The SEC announced that Liquidnet Inc. agreed to pay a $5 million civil penalty to settle charges of regulatory violations. According to the SEC, these charges included failure to implement necessary controls and procedures for market access, inadequate protection of confidential subscriber trading information and related disclosure failures.
As an ATS operator used to facilitate market access for non-broker dealers, Liquidnet is mandated under the SEC’s market access rule to implement meticulous systems to prevent orders that exceed appropriate credit thresholds. However, the SEC’s statement reveals that Liquidnet systematically violated this rule over several years, establishing an excessive default credit threshold of $1 billion.
The SEC’s investigation was conducted by members of the Market Abuse Unit, including Rachael Clarke, Mandy Sturmfelz and Lindsay S. Moilanen, under the supervision of Chief of the SEC’s Market Abuse Unit, Joseph Snasone.
Furthermore, compliance with the ATS exemption from exchange registration necessitates written protocols limiting employee access to confidential subscriber trading information. The SEC determined that Liquidnet’s controls in this area were inadequate, allowing unauthorized access to sensitive data. Additionally, the firm misrepresented the integrity of its market access controls and confidential safeguards.
“Ensuring robust controls for market access and the protection of sensitive trading information is non-negotiable for preserving investor confidence and market integrity,” said Sansone.
Without admitting or denying the SEC’s findings, Liquidnet consented to a censure and committed to remediation measures, including the engagement of an external consultant to enhance compliance with the market access rule and Regulations ATS. The firm will also provide detailed reports and certifications to validate its corrective actions.
According to the Schroders Global Investment Outlook Survey, which interviewed 420 pension fund leaders from 26 regions worldwide representing $13.4 trillion in assets, pension funds globally are planning to increase their allocations to private markets and global equities. Specifically, the study reveals that over 94% of these funds have already invested or plan to invest in private markets, with 27% intending to do so within the next two years.
An interesting finding is that pension funds are particularly focused on private debt strategies (51%), private equity (49%), infrastructure debt (41%), and renewable infrastructure (38%). Additionally, energy transition and decarbonization, as well as the technological revolution, are key themes driving pension fund demand in private markets. Approximately 93% of funds already invest or plan to invest in energy transition, and over a third expect to make new investments in this area within the next 1-2 years.
Demand for global equities is similarly high, with 55% of funds planning to increase their allocations to gain exposure to high-growth markets and sectors. “This trend highlights a strategic shift toward global active management,” the report notes.
Nearly three-quarters (70%) of global pension funds agree that active managers are better suited to provide specialized investment approaches focused on specific sectors, regions, or investment styles. This aligns with the belief that active managers possess the expertise needed to outperform passive products in the current environment, as noted by 59% of respondents.
Alternative fixed-income strategies are also popular, though preferences vary by region: in Asia-Pacific, asset-backed securities (36%) draw significant attention; in EMEA (excluding the UK), pension funds favor sustainable bonds (27%); in the UK and North America, opportunities lie in emerging market debt strategies (27%).
“This study highlights a fundamental shift in pension fund investment strategies, driven by the desire to access high-growth markets and sectors, alongside the need to enhance simplicity and adaptability. In an economic landscape marked by persistent inflation and volatility, we’re witnessing a strategic pivot toward active management, where pension funds recognize the potential of skilled managers to add alpha through allocation flexibility,” said Leonardo Fernández, Managing Director for Iberia at Schroders.
He emphasized that pension funds are increasing their global equity allocations because it allows them to capture growth across diverse regions and sectors while providing the flexibility to dynamically adjust allocations in response to changing market conditions. For pension funds, fixed income remains a core pillar.
Fernández also highlighted the report’s regional findings, which underscore local economic and regulatory differences and varying levels of investor maturity. “Understanding these nuances enables us to better align portfolios with both global opportunities and regional specifics, effectively addressing our clients’ changing needs.”
“Private markets are key for pension funds as they offer crucial means to diversify and enhance portfolio resilience. Sectors like private equity and renewable infrastructure are particularly well-positioned for growth, driven by key trends such as the energy transition and technological innovation. As the interest rate environment evolves, the need for skilled managers to identify and manage these assets intensifies,” Fernández explained.
As Donald Trump’s inauguration as U.S. president approaches, tensions are rising, fueled by both his actions and the broader uncertainties surrounding his administration. Since December 16, 2024, the S&P 500 has lost more than 3% as of January 2, 2025, while Tesla’s stock has dropped 18% after surging over 80% between the presidential election and December 16. Experts warn that Trump’s return to office will likely bring heightened market volatility.
In the days leading up to his swearing-in, Trump has already escalated tensions with threatening statements. “On Monday, following a media report, he vehemently denied any intention of softening his protectionist policies. Yesterday, he lashed out at Canada, Mexico, and Panama, threatening tariffs and even suggesting these countries should be part of the U.S. He also proposed renaming the Gulf of Mexico as the Gulf of America. As during his first term, we must again brace for potentially destabilizing comments,” said Sebastian Paris Horvitz, Director of Analysis at LBP AM, the majority shareholder of LFDE.
Rising Concerns and Market Volatility
Experts agree that Trump’s rhetoric and policies will inject volatility into markets. According to Portocolom, uncertainties about the new administration’s impact raise questions in areas like climate regulation and social cohesion. “During his previous term, significant rollbacks were observed in climate regulations, such as the withdrawal from the Paris Agreement, and a decline in social cohesion due to polarizing policies. These precedents spark concern about the potential influence in these areas again,” they noted.
Gilles Möec, Chief Economist at AXA IM, warned that markets should prepare for significant fiscal volatility in 2025, characterized by political wrangling and limited clarity. Möec highlighted that the “transformation rate” of Trump’s campaign promises into actual legislation is crucial for global macroeconomic and financial prospects in 2025.
“There is a strong belief among investors that the new U.S. administration will follow an ‘error correction’ approach with the market as the ‘judge.’ If U.S. equity markets react negatively to the implementation of some of Trump’s more business-adverse ideas, such as mass deportations or crippling tariffs, it’s likely policies would be recalibrated. This aligns with a low ‘transformation rate,’” Möec explained.
Monetary Policy
Alexis Bienvenu, fund manager at La Financière de l’Echiquier (LFDE), highlighted mistrust toward Trump’s administration, citing concerns over Elon Musk’s controversial inclusion and a less accommodative monetary policy.
According to Bienvenu, the disenchantment stems not only from Trump’s economic policies but also from the Federal Reserve’s less expansive stance. “The Fed cut its benchmark rate by 25 basis points at its December 18 meeting but accompanied this move with a cautious message regarding further cuts, now projecting only two more by the end of 2025. Far from suggesting a swift normalization toward its long-term target, the Fed sees the rate at about 3.9% by late 2025, partly due to higher inflation forecasts compared to the September meeting. The market’s reaction could only be negative,” he explained.
Bienvenu questioned why inflation projections were revised upward when recent data does not indicate a particularly damaging inflationary outlook for 2025. Contributing factors, such as moderation in housing prices, easing in the labor market, and stable oil prices, should help contain inflation. He speculated that these revisions might partly reflect expectations around Trump’s future economic policies.
Challenges Within Trumpism
Eoin Walsh, portfolio management partner at TwentyFour AM (Vontobel boutique), noted the difficulty of distinguishing rhetoric from policy in Trump’s administration but warned of significant potential impacts from proposed measures like tax cuts, immigration restrictions, deregulation, and tariffs.
Walsh believes that as Trump’s policies become clearer and new data on inflation and unemployment emerges, markets will begin pricing terminal base rates for this cycle. “We expect this will help normalize the curve and push 10-year Treasury yields back above base rates. Ultimately, while we don’t anticipate a sustained Treasury rally in 2025, we foresee more volatility, with yields likely ranging from lows below 4% to highs near 5%,” he concluded.
Deep Divisions
Bienvenu also pointed to internal divisions within Trump’s camp as a source of market concern. “The first episode of this tension occurred on December 19 when the Republican-majority House rejected a Trump budget proposal directly influenced by Musk. This nearly caused a federal government shutdown. While a modified version was passed at the last minute, significant concessions on Musk-inspired elements left the divide within the party unresolved,” he explained.
The clash resurfaced around immigration policies, with some Trump allies pushing to ban H-1B visas, prompting Musk to vow to protect them, citing their importance to innovation. Meanwhile, Steve Bannon, a staunch Trump ally recently released from prison, lashed out at Musk, suggesting he “sit at the back of the class until he understands Trumpism.”
“These divisions could persist as Trump balances the interests of Silicon Valley billionaires with Midwestern rednecks. Crucial measures like budget votes could face stalemates, which the market will undoubtedly punish,” Bienvenu added, warning of further legislative battles aboard the “Tesla of Trumpism.”
Florida Realtors published its 2024 Annual Real Estate Market Report, revealing that Argentinian buyers have increased their interest in properties in Miami and South Florida.
While Colombia remains the leading country in property searches in Miami for 32 consecutive months, Argentina has climbed to second place, representing 10% of international buyer activity.
The list continues with Brazil at 6%, Venezuela at 4%, Peru at 3%, and Mexico at 2%, “reflecting a continued demand for properties from Latin American buyers in Miami,” according to a statement accessed by Funds Society.
Among international buyers, approximately 33,900 homes were purchased, accounting for 8% of existing home sales in Florida, with 64% of those purchases paid in cash.
The top buyers by value were from Canada, Brazil, Venezuela, Argentina, and Colombia, reaching a total of $15.6 billion in purchases, representing 11% of the total volume of existing home sales in Florida.
Regarding property types, 35% of acquisitions were for condos or units in buildings, and 66% of international buyers purchased properties for vacation, residential rental, or both purposes.
In terms of regions, Miami-Fort Lauderdale and West Palm Beach dominate, accounting for nearly half (47.3%) of international buyers. They are followed by Tampa-St. Petersburg-Clearwater (11%), Orlando-Kissimmee-Sanford (9.7%), North Port-Sarasota-Bradenton (6.9%), and Cape Coral-Fort Myers (4.7%).
For more information on the report, you can access the following link.
With the returns already in hand and aiming for new opportunities, Credicorp Capital has made changes to its Top Picks portfolio of Latin American fixed income. According to a report, three investment-grade bonds and three speculative-grade securities were replaced in the portfolio.
Investment-Grade Bonds
In the investment-grade segment, the firm removed the JBS 2053 bond, “after strong performance,” replacing it with the IFHBH 29 bond from the Peruvian conglomerate Intercorp. “We expect IFH to be supported by the gradual recovery of its subsidiaries and its recent outlook revision, consolidating its IG status,” the firm noted in the report.
For the mining portion, Credicorp replaced the Southern Copper 2035 bond with debt from Brazil’s Nexa Resources 2034.
“Southern is a strong credit but with little room for spread compression,” they explained, adding, “We do not foresee a short-term positive catalyst, as uncertainty persists around mining reforms in Mexico and the social approval of the Tia Maria project.” On the other hand, Nexa’s bond attracted attention “due to its attractive yield compared to peers and manageable risks, supported by a clear path of operational and financial improvements.”
Lastly, Credicorp Capital decided to swap the Suzano 2029 bond from the Brazilian pulp giant for the company’s 2047 bond. This bond, they noted, “offers better risk-adjusted yields relative to the BBB- curve.” They further highlighted their confidence in Suzano as it “enters the harvest phase of its Cerrado project.”
High-Yield Bonds
On the speculative-grade side, the financial firm decided to remove the 2032 bond of Chilean retailer Falabella. This decision, they explained, was due to the bond achieving its spread target relative to the Cencosud 2031 bond at approximately 50 basis points.
In its place, Credicorp added the 2028 bond of Peruvian company InRetail Consumer. “We believe the bond offers a good yield relative to Cencosud’s,” they explained.
Another change involved swapping the Minsur 2031 bond with the MRFGBZ 31 bond from Brazilian protein producer Marfrig Global Foods. This decision was based on the fact that the former “is trading relatively tight compared to BBB-rated names, considering its split rating limits flows despite its IG credit metrics.”
Additionally, they closed their overweight position in the Hunt Oil 2033 bond, “as its spread differential with the PLUSCM 36 has compressed to ~65 bps compared to the six-month average of ~75 bps.” For this reason, they decided to replace it with the BINTPE 30 bond from the Peruvian financial institution Interbank. “It again appears attractive compared to the BCP 30, offering an interesting yield for a relatively short duration to call,” they noted.
Photo courtesyJohn Cervantes, CFA, new partner and senior investment advisor at Prime Capital Financial
Prime Capital Financial announces the appointment of John Cervantes, CFA, as a partner and senior investment advisor at Crossvault Capital Management in San Antonio, Texas.
Cervantes brings nearly 20 years of experience in financial planning and investment management to the team, according to the firm information.
“With Prime Capital Financial’s extensive resources and the expertise of the Crossvault team, I look forward to providing greater value to my clients, helping them achieve their financial goals,” Cervantes said.
He previously served as executive director and investment advisor at Texas Capital Bank and has held senior roles at Merril Lynch, USAAA, and JPMorgan Chase Bank.
Cervantes holds a Bachelor of Business Administration in Finance from The University of Texas at San Antonio.
2024 was a year of transition for the cryptocurrency universe. According to Hashdex, this market went through a recovery cycle following a turbulent 2022 marked by bad actors and fraudulent activities. Reflecting on the past year, they believe crypto assets experienced a recovery phase and the beginning of a bull market. A key turning point was the U.S. election results and Donald Trump’s victory. Evidence of this is the Nasdaq Crypto Index, which has risen more than 57% since November 5, 2024, driven by widespread optimism about the future direction of U.S. digital asset policies.
“We believe the current investment case for bitcoin and other crypto assets remains strong. The steady demand from institutional investors, advancements in infrastructure, and a regulatory environment set to improve significantly in 2025 are positioning this asset class for what could be its strongest year on record,” said Samir Kerbage, CIO of Hashdex. In his opinion, crypto assets tend to follow a cycle of four years that includes a bullish phase lasting approximately 12 months, followed by a bear market lasting one year, and then a recovery period spanning two years. In the last two bull markets, altcoins (that is, everything except bitcoin) have significantly outperformed the largest crypto asset, according to Hashdex.
“I believe we have entered a bull market, reinforced by the macroeconomic environment and the U.S. election results. But another indicator of a bull market is the superior performance of the Nasdaq Crypto Index compared to bitcoin. Over the past three months, the index has outperformed bitcoin (78% vs. 76.5%) and, since the elections, the Nasdaq Crypto Index has outpaced bitcoin by 6.8%,” added Kerbage.
2024 was a year of transition for the cryptocurrency universe. According to Hashdex, this market went through a recovery cycle following a turbulent 2022 marked by bad actors and fraudulent activities. Reflecting on the past year, they believe crypto assets experienced a recovery phase and the beginning of a bull market. A key turning point was the U.S. election results and Donald Trump’s victory. Evidence of this is the Nasdaq Crypto Index, which has risen more than 57% since November 5, 2024, driven by widespread optimism about the future direction of U.S. digital asset policies.
“We believe the current investment case for bitcoin and other crypto assets remains strong. The steady demand from institutional investors, advancements in infrastructure, and a regulatory environment set to improve significantly in 2025 are positioning this asset class for what could be its strongest year on record,” said Samir Kerbage, CIO of Hashdex.
A key area, according to the entity, is smart contract projects—platforms that will enable users to conduct transactions involving not only information but also value and ownership. Hashdex estimates that these platforms and applications will outperform bitcoin over the next 12 to 18 months, as they compete for users and lay the foundation for decentralized applications.
“Thanks to the infrastructure developments we have seen in this area in recent years, new applications are emerging in fields such as artificial intelligence, video games, and many others as tokenization continues to expand. We also believe that new regulatory advances in 2025 will be more beneficial to these applications than to bitcoin specifically, given that bitcoin already has regulatory clarity and a well-developed capital market structure, with the growth of ETFs, options, and futures,” Kerbage explained.
In the U.S. and Europe, this legislative and regulatory clarity benefiting altcoins may include market structure legislation, as proposals like FIT21 aim to eliminate ambiguities regarding crypto assets’ status as commodities or securities, while creating registration pathways that could drive adoption in the U.S.
According to the latest report from Sygnum, a global banking group specializing in digital assets, relatively small institutional investor inflows into bitcoin ETFs could have a disproportionate impact on the market due to limited liquid supply. Their analysis of recent ETF flows suggests that every $1 billion inflow (approximately 0.1% of Bitcoin’s market cap) corresponds to price movements of 3-6%, with larger inflows showing greater price sensitivity.
The report predicts that this multiplier effect could be amplified if major institutional investors—including sovereign wealth funds, endowments, and pension funds—begin making allocations. Some U.S. state pension funds have already invested in crypto assets, and several states have introduced bills encouraging pension funds to consider cryptocurrency allocations. With the size of assets managed by these investors, even conservative estimates represent a larger wave of inflows than experienced in 2024 with the launch of spot cryptocurrency ETFs in the U.S.
“Many traditional institutional investors, those with the largest volumes of assets under management, are just beginning their foray into cryptocurrencies. Our analysis shows how even relatively modest allocations from this segment could fundamentally alter the crypto asset ecosystem. With greater regulatory clarity in the U.S. and the potential for Bitcoin to be recognized as a reserve asset for central banks, 2025 could mark a significant acceleration in institutional participation in crypto assets,” said Martin Burgherr, Chief Clients Officer of Sygnum Bank.
Stablecoin legislation, particularly the implementation of MiCA, will also play an important role by driving stablecoin adoption in the U.S. and Europe, expanding their use beyond emerging markets.
The repeal of SAB121, allowing U.S. banks to hold cryptocurrencies for their clients, is expected to enable banks and brokerages to expand their cryptocurrency trading and custody offerings, benefiting altcoins in particular. Additionally, new ETF launches under the new SEC chair are raising hopes for more approvals, including ETFs for indices and individual assets like Solana and XRP. Although uncertainty persists, the availability of new assets with ETFs as access points is highly positive.
Altcoin Use Cases
According to Kerbage, in addition to bitcoin evolving as an emerging digital store of value and smart contract platforms becoming a new way to exchange information, value, and ownership, three other altcoin use cases are expected to benefit over the next year:
DeFi: Projects aimed at creating an internet-based financial system, operating on smart contract platforms, will establish a new global capital markets infrastructure for payments. Stablecoins and tokenized money market funds are the first major use cases.
Web3: A new iteration of the internet that will enable users to own their data and make the web decentralized and more useful for innovations like AI agents and other advancements.
Digital Culture: An emerging digitally native generation will drive greater demand for owning digital assets and collectibles, with video games as the first natural application.
“If we compare cryptocurrencies to the internet, this industry is like the internet in the 1990s, and bitcoin could be compared to email—the only application most people have heard of. However, if we fast-forward 20 years, although email remains very useful, it has not been the internet application that has created the most value for society. We believe this perspective could apply to how bitcoin is currently perceived in relation to cryptocurrencies,” Kerbage concluded.
2024 marks 15 years since Antonio Zegers, Santiago Valdés, and Roberto Loehnert created Venturance Alternative Assets, an asset manager specializing in alternatives that has carved out its space in the Chilean financial ecosystem. Looking ahead, the plan is to leverage the experience their investments have brought them to launch new strategies in venture capital and growth equity, in addition to taking advantage of opportunities from the boom in private debt.
“As a management company, we are advancing in all areas,” describes Zegers, general manager of the investment firm – which has around 350 million dollars in AUM – in an interview with Funds Society. In particular, the areas of greatest interest to the firm are private equity and private debt, with new launches in mind, supported by the good results of two exits made in 2024.
In venture capital – one of Venturance’s flagship areas – they have two funds in operation: FIP Alerce, a private vehicle in the investment process, and Zentynel I, a fund focused on biotechnology and domiciled in the U.S. About this last vehicle in particular, Zegers highlights that “it has advanced very quickly in its placement and is a niche where we have adapted quite well.”
For its part, in growth equity, they have four strategies, according to their online portal. Two are private investment funds (FIP): Endurance I and Venture Equity, and two public funds: Outdoors and SAAS HR. In this area, the firm’s strategy is to take medium-sized companies, in the growth stage, and make them “as professionalized as possible,” describes the CEO of the asset manager.
New Launches
“In 2025, we are going to launch the second Zentynel fund, to continue that strategy,” Zegers anticipates, expecting it to be around 30 million dollars.
Regarding the portfolio, the executive notes that “like any venture capital fund,” the vehicle will be “well atomized,” with around 15 investments in the portfolio. The portfolio’s objective is biotechnology companies and related businesses, such as medical devices.
On the other hand, the firm is preparing to launch its third public growth equity fund. In this asset class, the objective is to strengthen the operation of the companies so that a strategic buyer is willing to pay for that added value and that the companies can move to a new stage of expansion.
“We have a group of base contributors who want to continue doing things with us,” says Zegers, adding that the new fund will replicate the strategy of the previous two iterations. Thus, they will focus on a profile of medium-sized companies, with revenues between 10 million and 50 million dollars, and expect the portfolio to have more than eight assets.
“We have already liquidated four assets, and the idea is to capitalize on our specialization in that area, for the next fund,” he notes. In May 2024, they sold the hamburger chain Streat Burger to the business group Copec, and in September, the mining equipment supplier Ancor Tecmin to the Canadian firm EPCM Group.
Opportunities in Private Debt
Outside of their private equity formulas, private debt – one of the most visible categories in the boom of alternatives in the Chilean fund industry – is a space they are watching closely. “It is the subclass of alternative assets that has been attracting the most attention lately,” says Zegers.
The area manages over 100 million dollars in strategies in dollars, Chilean pesos, and UF (a unit of account indexed to inflation). The hard currency fund, notes the CEO of the asset manager, has seen significant placement.
More recently, the professional also emphasizes that “what is capturing more attention lately is the UF fund,” as the drop in rates has left investors looking for inflation-indexed instruments.
For now, according to their website, the company has three funds: Lennox, which invests in working capital for an exporter, in dollars; FIP Fitz Roy/FI Tronador Deuda Privada, which finances Chilean SMEs via promissory notes with collateral; and FIP Navarino, which invests in short-term debt from a factoring, focused on invoices, leaseback, and loans.
What Lies Ahead
Looking further ahead, Zegers says that at Venturance Alternative Assets, they have “no specific bias.” The key, he explains, is to “stay very attentive” to take advantage of the opportunities offered by the markets in which they participate.
“There are subsectors that are gaining more prominence, such as UF instruments or biotechnology,” but it’s not something they predetermine.
For now, they plan to focus on their business lines: venture capital, growth equity, private debt, and real estate assets, where they manage six development funds.
However, new areas of interest are emerging. “Green infrastructure is a topic we have identified and want to reach, not as a fund directly, but as underlying assets,” he comments, as opportunities for their growth equity strategies. In addition, he notes there are some interesting spaces to explore, such as the world of energy storage.
Regarding more traditional infrastructure, they see less motivation. “We haven’t looked into it. It’s a topic, in our opinion, of greater specialization and size,” says the CEO, adding that while there are local players in that market, “the field is more dominated by foreign infrastructure funds.”
The fintech Fraccional (Fraccional.cl) has taken a step forward in the internationalization of its model, which is based on fractional real estate investment, expanding beyond the borders of Chile. This milestone involves a project in Miami, United States, a market they describe as highly profitable and dynamic.
According to Julián Blas, COO and co-founder of the company, in a press release, this initiative responds to demand for assets in the U.S. market—characterized by its stability and dollar-based denomination—from its users.
Fraccional’s model is anchored in crowdfunding to invest in real estate projects, significantly lowering the entry barrier for this type of asset. For the Miami project—a market historically reserved for high-net-worth individuals—investors can participate with as little as $300.
The system brings together individuals interested in investing in the fintech’s residential real estate development projects. Investors purchase shares through a joint-stock company, becoming partners. From there, in addition to property appreciation, contributors receive rental income from the properties.
A Market of Interest
The first development of the Miami project targets the upper-middle class and will be located in the northern part of the city. It replicates Fraccional.cl’s traditional model, where investors acquire fractions of real estate projects. “We maintain our essence: simple and accessible investment but with a global perspective,” Blas stated in the press release.
For its entry into the U.S. market, Fraccional will work with experienced real estate companies that meet strict requirements, such as having approved building permits. “We have chosen partners with whom we already have experience in Chile, such as Copahue and GFU, linked to successful developments in Ñuñoa, for instance,” Blas detailed.
The fintech emphasizes that Miami has shown sustained growth in housing demand, describing it as a high-appreciation market.
In 2023 alone, the city received over 54,000 migrants, contributing to a market with high turnover and projects that typically sell within one to two months. This dynamism has established Miami as a preferred destination for international investors, including Chileans, the company stated.
Plans for Expansion
The initial Miami project will be followed by a second initiative, focusing on the lower-middle class and located in the southern part of the city.
Looking further ahead, the fintech is also exploring opportunities beyond the U.S. market. It has its sights set on Latin America and Europe, particularly Spain, where it plans to launch coastal projects for residential and vacation purposes.
“With this strategic move, Fraccional.cl aims to establish itself as a key player in the fractional real estate investment market, offering attractive and accessible alternatives for small Chilean investors interested in dollarizing their assets and diversifying risks,” the press release concluded.
North America is undergoing a period of political and economic transition that may generate investment opportunities, especially in the markets of Mexico and the United States, despite the challenges. This is outlined in the Mexico 2025 Strategy report, prepared by the research team at Grupo Bursátil Mexicano (GBM) Casa de Bolsa.
The Latin American country recently experienced a change in government just over two months ago, with its first woman president in history, Claudia Sheinbaum Pardo. Meanwhile, in the United States, Donald Trump will take office for a second term on January 20, following a decisive victory in the election on November 5, 2024.
GBM highlights that a selection of Mexican companies reflects some of their most attractive valuations in decades, driven by a changing social and political landscape across the region. The brokerage firm supports increased portfolio exposure to defensive names, particularly in resilient sectors in such contexts, such as consumer goods and infrastructure.
The specialists behind the report identified three factors that could benefit Mexican equities next year:
Strong domestic consumption dynamics:
Mexico maintains robust internal consumption dynamics, supported by social programs and a rising wage base in recent years. Additionally, the purchasing power of remittances has regained momentum after the dollar strengthened against the peso in the second half of 2024.
Strategic location in North America and a robust manufacturing sector:
The region continues along a path of supply chain integration, facilitated by Mexican corporations with leadership positions not only nationally but also in the United States. GBM also identified investment commitments in the infrastructure sector for the 2020-2029 period that are 43.3% higher in real terms than the previous decade, strengthening the country’s medium- and long-term outlook.
Potential for growth in infrastructure and housing:
With the potential consolidation of nearshoring, the country may be at the beginning of a period of infrastructure growth. Additionally, the positive economic impact of this trend could increase the population’s purchasing power, triggering significant demand for housing.
The GBM analysts further note that the effect of nearshoring could boost exports and foreign direct investment even more, leading to significant economic benefits in the logistics and energy sectors.
Other analysts from investment firms have emphasized in their year-end reports that they continue to favor U.S. equities, at least in the early phase of Trump’s second term.
