation in the US is somewhat less intense, there could be a change in trend in the short term,” they indicate.

Which ones stand out the most?
In addition to the BBVA fund, there are two others that add up to more than 14% this year. This is the case of Santander Short Term Dollar Portfolio, which invests in public fixed income securities, money market assets and private fixed income, mostly denominated in dollars and a minority in euros.

And you can also invest in deposits a percentage that will vary depending on the market situation. During the first half of the year, the fund continued to focus on the purchase of corporate bonds from North American issuers, with a good rating, such as American Honda, JP Morgan, Merck & Co, Microsoft, among others, and also bought American public debt maturing in 6 months. approximately “before the high interest rates reached”, they explain in the information sent to the National Securities Market Commission (CNVM).

Finally, there is Ibercaja Dollar B , with a revaluation of 15.45%, which invests in short-term international fixed-income securities, both public and private, denominated mainly in dollars. At the end of June, the fund held a portfolio of fixed-income assets with an average life of 0.71 years and an average gross IRR (this is without discounting expenses and commissions) at market prices of 3.22%.

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