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 for the short term.
  5. Moderate market risk profile regarding duration and terms.

Strategic Asset Management Framework

FLAR has extensive experience in the design of Strategic Asset Management Framework (SAMF). In 2015, FLAR adopted the target of nominal capital preservation over a three-year horizon for its equity investment portfolio.

Consistent with this objective, the benchmark approved by the Board of Directors in April 2018 is as follows:

  1. 0 to 1-year Notes from the Treasury of the United States of America: 40%.
  2. 3 month LIBOR rate (USD): 40%.
  3. 1 to 3-year Notes from the Treasury of the United States of America: 9%.
  4. 1 to 10-year inflation-indexed bonds from the U.S. Treasury (TIPS): 5%.
  5. 1 to 3-year Corporate bonds A- or higher credit rating: 3%.
  6. U.S. Agency Mortgage-Backed Securities (MBS): 3%.