Friday , December 3 2021

Five themes that will mark fund managers 2019.


In Latin America, the outlook for this business is optimistic, according to Moody's rating agency.

There is very little that can be done with regard to investments for this year. By 2018, we now played, now we have to think about what will come up to 2019. It's exactly what Moody's risk assessment agency does, seeing a calm panorama of the Latin American universe of asset managers, giving it a "stable" perspective for the industry

But not everything is calm, then The international company has identified five edges that will define the development of the business for next year.

Growth in AUM

In future, Moody's forecasts predict that the Fund's managed assets (AUM) will grow based on higher interest rates, as monetary policy in the region is normalized.

At the same time, companies' portfolios are expected to grow as the customer base is doing, given that industry's penetration on the continent is still relatively low.

Stability in the neighborhood

The situation is quiet in the region, and according to forecasts, a period of financial stability is supported by an economy that would increase about 2%.

On the side of the financial markets, Moody's point out that commodity prices, which are crucial for the region's economies, are likely to rise in 2019, currencies and some exchanges are expected to experience episodes of volatility linked to global commercial tensions.

The political factor

While the rating agency indicates that new governments in the country's largest economies – like Jair Bolsonaro in Brazil – reduce the political risk in the region, there are a few uncertainties that can affect the issue.

Specifically, Moody's pointing to the election in Argentina, which will test the government regarded as promotional markets for Mauricio Macri. The other one is the new president of Mexico, Andrés Manuel López Obrador (AMLO), who supplies mixed signals to investors in recent months.

Demographic and social trends

Despite the high population trend, this has not been translated into an increase in the fund industry in Latin America. It can change if people start saving most of their income, says Moody's.

In addition, greater formalization of employment can support an increase in AUM in the industry, he adds and adds that pension funds help stabilize assets managed in the industry through long-term funding for the region's economies. .

The technical edge

Technical disturbance in the industry will also play a role in the development of asset against the future, according to the agency. And they expect new applications and technical solutions to increase investors' participation and help attract new customers.

While Moody's predicts that the FinTech industry continues to compete with asset managers, they also note that synergies are already seen between B2B companies and fund advisors.

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