Pioneer Investments Receives 200 Million US Dollars from Mexican Afore Sura

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Pioneer Investments recibe 200 millones de dólares por el segundo mandato de Afore SURA
Pixabay CC0 Public DomainGustavo Lozano, courtesy photo. Pioneer Investments Receives 200 Million US Dollars from Mexican Afore Sura

Global Asset Manager Pioneer Investments received 200 million US dollars from a Global Equity mandate with Mexican pension fund manager Afore Sura. The equity investment team at Pioneer Investments’ Boston hub will actively manage the mandate. Pioneer Investments, which currently has 240 billion of Assets Under Management, has been managing investments in global markets since the 1930’s through the Pioneer Fund, created by Philip L. Carret in 1928.

Afore Sura awarded Pioneer Investments’ Boston investment team the mandate as part of its process to diversify their investment strategy and as a tool to grant their clients access to investment opportunities in global equity markets. region.”

Luis de la Cerda, CIO for Afore Sura said: “By granting this mandate, we strengthen our investment strategy, reaping the benefits of the resources, skills and experience offered by external teams specialized in markets, strategies, styles and specific geographical regions.”

Gustavo Lozano, Country Head of Pioneer Investments Mexico, commented: ”Completing the funding of this project is once again the culmination of many efforts coming together. The relationship that Pioneer Investments has with Sura has allowed us to build a comprehensive partnership that ranks Pioneer Investments as one of the most important global managers in the Latin-American region, regarding the active management of investments for the institutional clientele. Pioneer Investments not only offers competitive, high quality investment products that we believe can stand the test of time, but compliments them with investment services designed exclusively for Sura, which strengthens the development of asset management for such investors in the

The global equity markets mandate will allow the Afore to access a strategy which expedites decision-making through the allocation of assets, sectors, regions and risk, based on a robust investment process seeking to maximize investment returns while endeavoring to limit risk. It will also provide them exposure to high quality companies, whose investment thesis and business propositions remain abreast of global economic developments, with a long-term investment horizon.

 

 

“As Rate Volatililty Might Prevail this Year, We’d Have a Propensity to Favour Credit Risk”

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"Dada la volatilidad en los tipos de interés, tendemos a favorecer el riesgo de crédito: ratings más bajos con menor riesgo de duración"
Pixabay CC0 Public DomainPhilippe Berthelot, courtesy photo. "As Rate Volatililty Might Prevail this Year, We’d Have a Propensity to Favour Credit Risk"

With the rates normalization process already underway, Philippe Berthelot, Head of Credit Management Teams (Corporate and structured credits) at Natixis Asset Management talks in an exclusive interview with Funds society about where he sees value and highlights two of their funds: Natixis Euro Short Term Credit y Natixis Short Term Global High Income.

– Is it possible to talk about danger when we talk about the current situation in fixed income? Are the investors in danger when they take in account the arrival of the growth, the inflation, and the following rise in interest rates?

A rising rate environment may not be that supportive indeed for fixed income products in general, as it can lead to some disappointing performances. That said, 2017 is totally different from a 1994 scenario, we just expect 10 year rates to be 30-40bp higher by ear end in the USA and in Europe!

– Which are your previsions of the interest rate hikes in USA this year and how will this affect to the assets? There will be contagion in Europe? Will the ECB need to take solutions soon?

The FED is expected to raise rates 3 times this year (a hike of 25 bp already made yesterday) but really nothing to worry on the ECB side. What would matter the most in Europe would be hints at “tapering:” it is likely to occur next year. For the time being, political risk is a driver of sentiment with Dutch / French and German elections

– Is there danger of capital turnover from fixed income to equity?

It is genuinely true that a rise of nominal rates, at first, is supportive for risky asset classes like equities and even  credit. With further  growth prospects in Euroland this year Equities should outperform Fixed Income,  caeteris paribus.

– In this environment, is it still a good asset to invest or should we sharpen the caution at the time to invest in debt? Is it still possible to find value in credit, for example?

There are so many different animals within what is labelled “fixed-income” ! For instance, the bulk of ABS and senior secured loans are made floating-rate products, as such they’re not very sensitive to a rise of interest rates ! HY spreads are also negatively correlated to rates, which means that sub investment grade bonds should fare quite well this year. Last but not least, focusing on short duration investments is another way of performing almost  always  positively  whatever the state of nature.

– In which sectors of fixed income are we still finding value? And where do we find the biggest risks?

Financials and subordinated financials are very cheap vs corporates (as they are not eligible to the ECB QE). High beta sector like AT1 , Hybrid securities should perform quite well  this year.

– Do you prefer credit risk or duration risk? Why? It seems that now the most popular choice is to maintain a low duration… why?

As rate volatililty might prevail this year, we’d have a propensity to favour credit risk : lower in ratings with shorter duration risk

– Natixis Euro Short Term Credit y Natixis Short Term Global High Income are two solutions that are driving. What characteristics have these vehicles and what can they contribute to the portfolios?

Natixis Euro Short Term Credit is a core plus fund : mainly IG plus  a HY tilt than can up to 15% of its assets. In order to benefit from a  better  yield we also have a substantial exposure on subordinated financials. On top of it the fund duration is below 2 years, which is exhibits limited sensitivity to a rate rising environment.

The second fund, Natixis Short Term Global High Income,  is also targeting fixed income investments with  duration to worst below 2 years within the HY space this time with an average exposure to 50% Europe and 50% US. It features a much higher yield due do its very HY nature.

– Where can we find the best opportunities in credit: Europe or USA? What do you prefer; high yield or investment grade?

The answer is threefold: credit quality is much better in Europe with lower default rates and lower leverage, US fixed income will likely be hurt by a rising rate cycle , but carry is much  better off in the USA (assuming no dollar  hedge from an Euro  investor point of view)

– Do you like the profitability risk profile that the debt and emerging credit present?

We do have very little exposure but hard currency corporate exposure in some specific names. There is a another  team to deal with local currency in Emerging credit exposure.

-What returns can be expected on credit and with short durations facing this year?

You may expect the current carry with limited capital gains : 0.8% to 1.0% in Euro IG and ca 3% to 4% for Global HY short duration.

– Does the fact of taking short duration limit the returns?

It provides the best sharpe ratio in general, with the highest carry per unit of risk. It limits draw-downs to the detriment of lower expected returns.

“A Rate Hike by the ECB May Not Occur Until Later in 2018 at the Earliest”

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"La subida de tipos por parte del BCE no tendrá lugar hasta finales de 2018, como muy pronto"
Pixabay CC0 Public DomainJim Caron, portfolio manager and senior member on the Morgan Stanley Investment Management Global Fixed Income team . "A Rate Hike by the ECB May Not Occur Until Later in 2018 at the Earliest"

The primary risk to fixed income is a sudden and sustainable rise in interest rates. The conditions for this to occur is for the market to believe both domestic and global growth will be on a sustainable trend higher and that inflation will rise. However, according to Jim Caron, portfolio manager and senior member on the Morgan Stanley Investment Management Global Fixed Income team, there is little evidence that such a robust and sustainable event will actually occur. In his interview with Funds society he mentions that “We believe growth and inflation conditions are on the rise, but at a modest pace, not quickly. The key for fixed income investors is to create a durable portfolio that is actively managed. This provides one the ability to construct a portfolio with assets that are less sensitive to interest rates, such as credit related products, and provides the opportunity for the fund manager to manage duration risks. If done properly, bond funds can still produce positive excess returns even as rates rise.”

What are your expectations of rate hikes in the US this year and how will it affect the assets? Will there be contagion in Europe and will the ECB soon have to take solutions?

We believe the Fed will hike rates two times this year, with the risk being they hike three times. As we see it, the Fed will proceed cautiously as there are still many unknowns with US resect to fiscal policy, political risk events in Europe and economic risks surrounding trade and China. The ECB faces the same challenges but is further behind in the post crisis recovery cycle than the US. A rate hike by the ECB may not occur until later in 2018 at the earliest.

Is there a danger of capital turnover from fixed income to equity?

We recognize that there are other risks to fixed income in terms of capital flows. Many are over invested in fixed income and under invested in equities. If economic conditions convincingly improve, then investors may reallocate away from bonds into equities. This is a risk. However, if bond yields rise enough, it could slow the economy and this would re-attract investors to fixed income. So, there are limitations to how high and how fast bond yields can rise in the current environment.

In this environment, is it still a good asset to invest in or should we exacerbate caution when investing in debt? Is it still possible to find value, for example by assuming a global and flexible fixed income perspective?

Fixed income will continue to be a large part of a balanced portfolio. Yes, we believe there are still opportunities in fixed income, but it needs to be managed differently. We believe flexible and active management is essential. A flexible strategy should perform better than a passive strategy because the bond manager can allocate risk away from sectors of the bond market with the most sensitivity to rising rates and into other sectors that are less sensitive to rising rates.

In which fixed income areas still you find value? Where is there more risk?

We believe there are certain ‘winning characteristics’ for fixed income assets in the current environment: 1) assets with improving fundamentals, 2) attractive yield and carry, 3) positive idiosyncratic factors such as valuation and supply an demand technicals and 4) assets with more credit sensitivity rather than interest rate sensitivity.

Do you prefer credit risk or duration risk? why?

The assets we think will perform best are: 1) US non-agency mortgages – these assets benefit from improving fundamentals and have positive supply and demand technicals in addition to having good carry and more credit rather than interest rate sensitivity. 2) Emerging markets: we like commodity exporters both in external and local EM. For local EM we also select countries whose fundamentals are improving, have attractive yields and undervalued currencies. 3) Middle market high yield: these are companies with less than $1Bn of debt outstanding whose performance is driven more by idiosyncratic credit factors rather than interest rates. Sectors we like are Manufacturing, exploration and production energy and food and beverage sectors. We believe high quality sovereign bonds, which are most rate sensitive will perform worst.

European peripheral debt: are there still opportunities in markets such as Spain?

We think European peripheral bond markets are risky and we hold minimal exposure. The risk stems from political uncertainty. However, once the election cycles pass across Europe, we do see value in owning peripheral bonds. However, we think they will first cheapen over the next several months.

What returns can be expected from assets facing this year?

Bond market returns will vary across asset class and strategy. In our unconstrained and actively managed fund, Global Fixed Income Opportunities, we think we can achieve a 5-6% return. Our asset selection and weightings are skewed to less interest rate sensitive products such as non agency mortgages, EM and high yield. In addition, we are underweight duration and for additional protection against a rise in yields.

Pioneer Investments Sponsored the All-Star Tennis Charity Event in Miami

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Pioneer Investments patrocina eventos benéficos de tenis en Miami
Pixabay CC0 Public DomainFoto y video cedidos. Pioneer Investments Sponsored the All-Star Tennis Charity Event in Miami

Pioneer Investments’ U.S. Offshore Miami office had a fun and busy month in March in sponsoring two high profile tennis events locally.

While the Miami Open tournament provided an exclusive atmosphere to spend quality time with key clients, the Pros in town also provided a unique opportunity to give back to the community. 

For the 2nd year, Pioneer Investments is a proud sponsor of the All-Star Tennis Charity Event in partnership with Cliff Drysdale Tennis and the Ritz Carlton, Key Biscayne to benefit First Serve Miami. The Tuesday March 21st event was a success with great representation from both the U.S. Offshore clients, and the stars: Venus Williams, Chris Evert, Jack Sock & Nick Kyrgios.
 
For more information, please contact:
Kasia Jablonski
VP, Regional Marketing Manager – U.S. Offshore & Latin America
Kasia.Jablonski@PioneerInvestments.com

Cristina Campabadal Founds CCS Finanzas, a Multi Family Office with Offices in Barcelona and Presence in Miami and New York

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Cristina Campabadal funda CCS Finanzas, un multi family office con oficina en Barcelona y presencia en Miami y Nueva York
Pixabay CC0 Public DomainPhoto: LinkedIn. Cristina Campabadal Founds CCS Finanzas, a Multi Family Office with Offices in Barcelona and Presence in Miami and New York

After more than 15 years working in the financial and wealth management industries, as financial adviser, first in Spain and then in the United States – where she specialized in Latin American clients -, Cristina Campabadal has created CCS Finanzas, with the intention of protecting and accompanying clients in managing their wealth, with a difference.

The new Multi Family Office has an office in Barcelona and presence in Miami and New York, and offers advice on equity, access and search of investment opportunities, negotiation of external commissions, direct dealings with suppliers, investment monitoring and revision of accounts, as well as supporting and complementing existing individual family offices or family governance matters and foundations.

In her new company, she has the support of an Advisory Board, which includes four respected professionals, a team of analysts, and an art adviser based in New York, who will advise clients on their portfolio of art collections and investments in works of art, and which will be one of the differentiating points of this newly created Multi Family office.

Prior to the founding of the firm, and for the past two years, Campabadal has worked as an advisory associate at WE Family Offices in Miami. Previously, she had worked as director for Latin America and Development in a Spanish Multi Family office. Previously, she was linked to Banco Santander International Private Banking in Miami, where she was financial adviser for Latin American clients – Andean region – and to Grupo BBVA, in the Private Banking business for HNWI in Spain…

Graduated in Economics from the University of Barcelona, Spain, she has several advanced certificates in Wealth Management, including investments, banking, and tax matters.

Door Launches Digital Platform for Fund Selector Due Diligence

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18 gestoras y más de 100 selectores se unen a la plataforma digital de Door destinada a agilizar los procesos de due diligence
Pixabay CC0 Public DomainPhoto: Lastinitialy, Flickr, Creative Commons. Door Launches Digital Platform for Fund Selector Due Diligence

Door has launched its first digital platform to streamline the fund due diligence process between asset managers and fund investors. During this intial launch phase, 18 global asset managers will now submit fund information in an industry best practice, standard format which will be used by professional fund investors when monitoring and screening funds.

Door is registering fund investor users in groups of 100. The ‘First100’ Group is now oversubscribed, representing 28 major fund buying firms. Door is already registering users for its ‘Second100’ Group.

Driving value to all participants

Door drives value to fund investors and asset managers alike. Within fund investor teams, too much time is being spent collecting and organising fund information for analysis. Asset managers have to resource large teams to be able to respond to information requests in a multitude of formats.

Door brought together a collaborative group of innovators from 10 fund investors, such as Mediolanum, Santander, All Funds, EFG and Pictet Wealth Management, and 12 global asset managers, such as Schroders, Pictet Asset Management, Robeco, Aberdeen, Franklin Templeton and Columbia Threadneedle. They helped co-create the solution. Now 18 global asset managers will participate on the first Door platform.

Door is overseen and endorsed by the Association of Professional Fund Investors to ensure independence and best practice in fund due diligence. On Door, asset managers find efficiencies by reducing the repetitive nature of responding to due diligence requests and improve their responsiveness to client requests.

Derick Bader, Head of Marketing & Products at Pictet Asset Management said “Door helps us streamline and manage a large volume of information requests. We estimate that if Door had been in place in 2016, we would have saved more than 100 man/woman days of work and achieved a much quicker response rate to our clients.”

Ben Seager-Scott, Director of Investment Strategy & Research at Tilney said “Door is a welcome and innovative solution to help improve the efficiency and effectiveness of the fund due diligence process, which I believe will significantly benefit fund providers, fund analysts and our underlying clients. Standardising and digitising the common core of the due diligence process gives analysts access to an on-demand resource, while preserving the integrity of the proprietary elements of our due diligence and insight process. I’m grateful to Door for inviting us to be part of this exciting development, and am pleased to support such innovation.”

“Standardisation in due diligence information means I can access the majority of the information I need without waiting weeks for a response. It will save me time and allow me to focus on that information that is most important to me.” José María Martínez-Sanjuán, Santander.

Rob Sanders, Co Founder of Door said “Door is a simple solution to common innefficiencies. We aim to create value for all stakeolders in the fund due diligence process. Margin pressure and work volumes are increasing for both asset managers and fund investors. Digitisation, standardisation and the streamlining of this process make a lot of sense to our clients.”

For more information follow this link.

Philip Carey and Karim Aryeh Launch New RIA: Lloyd Crescendo Advisors

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Nace Lloyd Crescendo Advisors, de la mano de Philip Carey y Karim Aryeh
Pixabay CC0 Public DomainPhilip Carey (left) and Karim Aryeh (right) - courtesy photos. Philip Carey and Karim Aryeh Launch New RIA: Lloyd Crescendo Advisors

Located at 1450 Brickell Ave in Miami, Lloyd Crescendo Advisors arrives in the financial capital of Latin America to bring a traditional Swiss approach in wealth management. Philip Carey is the CEO, and Karim Aryeh is the CIO, both well-known professionals in Miami.

This newly formed Registered Investment Advisor was born of expertise from Lloyd Capital and Crescendo Capital, two Swiss-based firms. The headquarters of the firm and the wealth management business will be in Miami, while the asset management division will be run out of their New York office.

“Our advice is personal, independent and forward-thinking” – Karim Aryeh. Lloyd Crescendo Advisors will be focusing on bringing global diversification to its investors though the use of traditional, alternative and responsible investments. As part of their alterative offering, they will be focusing on private debt, hedge funds and real estate investments, while their responsible investments will incorporate environmental, social and governance criteria and seek out impact investments.

“We help clients align their investments with their values”- Philip Carey. Lloyd Crescendo Advisors will be looking to serve families all over Latin-America as well as domestic US HNWIs.

The CEO, Philip Carey has over 23 years of experience in the global wealth management industry between New York, London and Geneva. He started his career in Coutts from 1994 to 2001. Later, he worked as Director at Barclays Wealth & Investment Management from 2001 to 2005. Philip was Senior Private Banker at HSBC Private Bank from 2005 to 2011 when he left to start his own RIA in Switzerland: Lloyd Capital LLC.

Karim Aryeh, whom will actively manage the investments, brings more than 15 years of experience in the wealth management industry advising HNWI’s in Latin America and institutional clients. His career has taken him from New York to Geneva, and for the past 7 years, Karim has been based in Miami. He worked in UBS Wealth Management between 2002 and 2011 as Senior Investment Consultant and in Santander Private Bank from 2011 to 2016 as Senior Portfolio Advisor and Team Leader. Karim is a CFA Charterholder. He earned the CAIA Charter in 2006 and is a Co-Founder and Executive Member of CAIA Miami. 
 

José Castellano Leaves Pioneer Investments After 16 Years Developing the Iberian, US Offshore, and LatAm Markets

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jose castellano
Foto cedidaJosé Castellano, CEO adjunto y responsable de distribución internacional de iM Global Partner.. jose castellano

The merger between Pioneer Investments and Amundi continues ahead and, in this context, the first changes in the teams are beginning to be announced. According to Funds Society’s best knowledge, Jose Castellano, who until now has been in charge of Pioneer Investments in the US Offshore, Latin America, and Iberia regions, has decided to leave the fund management company in order to pursue other professional projects.

Castellano, who has been Managing Director and Head of the three regions for 16 years, has been an architect of the growth that Pioneer Investments has experienced in Iberia, US Offshore and Latin America, making these areas one of the most profitable in the whole group. In recent years he has also been involved in strategic projects, globally.

Castellano has reconciled these functions with the leadership of H4U properties, his position as an investor in Thinking Heads, or, during the last few years, as Director for Southern Europe, Italy, Switzerland, Spain, and Portugal in Hedge Fund Association. Prior to joining Pioneer Investments in January 2001, he was Director for Morgan Stanley’s private equity group for two years, and Director of Wealth Management for a further seven years at the same entity.

Pioneer Investments has just confirmed the news and explains that the responsibility of the regions will be shared between the in European and US teams. Cinzia Tagliabue, Head for Western Europe and Latin America, will be responsible for the management company’s distribution business in Iberia and Latin America. She will be supported by an experienced team throughout these markets dedicated to providing the best quality service to customers.

Laura Palmer, Head of Intermediary Distribution in the US, will manage the sales team based in Miami, which drives the growth of the business in US Offshore. Palmer leads the US distribution team, which focuses on relationships with key financial intermediaries in the country, and reports to Lisa Jones, President and CEO of Pioneer Investment Management USA Inc. “We are confident that this change of management will strengthen our ability to serve offshore clients with excellence in the future,” the statement said. However, Pioneer Investments has commenced the process of hiring a Sales Manager for the US Offshore market.

The Merger Continues

Castellano’s departure falls within the context of the merger between Pioneer Investments, which will continue with its usual activity, and Amundi, which will also continue its course. This week, the European Commission has given the green light to the operation, considering that the operation will not have a negative impact on the European economic space.

“The operation would not give rise to competition problems given the complementarity between the activities of the companies, the small increase resulting from the operation, and the existence of several competitors, which guarantees sufficient choice for customers,” the Brussels statement said. In this way, they could meet the deadlines and tie up any loose edges of the operation before the close of the first half of this year.

Pioneer’s acquisition by Amundi, valued at 3.545 billion Euros, was notified to Brussels on the 20th February, and has been examined under the normal merger control procedure. The acquisition makes the resulting group the eighth largest global asset manager with almost € 1.3 trillion in assets under management.

Funds Society Magazine Taps Trendscout to Reveal Investor Trends in Spain and Latin America

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Funds Society utiliza Trendscout para revelar tendencias de los inversores en España y Latinoamérica
Pixabay CC0 Public DomainPhoto: RonKikuchi, FLickr, Creative Commons. Funds Society Magazine Taps Trendscout to Reveal Investor Trends in Spain and Latin America

Spain and Florida-based “Funds Society” magazine is a media partner of fundinfo that focuses on investment fund news for Spanish-speaking countries. Available in both Spanish and English, Funds Society now publishes a monthly article which reveals real-time investor trends about funds distributed in Spanish speaking regions.

By tapping into fundinfo’s online fund analytics tool “Trendscout”, Funds Society can now publish articles on a wide range of topics including changes in investor interest on a per-category basis, a precise ranking of the most interesting funds, and macro trends such as an overall shift from passive to active funds.

Trendscout charts worldwide industry trends and investor interest by monitoring investor activity on fundinfo’s web platform. With Trendscout, asset managers identify sector and investor trends to support product launches and strategic decisions, or monitor the effectiveness of their sales and marketing efforts. Financial media use trendscout to publish revealing trends about the latest developments in country-specific fund markets.

For more examples about what Trendscout can do for the financial media, read our recent Trendscout newsletter.

 

 

12 Foreign Currency Funds in Mexico Doubled Their AUM

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Los activos de 12 fondos de moneda extranjera en México crecieron más de 100%, los de deuda local bajaron en 73.000 millones de pesos
Photo: Max Pixel / Creative Commons Zero - CC0. 12 Foreign Currency Funds in Mexico Doubled Their AUM

The rise in rates, and the dollar exchange rate, between September 2016 and January 2017, caused outflows from Mexican debt funds. Investors made precautionary withdrawals to avoid additional losses, anticipating to greater volatility. Tenure decreased by 4.81%, to 72.93 billion pesos (mdp). Are more outflows expected?

Exits at National Currency Funds and Inflows in Foreign Currency ones

Five managers accounted for 77.8% of total outflows: Santander, BBVA Bancomer, Impulsora, Banorte-IXE and Interacciones. In percentage terms, the ones with the highest outflows were Monex, Interacciones, Multiva, CI Fondos and Santander. Despite the adversity, there were some managers that attracted inflows, such is the case of Franklin Templeton, Compass, Value and Sura. Finamex and BNP are excluded, given their percentage increases can be explained by their recent creation.

    Of 275 funds, 177 showed outflows and 98 showed inflows.
    Short-, medium- and long-term funds in local currency securities reduced their assets by 109,460 mdp, 7.22% of the sector’s absolute value as of September.
    A total of 29 funds reduced its assets by more than 30%. In contrast, 26 funds increased them by more than 30%.
    Eight funds decreased their AUM by more than 60%.

The resettlement meant unusual increases for a long list of funds, which excludes those of new creation and/or a different regime. AUM of 12 foreign currency funds grew more than 100%, while only a single national currency fund increased in that proportion.

Medium and Long Term Funds with the Biggest Outflows

The medium and long-term funds, in all their modalities (discretionary, governmental, indexed, etc.), were the most affected. Its inflows totaled 18,070 mdp and its outflows, 60,160 mdp, for a negative net variation of 42,090 mdp, 57.7% of the total reduction. Short-term funds, given their less vulnerable nature, reflected inflows of 46,900 mdp and outflows of 77,800 mdp, for a net negative flow of 30,800 mdp, 42% of the total.

In some cases, the resources were partially transferred to other funds of the same manager, regardless of their profile.
    At BBVA, 22,510 mdp came out of BMERGOB and BMERPZO, while 7,730 mdp went to BBVADOLL and BMRGOBP.
    In Santander, 9,380 mdp came out of STERGOB and ST & ER-7, while 6,020 mdp went to ST & ER-5.
    In Banamex, 9,850 mdp came out of BNMDIN and BNMPZO, while 8,050 mdp went to BNMCOB + and BNMREAL.
    In Banorte-Ixe, 6,606 mdp came out of NTEGUB and IXEMPM +, which were offset with inflows of 6,850 million pesos to IXEUSD, NTERTD and IXEDINT.

The only fund group with net growth (36,540 mdp, 120% of its value in September) was that of foreign currency instruments, in all its variants, but mainly in the short term sphere. The increase underlies the fear that the Mexican peso’s devaluation will intensify and the preference for cash to change strategies if conditions warrant so.

Regarding managers, the generalized negative flow reveals that the public took refuge in, for example, bank branches products, notes and foreign currencies in cash, as well as metals and real estate.

While the 10 years and longer bond rates did not evolve in January 2017 as they did in previous months, traders are worried and estimate that investors will remain expectant for at least two more months. As a result, some predict additional marginal outflows and estimate that, if volatility remains contained, assets could stabilize in April.

Column originally written in Spanish by Fitch Mexico’s Arturo Rueda