La Française Real Estate Managers (REM), the real estate asset management company of Groupe La Française, has announced the appointment of Astrid Bonduelle as Investment Director within the healthcare real estate division.
In her new role, Astrid Bonduelle will be responsible for analyzing and evaluating real estate investment opportunities in the healthcare sector. She will report to Jérôme Valade, Director of the Healthcare Real Estate Sector at La Française REM.
Valade stated that over the past three years, and in the current economic context, “healthcare real estate assets have demonstrated their defensive role. Driven by an aging population and the consequent increase in healthcare needs, these investments benefit from sustained demand and can withstand economic fluctuations to some extent. Astrid will contribute to the development of this strategic sector for La Française REM.”
Bonduelle brings to La Française Real Estate Managers extensive experience in the real estate value chain. She began her career in 2020 at Groupama Gan REIM as an investment analyst, where she also supported the management of real estate portfolios. She later joined the real estate management company Euryale, where she honed her investment skills by sourcing, analyzing, and conducting due diligence on acquisition opportunities in the pan-European healthcare real estate sector.
Astrid Bonduelle holds a master’s degree in Real Estate Management from Paris Dauphine University.
“If Wall Street catches a cold, the BMV gets pneumonia; but when New York is booming, the BMV celebrates.” “The BMV is inevitably tied to Wall Street, for better or worse.”
These and other sayings have long been commonplace in the stock markets of Mexico and the United States, referring to the performance of the Mexican Stock Exchange (BMV), historically linked to the influential New York exchange.
Until 2024, when everything changed. Among the many unprecedented events of the year, the performance of the two markets diverged sharply. The numbers are telling: Wall Street soared in 2024, while the BMV stayed grounded—or perhaps even ventured below ground in its performance over the past year.
On Wall Street, the S&P 500 index—the world’s most prominent benchmark—posted a gain of 24.5% in 2024. The Nasdaq recorded the strongest advance, up 31.9%, driven by the global tech boom. The iconic Dow Jones had a more modest gain of 12.9% for the year. On average, the influential U.S. stock market delivered an impressive gain of 23.1% in 2024.
In past years, this performance would have inevitably boosted the Mexican market. At the beginning of 2024, when Wall Street showed signs of a positive year, many expected the BMV to follow suit. But it didn’t happen. While it’s not the first time this has occurred, it is the first time in modern history that the gap has been so pronounced, with gains in New York and losses in Mexico.
The BMV ended the year with a decline of 14.2%, reflecting the challenging conditions under which the Mexican market operated last year. The other stock exchange in Mexico didn’t fare better, with its 2024 results showing a 16.21% drop, also far from New York’s gains.
What Happened? Why Did U.S. and Mexican Indicators Diverge?
Concerns About Reforms
Throughout the year, various analyses highlighted three main risk factors for Mexico. The performance of its stock market suggests investors validated these concerns.
Like many countries, Mexico held presidential elections last year. The process was historic, not only because a woman assumed the country’s highest political office for the first time but also because of the overwhelming voter turnout and support she received. In this sense, the markets showed no fear. Most analysts and independent experts had all but assured Claudia Sheinbaum’s victory, which indeed came to pass.
However, while the political factor did not present any direct risk for investors, one issue stood out: the reforms promoted by outgoing president Andrés Manuel López Obrador (AMLO)—supported by the incoming president and backed by the ruling party’s decisive legislative majority. The most concerning for markets and investors was the judicial reform, which includes electing judges, magistrates, and Supreme Court justices. Many fear that these officials could be government-aligned appointees.
The judicial reform was approved, and an unprecedented electoral process in Mexico will take place this June. But many doubts remain. As a result, fears deepened in the Mexican market during the second half of the year. The BMV reflected this with a 6.87% drop during that period.
The Insecurity Dilemma
Another negative factor for Mexico is the growing public insecurity, where the news continues to be unfavorable. Surveys of financial analysts now rank insecurity as the top internal risk for the country. This hasn’t been the case in the last three decades, since the era of the peso devaluation and the “tequila effect,” which plunged Mexico into its worst economic crisis to date.
The risks associated with insecurity are closely linked to investments during a crucial moment for Mexico, particularly those driven by nearshoring. Many of these investments are being made in northern Mexico, a region currently experiencing significant insecurity crises, such as in the state of Sinaloa.
After the capture of the historic drug lord Ismael “El Mayo” Zambada, there is concern that the crisis could spill over into other states like Nuevo León, Sonora, Baja California Sur, and Baja California Norte, key destinations for major investments and located near Sinaloa.
External Factors
Finally, external elements also contributed to the divergence between the BMV and Wall Street in 2024. One notable factor was the eventual victory of Republican Donald Trump in the November U.S. election. The rest is history.
Unfortunately, the start of 2025 might not bring positive news for the BMV, as Trump assumes office on January 20. Even before taking office, he has threatened Mexico with tariffs on its exports to the U.S. Should these be implemented and persist for a prolonged period, they will undoubtedly impact the Mexican economy.
A New Market Narrative
The time-honored sayings that once linked the trajectories of the BMV and Wall Street may need revising. After all, 2024 was a year of stark contrasts—between heaven and earth—for the two markets.
According to SPIVA (S&P Indices Versus Active), a semiannual report comparing the performance of mutual funds to their benchmarks, published by S&P Dow Jones Indices, Mexican equity funds recorded a negative performance of 41.9% in the first six months of 2024. This figure rises to 85.4% over a 10-year period.
Additionally, in the first half of 2024, 50% of U.S. equity funds denominated in Mexican pesos underperformed the S&P 500®. This underperformance rate increases to 85% and 86.7% over 5- and 10-year periods, respectively.
Meanwhile, global equity funds (in Mexican pesos) faced a tougher first half of 2024, with 77.8% underperforming their benchmark. This percentage expanded to 100% over both 5- and 10-year periods, according to the SPIVA report.
The report also explains that in Mexico, the main index, S&P/BMV IRT, began the year in negative territory and ended the first half of 2024 with a 7.2% decline. Meanwhile, the S&P 500 rose 24.2%, and the S&P World Index increased 21.2% in Mexican pesos during the first half of the year, outperforming local equities.
The Mexican equity market offered ample opportunities for superior returns, with fewer than half of local equity funds failing to outperform the benchmark in the first half of 2024.
The performance of the S&P/BMV IRT was driven by a few significant stocks, resulting in a slight positive skew in stock returns. The average component fell 5.1%, compared to a median decline of 6%.
However, according to the report, 56.8% of stocks outperformed the index during the first six months of the year. In a period when most stocks outperformed the benchmark, the majority of Mexican equity funds capitalized on favorable market conditions for stock selection. As a result, underperforming funds accounted for only 41.9% of the total during the first half of 2024.
Negative Performance in the Second Half of the Year
S&P explains that looking beyond the first half of the year, Mexican equities continued on a negative trajectory during the first four months of the second semester, ending with a 10.2% decline year-to-date as of November 20, 2024.
The proportion of stocks outperforming the S&P/BMV IRT slightly decreased to 47.4%. Meanwhile, the S&P 500 and the S&P World Index maintained strong performance, generating year-to-date gains of 50.2% and 43.3%, respectively, through November 20, 2024.
S&P concludes that as the weeks progress, time will reveal how well Mexican equity fund managers navigated the remaining challenges and opportunities of the year.
For more than two decades, the SPIVA Scorecards by S&P Dow Jones Indices have compared the performance of actively managed funds against appropriate benchmark indices. Initially covering funds domiciled in the U.S., the reports now include funds operating in markets ranging from Australia to Chile.
Donald Trump’s victory in the U.S. presidential election last November has brought significant optimism to cryptocurrency investors and even triggered a rise in bitcoin’s price. However, for outgoing SEC Chairman Gary Gensler, the commission must intensify its regulation of crypto assets, particularly regarding altcoins and market intermediaries, as he stated in an interview with Bloomberg.
The president-elect has nominated Paul Atkins to be the new SEC Chairman starting January 20, 2025. During the announcement, Trump described his pick as “a proven leader in favor of common-sense regulations” and someone who “believes in the promise of strong and innovative capital markets that address the needs of investors and provide capital to make our economy the best in the world.”
These statements have further fueled speculation that the Trump administration will adopt a more lenient stance on market regulations.
With less than two weeks left in his position, Gensler emphasized the need for continued regulation, especially regarding crypto assets. The outgoing chairman, known for the number of sanctions during his tenure, stated that retail investors still do not receive adequate disclosures or information from digital asset companies.
Gensler pointed out that his predecessor, Jay Clayton, who led the agency during Trump’s first administration, brought approximately 80 cryptocurrency-related cases, while under Gensler’s leadership, around 100 cases were filed.
While the SEC under Clayton focused on actions against companies issuing tokens the agency considered securities, Gensler often targeted market intermediaries that violated securities laws related to registration and disclosure, as noted by AdvisorHub.
The SEC has achieved several court victories—along with defeats—in its position that companies are bypassing registration and disclosure requirements under Gensler’s leadership.
“I’ve never seen a sector so tied to sentiment and so detached from fundamentals,” Gensler said, adding that he believes many cryptocurrency projects will not survive.
Gensler announced in November his plans to step down as SEC Chairman on January 20, when Trump takes office. In early December, the president-elect named Atkins as his replacement.
The nominee has expressed support for digital assets, bolstering bitcoin’s rise following Trump’s announcement. Just one hour after the news, the cryptocurrency had increased by 1.25%, surpassing the $97,000 threshold.
The SEC announced that Liquidnet Inc. agreed to pay a $5 million civil penalty to settle charges of regulatory violations. According to the SEC, these charges included failure to implement necessary controls and procedures for market access, inadequate protection of confidential subscriber trading information and related disclosure failures.
As an ATS operator used to facilitate market access for non-broker dealers, Liquidnet is mandated under the SEC’s market access rule to implement meticulous systems to prevent orders that exceed appropriate credit thresholds. However, the SEC’s statement reveals that Liquidnet systematically violated this rule over several years, establishing an excessive default credit threshold of $1 billion.
The SEC’s investigation was conducted by members of the Market Abuse Unit, including Rachael Clarke, Mandy Sturmfelz and Lindsay S. Moilanen, under the supervision of Chief of the SEC’s Market Abuse Unit, Joseph Snasone.
Furthermore, compliance with the ATS exemption from exchange registration necessitates written protocols limiting employee access to confidential subscriber trading information. The SEC determined that Liquidnet’s controls in this area were inadequate, allowing unauthorized access to sensitive data. Additionally, the firm misrepresented the integrity of its market access controls and confidential safeguards.
“Ensuring robust controls for market access and the protection of sensitive trading information is non-negotiable for preserving investor confidence and market integrity,” said Sansone.
Without admitting or denying the SEC’s findings, Liquidnet consented to a censure and committed to remediation measures, including the engagement of an external consultant to enhance compliance with the market access rule and Regulations ATS. The firm will also provide detailed reports and certifications to validate its corrective actions.
According to the Schroders Global Investment Outlook Survey, which interviewed 420 pension fund leaders from 26 regions worldwide representing $13.4 trillion in assets, pension funds globally are planning to increase their allocations to private markets and global equities. Specifically, the study reveals that over 94% of these funds have already invested or plan to invest in private markets, with 27% intending to do so within the next two years.
An interesting finding is that pension funds are particularly focused on private debt strategies (51%), private equity (49%), infrastructure debt (41%), and renewable infrastructure (38%). Additionally, energy transition and decarbonization, as well as the technological revolution, are key themes driving pension fund demand in private markets. Approximately 93% of funds already invest or plan to invest in energy transition, and over a third expect to make new investments in this area within the next 1-2 years.
Demand for global equities is similarly high, with 55% of funds planning to increase their allocations to gain exposure to high-growth markets and sectors. “This trend highlights a strategic shift toward global active management,” the report notes.
Nearly three-quarters (70%) of global pension funds agree that active managers are better suited to provide specialized investment approaches focused on specific sectors, regions, or investment styles. This aligns with the belief that active managers possess the expertise needed to outperform passive products in the current environment, as noted by 59% of respondents.
Alternative fixed-income strategies are also popular, though preferences vary by region: in Asia-Pacific, asset-backed securities (36%) draw significant attention; in EMEA (excluding the UK), pension funds favor sustainable bonds (27%); in the UK and North America, opportunities lie in emerging market debt strategies (27%).
“This study highlights a fundamental shift in pension fund investment strategies, driven by the desire to access high-growth markets and sectors, alongside the need to enhance simplicity and adaptability. In an economic landscape marked by persistent inflation and volatility, we’re witnessing a strategic pivot toward active management, where pension funds recognize the potential of skilled managers to add alpha through allocation flexibility,” said Leonardo Fernández, Managing Director for Iberia at Schroders.
He emphasized that pension funds are increasing their global equity allocations because it allows them to capture growth across diverse regions and sectors while providing the flexibility to dynamically adjust allocations in response to changing market conditions. For pension funds, fixed income remains a core pillar.
Fernández also highlighted the report’s regional findings, which underscore local economic and regulatory differences and varying levels of investor maturity. “Understanding these nuances enables us to better align portfolios with both global opportunities and regional specifics, effectively addressing our clients’ changing needs.”
“Private markets are key for pension funds as they offer crucial means to diversify and enhance portfolio resilience. Sectors like private equity and renewable infrastructure are particularly well-positioned for growth, driven by key trends such as the energy transition and technological innovation. As the interest rate environment evolves, the need for skilled managers to identify and manage these assets intensifies,” Fernández explained.
As Donald Trump’s inauguration as U.S. president approaches, tensions are rising, fueled by both his actions and the broader uncertainties surrounding his administration. Since December 16, 2024, the S&P 500 has lost more than 3% as of January 2, 2025, while Tesla’s stock has dropped 18% after surging over 80% between the presidential election and December 16. Experts warn that Trump’s return to office will likely bring heightened market volatility.
In the days leading up to his swearing-in, Trump has already escalated tensions with threatening statements. “On Monday, following a media report, he vehemently denied any intention of softening his protectionist policies. Yesterday, he lashed out at Canada, Mexico, and Panama, threatening tariffs and even suggesting these countries should be part of the U.S. He also proposed renaming the Gulf of Mexico as the Gulf of America. As during his first term, we must again brace for potentially destabilizing comments,” said Sebastian Paris Horvitz, Director of Analysis at LBP AM, the majority shareholder of LFDE.
Rising Concerns and Market Volatility
Experts agree that Trump’s rhetoric and policies will inject volatility into markets. According to Portocolom, uncertainties about the new administration’s impact raise questions in areas like climate regulation and social cohesion. “During his previous term, significant rollbacks were observed in climate regulations, such as the withdrawal from the Paris Agreement, and a decline in social cohesion due to polarizing policies. These precedents spark concern about the potential influence in these areas again,” they noted.
Gilles Möec, Chief Economist at AXA IM, warned that markets should prepare for significant fiscal volatility in 2025, characterized by political wrangling and limited clarity. Möec highlighted that the “transformation rate” of Trump’s campaign promises into actual legislation is crucial for global macroeconomic and financial prospects in 2025.
“There is a strong belief among investors that the new U.S. administration will follow an ‘error correction’ approach with the market as the ‘judge.’ If U.S. equity markets react negatively to the implementation of some of Trump’s more business-adverse ideas, such as mass deportations or crippling tariffs, it’s likely policies would be recalibrated. This aligns with a low ‘transformation rate,’” Möec explained.
Monetary Policy
Alexis Bienvenu, fund manager at La Financière de l’Echiquier (LFDE), highlighted mistrust toward Trump’s administration, citing concerns over Elon Musk’s controversial inclusion and a less accommodative monetary policy.
According to Bienvenu, the disenchantment stems not only from Trump’s economic policies but also from the Federal Reserve’s less expansive stance. “The Fed cut its benchmark rate by 25 basis points at its December 18 meeting but accompanied this move with a cautious message regarding further cuts, now projecting only two more by the end of 2025. Far from suggesting a swift normalization toward its long-term target, the Fed sees the rate at about 3.9% by late 2025, partly due to higher inflation forecasts compared to the September meeting. The market’s reaction could only be negative,” he explained.
Bienvenu questioned why inflation projections were revised upward when recent data does not indicate a particularly damaging inflationary outlook for 2025. Contributing factors, such as moderation in housing prices, easing in the labor market, and stable oil prices, should help contain inflation. He speculated that these revisions might partly reflect expectations around Trump’s future economic policies.
Challenges Within Trumpism
Eoin Walsh, portfolio management partner at TwentyFour AM (Vontobel boutique), noted the difficulty of distinguishing rhetoric from policy in Trump’s administration but warned of significant potential impacts from proposed measures like tax cuts, immigration restrictions, deregulation, and tariffs.
Walsh believes that as Trump’s policies become clearer and new data on inflation and unemployment emerges, markets will begin pricing terminal base rates for this cycle. “We expect this will help normalize the curve and push 10-year Treasury yields back above base rates. Ultimately, while we don’t anticipate a sustained Treasury rally in 2025, we foresee more volatility, with yields likely ranging from lows below 4% to highs near 5%,” he concluded.
Deep Divisions
Bienvenu also pointed to internal divisions within Trump’s camp as a source of market concern. “The first episode of this tension occurred on December 19 when the Republican-majority House rejected a Trump budget proposal directly influenced by Musk. This nearly caused a federal government shutdown. While a modified version was passed at the last minute, significant concessions on Musk-inspired elements left the divide within the party unresolved,” he explained.
The clash resurfaced around immigration policies, with some Trump allies pushing to ban H-1B visas, prompting Musk to vow to protect them, citing their importance to innovation. Meanwhile, Steve Bannon, a staunch Trump ally recently released from prison, lashed out at Musk, suggesting he “sit at the back of the class until he understands Trumpism.”
“These divisions could persist as Trump balances the interests of Silicon Valley billionaires with Midwestern rednecks. Crucial measures like budget votes could face stalemates, which the market will undoubtedly punish,” Bienvenu added, warning of further legislative battles aboard the “Tesla of Trumpism.”
Florida Realtors published its 2024 Annual Real Estate Market Report, revealing that Argentinian buyers have increased their interest in properties in Miami and South Florida.
While Colombia remains the leading country in property searches in Miami for 32 consecutive months, Argentina has climbed to second place, representing 10% of international buyer activity.
The list continues with Brazil at 6%, Venezuela at 4%, Peru at 3%, and Mexico at 2%, “reflecting a continued demand for properties from Latin American buyers in Miami,” according to a statement accessed by Funds Society.
Among international buyers, approximately 33,900 homes were purchased, accounting for 8% of existing home sales in Florida, with 64% of those purchases paid in cash.
The top buyers by value were from Canada, Brazil, Venezuela, Argentina, and Colombia, reaching a total of $15.6 billion in purchases, representing 11% of the total volume of existing home sales in Florida.
Regarding property types, 35% of acquisitions were for condos or units in buildings, and 66% of international buyers purchased properties for vacation, residential rental, or both purposes.
In terms of regions, Miami-Fort Lauderdale and West Palm Beach dominate, accounting for nearly half (47.3%) of international buyers. They are followed by Tampa-St. Petersburg-Clearwater (11%), Orlando-Kissimmee-Sanford (9.7%), North Port-Sarasota-Bradenton (6.9%), and Cape Coral-Fort Myers (4.7%).
For more information on the report, you can access the following link.
With the returns already in hand and aiming for new opportunities, Credicorp Capital has made changes to its Top Picks portfolio of Latin American fixed income. According to a report, three investment-grade bonds and three speculative-grade securities were replaced in the portfolio.
Investment-Grade Bonds
In the investment-grade segment, the firm removed the JBS 2053 bond, “after strong performance,” replacing it with the IFHBH 29 bond from the Peruvian conglomerate Intercorp. “We expect IFH to be supported by the gradual recovery of its subsidiaries and its recent outlook revision, consolidating its IG status,” the firm noted in the report.
For the mining portion, Credicorp replaced the Southern Copper 2035 bond with debt from Brazil’s Nexa Resources 2034.
“Southern is a strong credit but with little room for spread compression,” they explained, adding, “We do not foresee a short-term positive catalyst, as uncertainty persists around mining reforms in Mexico and the social approval of the Tia Maria project.” On the other hand, Nexa’s bond attracted attention “due to its attractive yield compared to peers and manageable risks, supported by a clear path of operational and financial improvements.”
Lastly, Credicorp Capital decided to swap the Suzano 2029 bond from the Brazilian pulp giant for the company’s 2047 bond. This bond, they noted, “offers better risk-adjusted yields relative to the BBB- curve.” They further highlighted their confidence in Suzano as it “enters the harvest phase of its Cerrado project.”
High-Yield Bonds
On the speculative-grade side, the financial firm decided to remove the 2032 bond of Chilean retailer Falabella. This decision, they explained, was due to the bond achieving its spread target relative to the Cencosud 2031 bond at approximately 50 basis points.
In its place, Credicorp added the 2028 bond of Peruvian company InRetail Consumer. “We believe the bond offers a good yield relative to Cencosud’s,” they explained.
Another change involved swapping the Minsur 2031 bond with the MRFGBZ 31 bond from Brazilian protein producer Marfrig Global Foods. This decision was based on the fact that the former “is trading relatively tight compared to BBB-rated names, considering its split rating limits flows despite its IG credit metrics.”
Additionally, they closed their overweight position in the Hunt Oil 2033 bond, “as its spread differential with the PLUSCM 36 has compressed to ~65 bps compared to the six-month average of ~75 bps.” For this reason, they decided to replace it with the BINTPE 30 bond from the Peruvian financial institution Interbank. “It again appears attractive compared to the BCP 30, offering an interesting yield for a relatively short duration to call,” they noted.
Photo courtesyJohn Cervantes, CFA, new partner and senior investment advisor at Prime Capital Financial
Prime Capital Financial announces the appointment of John Cervantes, CFA, as a partner and senior investment advisor at Crossvault Capital Management in San Antonio, Texas.
Cervantes brings nearly 20 years of experience in financial planning and investment management to the team, according to the firm information.
“With Prime Capital Financial’s extensive resources and the expertise of the Crossvault team, I look forward to providing greater value to my clients, helping them achieve their financial goals,” Cervantes said.
He previously served as executive director and investment advisor at Texas Capital Bank and has held senior roles at Merril Lynch, USAAA, and JPMorgan Chase Bank.
Cervantes holds a Bachelor of Business Administration in Finance from The University of Texas at San Antonio.
