Real Estate Investment Trusts or REITs are investment vehicles that are created with the objective of attracting private capital for real estate investment and financing. This is done through the acquisition, origination and/or co-participation of mortgages.

FHipo is able to promote the development and liquidity of the mortgage sector by incorporating capital through the participation of a large number of both individual and institutional investors.

A REIT is a public vehicle for investment and is quoted on the stock market, which helps FHipo to generate attractive returns for investors. This is driven by solid, stable and low-risk cash flows that come from the interest and amortization of mortgages in the Mortgage REIT balance.

FHipo allows the general public to invest in different residential mortgage portfolios in Mexico, contributing to the financing of the country’s housing sector.

By investing in FHipo through the stock market, FHipo co-participates in mortgage securities with real collateral, generating interest and amortization flows, leading to solid, stable and low-risk cash flows for investors.

One of FHipo’s main goals is to give the general public access to investments in Mexican mortgage portfolios. As FHipo is a mortgage trust that is listed on the Mexican stock market, specifically on BIVA, the only way to invest in it is through a brokerage firm.

Since FHipo’s inception in 2014, it has been managed externally by CH Asset Management; however, due to market best practices and the current trends of investment trusts, FHipo chose to have internal administration with the following objectives:

• Align the interests of investors and those of the administrator.
• Increase overall profitability.
• Increase profitability of CBFIs, through “saving” on the administrator’s commission expenses, impacting net profit.

As part of this process, FHipo acquired CH Asset Management, turning it into the controller and sole owner of its advisor and administrator (CH Asset Management). The internalization process resulted in a new internal administration contract between FHipo and CH Asset Management. This ceased all advisor and administration fees and allowed management to continue practicing without changes.

CH Asset Management, S.A.P.I. is a financial asset management company established in 2014 by a team of professionals with more than 50 years of experience in both the financial and mortgage industries. CH Asset Management is FHipo’s current administrator and advisor, which manages and shapes FHipo’s mortgage investment portfolio through qualitative and quantitative analyses, led by an investment team with significant experience in the financial sector.