- What is Fhipo?
The main focus of FHipo is to generate income through the management and optimization of mortgage portfolios using different sources of funding and collection mechanisms.
The dynamics of the Mexican mortgage sector are very attractive, which will result in investment opportunities and significant returns.
Portfolios diversified by geographic area with borrowers who register solid and stable revenues within the formal economy.
Underlying mortgage portfolios denominated mostly in minimum wages which grant natural protection to the value of our assets in real terms.
Specialized collection and servicing through our strategic partners that allow direct payroll deductions, thereby significantly reducing credit risk.
Origination of mortgages through different programs with appropriate financing eligibility criteria and analysis on the borrower´s debt capacity.
Expert management and investment team, with a solid corporate governance and a highly-recognized sponsor group.
Provide attractive long-term returns to our investors through the combination of dividend payments and increase in the value of capital.
HOW TO ACHIEVE OUR OBJECTIVE?
Utilizing the experience of our Manager and Advisor to selectively build and actively manage a diversified mortgage investment portfolio by identifying financing structures and protecting our expansion through hedges. All of the fore mentioned with the purpose of generating attractive returns, by controlling risk in a wide variety of conditions and economic cycles.
Our strategy, focused on long-term growth, intends to increase the size of our mortgage portfolio to maximize distributions to our Shareholders.
We believe that this strategy, together with a high demand for housing, driven by housing deficit, formation of new households, as well as by the high level of expected distributions, will result in an appreciation in the value of our outstanding securities.
We intend to invest in residential mortgage loans, by acquiring such loans or through co-participation with large mortgage originators. Our objective is to invest mainly in mortgage loans whose guarantee is located in Mexico, thus strengthening our social commitment.
OPTIMUM CAPITAL STRUCTURE
We intend to fund the acquisition of our mortgage portfolios through equity and debt issuances, in both public and private transactions.
Our leverage level depends on the Leverage Guidelines adopted by our Technical Committee based on the evaluation of several factors performed by our Manager and Advisor.
LEVERAGING TO POTENTIATE RETURNS
The purpose of our initial indebtedness level is to maintain a solid capital base, superior to that of other participants in the mortgage sector, and to increase our distributions for the benefit of the Shareholders and finance the acquisition of the assets we select.
Our corporate governance is designed to replicate the requirements applicable to publicly traded corporations (sociedad anónima bursátil) and is fully focused on the lack of conflicts of interest. FHipo has a series of rules intended to attain compliance with the corporate governance principles applicable to publicly traded corporations under the Mexican Securities Law.
The members of the Technical Committee are appointed by the Shareholders’ Meeting.
The Shareholders’ Meeting approves the compensation of the members of the Technical Committee.
We have an Auditing Committee, Practices Committee and Nominations Committee that assist our Technical Committee.
Our Auditing Committee and Practices Committee are formed by at least 3 members, all of which are independent.
Our Nominations Committee has at least three members, and the number of members must always be an odd number.
Our Technical Committee is integrated by up to 21 members (with their respective substitutes), of which the majority will always be independent members.
Significant transactions (for example, transactions exceeding 5% of the assets) must be approved by our Technical Committee.
Transactions representing 20% or more of our consolidated assets in one year must be approved by our General Ordinary Shareholders’ Meeting.
Related parties will be approved by our Technical Committee, with the prior consent of our Practices Committee.
Our Trust Agreement provides that any transfer of more than 10% of our CBFIs (Real Estate Trust Certificates), effective in one or several transactions by one person or group of persons acting for such purpose, will require prior consent from our Technical Committee.
CH Asset Management´s team has over 50 years of collective experience in the financial sector, carrying out transactions for a consolidated amount of over US$110 billion in Mexico and Latin America.
CH Asset Management is one of the main sponsors and investors in FHipo with a position that represents approximately 10.0% of FHipo’s capital.
We have the support of prominent investors through our sponsor group.
The main shareholders of CH Asset Management (CH) perform as our management team and have extensive experience in the Mexican financial sector, in addition to participating through the sponsors trust in the acquisition of a percentage of the outstanding securities.
Independent and institutional advisor and manager with aligned incentives and without conflicts of interest.
Corporate governance with best international practices.
Mortgage portfolio with collection through payroll deduction.
Strong management team with extensive experience in the financial and mortgage sectors in Mexico.
Attractive returns driven by solid and stable cash flows with a low-risk profile.
Optimal capital structure with a solid capital base.
Scalable model with great growth potential.