Investment Parameters

1.

Safety, liquidity and performance principles.

2.

Markets that have a low correlation with the economic performance of the member countries.

3.

Liquid and deep markets, with low transaction costs.

4.

Issuers with a minimum investment grade credit rating of A-/A3/A- for the medium term and A-2/P-2/F2 for the short term.

5.

Moderate market risk profile regarding duration and terms.

Strategic asset allocation

FLAR has extensive experience in Strategic Asset Allocation (SAA) design. In 2015, FLAR adopted a three-year nominal capital preservation target for its wealth investment portfolio.

Consistent with this objective, the benchmark index approved by the Board of Directors in March 2023 is as follows:

U.S. Treasury Bonds, maturity between 0-1 years: 33%
Corporate Bonds, credit rating between AAA-A, maturity between 0-1 years: 25%
U.S. Treasury Bonds, maturity between 1-5 years: 10%
U.S. Treasury Inflation-Protected Securities (TIPS), maturity between 1-5 years: 5%
Corporate Bonds, credit rating between AAA-A, maturity between 1-5 years: 10%
Supranational, Agency, and Sovereign Bonds (SSA), credit rating between AAA-A, maturity between 1-5 years: 10%
Mortgage-Backed Securities issued by U.S. Agencies (Agency MBS): 5%
U.S. Large Cap Equities (S&P 500): 2%

0 to 1 year U.S. Treasury Notes: 45%.
1 to 5 year U.S. Treasury Bonds: 2.5%.
1-5 year inflation-indexed U.S. Treasury bonds (TIPS): 2.5%
0-1 year corporate notes with an A- or higher credit rating: 30%
1-3 year corporate bonds with an A- or higher credit rating: 5%
1-5 year sovereign, supranational and agency bonds (SSA) with an A- or higher credit rating: 5%
U.S. agency Mortgage-Backed Securities (MBS): 10%

Investment Parameters

Investment Parameters

Investment Parameters

1.

2.

3.

4.

5.

Strategic asset allocation

Information

Social networks