Costa Rican Investment Fund Market 2010

©image: CNSFI

Among other options, stock funds won over many investors reappearing as an investment option with over 200 investors. Also open Growth Funds increased 12%, Megafunds with an 11% increase and Money Markets with 12%.

The November 2010 Newsletter of the National Investment Fund Company of Costa Rica, reported that investment fund market is approaching the end of 2010, a period which started full of challenges and closes with positive numbers and challenges met, including a 10% increase in the number of investors, from 30.614 customers managed by the end of 2009, to 33.432 in November of this year.

The increase is similar to some countries such as Chile (10%), Argentina (11%) and higher than others such as Bolivia (3%), Spain (-2%) and Mexico (-4%), according to the American Federation of Investment Funds.

Source: National Association of Investment Funds Societies (Costa Rica)

More on this topic

Money Takes Refuge in Short-Term Funds

March 2009

In Costa Rica, 55% of the total in investment funds is in extreme liquidity instruments.

The fear caused by the financial crisis has prompted investors to abandon growth and income investment funds which typically offer better returns and put their money in highly liquid, low return funds, where the money can be withdrawn in less than 24 hours.

Less Investors, But More Active Ones

January 2010

In Costa Rica, investment funds grew 16% in 2009, in spite of losing almost 10% of their investors.

During the past financial crisis, the Costa Rican market turned out to be more stable than international markets, making it a relatively safer place for storing capital. Because of this, assets managed by investment funds grew to $2.48 billion.

Public Works Securitization

March 2010

Costa Rica still faces obstacles to implement this mechanism, regarded as the best alternative for funding public works.

Public works securitization is once again being discussed, as the upcoming Tourism Minister stated it will be used to fund a new National Conventions Center.

Venture Capital Funds in Costa Rica

February 2010

The Securities Commission (Sugeval), is preparing regulation to enable venture capital funds to conduct public offerings.

In Costa Rica there are several venture capital funds, but they are private and cannot perform public offerings. The regulation to allow them to do it could be ready in a couple of weeks.