Financial Trusts
Gain diversification and flexibility while reducing risks and earning periodic income.
Financial Trusts
Gain diversification and flexibility while reducing risks and earning periodic income.
What are Financial trust?
The trust is a legal agreement where one person (the settlor) transfers assets to another (the trustee) for administration, and at the end of a specified period, the results or assets are allocated to a third party (the beneficiary). It operates as a legal instrument that allows for the management and distribution of assets under predetermined arrangements, offering flexibility in asset management and the fulfillment of objectives such as investments, guarantees, among others.
Main features
Medium / Long term
The term depends on the nature of the assets that compose it.
Fixed income
They issue securities backed by underlying assets, which generate cash flows that are distributed to investors in the form of periodic payments.
Risk
The trust is established from a separate patrimony of the company, and therefore the investor does not participate in the risk of the company that generates it.
Diversification
This type of structure is used to generate liquidity for the grantor and investors and to diversify risks.
Why invest in Financial Trusts?
Investing in financial trusts offers asset diversification, regular cash flows, and flexibility in terms of timelines and objectives. This attracts investors looking to reduce risks through investment distribution and obtain periodic income.
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