The CABEI Central American Portfolio was launched on 27 October 1999 under the auspices of the Central American Bank for Economic Integration (CABEI), who is also a majority stockholder. The Fund is intended to promote the financial development of its constituent members (Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua), and other countries in Latin America that strike up a partnership with CABEI with some leading eventually to formal membership. Coincidentally, the Fund is strategically placed to take advantage of the signing of the Central American Free Trade Agreement (CAFTA) with the United States. When fully implemented, CAFTA will further liberalize market conditions and cement the gains from duty-free access to the U.S. market for most goods that resulted from the 1983 Caribbean Basin Initiative. The CABEI Central American Fund is the only offshore fund of its kind in the region, with a ten year track record.

The Central American Bank for Economic Integration is a multilateral development bank owned by ten governments: its Founding Members include Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua; and its Extra-Regional Members include Argentina, Republic of China, Colombia, Mexico and Spain. CABEI’s foreign currency debt is rated prime quality by the three main credit rating agencies: A- by Standard & Poor’s; A2 by Moody’s Investors Services; and A- by Fitch Ratings.

The CABEI Central American Fund keeps its portfolio’s assets at work in the region, helping sovereign and corporate entities by providing financial support of their debt issues. The bulk of the Fund’s assets are invested in the founding member countries of CABEI itself, with the balance in those countries that have a relationship with CABEI in South America, the Caribbean and in Mexico. The Fund is registered with the government regulators in Costa Rica, El Salvador, Guatemala, Honduras and Panama; and is listed on the Guatemalan stock exchange. This registration and listing process has led to a new opening in these markets, and effectively lays the groundwork for development of a mutual fund industry. The Fund has a prime rating of AAA in the local markets of Costa Rica, Guatemala, Honduras and Panama.

The Fund’s company is domiciled in the Republic of Ireland, and follows the regulatory requirements of the European Union under the auspices of the Irish Financial Services Regulatory Authority. It is registered as an institutional fund for non-US non-Irish investors with an initial application for shares amounting to USD 200,000.  Although the Company is not a UCITS fund (Undertakings for Collective Investment in Transferable Securities), the Directors have resolved to apply the restrictions on investment and borrowing which apply to UCITS funds to the Portfolio. The goal of the Fund is to provide a vehicle by which the institutional investor participates in the economic and financial growth in Central America. The Fund has returned an annual average of 5.2% in its ten year history. The Fund posted a gain of 18.4% in 2009.