Principal Strengthens Its Latin American Arm to Boost Its Focus on Institutional Clients

  |   By  |  0 Comentarios

Franklin Templeton offshore market
Photo courtesyFrom left to right: Jorge Díaz, Rodrigo Pace, and Jesús Martin del Burgo

Times of change are being experienced in the Latin American operations of Principal Financial Group. In line with its global guidelines, the financial group is carrying out a regional plan to strengthen its institutional business, including reinforcing its team across the continent with high-level professionals in key positions.

The most recent moves have been the recruitment of two heavyweights for sales in two hubs in South America. Jorge Díaz took on the role of Institutional Sales Director for the Andean region, bringing a decade of experience at Vinci Compass, while Rodrigo Pace assumed the same role for Brazil after spending four years in institutional sales at Franklin Templeton.

These hires add to that of a new Managing Director and Head of Institutional Coverage for Latin America, Jesús Martin del Burgo, who joined the company at the beginning of the year following roles at Santander and DWS Group.

“These appointments respond to a strategic decision focused on strengthening the institutional business as one of the main growth drivers of Principal Asset Management in Latin America, leveraging talent with relevant global experience and deep knowledge of local markets,” explains Fernando Torres, Executive Managing Director of Asset Management for the region, to Funds Society.

Within this framework, the company is moving toward building a regional structure with an integrated approach by business segments, rather than one organized by countries.

Torres took over regional leadership of the asset management business in October last year, when Principal established a model with two leadership roles. Horacio Morandé was placed in charge of Wealth and Corporate Solutions and, later, Del Burgo joined, relocating to Mexico and assuming a role created at that time: regional head of the institutional business.

It is under the leadership of this executive, Torres explains, that a network of leaders in key Latin American markets was structured. Ana Lorrabaquio remained in her position as Head of the institutional business in Mexico, Pace took charge in Brazil, and Díaz in the Andean region. “This structure reflects our focus on attracting and consolidating top-tier talent as part of our growth strategy, combining regional strategic direction with local execution in each market,” Torres emphasizes.

Focusing on Institutional Clients

These organizational changes they have been driving are aimed at supporting their commitment to the institutional segment, which the executive describes as “one of the main growth drivers for Principal Asset Management in Latin America.”

The appeal, Torres explains, lies in the segment’s large scale and the deep, long-term relationships between the asset manager and investors. “It is a segment that demands sophisticated investment solutions, tailored mandates, and access to a wide range of assets, including private markets,” he explains.

In addition, the firm sees a structural trend in the region: pension funds, insurers, and other institutional players are increasing their exposure to more diversified, long-term-oriented strategies. “This is raising the level of market sophistication and opens up a significant opportunity for managers with global capabilities and local execution,” says the Executive Managing Director of Asset Management.

Overall, the financial group’s objective is to consolidate a stronger offering in the Latin American market, increasing assets under management and strengthening its positioning in key segments, where the institutional business is “a priority.”

“We are focusing our efforts on strengthening this segment, both in capabilities and talent, with the goal of establishing ourselves as a long-term strategic partner for our institutional clients in the region.”

Platform Design

This is what has inspired the international financial group to pursue a design that leverages its global capabilities—with an investment platform across fixed income, equities, and alternatives—alongside its regional structure and local presence. The goal, according to Torres, is to evolve into a more integrated asset management platform with greater growth capacity. The focus, he explains, is on “strengthening key capabilities in distribution, product, and private assets, and continuing to bring in specialized talent that allows us to scale the business more deeply.”

For this reason, the firm’s recent high-level hires are aimed at strengthening expertise in the institutional segment, with seasoned professionals.

Looking ahead, the team could continue to grow, according to the regional Head of Asset Management. “We will continue to strengthen the team selectively, based on the strategic priorities of the business and the capabilities needed to sustain its growth,” he notes.

Key areas to consolidate include institutional distribution, product development, and private assets, among others.

“Rather than growing in volume, we seek to build a team with the right profile for this new stage, aligned with a long-term vision and the evolution of the business in the region,” Torres concludes.

Franklin Templeton Strengthens Its Capabilities for the Offshore Market

  |   By  |  0 Comentarios

criterios de mejor ejecución MiFID II
Photo courtesyJoseph Arrieta, Senior Sales Executive, and Angelita Fuentes, Internal Wholesaler at Franklin Templeton

Franklin Templeton has announced the appointment of Joseph Arrieta as Senior Sales Executive (External Wholesaler) for the Northeastern territory, and Angelita Fuentes as Internal Wholesaler in Miami, with immediate effect. Both will report to Marcus Vinicius, Head of US Offshore, as part of the firm’s strategic reinforcement in this segment.

These additions underscore the firm’s commitment to expanding its presence in the U.S. offshore business, one of its main drivers of global growth. This segment has become a key strategic pillar, serving an increasingly diverse and sophisticated international client base through a cross-border model that connects investors with global opportunities.

In his new role, Arrieta, based in New York, will be responsible for leading offshore coverage of the Northeastern United States territory, including key financial centers such as New York, Boston, Chicago, and Toronto. He will work closely with Jack Leung, Internal Wholesaler, based in Florida. The professional has more than eight years of experience in wholesaling, with a track record across domestic, intermediary, and offshore channels.

For her part, Fuentes joins as Internal Wholesaler in Miami, where she will collaborate with Dolores Ayarra, Senior Sales Executive, and Rafael Galíndez, VP, Sales Executive. From this position, she will support the coverage of banks, wire houses, and independent advisors in key markets such as Florida, Texas, San Diego, and Arizona.

“The U.S. offshore market is a strategic priority for Franklin Templeton and a key driver of our future growth. As clients seek to consolidate relationships with a smaller number of partners capable of offering comprehensive solutions across all asset classes, we continue to invest in talent and capabilities,” said Marcus Vinicius.

Prior to joining, Arrieta developed much of his career in the offshore segment, including his time at Voya Investment Management following the alliance with Allianz Global Investors, where he covered private banks and independent channels in the U.S. and Puerto Rico. Previously, he worked at Allianz Global Investors, expanding his coverage from the United States to Latin America, and at firms such as Oaktree Capital and Hudson Edge Investment Partners.

Fuentes brings more than 20 years of experience in wealth management, banking, and international markets. She joins from Voya Investment Management, where she focused on the offshore business. Previously, she held roles as VP and financial advisor at Investment Placement Group and built a long career at Truist Bank, where she worked with high-net-worth Latin American clients. She also has international experience in the real estate sector in Belize.

For Javier Villegas, Head of Iberia and Latin America at Franklin Templeton, “the addition of Joseph and Angelita significantly strengthens our team. Their experience and deep understanding of the offshore environment will be key to strengthening client relationships and continuing to drive growth in the region.”

With these appointments, Franklin Templeton continues to advance its global strategy of strengthening its Global Client Group, aligning resources and capabilities to provide a more integrated, efficient, and client-focused service across public and private markets.

Three Forces, One Destination: The Complexity of Today’s Fixed Income

  |   By  |  0 Comentarios

Pilar Gómez-Bravo, co-CIO de Renta Fija de MFS Investment Management
Photo courtesy

Global fixed income is going through an extraordinary period due to the simultaneity of reinforcing factors: an energy shock that has yet to stabilize, stickier-than-expected inflation, and private credit that has grown faster than the system can absorb. That is the diagnosis presented by Pilar Gómez-Bravo, Co-CIO of Fixed Income at MFS Investment Management, at a meeting with investors in Miami.

The executive shared a document titled “The Three Body Problem: A Pragmatic Approach to Investing in 2026,” which describes an environment of persistent volatility and rising risks. “Central banks, which were expected to diverge, are no longer going to do so. Basically, they are not going to do anything. And hopefully they won’t, because if they do, they could break the balance,” she explained.

The market environment, then, is marked by a common denominator: three forces colliding at the same time, generating a pattern of instability that is difficult to anticipate.

Energy: the shock that moves faster than monetary policy

The energy component is the most immediate and the most political. Gómez-Bravo reviewed the historical record: shocks of 139% during the invasion of Kuwait, 58% after the war in Ukraine, 28% in Syria, and a recent 79% linked to the escalation with Iran. While these episodes “tend to be short-lived,” their effects on inflation are immediate.

The sensitivity of the global market, she explained, is concentrated in a few geographies: Asia receives nearly 90% of the crude that flows through the Strait of Hormuz, and Europe remains highly dependent on gas. A prolonged shutdown would have uneven but profound consequences. “Trump may control the narrative, but Iran controls the physical supply of oil. If there is no physical supply, every day counts and it is difficult to control prices,” she emphasized.

The risk, she said, is that a supply shock derived from the conflict ends up turning into a growth shock. “If this lasts beyond four weeks, markets will begin to price in growth problems, not just inflation,” she warned.

Inflation: a much less linear slowdown

The second vertex is inflation persistence. Although some data show improvement, the pace of adjustment remains slow. In the United States, the short end of the curve is the only segment anticipating a stronger impact from the conflict, while the long end remains anchored.

The MFS expert’s presentation highlights that fiscal policy continues to be expansionary, with high deficits across all major developed economies. This is compounded by an unprecedented wave of corporate capex, driven by the artificial intelligence ecosystem and major digital infrastructure providers.

This massive investment push also has financial implications. Gómez-Bravo put it bluntly: “The problem arises the day they fail to meet earnings expectations and have to refinance all that debt.” She added a reflection that summarizes her view: “Why should I finance AI companies? Let shareholders do it—they are the ones who receive the upside.”

Today, she explained, the market is still absorbing record issuance without difficulty: hyperscalers could reach $400 billion in new debt this year, approximately half of net investment-grade supply. But the challenge lies not in the present, but in sustainability: “Today there is no problem—there is capacity to absorb all AI supply—but in two or three years there could be a financing problem.”

Private credit: rapid growth and early signs of stress

The third body in collision is private credit, whose growth has been so rapid that it is beginning to generate its own side effects. Global banks have increasing exposure to non-depository financial institutions, and several markets are showing patterns previously seen ahead of periods of stress.

Gómez-Bravo was clear in quantifying the risk: “If the default rate in private credit rises from 4% to 8%, and you only recover 50%, all illiquidity premiums disappear.” This potential deterioration coexists with other concerning factors:

  • Easing of underwriting standards.
  • Growth in PIK toggle structures, which capitalize interest instead of paying it.
  • Increasing risk among private brokers financing hedge funds with leverage.
  • 5% redemption limits in retail funds, which can amplify mass outflows.

Three lenses to analyze the cycle

The MFS presentation emphasized that current analysis must rely on three simultaneous pillars—fundamentals, valuations, and technicals—because none on its own provides a complete picture.

  • Fundamentals: it is not just about inflation—it is fiscal policy, energy, and a credit constraint that “is already tightening financial conditions.” As Gómez-Bravo summarized: “It is the market that is doing the Fed’s job.”
  • Valuations: spreads remain extremely tight relative to history, even after recent widening. For the firm, discipline is therefore key: defining clear thresholds. In Gómez-Bravo’s words: “Remember those thresholds to think about when to start adding risk… and thus maintain discipline.”
  • Technicals: positioning is cautious, albeit heterogeneous. Dispersion remains contained, making security selection more relevant.

Where to look? The pragmatic approach of MFS

MFS’s strategy for the coming months combines flexibility with prudence:

  • Neutral to slightly long duration in some markets.
  • Tactical exposure in Brazil, Uruguay, Peru, Korea, and South Africa.
  • Hedging of Latin American currencies “because they are the first to suffer.”
  • Underweight in technology, except for specific names.
  • Ongoing evaluation of opportunities in BDCs and industrial sectors with strong fundamentals.

“The advantage and disadvantage of fixed income is that it is mathematics: in the long term, if there are no defaults, yield is what you get,” the asset manager stated during her remarks. And a warning for investors seeking simplification: “This is a market for active managers, not for passive strategies that depend on stable trends.”

The three-body problem

The metaphor that gives the report its name is no coincidence. The system described by Gómez-Bravo—energy, inflation, private credit—functions like a three-body system: each movement affects the others, and the equilibrium is inherently unstable. The MFS manager summarizes it this way: “We are not facing independent shocks, but rather a dynamic system where moving one piece disrupts the rest.”

Nothing happening today appears definitive. Inflation is not yet defeated, private credit has not fully revealed its true risk profile, and the energy shock has not reached its floor. The underlying message—implicit throughout the Miami event—is to combine rigorous analysis with the ability to react: to understand that apparent stability is just that—apparent. And that as long as these three bodies continue to move, the investor’s task will be to navigate their dynamics without losing sight of the whole.

Thornburg Appoints Albert Maruri as Offshore Sales Director in the U.S.

  |   By  |  0 Comentarios

Photo courtesyAlbert Maruri, Offshore Sales Director in the U.S. at Thornburg

Thornburg Investment Management (Thornburg) has announced the expansion of its international distribution team after the assets of its UCITS platform doubled over the past 12 months, increasing from $316 million to more than $645 million as of March 31, 2026.

According to the firm, this growth reflects rising global demand for active management strategies offered through the UCITS structure, which remains a preferred vehicle for international investors seeking “differentiated, high-quality investment solutions.”

To support this momentum, Thornburg has appointed Albert Maruri as Offshore Sales Director in the U.S., further strengthening the firm’s distribution capabilities in international wealth markets. Based in Miami, Maruri will work closely with financial advisors and intermediaries serving non-U.S. investors, expanding access to Thornburg’s investment strategies in key offshore markets.

In addition, for the United Kingdom, Europe, and certain international markets, the asset manager has appointed Andrew Paterson as Director of Business Development for the UK/EMEA. Based in the firm’s London office, he reports to Jon Dawson, head of the UK office, and will focus on deepening relationships with institutional clients and intermediaries in the region.

Following these two appointments, Jonathan Schuman, Head of International at Thornburg, stated: “Building long-term relationships is fundamental to how we grow internationally. By expanding our local presence in key markets, we are better positioned to work closely with our clients, understand the evolution of their needs, and connect them with Thornburg’s high-conviction investment strategies.”

UCITS platform

According to the firm, these appointments come at a time when Thornburg’s UCITS platform continues to gain traction among investors. The firm’s five UCITS strategies have recorded sustained inflows and strong investment performance, with the Equity Income Builder fund being one of the main drivers of recent growth, reflecting strong demand for global income-oriented solutions.

For the firm, this momentum follows a series of enhancements to Thornburg’s UCITS range, including the launch of new share classes, fee reductions, and the reclassification of certain strategies under Article 8 of the EU Sustainable Finance Disclosure Regulation (SFDR). Taken together, these initiatives have improved accessibility for European investors while reinforcing Thornburg’s commitment to active management, an investment philosophy independent of benchmarks and focused on long-term results.

“The UCITS platform represents a key pillar in Thornburg’s long-term international growth strategy, as the firm continues to expand its global presence and serve clients across an increasingly diverse set of markets,” they noted.

Central America: The “Early-Stage” That Attracts Capital and Redefines the Fund Landscape in Latin America

  |   By  |  0 Comentarios

Photo courtesy

Central America has ceased to be a blind spot on the radar of the fund industry. Amid its fragmentation and small scale, the region is beginning to emerge as an “early-stage” market with an uncommon combination: a low starting point and high expansion potential.

With assets under management barely ranging between $7 billion and $10 billion, the Central American bloc appears marginal compared to Mexico—which exceeds $290 billion—and practically invisible next to the United States.

But that gap, far from being an absolute disadvantage, is precisely what is starting to attract the attention of managers, regional banks, and international capital.

The diagnosis in the region has long been known: shallow markets, low investor penetration, and an industry dominated by traditional banking. However, the current moment introduces a different variable: the convergence of multiple growth drivers at an early stage of the cycle.

The fund industry in Central America does not compete today on size, but on optionality. Digitalization opens the door to millions of potential investors who still do not participate in funds, while real assets—from real estate developments to energy infrastructure—offer tangible vehicles in economies with low financial sophistication. Meanwhile, multilateral and impact capital is specifically seeking geographies with structural needs and attractive risk-adjusted returns.

However, the current circumstances in the region should not be overlooked—we are dealing with a very small market in reality. Although there is no single consolidated regional statistic, using country data and estimates, it is known that Costa Rica is the most developed nation in the region with $4.5 billion in assets; El Salvador is another of the countries that has grown the most in recent years and reports assets of $1.59 billion; Panama, Guatemala, and others manage several hundred million dollars each (historical industry estimates). With this, the regional market (traditional funds) can be placed at approximately $7 billion to $10 billion in assets under management (AUM).

Structurally, the fund market in the region and the financial industry in general point to a small, banked but shallow market. They also show a strong dependence on local banking, multilaterals, and international investors, as well as low participation from retail investors.

If the investment fund market in Central America is compared with that of Mexico, the difference is enormous; the latter reports approximately $290 billion in AUM, meaning the Central American fund industry is at least 41 times smaller. A huge gap, but also a great opportunity for a region that, with some exceptions, has made significant progress in governance and political stability compared to past decades.

The weaknesses of the fund industry in Central America are at the same time its areas of opportunity: “early-stage” phase, low financial penetration, and limited product offering. Central America represents less than 0.05% of the North American market—the opportunity for growth is unmatched.

Costa Rica, the example

While it is true that the size of its market is very small in regional and global terms, Costa Rica’s fund industry is an example that when things are done well, the effects become visible over time—capital rewards trust and the conditions created for investment.

A decade ago, Costa Rica, along with the region, was practically nonexistent in the investment fund industry. Today, managers operating in the country oversee around $4.5 billion in assets, according to the Costa Rican Investment Funds Chamber. The country now has the most structured fund industry in the region, with multiple managers, consolidated regulation, the presence of real estate funds, and a broader investor base.

Two other countries that have made progress and are gradually increasing their attractiveness to managers are Panama and El Salvador.

In the case of Panama, it has traditionally been a strong financial hub, so it is notable that it did not have a developed fund industry. Perhaps its orientation toward offshore private banking limited it, but movement is now underway, with the first step being the modernization of the regulatory framework in recent years. El Salvador has also stepped forward; in recent years it has modified its laws and, despite being an extremely small market, is already showing growth in its still incipient fund industry of between 18% and as much as 20% annually, when not long ago the figure was practically 0%.

It is a fact: we still cannot say that the region has the next Central American “Brazil” or “Mexico”; the investment fund sector is still incipient, it is a fragmented market dependent on each country and without real regional integration.

However, despite its limited size, the Central American market presents long-term opportunities linked to financial inclusion and the development of capital markets.

Today, the presence and penetration of retail funds is already a reality, as is the development of real estate and private debt products. The development of the fund industry will depend on financial deepening, regulatory strengthening, and regional integration.

Although the starting point is limited, assuming that the size of the economies condemns the fund market in Central America would be short-sighted. Precisely because of its “early-stage” condition, the region concentrates several clear structural opportunities that, if well executed, could trigger significant growth in the coming decade, according to analysts in this part of the Americas.

In fact, today Central America has the same driver that triggered growth in Mexico over the last decade.

For example, there is already traction in countries such as Costa Rica and other economies with urban growth, tourism, and incipient nearshoring. There is a niche for real estate, infrastructure, and energy funds; as a rule, tangible assets generate trust in markets with low financial literacy.

If this interest can be consolidated, local estimates indicate that the fund market in the region could grow from $10 billion today to between $20 billion and $30 billion in assets under management in the medium term—still far from other regions and nearby countries, but doubling assets in a few years would lay the foundation for a subsequent boom, according to recent experiences in markets such as Mexico.

There is no need to write a “secret recipe”—everything is already known. The challenge for managers in the region is simple: convert deposits into investment—liquidity funds, fixed income funds, and managed portfolios. It is undoubtedly the fastest path to growth; just look at Chile and Mexico, where this model has been highly successful.

In conclusion, Central America does not compete today on scale, but on future optionality; its clearest opportunities lie in digital retail (disruption), real assets (trust), regional integration (scale), and international capital (financing). If these four pillars converge, the market can transition from a “fragmented early-stage” to a functional emerging ecosystem.

Central America may not be the next Mexico in the immediate term nor compete with North America in the short run. But that is not the story. The story is different: a small market that, precisely because it is small, holds one of the greatest transformation potentials in the fund industry in the region.

Mark Mobius: Conviction in Emerging Markets Dressed in a Light-Colored Suit

  |   By  |  0 Comentarios

Photo courtesy

With a brief message on his social media profile, the circle of Mark Mobius announced his passing at the age of 89. The renowned emerging markets investor always stood out for grounding the conviction of his investment ideas in miles traveled and hours of meetings, as well as for his elegant and impeccable light-colored suit.

Throughout his career, we had the opportunity to listen to him and interview him on various occasions, enjoying anecdotes from his travels, discovering new companies in emerging markets, and catching his enthusiasm. Our first encounter with him was at the end of the 1990s. Markets were dominated by the formation of the dot-com bubble, globalization, market turbulence, and the birth of the euro. However, his message was compelling, and his defense of emerging markets showed no cracks.

According to Alicia Jiménez, managing partner, director, and co-founder of Funds Society, and with more than 30 years of experience in the sector, Mobius was above all a brilliant mind. “Over the following two decades, I had the pleasure of listening to him in countless presentations, both in Europe and in the United States, but it was during Javier Villegas’s tenure as director of the Miami office of Franklin Templeton when, at some point between 2015 and 2017, I had the pleasure of speaking with him for an hour about his career. On that occasion, Mobius was already nearing eighty, possibly already there, and his extraordinary memory stood out: he spoke about those exotic markets as if he had lived in them for years, knew their economies, companies, and politics inside out, and explained everything with astonishing naturalness,” she recalls.

In these meetings, he made it clear that his favorites were frontier markets and insisted on the importance of private markets for the coming decade. “Now, in retrospect, I understand much better the scope of his vision. I remember leaving that terrace in Miami Beach where we shared a soft drink under the shade of palm trees, thinking that I had just been with a prodigy of nature. Rest in peace,” she adds.

Emerging markets with conviction

Repeatedly, our senior team and, consequently, our readers had the opportunity to learn about his view on emerging markets. In this regard, Mobius always argued that they were undervalued and key to future growth, especially by focusing on sectors such as consumer, technology, and financial services. As he maintained, emerging markets are where the real growth of the world lies, as they bring together such important trends as favorable demographics, an accelerating urbanization process, significant expansion of the middle class, and a rapid advancement of digitalization and technology. However, he always insisted that the greatest market risks were not economic—since he saw clear potential in these countries after years of reforms—but rather those linked to unexpected regulatory changes, corruption, and the lack of protection for minority shareholders.

In our last interview with him, published in November 2023, Mobius reminded us that the key to his success lay in holding meetings, meetings, and more meetings with the management teams of the companies he considered interesting, as well as getting to know their facilities and work philosophy. As the so-called “Indiana Jones of emerging markets investing” told us, walking the streets and sharing in everyday life is the best way to discover investment opportunities in these markets. An approach he always combined with financial scrutiny and the study of the fundamentals of each of the companies in which he invested or that caught his attention.

One of the main messages he conveyed in his interviews was that emerging markets had undergone significant evolution that seemed to go unnoticed by investors. “In the 2000s, everything revolved around commodities and telecommunications, with companies featuring very simple business models taking the lead. At that time, technology represented less than 5% of the emerging markets universe, and now technology-oriented companies account for more than 30%. There is much more innovation and unique brands coming from emerging markets, so companies need to be analyzed differently,” he stated passionately.

His legacy: AUM and philosophy

Mobius began to become an industry reference starting in 1987, when he held the position of Executive Chairman of Templeton Emerging Markets Group. From then on, his career was a true phenomenon, culminating in 2024 when he founded his own firm: Mobius Investments.

“Mobius was widely regarded as one of the first emerging markets investors, known for traveling extensively and developing first-hand knowledge in markets often overlooked by global investors. John Ninia, partner at Mobius Investments, and Eric Nguyen, partner at Mobius Investments, will assume leadership responsibilities. The firm will continue operating without changes to its investment approach or daily operations,” they stated at Mobius Investments when announcing his passing.

It is difficult to estimate the amount of assets Mobius managed throughout his career. It is known that he oversaw funds exceeding $50 billion in assets under management. For example, during his key period at Franklin Templeton, the emerging markets group he led grew from approximately $100 million to more than $40 billion. Some sources even suggest that he managed over $50 billion in emerging market portfolios.

Although he leaves emerging market investors without one of their leading figures, his legacy includes key messages such as: “You have to go where the growth is” and “Patience is key in emerging markets.” But above all, he leaves fund managers with his main life lesson: “Walk the path, go there, and meet with company executives before investing.”

Virtus Strengthens Its Offshore Team With a New Sales Director

  |   By  |  0 Comentarios

LinkedIn

With the aim of strengthening its roster for the offshore business, the boutique Virtus Investment Partners recruited a new executive. This is Andrés Uriarte, who took on the role of Offshore Sales Director, as the asset management firm announced via LinkedIn.

The professional, they detailed, joins to support coverage of the Southeast region, bringing more than 15 years of experience in offshore investment channels. “We are excited to have him on our team as we continue to grow our offshore business,” the company announced.

Before joining Virtus, Uriarte built an extensive career in the sector. His most recent stop was at M&G Investments, where he worked as Senior Sales Manager for the US Offshore and Latin American markets, between January 2022 and this month. Prior to that, he held a similar role as US Offshore Sales Director at Schroders.

His career also includes roles at a variety of well-known banks. He held the positions of Vice President Investment Counselor at Citi; Associate at INVEX Banco; Personal Banker at Bank of America; and Branch Manager at IBC Bank.

Virtus operates with a multi-manager and multi-strategy model, providing investment solutions to individual and institutional investors. Its multi-boutique structure closed 2025 with $159.1 billion in AUM, across equity, fixed income, multi-asset, and alternative strategies.

From Luxembourg: The Strategic Role of Continuation Funds in European Real Estate – Bridging the Valuation Gap

  |   By  |  0 Comentarios

fondos de continuación inmobiliarios
Canva

The Continuation Fund Mechanism

In a typical continuation transaction, the general partner (GP) proposes transferring one or more assets from a selling fund into a continuation vehicle, allowing existing limited partners (LPs) to choose whether to cash out, roll, or blend both options. This dual role—acting as both seller and buyer—inevitably introduces conflicts, which must be proactively managed through robust processes, clear documentation, and independent oversight.

From our perspective, we observe that seamless fund administration, depositary oversight, transfer agency, corporate secretarial, valuation governance, and transparent reporting form the backbone of any successful GP-led continuation transaction. Proper investor services provide the neutral structure that certifies net asset value (NAV) quality, evidences valuation independence, operates election mechanics, and maintains transparent, standards- aligned reporting. In our experience, these aspects convert perceived conflicts into demonstrable fairness, especially when valuations are already under scrutiny.

Governance Architecture and Conflict Management

Governance architecture is central to credibility. Early Limited Partner Advisory Committee (LPAC) engagement and clear conflict-management protocols are essential. The Institutional Limited Partners Association (ILPA) recommends addressing conflicts, managing recusals, and reviewing disclosure packages and process fairness. Practically, this means early briefings, disclosure of alternatives considered, and a documented rationale focused on maximizing value for all LPs, not solely for those electing liquidity.

Independent fairness or valuation opinions now form a best-practice standard. Even though the U.S. SEC's 2023 private-fund adviser reforms were vacated in June 2024, the regulatory signal is clear: adviser-led secondaries require independent price checks and transparent relationships with opinion providers. Many sponsors circulate such opinions with the election pack, alongside relationship disclosures—a good-governance habit that investors should deem as standard practice.

Valuation Governance Frameworks

Valuation governance becomes especially critical when dealing with assets subject to uneven price discovery—such as office buildings or niche retail properties. The updated INREV Property Valuation module (effective January 2024) provides a comprehensive framework for roles, responsibilities, and transparency that complements the INREV NAV and Reporting modules. Aligning policies to these standards ensures consistency in presenting economic NAV and reconciling it from IFRS, while also incorporating sustainability factors that can materially influence value.

At the asset level, valuations should comply with RICS Valuation – Global Standards (Red Book) and IVS 2025, emphasizing data quality, documentation, model governance, and ESG.

Operational Design and Execution

Operational design must reflect this complexity. Dedicated project tracking for rolled interests, new secondary capital, and any stapled commitments is essential. Equalisation rules must mirror the fund constitutional and governance documents, capturing fee holidays or preferred-return resets and preventing performance cross-contamination between legacy and continuation cohorts.

Investors should be mindful of model carry resets, accrual releases, and fee waivers for rolling investors, with full alignment to ILPA guidance on transaction-cost allocation between selling fund, continuation vehicle, and exiting investors.

Execution Playbook

A disciplined execution playbook transforms complex continuation processes into predictable operations. Early in the project, both the GP and fund administrator analyse the strategic options and define valuation scope, appraisal terms and candidate opinion providers.

During the go/no-go phase, investor services teams coordinate preparation of investor packages, including historical performance data, proposed price-setting methodology, conflict disclosures, fee and waterfall redlines, structural diagrams, and updated INREV reporting bridges.

Following LPAC review and LP’s consultation, at closing, asset transfers are executed, consideration settled, accounting journals posted, Annex IV reports updated, and the first continuation-vehicle reporting pack issued. Lessons learned are recorded in the governance log, converting a one-off transaction into a repeatable capability.

Common Pitfalls and Risk Mitigation

Common pitfalls—inconsistent valuation perimeters, unclear treatment of fees and expenses, weak election controls, and oversight delays—can undermine pricing integrity. Reconciling asset scopes early, coding fee allocations into the administration engine, enforcing two-person verification, and mapping depositary responsibilities mitigate these risks. In a valuation gap environment, process reliability is synonymous with value protection.

Ultimately, a well-run continuation fund enables every investor—whether rolling or exiting—to trace how pricing was determined, how conflicts were identified, addressed and managed, and how economic NAV reconciles across accounting and industry frameworks. ILPA-aligned transparency, RICS/IVS-compliant valuations, and INREV-consistent reporting, delivered through disciplined operations, build investor confidence that fairness has prevailed, even amid valuation uncertainty. 

Invesco Focuses on Family Offices to Grow in America

  |   By  |  0 Comentarios

super peso and the World Cup
Photo courtesyÍñigo Escudero, Head of Southern Europe & Latin America at Invesco

Invesco is driving its business in the Americas through two levers: a new structure and a strategic agreement with LarrainVial. Currently, the firm oversees $35 billion across the US Offshore and LatAm markets, with Íñigo Escudero, Head of Southern Europe & Latin America at Invesco, as its key figure in the region.

Initially, the firm managed the US Offshore and LatAm markets separately, but after expanding his responsibilities and being appointed head of the Southern Europe business as well, Escudero made a significant decision: to merge both regions. “It was a decision that made sense because the link between both markets is enormous. In US Offshore we have been operating for more than fifteen years and benefit from the great work that Rhett Baughan, Head of US Offshore Distribution at Invesco, has been doing. There, we have grown considerably over the past five years and have around $6 billion in US Liquidity, which possibly makes us the largest international asset manager in liquidity. For LatAm, we have Begoña Gómez, who until now was responsible for LatAm for Active, and will now also take on the US Offshore segment; as a result, Baughan will report directly to her. Finally, for the ETF segment, Laure Peyranne, Head of ETFs for Iberia, Latin America, and US Offshore, will continue to lead the business,” explains Escudero.

To understand this structural change at Invesco, it is necessary to consider its second growth lever: the expansion of its strategic agreement with LarrainVial. For more than 18 years, Invesco has collaborated with the Chilean asset manager on distribution throughout Latin America. Until last year, the agreement with LarrainVial included $9.2 billion in UCITS mutual funds and $15.6 billion in Invesco ETFs, but with the expansion of their alliance into the US Offshore channel for Invesco’s UCITS products, the growth potential is much greater.

“Many firms approached us to work together and grow in the US Offshore market, but we felt it was not yet the right time for us. However, following our growth in recent years and LarrainVial’s evolution, we saw that now was the ideal moment to expand our collaboration for several reasons: their expertise, their team of professionals, and our relationship of nearly twenty years,” Escudero highlights.

A structure for growth

These two decisions have resulted in a clear structure ready to generate growth across both active and passive segments. As Escudero clarifies, “Rhett will primarily be responsible for relationships with platforms in the US Offshore market; that is, he will focus on where fund selection decisions are made and will work to ensure that as many Invesco funds as possible are included on key lists. His work is complemented by that of LarrainVial, whose extensive experience and network will help us ‘unlock’ and deliver products to investors.”

The firm recognizes that the growth potential is greater in the US Offshore market, which—like the Latin American market—is expected to grow at faster rates than the rest of EMEA markets. “When discussing growth, it is important to note that US Offshore and LatAm are somewhat different markets,” Escudero explains: “As we are structured, LatAm is primarily institutional clients—pension funds, central banks, and authorities—while only 10% is represented by private banks and family offices. With our expanded distribution agreement with LarrainVial, we believe this will change and that we will be able to achieve significant growth in the family office and private banking segment. Moreover, many family offices also have a presence in US Offshore; and this is another segment where we want to grow. This growth would also bring significant business diversification, which is another of our objectives.”

The firm sees a significant growth opportunity in this segment, especially considering that the family office industry in Latin America is approaching $100 billion, of which more than 55% is invested in US Offshore products. “We are talking about between $55 billion and $60 billion in business. The nuance is that each country is different and has a distinct configuration, which is why local knowledge is so important. For example, in Mexico, 90% of US Offshore investments are in ETFs, whereas in Chile ETFs represent only 30%, in Colombia 10%, and in Peru 25%,” Escudero notes.

Regarding growth targets, Escudero avoids giving a specific figure but acknowledges that their outlook for LatAm and US Offshore is to grow “at higher rates than other similarly mature markets, such as Spain or Italy.” He adds: “For US Offshore, we aim to at least double assets over a five-year period.”

From advisory to the investor

Given the firm’s broad product range, the mantra for this growth, according to Escudero, will be “to continue offering the investment solution that best fits each investor, market, and country.” As he acknowledges, advisors are the key piece in aligning these investment solutions: “Unlike what we see in other European regions, in the Americas the decision about fund selection lies with private bankers, which requires a very strong and close commercial network.”

As for investor demand, he believes that despite trends, the essence has changed little. “We are dealing with clients who have fairly diversified portfolios and who quite like multi-asset funds, such as our Global Income strategy. Sometimes they prefer to build their own mix and combine fixed income and equity funds in their portfolios, or opt for model portfolios (MPS), which have recently become popular,” he notes.

Among the trends he observes in this market, Escudero highlights generational change. According to his experience, “new generations demand new communication channels, but they remain traditional investors who seek returns and security for their capital.”

Super Peso and the World: Short-Term Lull with Future Uncertainties

  |   By  |  0 Comentarios

arguments for emerging market debt
Pixabay CC0 Public DomainPhoto: AmarADestiempo. The Mexican peso gains ground despite Trump

The 2026 FIFA World Cup may influence the dynamics of the peso–dollar exchange rate through various macro-financial and microstructural channels; it is highly likely that for a month the Mexican currency will be immersed in a certain lull, but what happens afterward?

According to analysts, the key point is that the World Cup effect is not a long-term structural driver, but rather a transitory shock with potentially asymmetric effects, depending on the stage of the cycle and market positioning.

The Mexican peso is trading toward 17 units per dollar; so far this year it has recorded an appreciation of 4.05% despite a highly complex geopolitical context. The Mexican currency is once again being referred to as the “super peso,” and it is estimated that World Cup fever will keep it stable or lead to further appreciation.

The Football World Cup tends to generate a significant increase in aspects such as: revenue from international tourism (services account); spending by non-residents in Mexican territory; foreign currency inflows from events, sponsorships, and associated rights.

This implies a greater supply of dollars in the spot market, as well as potential marginal appreciation of the peso during the peak influx phase.

However, the impact is usually limited and short-lived, as part of the spending is channeled through international platforms (resulting in a smaller direct exchange-rate effect); in addition, there are offsetting effects from imports associated with the event.

USMCA in sight and geopolitics: the risks

The Football World Cup will last just over a month; afterward, everything will return to normal. The issue is that in the second half of the year, several factors will need to be considered in determining the trajectory of the most liquid emerging-market currency in global markets: the Mexican peso.

Funds Society spoke with Gabriela Soni, Head of Investment Strategies for Mexico at UBS, about the situation of the peso, especially for the second half of the year.

For the specialist, the renegotiation of USMCA as well as geopolitical risks are currently the factors most likely to determine the future trajectory of the currency.

“We see two main risks: a tightening of global financial conditions and uncertainty surrounding USMCA. In episodes of heightened risk aversion—in a context of elevated geopolitical tensions—exchange rate volatility, capital outflows, and pressure on the peso can arise. Even so, Mexico is better positioned than in previous episodes thanks to stronger domestic fundamentals. Regarding the USMCA review, although we expect the agreement to evolve rather than break down, the negotiation process could trigger episodes of volatility,” said the specialist.

According to Gabriela Soni, the peso strengthened in recent years thanks to a combination of idiosyncratic factors that differentiated it from other emerging markets: a highly favorable interest rate differential that attracted carry flows, the resilience of the U.S. economy that boosted exports and remittances, relatively solid macro fundamentals compared to its peers, and the nearshoring narrative. Together, these elements created an exceptionally favorable environment for the currency.

However, there are also other factors that could put pressure on the currency in the medium term; for example, the reduction of interest rates in Mexico, running counter to the global trend in a context of inflationary pressures.

“The room for Banxico to continue cutting rates exists, but it is increasingly limited and highly dependent on the environment. Banxico’s recent decision to resume the rate-cutting cycle reflects a delicate balance between a weak economy and an still complex inflationary environment,” the expert notes.

“Additionally, the interest rate differential with the U.S. has already narrowed significantly, which limits the support that carry had provided to the peso. In this context, although we anticipate that an additional cut could materialize, it will require clear evidence that inflationary pressures—including those derived from the oil shock—are transitory. Otherwise, the room for maneuver could quickly be exhausted, with implications for the exchange rate,” she says.

Regarding the imminent review (or renegotiation) of USMCA, Gabriela Soni explains: “In our view, trade disputes within the USMCA framework constitute the most likely risk today; although so far the peso has shown limited sensitivity to this uncertainty, supported by the strength of trade flows and the legal framework of the agreement itself, which guarantees its validity for ten additional years even in the absence of an extension agreement. In an extreme scenario—such as a threat of withdrawal by the U.S.—we would anticipate a short-term depreciation of the peso. However, we believe this movement would likely be transitory, as it could be interpreted as a negotiating tactic.”

For the UBS specialist, the peso will remain a resilient currency despite the periods of pressure that are anticipated.

“Our projections point to a gradual appreciation of the peso going forward, with levels of 17.7 by the end of the second quarter of 2026, 17.5 for the third, and 17.2 for both year-end and the first quarter of 2027. However, we anticipate a non-linear path, with episodes of volatility linked to both external and local factors, particularly around USMCA and monetary policy decisions in Mexico and the U.S.”

This year may not be another period of “super peso,” the UBS analyst believes: “The environment has changed: the interest rate differential between Mexico and the U.S. is smaller, the geopolitical context is more complex, and USMCA negotiations introduce a new source of uncertainty. Rather than a ‘super peso,’ 2026 is shaping up to be a period of relative stability with episodes of adjustment, where the currency could regain ground as global conditions stabilize,” she concludes.