Business Model / Strategy

About FHipo > Business Model / Strategy

Business Model

FHipo’s business strategy is to generate value through geographic diversification of its portfolio; invest in underlying assets that support and protect the portfolio; develop strategic alliances through a specialized debt collection structure mainly of payroll deduction, thereby mitigating the risk of default through detailed studies on the loan capacity of borrowers; adhere to solid corporate governance and; maintain a clear investment strategy.

Investment Strategy

FHipo seeks attractive returns for long-term investors through both distribution payments and increases in capital value. The active management of our diversified portfolio while controlling exposure to interest rate risk by hedging derivatives, will drive growth.

Growth Strategy

FHipo seeks long-term growth by increasing its mortgage portfolio in order to maximize distributions to investors. The strategy, in combination with the growth of the housing sector, should result in the appreciation in the value of our securities.

Financing Strategy

FHipo funds the acquisition of its portfolio through issuance of both private and public capital and debt. The leverage taken out depends on the Leverage Guidelines adopted by the Technical Committee. In addition, the initial level of debt is chosen to ensure a solid capital structure, with the goal of increasing investor distributions and financing the acquisition of new assets.