COVER STORY – Offering Expats Financial Alternatives in Ecuador

Financial Alternatives in Ecuador

COVER STORY - Offering Expats Financial Alternatives in Ecuador

ON-LINE ISSUE JULY

By Henry G. Noël
Photos: Tiro al Blanco, Flechas con Proposito. Agencia de Publicidad
Courtesy of Plusvalores

With universal mobilization precautions established in reaction to worldwide confusion surrounding the Novel coronavirus (Covid-19) and the relaxing of restrictions, Ecuador, like most countries of the world, continues to face public health issues with unknown durations. Despite the economic ramifications facing every country, life goes on in Ecuador.

COVER STORY – Offering Expats Financial Alternatives in EcuadorPeople are migrating to Ecuador from all over the world and for many reasons. Concerns with the quality of life in their home country due to economic and financial changes, liability issues, employment setbacks, and retirement are the most significant reasons. Everyone deciding to relocate to another country in search of a better life faces many obstacles. The major one being how to manage their finances to allow their money to stretch further. Another major decision is what type of visa is the best based on one's economic and financial situation. From retirement to professional and dependent or investment visas, there is much to consider. For many of you, the method to secure residency in Ecuador is through an investment visa. This article presents an option often neglected as a vehicle for the forty-thousand-dollar contribution necessary to obtain an investment visa.

There are several well-known methods available to secure an investment visa in Ecuador. Some foreigners, having financial resources, buy real property like an apartment, a condo, land, or a home. For most, it is the intangible personal property method most often used—the Certificate of Deposit (CD) through one of the many banks or credit unions in Ecuador. The interest paid on the CDs depends on the institution holding the CD and governed by the amount invested, duration of the investment, and amount of risk your investment faces. The renewal of CDs maintains the investment visa’s compliance.
COVER STORY – Offering Expats Financial Alternatives in EcuadorThis article introduces another safe and secure vehicle for foreigners to secure their investment visa. A vehicle often overlooked. There are several questions you may want to ask yourself: Am I looking for a higher return on my investment visa contribution?  What are other investment opportunities with a safe, up-side option? How can I increase my discretionary income?
Ecuador is one of the best Latin American countries to invest in and one of the easiest. If the moratorium on your investment visa CD is coming due, and before you automatically renew your CD, you owe it to yourself to explore the value and higher returns offered by investing in the Ecuadorian stock market through Plusvalores. Plusvalores can offer interest rates that might be higher than your current CD, providing you with additional discretionary funds and with much greater safety.

COVER STORY – Offering Expats Financial Alternatives in Ecuador

If you have extra discretionary funds and are thinking about investing your money, consider contacting Plusvalores to explore the possible avenues open to you to earn higher returns while helping the Ecuadorian economy grow.

Many areas within Ecuador’s economy, despite the pandemic shutdown, continue to flourish. Logistics, healthcare, essential services, technology, and finance have continued to thrive. We are all familiar with how the US stock market has more than doubled its value over the past ten years and reached record levels during the pandemic. During this same ten-year period, every primary world stock index (DAX, Nikkei, Hang Seng, Shanghai composite, to name a few) has at least doubled in value. Well, Ecuador’s stock market is no exception and is at its highest levels and experiencing tremendous growth. The Ecuadorian stock market has witnessed the same doubling of value since 2009 and makes for a viable alternative to CDs.

However, Ecuador's stock market has not come close to reaching its full growth and development potential. As of December 2019, it represents 9% of the Ecuadorian Gross Domestic Product (GDP). This 9% of GDP places Ecuador in a position to have more significant growth opportunities than any other Latin American country. Perhaps this is the time for you to consider investing in the Ecuadorian Stock Market.

The financial world can be a confusing place. Understanding investments has never been easy. Concerns with volatility, choosing the right investment vehicle, and the uncertainty of business decisions tend to cause people to shy away from the extremes demonstrated by stock markets. Finding a reputable financial investment firm is crucial when attempting to traverse the terrain of the world of finance. Plusvalores, S.A. is one such firm.

Plusvalores, SA, is a leading investment advisory brokerage firm in Ecuador

Plusvalores, SA, is a leading investment advisory brokerage firm in Ecuador.  Founded in 2010, Plusvalores' authorization and regulation are under the Superintendent of Companies and a member of the Quito Stock Exchange.

Today, more than 300 national companies are listed on the Ecuadorian stock market, having their operations based in either Quito, the capital of the country, or Guayaquil, the country's principal seaport. These companies trading on the Ecuadorian stock market trust this process because it offers them a means to raise capital and to arrange financing for new and long-term projects. Successfully obtaining funding through investors, they grow, reinvest, and generate many employment opportunities.

Plusvalores deals in quality bonds (units of corporate debt) of well-established Ecuadorian companies, which are issued by those companies and secured by their assets (land, equipment, inventory, etc.). For example, PAPIZZEC S.A., the parent company of Papa John's franchise and MOSINVEST S.A., the distributor of Hyundai and the well-known truck brand JAC. Here is an example:

CORPORATE BONDS

COMPANY PAPIZZEC S.A. MOSINVEST SA.
MATURITY 2/6/2024 8/19/2023
YIELD 9% 9.50%
YIELD TO MATURITY(YTM) 9.38% 9.84%
PRINCIPAL USD 50,000 USD 50,000
CUPON RATE 9% 9.50%
MINIMUM VALUE USD 1,000 USD 1,000

Financial Alternatives in Ecuador

With branch offices in Quito, Guayaquil, and Cuenca, Plusvalores can assist you in Ecuador. You can use corporate bonds instead of CDs as the financial contribution for your investment visa. The difference is we can select quality bonds with higher interest rates than your current CDs, pay you the interest monthly, and still offer the same safety to protect your money.

The key is building trusted relationships, assisting clients with understanding the complexities of investing, and providing the security investors seek. Plusvalores’ mission is to support the growth of the Ecuadorian stock market.

Plusvalores is committed to its clients, offering several options such as corporate stocks or government and corporate bonds with which to build a portfolio. Their financial specialists are professional and know their business and will analyze the environment before making recommendations. Recommendations focus on the client’s comfort concerning risk, outcome expectations, and the duration of the contribution (short or long-term). The object is to make your money grow and work for you, and many of the investment methods return higher percentages than CDs.

The Ecuadorian stock market is a gem for investors. With the expat community having little exposure to the Ecuadorian stock market, perhaps it is time. It is a secure and organized option for investment. Investors should venture out and explore it. By supporting companies searching for new financing mechanisms, you will be surprised at the opportunities available to make money.

Kati Rueda, Cuenca Manager Plus Valores

Kati Rueda Cuenca Manager

Before you consider renewing your investment visa CD, decide to invest in a CD as your investment visa vehicle, or if you are seeking additional avenues to invest your money, consider giving Plusvalores a call and contact Kati Rueda. Kati is an investment advisor fluent in English, and she will be happy to answer all of your questions.

Her contact information is phone 099 255 4797 and email: krueda@plusvalores.com.ec.  Please call today for an in-office or virtual conference. It’s free. You could be missing out on many profitable alternatives.

Plus Valores

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Financial Alternatives in Ecuador

Henry Noel

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