Mexico is experiencing a boom in its investment fund industry. Savings have accelerated in recent years, and this phenomenon will continue for a long time, explained Alejandro Martínez, CEO of Santander Asset Manager México (SAM Asset Manager México), during a presentation to the media on the sector’s evolution and outlook in the country.
“We have very good news in terms of how savings in Mexico’s investment fund industry have been accelerating. We believe this is not only a great development in terms of current trends, but we are also very confident that it represents a major opportunity moving forward,” the executive stated.
The growth of the investment fund industry in the Latin American country has been so rapid in recent years that, according to SAM Asset Manager México, it already represents 13.5% of the country’s GDP. Viewed over the long term—specifically the last 24 years—the industry’s penetration has tripled, since at the beginning of the analysis period it represented 4.3% of Mexico’s GDP.
“This is due, in our view, to a fundamental change in how individuals in Mexico have chosen to participate in local markets, specifically through investment funds. In recent years, we’ve also seen a very strong growth trend in the industry, with a compound annual growth rate of 12.3% since 2001,” he added.
SAM Asset Manager also outlined the factors it believes will sustain the country’s investment fund boom in the coming years. “We see structural factors in Mexico that make us confident this trend will continue for a long time,” said Martínez.
He identified the following:
Demographic dividend: Mexico’s favorable population pyramid is highly attractive. The base of that pyramid will undoubtedly be the engine driving the creation of new savers and investors in the future.
Resilient economy: Economic dynamism and a highly resilient economy in recent years.
Financial inclusion: This is particularly relevant, according to the CEO. While there is still work to be done, financial inclusion in the country has improved significantly. There are more market participants, more people saving, and then transforming their savings into investments.
“All of this gives us confidence and justifies a strong bet on the long-term potential of the investment fund industry,” said Alejandro Martínez.
Another key data point is the number of clients, which has surged in recent years—with a striking 13 million new clients since 2008. The combination of market capacity and inclusion leaves no doubt that this trend will persist.
SAM Asset Manager Aims for a Larger Share
The firm recently celebrated surpassing €250 billion (around $290 billion) in assets under management globally. In this context, Mexico—where the firm has operated for 30 years—is a growing and strategic market, already representing 10% of total assets under management. The firm currently ranks third in the country, with 560 billion pesos in assets under management (approximately $29.5 billion). Martínez highlighted the support and philosophy of the global firm, Santander Asset Management.
“This is a firm with highly significant global capabilities, but it also has a key differentiator: a local approach. In the 10 countries where we operate, we are committed to understanding the investor. Our global capacity has helped drive growth,” said the CEO.
SAM Asset Manager has 54 years of industry experience, operates in 10 countries, and employs over 800 people, more than 200 of whom are investment professionals.
The Market Determines the Asset Class
SAM Asset Manager México is focused on identifying market opportunities and accelerating growth.
While diversification is essential in Mexico, the country’s fund industry remains heavily concentrated in fixed income. According to the executive, the market ultimately determines the type of assets under management. “In recent years, interest rates largely dictated the preference for fixed income funds, but as rates decline, fund portfolios are likely to shift. Market conditions are what determine the asset classes,” he noted.
“We have exposure to all asset classes: debt, equities, structured products—we are equipped to add value across the board, including for our institutional clients,” he added.
Finally, SAM Asset Manager reaffirms its confidence in Mexico and its belief that the country will be one of the world’s fastest-growing markets in the coming years. “We see opportunities driving the demand for investment solutions. More savers are becoming investors, young people at the base of the population pyramid increasingly need to generate value in their wealth through investments, and we’re also seeing a much more sustainable long-term savings trend. We definitely want to capitalize on those opportunities,” concluded the CEO.
