Credicorp Capital offers to buy all client investments in affected funds due to Sartor's misconduct, ensuring client protection.
Quiver AI Summary
Credicorp Ltd. announced that its subsidiary, Credicorp Capital, is offering to purchase the full value of investments in its Credicorp Capital Factoring Dólares FMIV and Credicorp Capital Factoring Soles FMIV funds, which have been affected by regulatory actions against third-party fund manager Sartor in Chile. After the Chilean Financial Market Commission suspended contributions and ordered the liquidation of Sartor-managed funds following misconduct allegations, Credicorp Capital will enter participation transfer agreements through its affiliate, Atlantic Security Holding Corporation, covering investments valued up to US$125.3 million. This initiative aims to alleviate clients' concerns during the liquidation process, with the expectation of partial fund recovery and ongoing updates to clients as the situation evolves. Credicorp operates in several countries, including Peru, Chile, Colombia, Bolivia, and Panama, and has a diverse portfolio across various financial services.
Potential Positives
- Credicorp Capital's proactive decision to purchase 100% of the investment value from affected clients demonstrates a strong commitment to customer service and financial accountability.
- The acquisition of these funds allows Credicorp to take on creditor status with Sartor, positioning the company to potentially recover lost investments through legal actions.
- By ensuring that clients will not experience the uncertainty associated with Sartor's liquidation process, Credicorp reinforces trust and reliability within its client base.
- The rapid response to the situation, including a commitment to complete the purchase within 45 days, showcases Credicorp's operational efficiency and responsiveness to regulatory challenges.
Potential Negatives
- Credicorp's involvement in the regulatory issues surrounding Sartor could damage its reputation as a reliable financial services provider, raising concerns among investors and clients.
- The necessity for Credicorp Capital to purchase the value of investments from clients indicates potential losses tied to the performance and management of third-party funds, which may impact the company’s financial stability.
- The suspension of contributions, redemptions, and payments for the funds managed by Sartor could lead to a loss of client trust and confidence in Credicorp's investment management capabilities.
FAQ
What investment funds is Credicorp Capital purchasing?
Credicorp Capital is purchasing 100% of the investments in the Credicorp Capital Factoring Dólares FMIV and Factoring Soles FMIV funds.
Why were the funds impacted?
The funds were impacted by recent regulatory actions and alleged misconduct involving Sartor Administradora General de Fondos S.A. in Chile.
How much investment value does Credicorp Capital cover?
Credicorp Capital is prepared to cover up to US$125.3 million in investment value through its affiliate Atlantic Security Holding Corporation.
What legal actions is Credicorp Capital pursuing?
Credicorp Capital will seek to recover funds and hold those responsible accountable following its assumption of creditor status with Sartor.
When will clients receive their investment back?
Credicorp Capital has committed to acquiring the value of investment units from clients within 45 days from the announcement.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
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Full Release
Lima, Dec. 30, 2024 (GLOBE NEWSWIRE) -- LIMA, PERU, December 30, 2024 – Credicorp Ltd. (“Credicorp”) (NYSE: BAP | BVL: BAP), the leading financial services holding company in Peru with a presence in Chile, Colombia, Bolivia, and Panama, announced today that its subsidiary Credicorp Capital S.A. Sociedad Administradora de Fondos (“Credicorp Capital”), has notified its clients that it has offered to purchase 100% of the value of investments in the Credicorp Capital Factoring Dólares FMIV and Credicorp Capital Factoring Soles FMIV funds. These funds, which had exposure to assets managed by Sartor Administradora General de Fondos S.A. (“Sartor”) in Chile, a third-party fund manager, were impacted by recent regulatory actions and alleged misconduct at Sartor.
To facilitate the purchase process, Credicorp Capital will execute participation transfer agreements through its affiliate Atlantic Security Holding Corporation (ASHC), covering up to US$125.3 million in investment value. As a result, Credicorp Capital (directly or through its affiliate) would assume creditor status with respect to Sartor, pursuing legal actions to recover funds and holding those responsible accountable. Credicorp expects to partially recover these funds and will be providing updates as they become available.
As publicly disclosed, the Chilean Financial Market Commission (CMF) recently ordered the suspension of contributions, as well as redemptions and payments, of all funds managed by Sartor, which included the Credicorp Capital Factoring Soles FMIV and Credicorp Capital Factoring Dólares FMIV funds. Following a complaint filed by Credicorp Capital, the CMF issued a resolution on December 20, 2024, by which it (i) revoked Sartor’s authorization to operate, and (ii) ordered the liquidation of all funds under Sartor’s management.
In response to this situation, Credicorp Capital has committed to acquiring through ASHC the value of the investment units from its clients within 45 days. This move seeks to ensure that clients will not bear the uncertainty of the liquidation process of Sartor-managed funds, which was mandated by the CMF.
About Credicorp Ltd.
Credicorp Ltd. (NYSE: BAP) is the leading financial services holding company in Peru, with a diversified business portfolio organized into four primary lines of business: Universal Banking, through Banco de Crédito del Perú (BCP) and Banco de Crédito de Bolivia; Microfinance, through Mibanco in Peru and Colombia; Insurance and Pension Funds, through Grupo Pacifico and Prima AFP; and Investment Management and Advisory, through Credicorp Capital and ASB Bank Corp. Credicorp has a presence in Peru, Chile, Colombia, Bolivia, and Panama.
Safe Harbor Statement
This press release contains forward-looking statements. These statements, which include words such as “will”, “would”, “expects” and “seeks”, are based on the current beliefs and expectations of Credicorp's management and are subject to risks and uncertainties. Actual results may differ materially from those projected. Credicorp Ltd. assumes no obligation to update these statements.
For more information, please refer to our filings with the U.S. Securities and Exchange Commission.
IR Contact :
Investor Relations
Credicorp Ltd.
