Mexico City.- At the end of June 2024, the resources under management and the number of clients of investment funds reached the highest levels in their history, according to an analysis by Moody’s.
Last June, total assets reached a value of around 3.8 billion pesos, while in June 2016 it was 2 billion pesos, according to the report.
He said assets under management represented around 12 percent of gross domestic product (GDP) at the end of 2024, compared to 10 percent historically.
The report said these positive figures were due to favourable market conditions and stronger investor flows.
“The positive trend in the growth of assets under management will translate into a strengthening of income for investment fund operators at the end of 2024.
“We hope that investment funds can continue to offer added value to investors through solid returns and that the sector will ultimately continue to position itself as the third largest institutional investor in Mexico,” he explained.
He indicated that during 2022, growth in funds was affected by rising inflation, an increase in interest rates resulting from a restrictive monetary policy and a highly volatile market outlook due to the adverse local economic and geopolitical scenario.
However, he stressed that, starting in 2023, the balances in the investment funds grew to reach 3.9 billion pesos in June 2024, an increase of 39 percent, compared to the 2.8 billion pesos reported at the end of 2022.
The document noted that the entry of new clients into investment funds increased net asset inflows. As of June 2024, the number of reported clients was 7.9 million, 40 percent more than in 2022, which marks a new historical high.
Given this scenario, the organization expects that by the end of 2024 there will be solid profitability for investment fund operators and distributors, supported by record levels of assets under management.
While fee income will remain stable due to the solid levels of returns generated by debt funds and the expectation of a gradual decrease in the level of interest rates, which offers value to clients and reduces the pressure on fund managers to compete by cutting their fees, he concluded.
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