Historic Silver Rally: From Structural Factors to Political Decisions

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Although all eyes are on the record highs gold is setting, the truth is that another precious metal is experiencing a true rally: silver. It posted a spectacular year-end surge that has continued into the early weeks of 2026. In fact, in 2025, the metal appreciated by nearly 150%, clearly outperforming gold.

So far, gold’s current bullish trend has been supported by falling real interest rates, a weaker dollar, and market concern over the implications of rising U.S. public debt levels, the cost of servicing that debt, and the impact on U.S. Treasury bonds. But what factors are driving silver’s performance?

According to Claudio Wewel, currency strategist at J. Safra Sarasin Sustainable AM, the silver market has recorded a structural supply deficit for five consecutive years. “However, this imbalance hadn’t triggered a significant price reaction until 2025, when the uptrend accelerated and took on a virtually parabolic pattern toward the end of the year,” he notes. Wewel attributes this sharp upward movement, which even surpassed the absolute price increases seen ahead of the peaks in 1980 and 2011, to the combination of several factors:

  1. Decline in U.S. interest rate expectations: In the second half of 2025, the market began to focus on the appointment of a successor to Federal Reserve Chair Jerome Powell. “The expectation of a more accommodative Fed, which could implement several rate cuts in 2026, has weakened the U.S. dollar and increased the appeal of non-interest-bearing assets such as silver and gold,” he notes.
  2. Inclusion on the U.S. critical minerals list: In early November 2025, the U.S. Department of the Interior added silver to its list of critical minerals. Thanks to its high electrical conductivity, this material is essential for manufacturing high-performance chips and for the development of infrastructure linked to artificial intelligence. Its inclusion on the list, along with fears of potential U.S. tariffs on silver, alerted the market to potential supply risks and prompted an advance in silver shipments to the U.S. As a result, the London market recorded physical outflows of the metal, reducing local reserves.
  3. Chinese export restrictions: Since the beginning of the year, China has implemented stricter controls on silver exports. This decision is part of a broader strategy to secure access to critical minerals and limits silver exports during 2026 and 2027 exclusively to government-approved companies.
  4. Growing relevance as a store of value: Finally, silver is gaining prominence as a monetary metal. Compared to other commodities, its storage cost is low, and it has a long historical track record as a key material in coinage. The high per-unit cost of physical gold purchases is excluding many low- and middle-income buyers in emerging markets, positioning silver as a more “affordable” alternative to gold in these countries. As a result, household demand has increased in India and China. In Shanghai, buyers are paying a premium of around $10 per ounce over the London market price.

“The sharp surge in the price of silver has brought the gold/silver ratio to around 50. Given that this indicator fell to levels near 40 in previous bullish cycles, silver could significantly surpass $100 per ounce in the current cycle. In principle, our positive view on gold supports this scenario, and speculative positions do not appear excessive,” states Wewel.

However, he warns that although the physical supply deficit should keep silver prices elevated in the short term, the metal tends to experience much deeper corrections than gold after a prolonged rally due to its higher volatility. “Since momentum is losing strength, the risk-return balance now seems less attractive for silver. This also implies that, from these levels, it should be difficult for silver to continue outperforming gold,” he concludes.

Rick Rieder and the Fed: The ‘Outsider’ Candidate Who Reopens the Debate

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The possible nomination of Rick Rieder, Chief Investment Officer of Global Fixed Income at BlackRock, as the next chair of the U.S. Federal Reserve has reopened debate among investors, economists, and monetary policy analysts. At stake is not just a name, but the leadership profile the Fed needs at a time when its traditional policy framework is under scrutiny.

With Jerome Powell’s term coming to an end, Rieder has emerged as one of the most visible candidates, despite being clearly outside the central banking establishment. According to an analysis by EFG International, his potential appointment would be historic: Rieder would be the first Fed chair in decades without prior experience at the central bank or academic training as an economist.

An Outsider Versus the Traditional Model

In a note signed by Stefan Gerlach, Chief Economist at EFG, the bank highlights that while Powell is also not a career economist, he had a long track record within the Federal Reserve before assuming the chair. Rieder, by contrast, comes exclusively from the world of financial markets, having built his career at firms like Lehman Brothers and more recently, since 2009, according to his LinkedIn profile, at BlackRock, where he oversees approximately $2.7 trillion in global fixed income assets.

This unconventional background is precisely the heart of the controversy. For Bob Smith, President & Co-Chief Investment Officer at Sage Advisory, the contrast between “insider” candidates, such as Christopher Waller or former governor Kevin Warsh, and a clearly external figure like Rieder raises a key question: is institutional credibility more important today, or direct market experience?

One of the main concerns raised by both EFG and Sage Advisory is the reputational risk associated with the Fed’s independence. The fact that Rieder comes from the world’s largest asset manager could fuel perceptions of a central bank more closely aligned with private-sector interests, at a time when its autonomy has already been a subject of political and media debate.

EFG’s Chief Economist recalls that history offers discouraging precedents when the Fed has been led by figures lacking a strong technical foundation in monetary policy, citing the case of G. William Miller in the late 1970s, whose tenure coincided with a decline in the Fed’s credibility in the face of inflation.

Sage Advisory, meanwhile, notes that the Fed’s institutional design, with collegial decision-making within the FOMC and well-defined operating frameworks, serves as a natural check on any attempt at individual influence, although it acknowledges that market perception plays a central role.

Diego Albuja, market analyst at ATFX LATAM, points out that “Rieder’s profile is technically solid. His decades-long career in fixed income markets has allowed him to closely analyze inflation, interest rates, liquidity, and credit, precisely the core pillars on which monetary policy operates. This would give him a clear advantage in interpreting how markets react to each Fed decision and how those decisions are transmitted to the real economy.”

However, Albuja clarifies, unlike other chairs, Rieder does not come from academia or the internal structure of the central bank. “This means his main challenge wouldn’t be economic analysis itself, but rather managing institutional credibility, communicating with the market, and sustaining public confidence in an increasingly sensitive political and financial environment.”

“The fixed income investment chief at BlackRock, who has never held political office, would bring a perspective grounded in granular, data-driven corporate analysis, rather than in economic theories and models,” wrote Krishna Guha, head of global policy and central bank strategy at Evercore ISI, in a note quoted by CNBC. “Markets are likely to embrace Rieder as one of their own,” he added.

A Shift in the Approach to Monetary Policy?

From a macroeconomic perspective, analyses agree that Rieder would likely be seen as a chair more attuned to current financial conditions than to retrospective analyses of inflation and employment. EFG notes that this approach could translate into quicker responses to market changes, though it would also pose a challenge for maintaining coherence and predictability in monetary policy.

In that context, voices like that of macro analyst Nic Puckrin, co-founder of Coin Bureau, suggest that Rieder could soften the tone of the Fed’s communication and give more weight to financial stress indicators, without necessarily signaling an aggressive turn toward rate cuts.

ATFX LATAM’s market analyst believes that Rick Rieder has the technical capacity and market experience to lead the Federal Reserve, “but his true test would lie in preserving the central bank’s independence and credibility. If successful, he could usher in a more pragmatic era in monetary policy; if not, the cost could show up in greater volatility and reduced effectiveness of the Fed’s decisions.”

“Rieder is an unconventional candidate,” notes Puckrin, “but maybe that’s exactly what’s needed at a time when the market is questioning how effective traditional policy tools really are in fulfilling the Fed’s dual mandate.”

Beyond the candidate himself, the consensus among the sources cited is that the discussion around Rieder reflects a deeper tension within the U.S. financial system: the need to adapt monetary policy to a more complex environment, without eroding the central bank’s credibility or independence.

Insigneo Partners With Karta to Launch a Premium Credit Card

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Photo courtesyPresentation of the alliance between Insigneo and Karta in Punta del Este

Insigneo announced in a statement a strategic alliance with Karta to launch a premium credit card for globally mobile, high-net-worth clients with assets in the U.S.

“Thanks to this alliance, Insigneo becomes the first wealth management firm to secure exclusive rights to a co-branded credit card with Karta, reinforcing its leadership in delivering innovative solutions for international clients,” the statement said.

The new Insigneo x Karta card addresses a long-standing gap in the market: international high-net-worth clients with assets in the U.S. have historically been underserved by traditional credit card offerings, often relegated to low-tier debit products with minimal benefits and inadequate service.

“Our clients don’t see limits in their financial lives, and their financial tools shouldn’t have them either,” said Raúl Henríquez, chairman of the board and CEO of Insigneo.

“This alliance with Karta allows us to complement our wealth management platform with a solution tailored to the sophistication and global lifestyle of our clients. It’s not just about managing wealth, but about empowering its daily use, aanywhere in the world,” he added.

The Insigneo x Karta credit card offers premium features designed for this demographic. Cardholders enjoy seamless spending across currencies and borders, with no foreign transaction fees, while Priority Pass Select provides complimentary access to more than 1,300 airport lounges worldwide.

The KARTA Points rewards program offers flexible redemption options with major airlines, hotels, and premium partners. Upon approval, clients receive instant digital access, with immediate availability on Apple Pay and Google Pay. The 24/7 multilingual customer service via WhatsApp ensures personalized assistance in the client’s preferred language, while the fast, fully digital onboarding process delivers a streamlined approval experience designed to meet modern expectations.

“The clients Insigneo serves are exactly the ones we created Karta for,” said Freddy Juez, CEO and founder of Karta.

“They expect a premium experience in their investments; now they’ll have that same quality of experience when they spend, travel, and seek assistance anywhere in the world. This alliance validates our vision and brings it to a community that truly values innovation and excellence in service,” Freddy Juez added.

This partnership was officially presented in early January 2026 at Insigneo’s Sunset event in Punta del Este, Uruguay.

Insigneo is a wealth management firm that provides services and technologies empowering investment professionals. Insigneo serves more than 300 investment professionals and 68 institutional firms supporting over 32,000 clients.

Karta is a next-generation financial services company focused on serving high-net-worth individuals (HNWIs) and globally mobile clients who do not reside in the U.S. and whose assets are held at U.S. banking and brokerage institutions.

Miami Once Again Leads Foreign Real Estate Investment in the U.S.

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Miami once again positioned itself as the top real estate market in the United States for international buyers, with a strong presence of Latin American capital, according to the latest International Report by MIAMI REALTORS®. The report confirms that the city leads both in transaction volume and in the share of foreign buyers as a percentage of total residential sales.

According to the study, 15% of home purchases in the Miami metropolitan area were made by international buyers during 2025. This figure contrasts sharply with the national average, just around 2%, and Florida’s state average, close to 5%, underscoring the exceptionally global nature of the South Florida market.

Latin America, the Engine of Investment Flow

The report shows that Latin America remains the main source of international demand. Colombia and Argentina topped the ranking of countries of origin for foreign buyers in Miami, followed by Mexico, Brazil, and Venezuela, among others. For these investors, Miami’s real estate market continues to serve as a vehicle for preserving wealth in dollars and an alternative to the macroeconomic volatility in their home countries.

In terms of activity, international buyers acquired more than 5,300 properties in 2025, compared to around 4,000 the previous year. The total amount invested reached $4.4 billion, solidifying Miami as the number one market in the country for foreign residential investment.

Florida is the top destination for international homebuyers in the United States (21% of all sales), according to the 2025 Profile of International Transactions in U.S. Residential Real Estate by the NAR. Florida has been the number one state for foreign homebuyers for the past 17 years.

Approximately half of all international home sales (45%) in Florida take place in Miami, Fort Lauderdale, West Palm Beach, according to the 2025 annual profile by Florida Realtors on international residential real estate activity in the state.

Security, the Dollar, and Long-Term Returns

According to MIAMI REALTORS®, 93% of international buyers identified capital security, the stability of the U.S. legal framework, and Miami’s strategic location as key factors for investing. Florida’s favorable tax environment, with no state income tax, adds to the appeal, along with a market known for high liquidity and sustained demand.

For high-net-worth Latin American investors, Miami real estate also plays a key role in international portfolio diversification, combining potential rental income in dollars, residential use, and protection against country risk.

The report also highlights the growing presence of international buyers in the new development and pre-construction segment, where foreign capital represents a significant share of sales. These types of projects are especially attractive to Latin American investors looking to enter at early stages, with staggered payment plans and potential for asset appreciation before delivery.

Areas with the highest concentration of these transactions include Brickell, Downtown Miami, Edgewater, and Sunny Isles, neighborhoods that combine urban development, international connectivity, and strong structural rental demand.

The Story of How Gold “Dethroned” U.S. Bonds

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Tensions have eased for now, but the controlled disorder on the geopolitical front is here to stay, which also brings a new perspective on the role of certain financial assets. According to some experts, while gold is gaining traction among investors, U.S. Treasury bonds, another classic safe-haven asset, appear to be suffering a noticeable loss of relevance as an investment asset.

The trend analysts observe is that investors are increasingly using gold as a hedge against equity risk, displacing long-term Treasury bonds. “This shift reflects a structural collapse in the traditional relationship between equities and fixed income: since 2022, correlations have remained close to zero, which has eroded the effectiveness of bonds as a diversifier. Historically, duration exposure cushioned declines in risk assets. However, recent episodes, such as the drop after Liberation Day, where equities and long-term bonds were sold simultaneously, have undermined confidence in bonds as a reliable hedge,” notes Lale Akoner, Global Market Analyst at eToro.

Flows show that investors are allocating to equities and gold simultaneously, while reducing exposure to long-term bonds. For Akoner, this trend reflects more than just inflation hedging and a reallocation in portfolio risk management. “If the correlation between bonds and stocks remains unstable, gold’s role as a volatility buffer could solidify, redefining how portfolios hedge downside risk across the cycle,” she explains.

The Loss of the Throne

Since the mid-1990s, bonds issued by the U.S. government have become the world’s most widely used reserve asset, dethroning the one that had reigned until then: gold. As Enguerrand Artaz, strategist at La Financière de l’Échiquier, explains, paradoxically, that crown they held was largely thanks to Europe. “While U.S. debt gradually gained presence in reserve assets, gold’s share quickly declined and European central banks sold their gold reserves to prepare for the advent of the euro. Thus, the yellow metal fell from 60% of global reserves in the early 1980s to 10% in the early 2000s. In parallel, U.S. Treasury bonds rose from 10% to 30%. These levels remained generally stable for two decades. However, the situation has reversed again. In fact, after overtaking the euro in 2024, gold has once again surpassed U.S. debt in global reserves since September 2025,” says Artaz.

In his view, this shift is explained by two underlying dynamics. The first is the gradual erosion of the volume of U.S. debt held by foreign investors since the mid-2010s. And the other ongoing dynamic is the strong increase in gold purchases since 2022 amid greater geopolitical uncertainty driven by the conflict between Russia and Ukraine.

The expert believes there are good reasons for these two dynamics to continue: “The return of geopolitical conflicts and a gradual but powerful trend toward the regionalization of the world favor the use of gold as a reserve asset: gold is not directly dependent on a state and is virtually the only asset capable of absorbing the flows leaving U.S. bonds.”

One data point that helps contextualize this reflection is that the gold and U.S. debt markets are of comparable size, around 25 and 30 trillion dollars, respectively, and far larger than other asset classes. According to the analysis by the LFDE expert, “this phenomenon has accelerated in recent months in parallel with the sharp increase in the price of gold (139% since the end of 2023), but also structurally: the aggressive trade policy of the Trump Administration has heightened the propensity of central banks and investors to abandon the dollar as the preferred safe-haven asset.”

In a final reflection, Artaz points out that doubts about the “health of U.S. public finances” and increased disaffection with U.S. debt could cause the dollar to lose its status as a reserve currency. “There’s only one step left, but it would not be wise to take it. Adding all instruments together, the dollar remains the world’s primary reserve asset and, even if gold dethroned it, it would still be a reference. On the other hand, the U.S. debt market, which is 30% held by investors outside the U.S., could become a geopolitical battleground. That would allow gold to continue to shine,” he concludes.

Outside the Geopolitical Battle

Artaz’s conclusion deserves a few lines: could large holders of U.S. debt end up using their bonds as a “weapon”? For example, it caught the attention of the investment community that last week, two Danish pension funds and one Swedish fund announced they were actively selling U.S. bonds.

Moreover, it’s worth remembering that China, in particular, has reduced its purchases of U.S. bonds by nearly 40% since 2013. This move has been replicated by several central banks in Southeast Asia, increasingly inclined to align with the Chinese yuan rather than the dollar on the monetary front. In contrast, Japan, which remains the largest foreign holder, has maintained the absolute value of its portfolio, but the percentage has dropped sharply, from 10% of total U.S. negotiable debt in 2010 to less than 5% today. Meanwhile, other developed countries have globally maintained their percentages but without increasing them, and only the United Kingdom has effectively increased its investments in U.S. debt.

It is inappropriate to assert that these movements are driven by geopolitical intent, but we can indeed analyze the likelihood of such a scenario. For example, Eiko Sievert, director of public and sovereign sector ratings at Scope Ratings, considers it unlikely for the EU. “The possible sale and rebalancing of reserves into other currencies or assets would be gradual and unlikely to result from a legislative act or moral suasion by EU authorities in response to Trump’s retaliations. Moreover, private investors will be very careful not to harm the value of their portfolios, which could occur if large amounts of U.S. debt were sold in a short period,” he explains.

According to Sievert’s analysis, such a sale of assets would also entail risks to a greater or lesser extent, depending on the pace and scale of the sale. And given the interdependence, unless those selling U.S. debt purchase EU or member state debt, there would be a contagion effect on EU spreads as well. “The implications could be far-reaching, as reduced demand for the U.S. dollar could also lead to a strengthening of the euro, which could weaken economic growth in EU member states focused on exports. In fact, on a global level, a massive sell-off would likely generate volatility, widen spreads, and affect the money market, with possible implications for global liquidity, potentially prompting intervention by monetary authorities,” he concludes, describing a scenario that remains quite distant.

Deborah Draeger: “The Future of ETFs Lies in Greater Sophistication and Education”

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Photo courtesy

The exponential growth of ETFs ceased long ago to be explained solely by flows, costs, and operational efficiency. As these vehicles become established as central tools in portfolio construction, the focus is shifting toward education, innovation, and talent development. It is within this context that the perspective of Deborah Draeger, Co-Head of the South Chapter US of Women in ETFs (WE), is framed, a professional path that combines financial advisory, active management, and work with index providers.

In an interview with Funds Society, Draeger spoke about how the industry has changed with the structural incorporation of institutional investors into exchange-traded funds, anticipated greater sophistication in the use of these vehicles, with fixed income gaining more prominence and new formats emerging, and also said that the US Offshore market will be one of the catalysts for the next stage of adoption.

“Over the course of my career, my focus has increasingly aligned with ETFs,” said Draeger, who holds a Bachelor’s degree in Business Administration & Finance from Hardin-Simmons University in Abilene, Texas, and a Master’s in Investment Management and Financial Analysis (MIMFA) from Creighton University in Omaha, Nebraska. Her professional journey also explains her commitment to WE, the global organization founded in 2014 that seeks to connect, support, and inspire industry professionals through education, networking, and mentoring. Today, WE has over 13,500 members worldwide and continues to expand its regional presence.

Since 2021, Draeger has co-led the South Chapter US, a regional chapter created to fill a geographic gap and which now organizes events, educational programs, and professional development activities across 11 southern US states. The goal is to support an industry that is growing not only in size but also in complexity.

From a market perspective, Draeger identified two major drivers behind the sustained growth of ETFs: greater financial education and the validation of the product through multiple cycles of volatility. “The industry moved from the debate between active and passive management to a much more practical discussion on how to use ETFs efficiently in different market contexts,” she explained to Funds Society.

This change is also reflected in the investor profile. Following initial adoption by the retail segment, institutional use has strongly increased. Today, ETFs are a structural part of institutional portfolios, both for core exposures and for liquidity management, hedging, and tactical positioning, solidifying their role as versatile tools within asset allocation.

A Dynamic Sector

Looking toward 2026, the ETF industry is heading into a phase of greater product and usage sophistication. Alongside the expansion of core equity, fixed income ETFs are experiencing sustained growth, shifting from tactical tools to structural components of portfolios, both in models and in direct allocations. “We are seeing that fixed income ETFs are no longer used only for short-term adjustments, but as permanent building blocks within portfolios,” stated Deborah Draeger. This shift reflects a combination of greater depth in the available universe, improvements in liquidity, and an environment in which investors seek operational efficiency without sacrificing flexibility in risk management.

In parallel, innovation in formats and strategies is accelerating. Active ETFs, model-based solutions, and the incorporation of new narratives are expanding the menu for advisors and institutional investors. “The conversation is no longer only about beta or costs, but about how to use ETFs more precisely and with greater sophistication,” explained Draeger, who holds certifications in Private Markets and Alternative Investments from the CFA Institute; in Blockchain and Digital Assets (CBDA) from the Digital Assets Council of Financial Professionals; and in Fixed Income (CFIP) from the Fixed Income Academy, among other professional credentials.

In this context, she explained, the growth of the US Offshore market and the use of UCITS structures appear as key catalysts: “It’s one of the drivers of the next wave of adoption,” she stated, adding that this is driven by more informed demand and the need to integrate tax efficiency, regulation, and global access in portfolio construction.

Draeger, who was a financial advisor, worked with a fixed income active manager and with tactical strategies in ETF models, and until recently represented index provider S&P Dow Jones Indices, does not see a saturation point for the industry, but rather a new stage marked by increased sophistication. In her view, ETFs will continue to gain ground in fixed income, both as individual building blocks and within models, and will broaden their presence in specific sectors and more specialized strategies. Added to this is growing interest in new investment narratives and innovative formats, in line with the evolution of the capital markets.

For WE, this shift also entails an educational responsibility: from derivatives in ETF format to the emergence of new instruments and narratives (longevity, tokenization, digital assets). Along these lines, Draeger mentioned in the interview the acceleration of conversations around tokenization: on January 19, 2026, NYSE announced the development of a platform for on-chain trading and settlement of tokenized securities, with potential 24/7 operation subject to regulatory approvals.

For Women in ETFs, this process reinforces the importance of education as a strategic pillar. “As ETFs become more sophisticated, understanding how they work, how they integrate into portfolios, and what implications they have is no longer optional,” concluded Draeger. In parallel, the organization continues working to expand talent diversity in the industry, under the premise that product growth and professional development must advance together.

The Geopolitical Outlook Casts a Shadow Over the Dollar

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geopolitical outlook and dollar
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Unlike in previous years, currency markets in 2025 were largely driven by geopolitics, and following a wave of new political developments in the early days of 2026, that trend appears likely to continue. According to experts, this is particularly true for the U.S. dollar.

In fact, the greenback has weakened notably over the past week: the DXY index has fallen by approximately 2%, and the euro/dollar exchange rate is now trading below the firm’s three-month forecast of 1.18. Analysts explain that this has happened despite a solid growth outlook in the U.S. and expectations that the next Fed rate cut won’t arrive until June.

“The recent weakness of the dollar seems to be largely driven by inconsistencies in U.S. foreign and domestic policy, which have undermined investor confidence. As a result, narratives around currency devaluation have resurfaced, pushing the dollar lower even in the absence of macroeconomic catalysts. Although it has weakened, it remains significantly overvalued. That’s why we continue to expect further declines as its interest rate advantage narrows,” says David A. Meier, economist at Julius Baer.

That said, not all analyses place the full weight of the dollar’s decline on geopolitics. In the view of Jack Janasiewicz, portfolio manager at Natixis IM Solutions, the recent drop in the U.S. dollar stems from moves in the Japanese yen, following weekend speculation about potential Fed intervention in the USD/JPY exchange rate. However, beyond these technical factors, he acknowledges that “the tensions over Greenland have weakened confidence in the U.S. dollar, which is why we’re seeing it hit recent lows again.”

A Trend Since 2025

Last year, the dollar’s decline was concentrated mainly in the first half of 2025, following President Trump’s announcement of reciprocal tariffs in April, marking a significant escalation in his global trade war.

“The dollar’s depreciation largely reflected a sharp rise in currency hedging on expectations of a weaker dollar. European currencies posted double-digit gains as the ‘sell America’ market narrative took hold in the second quarter of 2025, prompting a rotation into European assets. Precious metals were the main beneficiaries of the uncertain political backdrop in 2025, with gold rising 65% and silver surging by a spectacular 145%,” recalls Claudio Wewel, FX strategist at J. Safra Sarasin Sustainable AM.

Latin American Investors Rediscover Their Passion for the Region

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Latin American investors
Wikimedia CommonsSao Paulo, Brasil

In a context where Latin American investors of all types are increasingly turning to alternative assets to build their portfolios, capital from the region is once again focusing on neighboring markets. With particular attention to Brazil and Mexico, a Preqin survey revealed that Latin American investors see the best opportunities within their own region.

In a poll conducted late last year, professionals surveyed by the alternatives-focused firm identified Latin America as the region with the best investment opportunities over the next 12 months. Sixty-seven percent of participants expressed this view, surpassing the 43% who expect better opportunities in North America.

This marks a clear shift from the previous year’s survey, when 79% expected the main investment opportunities to be in the North, and only around 45% were focused on Latin America.

According to Juan Carlos Martín, founder of Mexican firm Galleon Capital, this reflects a secular trend, though some cyclical macroeconomic factors may also be at play. “The region offers some nearshoring-related opportunities that are attracting international GPs to buy in the region,” he explained during a Preqin webinar. He added that international managers have been more active in the region over the past four years.

Market timing is also a factor, with higher real interest rates affecting asset valuations and creating what Priscila Rodrigues, head of FOF Alternatives at Brazilian manager XP Asset, described as a “buyer’s market.” “Investors who understand long-term investment perspectives know that this is the right time to be deploying capital,” she said, noting that companies are well positioned to generate value as rates decline. “I’m seeing more local appetite because of that,” she added.

When broken down by market, the region’s two largest economies are also seen as the most attractive destinations. Seventy-three percent of respondents believe Brazil offers the best opportunities this year, followed by 63% pointing to Mexico.

Preference for Private Debt and Infrastructure

One alternative asset class, in particular, is capturing Latin American investors’ attention: private debt. When asked about the best opportunities by asset class, private debt topped the list, with 58% of respondents choosing it.

Next, each with 46% of preferences, were infrastructure and private equity. While the interest in private equity aligns with global appeal, Latin America stands out for its relatively higher interest in private debt and infrastructure compared to global figures.

Unsurprisingly, these three asset classes also lead in future investment intentions. A strong 60% of professionals surveyed said they plan to increase their positions in private debt, followed by 48% for private equity and 41% for infrastructure.

What makes these strategies attractive? For Martín, part of private credit’s appeal lies in its relation to one of the major challenges in alternative investments: liquidity. Private debt assets, he explained, tend to be “self-liquidating” over time as the borrower repays. “By year seven, you’ve recovered almost all your capital,” he emphasized.

At Colombian MFO Ikalon, the view is similar. Sebastián Valderrama, head of alternative investments at the firm, called the asset class in Latin America “a massive opportunity,” given the significant financing gap, larger than the global average, and the presence of “very interesting credit counterparties” that can align with “strong covenants.”

As for infrastructure, Valderrama also sees a favorable outlook. “In the region, many countries are 20 to 30 years behind in their infrastructure plans, and there’s also poor management and energy deficits. So infrastructure itself is going to be a very interesting segment in the medium and long term,” he explained.

Growth and Innovation

Although alternative assets still represent a smaller share of portfolios than in developed markets, they are occupying an increasingly larger portion of Latin American portfolios, according to Preqin data.

Globally, average institutional allocation to alternatives stands at 19.6%, out of a total of $8.9 trillion in AUM as of 2024. This includes 6.3% in private equity, 5.6% in real estate, 2.9% in hedge funds, 2.2% in infrastructure, 1.6% in private debt, and 0.8% in natural resources.

This marks progress compared to just a few years ago. In 2022, when global institutional AUM was around $7.6 trillion, 15.7% was allocated to alternative assets.

In Latin America, allocation levels vary by country, due to differing regulations and restrictions, and by manager, but Galleon Capital, XP Asset, and Ikalon all note that allocations tend to be lower than the international average.

There has also been growing interest from other types of clients, such as family offices. “They’re seeking alpha, and some of them have already been investing in alternatives internationally,” said Rodrigues, adding that this segment faces fewer restrictions when investing abroad than pension funds in Brazil.

“Each year, the entire segment has become more and more sophisticated. We’re seeing more family offices using an alternatives-based approach, both locally and regionally,” added Valderrama, noting that product innovation, such as semi-liquid strategies, open-ended funds, secondaries, and continuation funds, is helping to meet the demand for liquidity.

Miguel Ángel Sánchez Lozano Appointed Global CEO of Santander AM

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Miguel Angel Sanchez Lozano
Photo courtesyMiguel Ángel Sánchez Lozano, interim global CEO of Santander AM.

In place of Samantha Ricciardi, who will officially leave the firm this Friday, the asset manager has appointed Miguel Ángel Sánchez Lozano as interim global CEO. According to an internal statement, he will take on these responsibilities alongside his current role as head of distribution for the Santander network at Santander Asset Management (SAM).

With this appointment, the firm re-establishes visible leadership following the announcement of Samantha Ricciardi’s departure. The move comes as the bank has just completed the integration of its two asset managers, Santander Asset Management and Santander Private Banking Gestión, creating a single entity with approximately €127 billion in assets under management.

A Homegrown Professional

Sánchez Lozano joined the SAM Group in January 2019 as CEO of Santander Asset Management and Santander Pensiones in Spain. Prior to this, he held various roles within Grupo Santander. Before taking on his role at SAM Spain, he served as head of investment product distribution at Santander Corporate and Investment Banking. In 2013, he joined Grupo Santander as head of treasury product distribution (FX & FI and RSP) at Santander Global Corporate Banking.

Before joining Santander, he was deputy general manager at Banesto, where he was responsible for treasury product distribution. Earlier at Banesto, he also served as head of investment products. Miguel Ángel began his professional career at Banesto in 1996, where he held roles in FX & equity trading and structuring.

He holds a degree in economics from CEU Luis Vives, and two postgraduate qualifications: a General Management Program from IESE and a master’s degree in financial markets from CEU. He has also completed the Advanced Specialization Program in Options and Financial Futures from the Options and Futures Institute and a behavioral finance program from the Chicago Booth School of Economics.

Alta Vera Global Capital Advisors Appoints Michael Vaknin as CIO

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Michael Vaknin appointed CIO
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Alta Vera Global Capital Advisors appoints Michael Vaknin as chief investment officer. Vaknin spent eight years as chief economist at JP Morgan Private Bank, where he also served as chairman of the investment committee.

“Big news for Alta Vera Global Capital Advisors,” wrote Jerry García, co-founder and CEO of the independent wealth management firm, on his LinkedIn profile.

“We’re pleased to welcome Michael Vaknin, former chief economist of JPMorgan Private Bank and Goldman Sachs veteran, as our chief investment officer,” he added.

García noted that Vaknin brings “a rare combination of deep macro insight, private markets experience, and direct work with some of the world’s most sophisticated families. His perspective on long-term capital allocation, fiscal dynamics, and alternative strategies is exactly what ultra-high-net-worth investors need today.”

As the independent wealth space continues to evolve, building an institutional-quality platform has never been more important, and this represents a major step forward for us, he said.

Before joining JP Morgan Private Bank, Vaknin spent seven years at Goldman Sachs as a senior economist. Based in New York, he holds a Ph.D. in economics and statistics from Columbia University.

Michael Vaknin also shared a post on LinkedIn, saying he was “thrilled” to join Jerry García and Alta Vera’s other co-founder, Chris Gatsch, to “deepen collaboration with the team at Merchant Investment Management.”

“I’ve spent my career inside large global institutions, and I’ve always believed there was a more objective way to serve complex families,” he wrote in his LinkedIn post.

“While the largest family offices have had the scale to go independent for years, the ‘core’ UHNW segment still struggles with fragmented wealth, inefficiently managed across multiple isolated silos,” he explained.

According to Vaknin, the timing is ideal, as “the independent architecture has finally matured, allowing us to manage a client’s entire balance sheet, regardless of where assets are held, with world-class reporting and aggregation.”

The hire is a key move for Alta Vera as it strengthens its offering of investment solutions for ultra-high-net-worth families and independent strategic advisors. The firm, which launched with nearly $400 million in assets under management, is focused on building a platform that combines wealth management services, capital solutions, and sophisticated risk-return strategies for demanding clients.