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Picton Aims to Turn Its Latam Summit Into the Largest Alternatives Event in the Region

With the ambition of becoming the largest alternatives event in Latin America, investment firm Picton is gearing up to host its first Latam Summit. This event, expanding on the format of its traditional anniversary seminar, will attract a diverse range of high-level investors, GPs, and international LPs.

The summit will take place starting at 8:30 a.m. on Wednesday, October 16, and Thursday, October 17, at the Ritz-Carlton Hotel in Santiago, located in the Las Condes district.

According to Picton’s preview shared with Funds Society, the two-day event will feature the participation of hundreds of high-level investors and managers, including representatives from major global alternative brands. The summit will include over 80 speakers, more than 30 GPs, and over 500 representatives from more than 100 LPs, alongside family offices, insurance companies, pension fund managers, and industry players from across Latin America.

In addition to a series of panels focused on private equity, there will be segments covering topics such as pension funds (AFP), family offices, insurers, and wealth management. Over 1,200 business meetings are also scheduled to take place during the two-day event.

On the second day, after a morning of panels dedicated to various alternative asset classes, the 12th edition of the traditional seminar organized by Picton and El Mercurio will take place. As in recent years, the guest of honor is a prominent political figure: Boris Johnson, former Prime Minister of the United Kingdom. Johnson will deliver a speech titled after his most recent book, *The Churchill Factor*.

Picton Latam Summit is supported by several major names in the global alternatives management scene. According to the Chilean firm, KKR, EQT, TPG, Goldman Sachs Asset Management, Ares, and Morgan Stanley Investment Management are among the main sponsors, while Clearlake, TJC, Strategic Value Partners, Great Hill Partners, and Kelso Private Equity are in the golden sponsor category. The silver sponsor category includes American Securities, Permira, OHA, Macquarie, Vitruvian Partners, Centerbridge, Barings, M&G Investments, Federated Hermes, Kayne Anderson Real Estate, Archimed, Harvest Partners, and Hayfin.

Founded in 2011, Picton is one of the most prestigious names in Chile’s financial market. It is one of the leading placement agents for alternative assets and international mutual funds in Latin America and also participates in the multi-family office business. They have offices in Santiago, Bogotá (Colombia), and San José (Costa Rica), along with a presence in Mexico City through a partnership with 414 Capital.

Investor Perspectives

The program for Thursday, October 16, kicks off with welcoming remarks from Osvaldo Macías, Superintendent of Pensions of Chile, followed by a panel specializing in pension systems in Latin America. This session, moderated by Paulina Yazigi, president of the Chilean Association of Pension Fund Managers (AAFP), will feature the general managers of four pension funds: Alejandro Bezanilla from Chile’s AFP Habitat, Miguel Largacha from Porvenir, Juan David Correa from Protección (Colombia), and Aldo Ferrini from Peru’s AFP Integra.

Next will be the investment managers of pension fund managers. The following panel, focused on pension fund investment regimes, will include Carolina Mery from AFP Habitat, Andrés García from AFP Cuprum, Francisco Guzmán from AFP Capital (Chile), Felipe Herrera from Protección (Colombia), Rafael Trejo from Afore XXI Banorte (Mexico), and Juan Pablo Noziglia from AFP Prima (Peru).

Before moving on to panels dedicated to various client segments, Solange Berstein, President of the Financial Market Commission (CMF), will deliver an opening address.

Following this, investment managers from insurance companies will share their perspectives. Attendees will hear insights from Jorge Espinoza from Confuturo, Renato Sepúlveda from Consorcio, Jorge Palavecino from Penta Vida (Chile), Gustavo Morales from Global Seguros (Colombia), and José Pedro Martínez from Rimac (Peru).

Next will be the family office representatives, who will discuss portfolio construction and relationship development. This session will feature Mauro Bergstein, investment manager of Mercury (Brazil), Sebastián Piñera, general manager of Odisea, Patricio Leighton, general manager of Stars Investments (Chile), Raquel Fernández, investment manager of Cuestamoras (Costa Rica), and José Larrabure, investment manager of Allié Family Office (Peru).

Later, the focus will shift to expanding the wealth management spectrum. This discussion will be led by Leonardo Martins, investment manager of Turim, Eduardo Castro, investment manager of Portofino (Brazil), Gabriela Gurovich, general manager of Banchile Inversiones (Chile), Roberto Melzi, investment manager of Vicctus, and Ignacio Arróspide, investment manager of Creuza (Peru).

Private Capital Perspectives

After an invitation-only lunch and remarks from Pablo Antonio García, former Vice President of Chile’s Central Bank, a series of panels dedicated to private capital will take place.

The first will address North American private equity, featuring insights from Ted Oberwager, Partner of Private Equity North America at KKR, John Flynn, Partner at TPG Capital, and Prashant Mehrotra, Partner at Clearlake. The panel will be moderated by Miguel Gravat, Alternative Assets Manager at AFP Capital.

Next, the discussion will shift to European private equity, with Marcus Brennecke, Institutional Partner and Chairman of EQT, Chris Pell, Principal of Permira Equity, and Fabian Wasmus, Partner at Vitruvian Partners. The session will be moderated by Angélica Rojas, Alternative Assets Manager at AFP Cuprum.

Following that, a panel on mid-market private equity will be moderated by Francisco Mina, Foreign Investments Manager at AFP Habitat. This panel will feature perspectives from Rafael Cofiño, Managing Director at Great Hill Partners, Frank Leverro, co-CEO at Kelso, Rich Caputo, Chairman & Chief Executive Partner at TJC, Aaron Sack, Managing Director and Head of Capital Partners at Morgan Stanley, and Bill Chisholm, Managing Partner and CIO at STG.

Finally, there will be a session on innovation, focusing on venture capital. This conversation will include Matthew Brush, Managing Director at DST, Marc Bhargava, Managing Director at General Catalyst, and Alejandro Tocigi, Partner at Kayyak. The discussion will be guided by Matías Muchnick, co-founder and CEO of the Chilean foodtech unicorn, The Not Company.

Category Sweep

On the second day, Thursday, the morning will feature four segments, each dedicated to exploring perspectives in the major alternative asset categories, starting with a presentation by Kipp deVeer, Partner and Global Head of Credit at Ares.

The first segment will focus on direct lending, with Cristóbal Larraín, Alternative Assets Manager at AFP Provida, as the moderator. Panelists will include Mark Bickerstaffe, Managing Director of Private Credit at Hayfin, Mark Liggit, Partner at Ares Credit Group, Sean Sullivan, Managing Director and Head of Direct Lending Origination at Morgan Stanley, Eric Muller, Portfolio Manager and Partner of Private Credit at Oak Hill Advisors, and George Muller, Partner at KKR Credit.

Next, the focus will turn to opportunistic credit, with a conversation moderated by Alexandra Ponce de León, Alternative Assets Manager at AFP Planvital. Panelists will include Kevin Lydon, Managing Director at Strategic Value Partners, Mike Ginnings, Managing Director of Credit Solutions at TPG, Richard J. Grissinger, Senior Managing Director of Credit at Centerbridge, Aaron Rosen, Partner at Ares Credit Group, and Beat Cabiallavetta, Managing Director and Global Head of Hybrid Capital Investing in Private Credit at Goldman Sachs.

The discussion will then shift to infrastructure, where five specialists will explore “a decade of opportunity.” Insights will come from Alex Darden, Head of EQT Infrastructure, Cecilio Velasco, Managing Director at KKR Infrastructure, Karl Kuchel, CEO of Macquarie Infrastructure, Markus Hottenrott, Managing Director of Infrastructure at Morgan Stanley, and Philippe Camu, Chairman and co-CIO of Infrastructure at Goldman Sachs. The panel will be moderated by Rodrigo Ordoñez, Alternative Assets Manager at AFP Habitat.

The regional summit will conclude with a panel dedicated to real estate market trends. Moderated by Daniel Selman, Head of Alternative Assets at AFP Cuprum, the session will feature perspectives from David Selznick, CIO of Real Estate at Kayne Anderson, Paul Rubincam, Partner and European Head of Real Estate at EQT Exeter, Avi Banyasz, Partner at Real Estate at TPG, and Mark Schwarts, Executive Managing Director and Head of Gaming Investments at Sculptor.

Finally, guests of Picton’s anniversary seminar—a by-invitation-only event—will attend a lunch that will feature, in addition to Boris Johnson, a presentation by Chile’s Minister of Finance, Mario Marcel.

Moody’s: We Still See Mexico With Investment Grade, but There Are Concerns

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Mexico is still considered an acceptable country to maintain its investment grade, but there are factors that concern rating agencies.

During the annual event “Moody’s Inside LatAm Mexico,” Renzo Merino, Moody’s sovereign analyst for Mexico, stated that a downgrade of the country’s rating, currently at “Baa2” with a stable outlook, is unlikely. Such a downgrade would require a scenario of greater macroeconomic weakness and institutional deterioration. However, there is indeed concern.

“Despite the judicial reform and other structural changes that will be implemented in the country, Moody’s continues to view Mexico with investment grade, but there are concerns and uncertainties due to fiscal deterioration, weak growth, and the pressure of supporting Pemex,” said the specialist.

“A sharp change in the rating is unlikely without a material shock that affects the credit profile. To put it in context, this only happened during the pandemic,” said the analyst.

In this regard, he added that for a loss of investment grade to occur, there would need to be significant institutional deterioration and weak macroeconomic prospects for the country.

According to the analyst, a year ago, the outlook for the country was still positive, as the arrival of foreign companies was expected to trigger greater investment and economic growth, driven by nearshoring.

“However, many of the investment announcements or projects have not materialized, while political concerns emerged after the presidential elections and the expected changes by the next administration,” he explained.

“In June, our expectation was that Mexico would defy historical trends because election years usually do not bode well in terms of growth. However, with nearshoring, we expected a growth trend of between 2.5% and 3% for the coming years,” said Renzo Merino.

Pemex, the Major Risk

On the other hand, Roxana Muñoz, a Moody’s analyst for Pemex, said that the company could require up to $20 billion in government support by 2026 due to its fragile financial situation.

As a result, the new government led by President Claudia Sheinbaum will face a fiscal puzzle, pressured by high support for Pemex and spending demands from social programs, Moody’s warned.

Muñoz explained that the oil company began and will end the current administration facing numerous challenges, as refineries continue to generate losses, fiscal pressures increase, and no short-term improvement is expected.

In an optimistic scenario, she added that the next administration could surprise with measures such as greater openness to private investment or new agreements with the union regarding pensions.

Moody’s thus clears up doubts at the start of a new administration in Mexico, this time led for the first time by a woman, Claudia Sheinbaum, and confirms that the country will retain its investment grade.

Winning, but Avoiding Losses: This Is How Asset Managers of Alternative Investments Should Think

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Private credit can be sensitive to defaults, but the key for asset managers is to consider the possibility of loss when making investment decisions, Toreigh Stuart, Head and Managing Director of Garrington Capital, told Funds Society.

“Any type of credit, whether public or private, can be susceptible to defaults; however, the risk of loss from such defaults lies in the investment philosophy behind issuing these loans,” Stuart explained.

The executive outlined Garrington Capital’s philosophy for mitigating losses in their loan portfolio, which starts with a mindset of “winning by avoiding losses.”

Stuart highlighted three key pillars to consider when investing in private credit:

1. Lending against the liquidation value of a company’s tangible assets.
2. Keeping loan durations short—Garrington’s portfolio averages less than one year.
3. Ensuring borrowers make cash interest payments rather than “payment-in-kind” to guarantee loan balances amortize instead of increasing.

However, private credit is not the only product within alternative investments. On the contrary, real estate, private equity, and other assets complement and diversify portfolios. According to Stuart, this is due to two main reasons: return potential and diversification benefits.

“Alternative investments become more attractive when the outlook for more traditional investments, such as equities and fixed income, is less clear, leading investors to seek other options,” Stuart commented, illustrating how the prolonged period of low-interest rates “pushed investors to seek alternative solutions for their fixed income allocations, such as private credit, among many other options.”

On the other hand, the only “free lunch” in the investment world is diversification, Stuart noted. By adding non-correlated investments to a portfolio, investors can benefit from better risk-adjusted returns.

“Although alternative investments are not foolproof and come with their own risk factors, many tend to derive returns from different sources, which allows for diversification benefits over time, especially compared to traditional investments in bonds and equities. This differentiated return stream that alternatives can provide is one of the key factors for including a long-term asset allocation to this class,” Stuart explained.

Alternatives and Inflation

An inflationary period presents challenges for companies. Input costs tend to rise, squeezing operating margins unless companies can pass these costs on to customers, and it is often accompanied by rising interest rates, which increase borrowing costs for companies—another hurdle.

Conversely, a deflationary environment tends to have the opposite effect and is generally positive for businesses, Stuart contrasted.

Regarding private credit, in an environment of rising interest rates and inflation, “private credit strategies tend to protect investors as their loans are typically floating rate, meaning that as interest rates rise, the returns these strategies offer to investors also increase,” the executive pointed out.

Furthermore, during a period of declining interest rates and inflation, most floating-rate loans tend to have a minimum rate when issued, thus protecting investors from the full extent of the decline, offering partial insulation.

Financial Education and Alternatives

According to Stuart, education is always a crucial factor for advancing in the fields of finance and portfolio management.

“The alternative asset investment landscape has evolved significantly, from individual investors to the most sophisticated institutions. Large institutions have been using alternative investments for decades, allocating more than 50% of their portfolios to these assets due to a deep understanding and comfort with them,” he explained.

However, when considering Latin America, Stuart noted, “there is still room for growth in awareness and education” around alternative assets in the region.

“There is great potential here, and it is essential for firms like Garrington to continue providing accessible and ongoing educational resources to support the region’s financial evolution,” he concluded.

2023 Was the Worst Year for Argentine Wage Earners in the Last Five Years

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“2023 Marks the Year of Greatest Loss in Purchasing Power Over the Last Five Years, declared Mercedes Bernardi, Senior Manager of New Business Development at Mercer Argentina, Uruguay, and Paraguay, during the Mercer Annual Forum, which brought together over 500 executives and HR leaders from Argentina’s top companies.

In this context, Bernardi conducted a thorough analysis of salary increases in 2024, stating, *’This year, although inflation is progressing at a slower pace than expected, it continues to bring compensation management into focus.’* She also noted that fewer instances of salary increases are anticipated in 2025 compared to this year: *’perhaps four versus six in 2024.’ She added, ‘Only 15% of companies report having a budget for 2025 salary increases.’

Bernardi concluded by forecasting a shift in dynamics for 2025: ‘With inflation declining, merit-based increases are gaining momentum.’

How is Argentina Faring in the Global Talent War?

Ricardo de Almeida, Regional Leader of Mercer Marsh Benefits for Latin America and the Caribbean, highlighted during a special panel that *’Argentina has a major advantage with its demographic bonus, a significant concern for other countries facing labor shortages, although,’ he warned, ‘the country is moving toward that reality within the next 25 to 30 years.’ As such, he emphasized that ‘Argentina needs to prepare for the talent war.’

Agustín de Estrada, Leader of Health & Benefits Consulting at Mercer Marsh Benefits, discussed the challenges of implementing well-being programs, focusing on emotional health in challenging environments. He shared key strategies for achieving the desired impact and, most importantly, sustaining it over time. He also provided an important statistic: ‘64% of companies are taking action to address workforce burnout.’

Guillermo Martin Barbosa, Team Leader of Well-being and Health at Santander Argentina, shared details of self-care programs, internal communication channels, and support communities developed by the company to focus on prevention and early warning tools. He also warned that ‘there has been an 18% increase in mental health issues among employees.’

During the panel on Argentina’s future, experts debated alongside Dolores Liendo, Sales Leader of Marsh McLennan, and Javier Tabakman, Partner and Latin America Career Leader at Mercer, about the current macroeconomic situation and its impact after the government change. Mariana Camino, CEO and President of ABECEB, noted that *’a process of macroeconomic order and normalization is underway, with some encouraging results.’* However, she emphasized that *’the economy has not grown in the last 12 years, and productivity has been affected since 2011. To exit the economic depression, growth needs to be restored, and investment policies must be prioritized. There is optimism for a stable and low-inflation 2025.’*

Regarding the recent labor reform announcement, José Luis Zapata, Partner in charge of the Labor Law Department at O’Farrell Law Firm, stated that *’the new regulatory framework will support employment recovery, as the current labor laws have not been modified in over 50 years and are now obsolete.’*

Rodrigo Solá Torino, Partner at Marval, O’Farrell Mairal, praised Argentina’s healthcare coverage, which is highly regarded regionally but pointed out the country’s significant shortcomings regarding the pension system. Tabakman concluded the discussion by commenting on the shift in the HR agenda: *’During the pandemic, the focus was on inflation and salary increases to ensure employees maintained their purchasing power. Today, the conversation revolves around productivity, acquiring new skills, and integrating AI into the workforce.’*

Generative AI and Other Trends in Human Resources for the Coming Years

Ivana Thornton, President of Mercer Argentina, Paraguay, and Uruguay, kicked off the first session, ‘The New Shape of Work,’ by stating, ‘Unlearning is the path to letting go of old beliefs, knowledge, habits, and behaviors to make room for new paradigms that open new possibilities. AI undoubtedly enhances our work and helps us be faster, more accurate, and efficient.’

Key topics discussed included the rise of generative AI in the workplace, the importance of companies focusing on creating a digital mindset, the growing relevance of change management in HR, and the increasing trend toward skill-based talent management as a key resource for business productivity and sustainability.

Matías Rosales, CEO of Marsh McLennan for Argentina and Uruguay, emphasized that ‘collaboration, teamwork, and continuous innovation are the keys to business success.’ Sebastián Otero, recently appointed Director of Mercer Marsh Benefits for Argentina and Uruguay, added, ‘As leaders, we have a significant responsibility to unlock human potential in this era of artificial intelligence.’

Viviana Cesareo, Senior Manager of Transformation and Talent Management at Mercer Argentina, Uruguay, and Paraguay, analyzed the impact of skills and AI on workforce planning and how HR can address the redesign of talent management processes by understanding current skills and identifying those necessary to face the new world. Fabiana Frattari, Head of HRBPs & Talent at Banco Galicia, reflected on the strategic evolution of talent, the new skills model required for each role, and the need to move away from traditional job descriptions: *’I prefer to talk more about a development map than a career path,’* she emphasized.

Later, María Marta Kenny, Head of Human Resources at IBM for Argentina, Uruguay, and Paraguay, shared her experience in transitioning the company to a skills-based talent management model, which has allowed it to adapt to the constant changes in the labor market, where skills become obsolete in increasingly shorter periods. She reflected on the importance of rethinking the approach to recruitment, learning, growth, and employee development.

In the second session, ‘People at the Center,’ Ángeles de Nicola, Senior Consultant in Mercer’s Health and Benefits area, explained how to design an employee value proposition and holistic well-being—encompassing physical, financial, and emotional aspects—by considering each employee’s experience. She stressed the importance of listening and being close to employees. Laura Barderi, Head of Payroll, Well-being, and Benefits at Movistar (Telefónica Hispam), affirmed that prepaid medical care and Christmas bonuses remain the most valued benefits by employees in their company.”

The Path Toward Lower Interest Rates in Mexico Is Uncertain

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Incerteza en las tasas de interés en México

While the market consensus anticipates that the Bank of Mexico (Banxico) will reduce interest rates in the coming months—a view shared by Bank of America (BofA)—the path remains uncertain.

Mexico’s headline inflation is still close to 5%, the labor market is tight, the peso has weakened, and inflation expectations remain above 3%. These factors, along with others, lead BofA to believe that the road to lower rates is not without risks.

“The direction is clear. The reasons for Banxico to cut rates are evident: core inflation is below 4%, the economy is weak, and the Federal Reserve has already started cutting rates. But there are risks, and the path is uncertain,” the institution stated in a report to its clients.

One risk, for example, is that Banxico may cut rates too quickly.

BofA anticipates that at the next meeting on September 26, Banxico will reduce its benchmark rate by 25 basis points, bringing it to 10.50%, with a decision that could be unanimous (5-0 in the votes of the board members) or possibly a 4-1 vote split.

The U.S. bank also expects Banxico to cut rates gradually but steadily for the rest of this year and into early next year, potentially accelerating the pace once there is more evidence of weaker growth.

“We expect the policy rate to be 10.00% by the end of 2024 and 8.25% by the end of 2025. However, we need to monitor Banxico’s pace of rate cuts closely, among other factors,” noted BofA experts.

BofA also warns of the risk that Banxico could cut rates by 50 basis points this week, bringing the policy rate to 10.25%, in response to the U.S. Federal Reserve, despite inflation still hovering around 5.0%.

Unanimous Consensus for Rate Cut

The Citibanamex survey, which has a long history and widely reflects the sentiment of Mexico’s analyst community, unanimously points to a rate cut by Banxico in the coming days.

The consensus expects a 25-basis-point cut to the interest rate, with most participants (28 out of 36) anticipating this move. However, six participants forecast a 50-basis-point cut in September, and two predict the next change will be a 25-basis-point cut, but not until November.

The median estimate for the interest rate at the end of 2024 has dropped from the previous survey to 10.00% from 10.25%, with a range of 9.50% to 10.50%. For the end of 2025, the median expectation also fell by 25 basis points, to 8.00% from 8.25%, with a wide range of 7.00% to 10.00%.

For the entire month of September, analysts estimate that headline inflation will be 4.7% annually. The consensus predicts a monthly inflation rate of 0.18% or an annual rate of 4.72%, lower than the 4.99% annual rate recorded in August.

Inflation expectations remained relatively stable. The median projection for headline inflation at the end of 2024 stood at 4.55%, slightly lower than the previous survey’s 4.60%, while the core inflation forecast remained at 3.90% annually.

In the Citibanamex survey, exchange rate estimates for 2024 have adjusted slightly upwards. The median projection for the exchange rate at the end of this year was revised to 19.57 pesos per dollar, from 19.50 pesos per dollar in the previous survey. For the end of 2025, the consensus estimate remained unchanged at 19.85 pesos per dollar.

Atlantia Wealth Management Strengthens Its Commercial Team In Switzerland

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Atlantia Wealth Management y su equipo comercial

Carmen Serrano has joined Atlantia Wealth Management in Switzerland as an Associate, where she will support the commercial and management teams in order to enhance the quality of service and advice to their clients.

The hiring of Carmen reaffirms the independent advisory firm’s commitment to growth, both in Spain and Latin America, where they foresee significant organic growth in the next 18 months, the firm explained to Funds Society.

Carmen Serrano began her career in the financial sector in 2017, having worked for the Bank of Spain and Deloitte (Spain) and more recently for Capital Vision (Switzerland). She holds a degree from Universidad Carlos III de Madrid, a master’s degree in auditing from ICADE, and another in financial advisory from Universidad Politécnica de Valencia.

“We feel fortunate to have Carmen join us. Her energy, passion, and creativity will help us continue achieving the company’s strategic objectives,” said the firm.

Atlantia is a Swiss multi-family office that recently entered Spain in the form of an EAFN to advise Spanish and Latin American families.

The firm was founded in 2021 by Juan Araujo, Alberto Gómez Justo, and Carlos García Práxedes, three equity partners who, after starting their careers at other companies, worked together at Banco Santander in Geneva for over 10 years. There, they covered the Latin American market in various regions, and in April 2021, they decided to establish their own advisory firm to provide comprehensive and independent services to their clients.

Assets Invested in ETFs Reached a New Record of $9.74 Trillion in the U.S.

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Assets invested in the U.S. ETF sector reached a new record of $9.74 trillion at the end of August, according to a report by ETFGI.

The sector recorded net inflows of $66.31 billion during the month of August, bringing year-to-date net inflows to a record $643.52 billion, surpassing July’s $9.49 trillion, according to the August 2024 report.

Additionally, assets have increased by 20.1% year-over-year in 2024, rising from $8.11 trillion at the end of 2023 to $9.74 trillion, marking 28 consecutive months of net inflows, the report adds.

“The S&P 500 index rose by 2.43% in August and is up 19.53% year-to-date in 2024. The developed markets index, excluding the U.S., increased by 2.78% in August and 11.13% in 2024. Israel (+7.47%) and Singapore (+5.59%) posted the largest gains among developed markets in August. The emerging markets index rose by 2.01% in August and 10.89% in 2024. Indonesia (+10.79%) and Thailand (+8.62%) recorded the highest increases among emerging markets in August,” said Deborah Fuhr, managing partner, founder, and owner of ETFGI.

In the U.S., the ETF sector had 3,669 products by the end of August, with assets worth $9.74 trillion from 337 providers listed on three exchanges.

On the fixed income side, ETFs saw net inflows of $25.61 billion in August, bringing year-to-date net inflows to $129.54 billion, exceeding the $109.87 billion in net inflows in 2023.

Commodity ETFs registered net inflows of $715.56 million in August, putting the year-to-date net outflows at $1.73 billion, lower than the $5.8 billion in net outflows for the same period in 2023.

Active ETFs attracted net inflows of $20.67 billion during the month, bringing year-to-date net inflows to $180.4 billion, significantly higher than the $74.2 billion in net inflows in 2023.

The substantial inflows can be attributed to the top 20 ETFs by new net assets, which collectively gathered $46.13 billion in August. The Vanguard S&P 500 ETF (VOO US) gathered $7.88 billion, the largest individual net inflow, the report explains.

Miami Is the City With the Highest Real Estate Bubble Risk, According to UBS

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Miami currently holds the highest bubble risk, according to this year’s edition of the UBS Global Real Estate Bubble Index.

Driven by the luxury market boom, prices in Miami have increased by nearly 50% in real terms since the end of 2019, with 7% of that rise occurring in the last four quarters, the report adds.

The U.S. homeownership market is becoming increasingly unaffordable, as the monthly mortgage payment as a percentage of household income is now much higher than during the peak of the 2006–2007 housing bubble.

In Los Angeles, real housing prices have barely increased since mid-2023. Due to the decline in economic competitiveness and the high cost of living, the population of Los Angeles County has been shrinking since 2016. As a result, rents have not kept pace with consumer prices, the study explains.

Despite its low affordability, New York housing prices have not corrected significantly. They are only 4% below 2019 levels and have even increased slightly in the last four quarters.

The Boston housing market has seen a 20% price increase since 2019, outpacing both the local rental market and income growth. However, the local economy has recently taken a hit, particularly due to layoffs in the tech and life sciences sectors, which could signal a shift in this trend.

Globally, real estate bubble risk has decreased in the cities analyzed. In addition to Miami, Tokyo and Zurich also saw their index rise.

However, cities like San Francisco, New York, and São Paulo present a low bubble risk.

Black Salmon Tokenizes Its First Real Estate Project With Fintech Wbuild in the U.S.

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(cedida) Proyecto de Black Salmon en St. Petersburg, en Tampa, Florida

With the goal of expanding access to real estate investment, U.S. real estate investment manager Black Salmon completed its first tokenization of a real estate project in Florida. The transaction, carried out through Chilean fintech Wbuild’s technology, was valued at nearly one million dollars.

According to a joint statement, the two firms partnered to distribute a share of one of Black Salmon’s projects: the development of a 23-story multifamily building located in the heart of St. Petersburg, in Tampa, Florida. The building is situated next to Tropicana Field Stadium and the area’s main commercial districts and entertainment zones.

The companies hailed the operation as a success. The tokenized share was sold in just one week, for a total of nearly one million dollars. This portion represents 10% of the total project, which has an estimated annual return of between 17% and 20%.

Tokenization allowed investors to acquire a token starting at $50,000. Without this technology, the minimum external investment would have been $500,000.

As a result of this success, Black Salmon—managing over $2.1 billion in assets (AUM)—is preparing to launch another project using this method. This second asset is located in the heart of the Medical District in Miami, Florida, and involves the construction of two multifamily buildings.

The tokenization of real estate assets has become a growing trend, allowing property ownership to be divided into small digital tokens, thereby lowering the investment amounts required to access this class of alternative assets.

Jorge Escobar, co-CEO of Black Salmon, highlighted the partnership with Wbuild. The fintech’s expertise, he said in the press release, “enables high-value real estate projects from the United States to be brought closer to Latin American investors.”

Daniel Pardo, CEO of Wbuild, emphasized that the partnership enables direct participation in high-quality investment opportunities. “More family offices, companies, and individuals will be able to access diversified and flexible investment portfolios through our platform,” he commented.

Wbuild offers real estate investments in the U.S., structured as tokens. According to Pardo, in an interview with Funds Society a few months ago, these tokenized assets function as “digital shares” of a company holding the real estate assets.

Patria Launches a Fund to Restore Grasslands and Ecosystems in Latin America

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Fondo de Patria para restaurar ecosistemas

Patria Investimentos announced the creation of the Reforest Fund, in partnership with Pachama, with the goal of raising up to $100 million for reforestation and degraded land restoration projects in Brazil and other Latin American countries.

The fund aims to promote the ecological recovery of these areas by using both native and unconventional exotic species, while also encouraging the bioeconomy through the sale of carbon credits, reforestation timber, and agroforestry products.

According to the announcement, the fund will be structured around two types of projects: ecological restoration, aimed at selling carbon credits, and productive restoration, which includes the sale of timber and other products like cacao and coffee, along with carbon credits. The initiative also focuses on generating social benefits, such as job creation and economic development for local communities.

“Productive ecological restoration, in addition to promoting biodiversity and ecosystem services, generates social benefits for local communities,” the company stated.

The first projects of the Reforest Fund will concentrate on the Atlantic Forest (Mata Atlântica), a highly degraded biome with significant recovery potential. Future plans include expanding to other biomes across Latin America.

The partnership between Patria Investimentos and Pachama leverages the complementary strengths of both companies. Patria contributes “best governance practices, local presence, and the ability to mobilize long-term capital,” while Pachama brings “credibility to access high-quality carbon credit buyers and proprietary technology for project origination and monitoring,” according to the statement.

José Augusto Teixeira, a partner at Patria Investimentos, stated that “this new fund is part of our strategy to expand our product portfolio, complementing our offering with an alternative asset class in which we do not yet operate.” He emphasized that the fund’s projects combine differentiated returns with a positive impact on society and the environment. “The projects respect the environment while delivering positive social and economic impacts for communities,” he added.

The fund marks Patria’s entry into a new segment of sustainable investments, aligning with the growing interest in long-term environmental and social solutions in Latin America.