AMCS Group, an external distribution firm headquartered in Miami and Montevideo, announced in a statement the appointment of Rosario Palay as Sales Associate and Martina Alonso as Administration and Marketing Executive.
“These new additions come at a key moment, as the company has significantly increased the market presence of its three asset management partners, AXA Investment Managers, Jupiter Asset Management, and Man Group, in both the U.S. and Latin American markets,” the statement added.
Palay will assist the AMCS external sales team in achieving the firm’s growth plans in the Americas region. Her main responsibilities will include investment analysis, market research, and ensuring excellence in the daily experience of the firm’s advisor clients.
She will report directly to Santiago Sacias, Managing Partner and Head of Sales for Latin America. After two years as a Treasury Analyst at OCA, Palay brings her experience and an innovative perspective to AMCS Group.
Alonso, for her part, will report to Alfonso Peñasco, Head of Marketing and Product, and will initially be responsible for developing AMCS’s marketing platform, including client communication, web and social media presence, and event organization. She will work closely with the marketing and client service departments of the firm’s three asset management partners.
“We are thrilled to have Martina and Rosario join AMCS Group. Their experience and enthusiasm will help us significantly enhance our client experience. We look forward to their contributions to our ambitious growth plans,” said Andrés Munho, Co-Founder and Managing Partner, in the press release.
Thus, the AMCS Group team is currently structured as follows:
Chris Stapleton, Co-Founder and Managing Partner, oversees global key account relationships in the region, as well as advisor relationships on the West Coast.
Andrés Munho, Co-Founder and Managing Partner, oversees all advisory and private banking relationships in South Florida, as well as companies located in the Northern Cone of Latin America, including Colombia and Mexico.
Santiago Sacias, Managing Partner, based in Montevideo, leads sales strategies in the Southern Cone region, which includes Argentina, Uruguay, Chile, Brazil, and Peru.
Álvaro Palenga, Sales Director, is responsible for advisory and private banking relationships in the Miami metropolitan area and the southwestern U.S.
Carlos Aldavero, Sales Director, is responsible for advisory and private banking relationships in New York City and the broader Northeast region.
Daniel Vivas, Associate Sales Director, is responsible for advisory and private banking relationships in Argentina and Uruguay.
Alfonso Peñasco, Head of Marketing and Product, leads AMCS‘s marketing and events engine from Montevideo, as well as coordinates product and client strategy across the group.
Sebastián Araujo, Sales Associate, is based in Montevideo.
Insigneo reported that it has partnered with Luma Financial Technologies (“Luma”), a provider of structured products and insurance technology, to elevate its structured notes capabilities and further streamline financial advisor workflows.
Through the adoption of Luma’s market-leading technology, Insigneo is enhancing its existing offerings with real-time trade data, advanced reporting tools, and an optimized solution that supports every stage of the product life cycle, the company said in a statement.
This strategic move marks an important step in Insigneo’s growth, equipping its advisors with a more agile, robust, and intuitive approach to managing structured notes, it added. Luma will be integrated into Alia, the web-based solutions ecosystem owned by Insigneo and designed to enable investment professionals to manage their practices more efficiently and effectively.
With Luma’s unified solution, Insigneo advisors can access a suite of tools, including training modules, portfolio tracking, trade execution, and automated insights. Its integration with Insigneo’s infrastructure provides advisors with real-time visibility into their structured product activity while allowing data to enhance other key areas of the platform.
“We are thrilled to partner with Insigneo and supercharge their digital structured notes capabilities,” said Rafa Salvatierra, Head of Americas at Luma Financial Technologies. “We remain steadfast in our commitment to empowering financial advisors with cutting-edge technology, and we can’t wait to drive Insigneo’s digital evolution, unlocking new growth opportunities,” he added.
For his part, Pablo Ortega, Director, Head of Latin America and Issuer Relations at Luma Financial Technologies, stated: “Luma is designed to remove the complexities of discovering and managing structured notes, and Insigneo’s advisors will benefit from the enhanced tools Luma offers. We’re excited to support them in delivering greater transparency, flexibility, and access to cutting-edge solutions for their clients.”
“The integration of Luma’s technology marks a major milestone for Insigneo and our advisor network,” said Vicente Martín, Managing Director and Head of Structured Products at Insigneo. “By focusing on improving the advisor experience, we are expanding our capabilities to deliver innovative solutions and personalized support, meeting the evolving needs of our clients,” he added.
Although nearly 90% of Americans are currently saving or planning to save for short-term goals, 60% don’t fully understand how interest rates affect their savings, resulting in most U.S. residents placing their savings in slow-growing vehicles, often below the rate of inflation. In fact, 57% say their savings earn less than 3% interest, and 24% earn less than 1%.
These findings come from a new national consumer survey by Vanguard, which emphasizes idle cash in savings. The survey was conducted with a representative sample of 1,011 U.S. adults aged 18 and older.
“Americans are not getting the return they deserve on the money they’ve worked so hard to earn. While the vast majority are saving, most are not doing so in vehicles where their money is earning a fair return,” said Matt Benchener, Managing Director of Vanguard’s Personal Investor division.
The investment management company is on a mission to change that. Vanguard offers the Cash Plus account, which allows Americans to earn eight times more than with a traditional bank savings account.
“With inflation and fluctuating interest rates affecting purchasing power, it’s more important than ever to ensure consumers understand how to safeguard their savings. It’s time to start thinking beyond your bank,” the firm said in a press release.
Time Passes, Things Change
While Americans are saving short-term for various goals like vacations (38%), new cars (31%), and unexpected home repairs (24%), many have one thing in common: their savings accounts are not performing at their full potential. More than half of the respondents (54%) save in traditional bank savings accounts or checking accounts (39%), where average interest rates are about 0.41%, compared to rates like 3.65% in other savings vehicles, such as Vanguard’s Cash Plus account. “This may contribute to the fact that 72% of Americans don’t fully trust they’ll reach their savings goals in the next two years,” the company stated.
Although Americans aren’t taking advantage of the interest their savings could earn, they recognize the need to change their saving habits. 66% of respondents plan to adjust their current savings strategy in the next year, citing inflation (44%) as the main driver of this decision. But nearly a third of Americans don’t know how to begin making those changes.
“By leveraging accounts with competitive yields and establishing intentional savings strategies, Americans can make their money work harder,” said Andrew Kadjeski, Head of Brokerage and Investments for Vanguard’s Personal Investor business. “We’ve designed the Cash Plus account to give Americans a simple and effective way to save intentionally and view their savings alongside their long-term investments,” he added.
According to information provided by Vanguard, Cash Plus currently offers a 3.65% yield, compared to the average yield of bank savings accounts, which is 0.41%. Alongside Cash Plus, the company also offers a full suite of liquidity solutions, including money market funds and ultra-short bond funds.
AIS Financial Group was founded in 2016 as a Swiss investment boutique with the goal of offering personalized advisory and solutions, primarily to independent advisors in Latam, with a strong focus on structured products. Over time, they have expanded their asset offering to include investment funds, securitization, and, most recently, a bond line. The firm’s founding partner, Samir Lakkis, emphasizes that their objective is always to provide the best service and offer alternatives to those of major banks.
What drove you to create the brokerage firm?
When we started in 2016, our clients were mostly independent advisors in Latam. I came from institutions like Commerzbank and Leonteq, which covered this region with structured products, but in some cases they stopped doing so, and the offering became limited. So we thought that, given the clients’ needs, we could provide them access to major banks with high-quality structured notes. We grew gradually: 2021 was a key year because it was very positive for the whole sector. But in 2024, we made another big leap, this time for internal reasons—due to the company’s stability and maturity, with very low staff turnover. Over the years, I’ve learned that stabilizing a team and keeping it consolidated is uncommon in a brokerage firm, and it has given us more security as a company, allowing us to grow in volume.
Who are your main clients?
We started with smaller independent advisors, like the typical banker who has worked in Switzerland for years, decides to go independent, moves to Latam, and manages between 50 and 300 million dollars. From there, we kept growing in both client types and geographic coverage. We started serving slightly larger clients, like multifamily offices, single family offices, or local banks, and expanded our coverage from Latam to Switzerland, the Middle East, Israel, and South Africa. Recently, we’ve started gaining more institutional clients, such as pension funds. But the core business remains independent advisors.
Did you choose Madrid as one of AIS’s six offices because of its ties to Latin America?
Yes. The headquarters is in Geneva, but the Madrid office has grown significantly. We opened in Madrid because, unlike what happened 10 years ago, Madrid has become an alternative to Miami for Latin American clients and advisors. Although they still hold many assets in Switzerland, clients no longer go there to see their banker.
You started with structured products, but have also expanded to investment funds and securitization. What’s the company’s product structure like?
Structured products are still the core. Last year, we distributed more than 4 billion dollars in structured products across 30 countries. But we saw that we could offer clients other products, which led to a distribution agreement with Nomura, active in Argentina, Uruguay, and Panama, to help asset managers access Latam. We also offer asset securitization, for which there is strong demand.
Can you talk about each of these pillars?
90% of the products we create come from client demand—the advisors, each with their own point of view. We work to get the best terms based on their vision. As I mentioned, structured products remain the core business. With funds, we’re doing very well with Nomura, which is a strong player in fixed income, and Indian and Japanese equities.
Securitization is where we’re growing the most, because I believe alternatives are expanding. They’ve taken a while to arrive, but it finally seems like they’re here to stay among our private banking clients. Giving advisors tools so they can create their own alternatives—like taxi licenses in Colombia, artwork, or real estate—is very interesting. We create the structure so that, going back to the previous example, a group of 10 clients can buy thousands of taxi licenses without having to do it one by one. We set up a structured product, an SPV, that issues a certificate, and that certificate is what purchases the taxi licenses in Colombia. It’s about packaging something you can’t buy from a bank account, into a product you can buy from your account.
You’ve also recently ventured into a bond line…
Yes, we started bond trading, also as a response to client demand. Just like with structured products, it arose as an option to offer them a better product.
Which sectors do you see as attractive in the coming months?
After many years where everyone was focused on growth and not so much on value, we’re now seeing a shift from the U.S. to Europe, which we hope will continue.
Are there differences in client demand by country or region?
I think it relates to the origin of the wealth. In both Latam and the Middle East, it’s entrepreneurs who have built their own wealth—not inherited it over four generations—so they’re much more willing to take risks. That’s why there’s a greater appetite for alternative products, higher coupons, more aggressive strategies. In Europe, they lean a bit less toward alternatives and more toward fixed income. In Spain specifically, there’s a strong focus on funds due to tax benefits.
Fitch Ratings has just published a damning report outlining the consequences of the trade war launched by the U.S. government: it will reduce growth in both the U.S. and globally, drive up inflation in the U.S., and delay interest rate cuts by the Federal Reserve.
“We have cut our U.S. growth forecast for 2025 from 2.1% to 1.7% in the December 2024 Global Economic Outlook (GEO), as well as our 2026 forecast from 1.7% to 1.5%. These rates are well below trend and lower than the nearly 3% annual growth seen in 2023 and 2024,” the note states.
Fiscal easing in China and Germany will cushion the impact of increased U.S. import tariffs, but growth in the eurozone this year will still fall well short of what was forecast in December. Mexico and Canada will experience technical recessions given the scale of their trade exposure to the U.S., prompting the ratings agency to cut their 2025 annual forecasts by 1.1 and 0.7 percentage points, respectively.
“We forecast that global growth will slow to 2.3% this year, well below trend and down from 2.9% in 2024. This 0.3 percentage point downward revision reflects widespread reductions across developed and emerging economies. Growth will remain weak at 2.2% in 2026,” Fitch adds.
The magnitude, speed, and breadth of U.S. tariff hike announcements since January are alarming, the firm notes. The effective tariff rate (ETR) in the U.S. has already risen from 2.3% in 2024 to 8.5% and is likely to continue increasing: “Our latest economic forecasts assume an ETR of 15% will be imposed on Europe, Canada, Mexico, and other countries in 2025, and 35% on China. This will raise the U.S. ETR to 18% this year, before moderating to 16% next year, as the ETR for Canada and Mexico falls to 10%. This would be the highest rate in 90 years.”
“There is enormous uncertainty surrounding the extent of U.S. measures, and our assumptions could be too severe. However, there are also risks of a greater tariff shock, including an escalation of the global trade war. In addition, the U.S. government has set an import substitution agenda — aimed at boosting U.S. manufacturing and reducing the trade deficit — which it believes can be achieved through higher tariffs,” the note adds.
The tariff hikes will lead to higher consumer prices in the U.S., lower real wages, and increased business costs, while rising political uncertainty will negatively affect business investment. Retaliation will hit U.S. exporters. Export-oriented global manufacturers in East Asia and Europe will also be affected. Models suggest the tariff increases will reduce GDP by around one percentage point in the U.S., China, and Europe by 2026.
The recent implementation of fiscal stimulus in Germany will greatly help cushion the blow and allow its economy to moderately recover in 2026. More aggressive policy easing will also help offset the impact in China. Since the tariff impact is estimated to add 1 percentage point to short-term inflation in the U.S., Fitch believes the Fed will delay further easing until the fourth quarter of 2025. Currently, it forecasts only one rate cut this year, followed by three more in 2026 as the economy slows and tariff levels stabilize.
UBS Asset Management (UBS AM) has announced the launch of two new UCITS ETFs that offer exposure to the Nasdaq-100 Notional and Nasdaq-100 Sustainable ESG Select Notional indices. According to Clemens Reuter, Head ETF & Index Fund Client Coverage, UBS Asset Management, “these are the first two Nasdaq-100 ETFs we are launching, giving clients the option to choose between the iconic index and the sustainable version of the same benchmark.”
Regarding the funds, they state that the UBS ETF (IE) Nasdaq-100 UCITS ETF passively replicates the Nasdaq-100 Notional Index, which is composed of the 100 largest U.S. and international non-financial companies listed on the Nasdaq Stock Market, based on market capitalization. The index includes companies from various sectors such as computer hardware and software, telecommunications, retail/wholesale, and biotechnology. The manager clarifies that the fund is aligned with Art. 6 under SFDR and is physically replicated.
Meanwhile, the UBS ETF (IE) Nasdaq-100 ESG Enhanced UCITS ETF passively replicates the Nasdaq-100 Sustainable ESG Select Notional Index, which is derived from the Nasdaq-100 Notional Index. Companies are evaluated and weighted based on their business activities, controversies, and ESG risk ratings. Companies identified by Morningstar Sustainalytics as having an ESG risk rating score of 40 or higher, or as involved in specific business activities, are not eligible for inclusion in the index. The ESG risk rating score indicates the company’s total unmanaged risk and is classified into five risk levels: negligible (0–10); low (10–20); medium (20–30); high (30–40); and severe (40+).
In addition, the ESG risk score of the index must be 10% lower than that of the parent index at each semi-annual review. A lower index-weighted ESG risk score means lower ESG risk. The fund is physically replicated and aligned with Art. 8 under SFDR.
According to the manager, the UBS ETF (IE) Nasdaq-100 UCITS ETF will be listed on SIX Swiss Exchange, XETRA, and London Stock Exchange, while the UBS ETF (IE) Nasdaq-100 ESG Enhanced UCITS ETF will be listed on SIX Swiss Exchange and XETRA.
Ocorian, a provider of services to asset managers, has appointed Amy Meza as Director of Fund Accounting, strengthening its Fund Services team in the United States.
Based in Dallas, she will report to Lynne Westbrook, Head of Fund Services, adding further experience and expertise to Ocorian’s expansion in the U.S. following the acquisition of EdgePoint Fund Services in December of last year, according to the company’s statement.
Meza was previously Vice President of Financial Control at Zip Co Limited and CFO at Direct Access Capital, and she brings extensive experience in global financial services, private equity, treasury management, and change management. She began her career at Deloitte and also served at JP Morgan Chase as Fund Accounting Manager and at SS&C Technologies as Associate Director of Fund Accounting.
“The appointment of Amy brings additional experience and knowledge to Ocorian, and she will make a significant contribution as we continue to build our business in the U.S.,” said Lynne Westbrook.
For her part, Amy Meza added: “Ocorian is ambitious in growing its U.S. business, which makes this an exciting time to join, and I’m looking forward to supporting colleagues and clients in helping achieve our expansion plans.”
Ocorian first entered the U.S. market in 2021 with the acquisition of Emphasys Technologies, based in Philadelphia. Since then, the company has been enhancing its onshore capabilities, making key hires, and expanding its service offering to support its growing client base, recently announcing the acquisition of EdgePoint in Dallas, Texas. Through its operations in New York, the company provides fund managers, private clients, and corporates with access to fund structuring and domiciliation hubs around the world—from Europe and the Middle East to the Caribbean, Latin America, Africa, and Asia-Pacific.
For wealth managers, growth has been strong over the past five years, with a global increase of 20% in assets under management (AuM). According to the Wealth Industry Survey by Natixis IM, the pursuit of growth is even greater this year, as firms project an average increase of 13.7% in wealth just in 2025. However, given geopolitical changes, economic uncertainty, and accelerated technological advances, investment leaders know that meeting these expectations will not be an easy task.
Geopolitics and Inflation: Key Concerns
The results show that while 73% are optimistic about market prospects in 2025, macroeconomic volatility remains a major concern. 38% of respondents cite new geopolitical conflicts as their main economic concern, closely followed by inflation, with 37% of respondents fearing that it may resurge under Trump’s policies. Additionally, 66% anticipate only moderate interest rate cuts in their regions.
Despite these concerns, 68% of analysts state that they will not adjust their return expectations for 2025, as wealth managers are implementing strategies for their businesses, the market, and most importantly, their clients’ portfolios, with the aim of delivering results.
In addition to new geopolitical conflicts and inflation, respondents also identified other concerns for 2025. 34% point to the escalation of current wars, and another 34% highlight U.S.-China relations. Lastly, 27% underscore the tech bubble as another factor to consider.
With this in mind, wealth managers are carefully considering how geopolitical turbulence and persistent inflation will impact the macroeconomic environment. Half of the respondents forecast a soft landing for their region’s economy, with the strongest sentiment in Asia (68%) and the U.S. (58%). However, this drops to 46% in Europe and just 37% in the U.K. Additionally, 61% are concerned about stagflation prospects in Europe.
Regarding the specific impacts of the U.S. elections on the economic outlook, two-thirds globally are concerned about the possibility of a trade war. However, wealth managers also see opportunities on the horizon, as 64% believe that the regulatory changes proposed by the Trump administration will drive the development of innovative investment products.
In addition, two-thirds believe that the proposed tax cuts will drive a sustained market rally. Taking all of this into account, 57% globally say that, in light of the U.S. election outcome, clients are more willing to take on risk, with the potential to disrupt the cash accumulation pattern investors have maintained since central banks began raising rates.
The Investment Potential of AI
After witnessing the rapid development of generative AI models, 79% of surveyed wealth managers say that AI has the potential to accelerate profit growth over the next 10 years. With this in mind, firms are looking to leverage the benefits of the new technology in three key areas: tapping into the investment potential of AI, implementing AI to improve their internal investment process, and using AI to optimize business operations and customer service.
69% of respondents say that AI will improve the investment process by helping them uncover hidden opportunities, and another 62% say that AI is becoming an essential tool for assessing market risks. In fact, the potential is so significant that 58% say that companies that do not integrate AI will become obsolete.
With this in mind, 58% say their company has already implemented AI tools in their investment process. The highest concentration of early adopters is found among wealth management firms in Germany (72%), France (69%), and Switzerland (64%).
Beyond investment opportunities and portfolio management applications, wealth managers also anticipate that AI will impact the service side of the business. Overall, 77% say that AI will help them meet their growth goals by integrating a wider range of services. However, the technology can be a double-edged sword, as 52% also fear that AI is helping turn automated advice into a real competitive threat.
“Wealth managers face a wide range of challenges in 2025, from educating their clients on the benefits of holding private investments to finding the best ways to integrate AI into their investment and business processes. However, despite potential obstacles, wealth managers are confident that they can harness disruptive forces to unlock new opportunities and meet the AUM growth goals they need to achieve in 2025,” says Cecile Mariani, Head of Global Financial Institutions at Natixis IM.
Appetite for Private Assets Continues to Grow
Technology may have the potential to transform the industry, but firms face more immediate challenges in meeting clients’ investment preferences and return expectations.
Wealth managers are exploring a wider range of vehicles and asset classes to meet their clients’ needs. Globally, portfolios now consist of 88% public assets and 12% private assets, a ratio that is likely to shift as focus on private assets increases. Additionally, 48% state that meeting the demand for unlisted assets will be a critical factor in their growth plans.
However, private asset allocation is not without its challenges. 26% of respondents consider access to these assets—or lack thereof—a threat to their business. Despite this, new product structures are helping to ease this pressure, with 66% noting that private asset vehicles accessible to retail investors improve diversification.
The next challenge will be financial education, as 42% believe that a lack of understanding about liquidity is a barrier to incorporating private assets into client portfolios. Nevertheless, the lack of liquidity can also work in favor of some investors, given that 75% of wealth managers globally say that the long-term nature of retirement savings makes investment in private assets a sound strategy.
Overall, 92% plan to increase (50%) or maintain (42%) their private credit offerings, and similarly, 91% plan to increase (50%) or maintain (41%) their private equity investments on their platforms. Few among the respondents see this changing, as 63% say that there is still a significant difference in returns between private and public markets. Additionally, 69% say that despite high valuations, they believe private assets offer good long-term value.
The 2025 Wealth Management Industry Survey by Natixis Investment Managers gathers the views of 520 investment professionals responsible for managing investment platforms and client assets across 20 countries.
Under the slogan “Forging the New Frontier of Investing,” more than 2,500 industry professionals from 13 countries flooded Miami Beach last week and experienced Future Proof Citywide, a four-day event that explored new investment paradigms in a dynamic and collaborative environment, aimed at the investment community across both public and private markets.
Financial advisors, RIAs, Family Offices, institutional investors, ultra-high-net-worth (UHNW) investors, wealth management and private equity executives, among other industry members, attended top-tier talks and held both one-on-one and group meetings—plus the added bonus of 24-hour networking opportunities.
Directly in front of the beach, next to Lummus Park, between 6th and 10th Streets, industry professionals took over more than 25 hotels and a significant portion of the city’s iconic South Beach, in the largest event for the wealth and investment management industry.
“We reinvented the concept of wealth management conferences when we launched the Future Proof Festival in Huntington Beach in 2022,” explained Matt Middleton, founder and CEO of Future Proof. With the new edition in Miami, the company expanded the concept into the investment management space and incorporated private markets.
“Conferences usually focus exclusively on specific investor audiences, asset classes, or investment vehicles, which leads to fragmentation. With Future Proof Citywide, we broke down barriers to bring together the entire investment management ecosystem: allocators, wealth managers, fund managers, fintechs, financial service providers, and more,” added.
The thematic agenda included talks — featuring C-level speakers — on the growing integration of public and private markets, emerging market trends and their implications for portfolio construction, the mindset of the modern investor, talent and leadership, and tech-driven transformation, among other topics.
As part of the experiences, Future Proof Citywide offered, for example, the opportunity to join Robert Frank, CNBC Wealth editor, and the Inside Wealth team for an exclusive cocktail at the iconic Villa Casa Casuarina, the former Versace Mansion. Attendees could also enjoy live rock concerts, participate in a Wealthtech executive breakfast, and attend welcome receptions in the evenings or on the beach, among many other options.
$9.6 trillion in assets under management (AUM) were represented at Citywide, according to information shared by the organizing company.
Poppe is responsible for the strategy of the BNY Mellon Brazil Equity Fund, a fund launched in 2017 that invests in shares of the South American giant, with the MSCI Brazil 10/40 NR Index as its benchmark. The strategy manages over $600 million in AUM.
The portfolio manager’s view is that Brazil is once again a “hard topic.” The macroeconomic scenario includes a fiscal deficit, inflation, and slowing growth.
“Brazil is not growing as much as one would like,” he acknowledged. “There is a lack of credibility in the government, the fiscal deficit has increased, inflation is rising, and this year and next, the country’s economy will be affected — but there won’t be a recession,” he described.
Indeed, Brazil’s CPI accelerated in February, climbing five-tenths to 1.3%, reaching 5.06% annually. It was the largest increase in the consumer price index for a February since 2003, and annual inflation stood at its highest level since September 2023. This price surge contrasts with the economic slowdown, and the Central Bank resumed its interest rate hiking cycle to try to control inflation.
Poppe emphasized the importance of being aware of the Brazilian economic context as investors, but encouraged those seeking exposure to the Brazilian equity market to do so through active and disciplined management.
Brazil, as the largest economy in Latin America, offers a dynamic market with leading companies in strategic sectors such as consumer goods, energy, financial services, and technology. The fund’s strategy aims to capture opportunities in companies “with solid fundamentals, sustainable growth, and competitive advantages, combining diversification with rigorous risk control.”
Ahead of the Next Economic Cycle
The PM forecasts that Brazil will grow by 1.5% in 2025, and between 1% and 1.5% in 2026. In 2024, Brazil’s GDP grew by 3.4%. “The scenario is difficult for companies, but at the same time, stocks have dropped so much, are so cheap, that we see an opportunity for international investors,” he said.
Now then… the annual yield on a Brazilian bond investment in local currency is around 14%, so the big question for investors — even posed by Poppe himself during his conversation with Funds Society — is “when” to enter stocks.
“The macro scenario has turned more negative,” he explained. “Many investors are comfortable investing in bonds. However, from here on, we see flows into equities. I’d say that within the next 6 to 9 months, Brazilian equities could experience a rally. We expect interest rates to come down again, which is why we have increased our exposure to discretionary consumption. The fund is already prepared for the next economic cycle,” he assured.
Poppe noted that over the past 2 years, the fund leaned into defensive sectors, such as food producers, which are very strong in Brazil and benefit from the country’s power as a commodity producer.
The fund offers diversified exposure, with an overweight in food producers and exporting companies such as Embraer. It also has exposure to telecom and utilities, since “they offer a lot of yield.”
Balancing Cyclical and Defensive Sectors
With an approach that combines fundamental and quantitative analysis, the strategy seeks to identify undervalued companies with solid business models, prioritizing those with high cash flow generation, sustainable competitive advantages, and a clear long-term growth strategy. The portfolio consists of 25 to 40 stocks, allowing for a detailed focus on each investment without losing diversification. It maintains a balance between cyclical and defensive sectors, combining high-growth industries such as technology and consumer with traditionally more stable sectors such as energy and utilities, which helps reduce volatility.
Regarding Petrobras, Poppe said, “The company is doing very well, but the fund hasn’t invested in its shares for two years. Looking ahead, investors will be entering the cyclical equities sector, where we are already positioned,” he emphasized.
The portfolio manager also mentioned that Brazilian investors are currently at their lowest level of exposure to local equities, but said this dynamic will change in the coming months. “For now, investors are choosing to buy bonds. It’s not that money will move quickly into equities; it will shift gradually. I’m a firm believer that investing long-term and actively pays off more, even when investing in the small and mid-cap sector.”
In 2024, the BNY Mellon Brazil Equity Fund had a negative return of 24.77%; in 2023, the fund returned nearly 25%. As of March 17, 2025, the fund had accumulated a year-to-date return of 10.50%.
