Insigneo announced its official membership in the United States Chamber of Commerce in Argentina (AmCham Argentina). This strategic move reinforces the firm’s ongoing commitment to strengthening economic and commercial ties between Argentina and the United States, according to the global wealth management company.
This alliance enables Insigneo to anticipate regulatory trends, access timely market intelligence, and actively contribute to initiatives that foster a favorable environment for long-term economic growth in Argentina. Clients will benefit from greater exposure to local best practices, increased regulatory predictability, and expanded knowledge of cross-border markets—key elements for navigating today’s complex investment landscape, according to the Miami-headquartered firm.
“This membership enhances our ability to meaningfully contribute to Argentina’s evolving financial landscape while allowing us to deliver greater value to our clients throughout the region,” said Javier Rivero, president and chief operating officer (COO) of Insigneo. “AmCham’s platform provides a unique opportunity to collaborate with key stakeholders and advance shared goals of economic development and financial innovation,” he added.
Through this affiliation, the firm also gains access to a dynamic platform for dialogue, representation, and exchange with influential actors from both thepublic and private sectors. As a member, the firm will take part in strategic forums, working groups, and high-level discussions that promote sustainable development, innovation, and cross-border cooperation.
With more than $26 billion in client assets supported, Insigneo empowers over 290 investment professionals and 68 institutional firms serving more than 32,000 clients. AmCham Argentina is a non-governmental, independent, and non-profit organization that has promoted bilateral trade and investment between the United States and Argentina for over 100 years.
The Argentine government had to pay a steep price — 29.5% — in its first international debt issuance under President Javier Milei. Nevertheless, it successfully placed the $1 billion Bonte 2030 bond (a dollar-denominated debt security that pays in pesos), with demand exceeding supply.
This marks the first issuance of local currency bonds under Argentine law targeted at foreign investors in seven years. The offering saw strong demand, with bids totaling $1.694 billion from 146 investors.
The Market Had Expected a Yield Around 22%
The issuance met the goal set by Argentine authorities: to increase reserves without intervening in the exchange rate, which currently fluctuates within two bands. However, the Bonte 2030 came at a high cost: while the market had anticipated a yield of around 22%, the final rate was significantly higher.
“In Argentina, if you go back to what happened in 2017 and 2018, the government at the time (Mauricio Macri’s administration) issued around $4 billion in bonds similar to the Bonte, and the holders of those bonds who kept them to maturity lost all their capital due to a nearly 100% devaluation of the peso. So it makes sense that investors would demand a premium, especially since this is the first significant issuance in the market, in local currency, and with a long duration,” explained Juan Salerno, partner and head of investments for Argentina at Vinci Compass.
Banco Mariva offered a similar analysis: “The 29.5% yield at which the bond was issued exceeded market expectations and may initially seem excessive. However, there are various interpretations: the yield includes an initial risk premium the government must pay to reestablish market access. Another perspective (supported by the government) is that the 29.5% rate aligns with both the dollar yield curve (around 12%) and the CER curve (real yields of around 10%).”
Paula Bujía from Buda Partners explained that “demand was oriented toward real yields closer to 10%, far above the 5% that some local traders considered reasonable and in line with current CER (inflation-adjusted) bond yields. The inclusion of a two-year early redemption (‘put’) clause also serves to reduce risk. Additionally, the perception that the official exchange rate is overvalued is not a minor factor: had the peso been closer to the upper band (1300–1400), the required yield might have been lower.”
Analysts from Adcap Grupo Financiero noted that the rate was identical to that of a one-year peso Treasury bill (Lecap): “As in other auctions, the government offered a premium, though in this case it was significant. The cut-off rate was set at a nominal 29.5% (31.7% effective annual), virtually identical to the one-year Lecap rate.”
A Positive Issuance to Boost Reserves
A recent report by Cohen Aliados Financieros noted that under the terms of the IMF agreement from April, the BCRA (Central Bank of Argentina) is required to bring its net reserves to –$2.746 billion by June of this year and reach a positive balance by the end of 2025.
In this context, Juan Salerno of Vinci Compass explained that this issuance is positive given the government’s goal of meeting its reserve targets with the IMF, because “local currency bonds are counted at 100% toward net reserves, and this bond is subscribed in dollars, which means the dollars go directly into reserves. The broader context is that the government doesn’t want to buy dollars within the floating bands, so the only way to meet the reserve target is to turn to external borrowing.”
Analysts point to another positive aspect: it opens the door to similar future issuances. The identities of the 146 entities that purchased the Bonte 2030 are not public, but the market believes they are international risk funds.
Salerno noted that, internationally, Vinci Compass currently holds no peso-denominated Argentine bonds but does hold dollar-denominated ones — both sovereign and corporate, including some provincial issues. Locally, the firm does participate in the peso market.
“The Bonte issuance is a first step because there are still capital controls in Argentina (exceptions were made in this case), and we still need greater predictability. We believe it will be successful because this rate will attract many investors. Now, it’s important to watch how the secondary market behaves; I also believe it will be successful if the government maintains its goal of controlling inflation,” said the Vinci Compass expert.
Paula Bujía of Buda Partners also offered an encouraging note: “Looking on the bright side, and recalling the BOTES issued in 2016 — which debuted with high yields but then compressed significantly as macroeconomic conditions improved — this new placement could meet a similar fate. If Argentina continues to normalize its economy and starts accumulating reserves, the Bonte 2030 could follow a similar path of spread compression and pave the way for less onerous issuances for the government. But it’s important to note that issuing debt is not enough: reserves must also be accumulated to satisfy the market.”
About five years ago, when the heat from the so-called “social uprising” that began in October 2019 had yet to subside, political uncertainty was one of the main topics in economic discussions. Since then, the landscape has changed considerably. Two constitutional processes that failed to reach a conclusion left the Magna Carta unchanged; the government and the opposition reached a Fiscal Pact, easing some anxieties related to tax reform. More recently, the pension reform reaffirmed private pension fund administrators at the heart of the system.
The question of what Chile needs to resume growth remains relevant, shaping economic debates and taking center stage at various investment seminars.
Figures from the Central Bank of Chile show quarterly annualized GDP expansions of around 5% between the early 2000s and the global financial crisis. After recovering from that recession, the country returned to those levels of dynamism until the end of 2012. Since then, there has been a trend of weakening. Aside from the post-COVID-19 economic rebound, figures have hovered closer to 1% and 2%, and the future does not look much better. The Central Bank’s Economic Expectations Survey for February projects that growth will remain around 2% through 2027.
In exploring the outstanding elements needed to promote growth, Funds Society spoke with economists from Bci Estudios, Fynsa, Credicorp Capital, CG Economics, and Itaú Chile to address a simple yet complex question: What is missing?
Uncertainty Persists
“The pension reform largely reduces one of the sources of political uncertainty that took hold since October 2019,” states Juan Ángel San Martín, senior economist at Bci Estudios.
The law, which the expert describes as “the most important structural reform Chile has undertaken since the 1980s,” significantly reduces one of the uncertainties established in October 2019. Moreover, the economist claims that this reform would lead to a 0.4% increase in long-term GDP growth, raise pension replacement rates, and validate the individual capitalization system.
However, the economists consulted by Funds Society agree that uncertainty has not entirely disappeared.
“The approval of the reform opened the door to maintaining a viable and sustainable pension system over time. It is not a complete reform, in the sense that some adjustments will need to be made along the way, depending on its impacts on the labor market and growth, for example. Is it going in the right direction? Yes. Does it eliminate uncertainty? Not at all,” comments Nathan Pincheira, chief economist at Fynsa. In this regard, more than the changes to the pension system themselves, he values the political agreement that made a reform possible after 15 years of attempts.
Today, according to local market observers, priorities are very different from those seen five years ago. In the words of Klaus Kaempfe, Executive Director of Portfolio Solutions at Credicorp Capital: “Chile faces very different problems than it did in 2019. The latest surveys show growth and security as the main concerns of the population. In 2019, these issues were considered ‘resolved,’ but today they are once again priorities.”
While all five economists interviewed believe it is possible for Chile to return to a growth trajectory, they agree that there is still much to be done, with a wide range of variables impacting the country’s economic dynamics.
The Burden of Bureaucracy
When listing the main obstacles, one word appears frequently: “permisología” (permit bureaucracy). This refers to the bureaucratic processes required to obtain authorization for investment projects.
Kaempfe agrees with this diagnosis, emphasizing that the time needed to obtain construction permits is measured in years rather than months. “There is no lack of investment ideas, but bureaucracy has crushed projects. There are iconic cases where more than ten years have passed before a final decision is made,” he warned.
However, there is a glimmer of hope in this area. The government, regardless of political orientation, is now prioritizing change. “Post pension reform, Chile’s most left-leaning government to date now considers new legislation on ‘permisología’ a priority, aiming to unlock projects and reduce costs,” adding that this “would have been unthinkable in 2019.”
The Security Dilemma
Security has become a major topic in the public agenda in recent years. According to the Ministry of the Interior’s National Public Security and Crime Prevention Plan, crime, theft, and assaults have become central public concerns. Additionally, violent crimes and homicides have been on the rise since 2016, accelerating in 2020, with drug trafficking increasingly drawing attention.
This situation has left a mark on the economy. “The growing concern over crime has created an atmosphere of uncertainty that affects both citizens and investors,” explains Carolina Godoy, founder and Managing Director of CG Economics. This climate of insecurity, she warns, “discourages investment and negatively impacts the business environment.”
In this vein, the economist asserts that it is “essential” to implement effective public policies to combat crime. “The government has enacted a new anti-terrorism law to tackle crime with better tools. Even so, the effectiveness of this measure has yet to be proven,” she notes.
Taxes and Private Investment
For Andrés Pérez, chief economist at Banco Itaú Chile, one of the reasons for the productivity contraction in the country is the deterioration of private investment.
One of the variables he highlights is taxation. “Recurring tax reform proposals to fund increased public spending affect the cost of capital and discourage investment,” he says.
From Bci Estudios, San Martín recommends reducing the cost of capital use by lowering the corporate tax rate from 27% to the OECD average of 23%. “An alternative and plausible scenario is to reduce the corporate tax rate to 20%, the pre-2014 level where a structural change in private investment is evident,” he adds.
According to the economist’s calculations, such a tax cut would raise the GDP level by between 0.6% and 0.8%. However, this would not be enough to offset the lower tax revenue, making it necessary to adjust public spending and modernize the state. “The IDB estimates that inefficiencies in Chile’s public spending amount to around 1.8% of GDP, enough to provide fiscal room for a measure like this,” he states.
Managing Public Finances
Another area of deterioration has been public finances. Figures from the Budget Office (Dipres) as of December 2024 showed a weaker situation than anticipated. The fiscal deficit stood at 2.9% of GDP, and gross debt ended the year at 42% of GDP—falling short of the Ministry of Finance’s expectations of a 2% deficit and 41% debt.
For Godoy, last year’s budget execution revealed a disconnect between the ministry’s projections and reality. “This situation reflects the financial stress of the public sector, limits the government’s ability to drive economic growth, and complicates the estimation of long-term rates, country risk, among other variables,” she notes.
From Itaú, Pérez shares the concern. “A reduction in public spending in Chile would help lower upward pressure on long-term rates, thereby facilitating a faster recovery in sectors particularly sensitive to long-term financing,” he adds.
Looking ahead, the CG Economics economist emphasizes the need to manage the risks posed by fiscal projections for the coming years. “It is crucial to implement responsible fiscal policies that balance public spending with revenues, avoiding unsustainable increases in debt,” she states.
Political Validation
For Pincheira, from Fynsa, regaining growth requires “clear rules” and the “public’s validation that growth is necessary.” Perhaps some emblematic projects could serve as milestones.
But it is also necessary to strengthen the institutional political system. Pérez identifies this deterioration as having begun with the 2015 reforms, which ended the binominal electoral system and introduced a proportional mechanism. “Since then, polarization and fragmentation in Congress have made it difficult to reach broad agreements based on technical criteria, and have manifested in short-term policies like the withdrawal of pension savings,” he explains.
Godoy adds that the World Bank’s governance indicators have shown a decline since 2019 in various aspects, including rule of law, political stability, and regulatory quality. “This institutional weakening erodes investor confidence and hinders economic growth,” says the CG Economics founder.
Structural Lags
In addition to all the above, Chilean economists identify a range of long-term factors impacting the country’s growth capacity. “Raising economic productivity, as clichéd as that may sound, is vital,” according to Pincheira.
This includes—not just regulatory frameworks and investment conditions—but also training. “Improving the pre-school and primary education systems, as well as continuous education programs, is essential,” says the Fynsa economist.
Beyond merely attracting investment, Godoy adds that Chile must strengthen its growth through innovation and workforce training. “Policies that promote technological development, business digitalization, and improved human capital skills can increase productivity and strengthen the economy in the medium and long term,” she states.
This includes addressing the effects of the demographic crisis, she emphasizes. The low birth rate and aging population will impact the labor market and the sustainability of growth. “Work-family reconciliation policies, such as access to childcare services and flexible schedules, can increase labor participation and mitigate the demographic impact on the economy,” she adds.
The Value of Having a Plan
As a unifying element of economic efforts, economists diagnose that the country lacks a roadmap.
“Chile’s period of greatest growth was marked by a development plan in which macroeconomic adjustment, along with economic openness and market modernization, lifted Chile out of poverty. Today, Chile, now a step further along, no longer knows where to go next,” describes Kaempfe, of Credicorp Capital.
In this sense, although public pressure appears to be aligning the political sphere around growth, defining a strategic plan for the next 30 years is “key.”
From Bci Estudios, San Martín adds that it is necessary to diversify the sources of growth in the Andean country. In this regard, green hydrogen is seen as a promising candidate, given Chile’s wealth of natural energy resources. “It is estimated that if this advantage is leveraged, over the next 20 years, this industry could represent about 20% of GDP and generate over 100,000 jobs. This, along with greater investment in science and technology, will drive long-term growth,” he explains.
This article was originally published in issue 42 of Funds Society Americas magazine. To access the full content, click here.
Against the backdrop of a highly particular moment in international markets—driven by the aggressive trade policy adopted by the White House in the United States—the message of DAVINCI Trusted Partner during its South American tour was to seek investment opportunities and ideas beyond U.S. borders. While the U.S. remains relevant, experts gathered by the Rio de la Plata–based firm in front of investor groups in four of Latin America’s main financial capitals pointed out that there are other alternatives such as Europe, Japan, and semi-liquid assets.
The sixth edition of Investment Masterpiece, the firm’s flagship event, took place last week across the financial districts of São Paulo, Buenos Aires, Santiago de Chile, and Montevideo—on May 12, 13, 14, and 15, respectively—presenting equity, multi-asset, and semi-liquid strategies as options to meet three key goals defined by the distribution house: diversification, reduced portfolio volatility, and uncorrelated investments.
“It is necessary to globalize portfolios,” said James Whitelaw, Managing Director at DAVINCI, adding that while they are not eliminating U.S. exposure, they are seeing a variety of opportunities outside the United States.
Broadening the View
“These are very turbulent times,” warned Christopher Holdsworth, Chief Investment Strategist at Investec, as he took the stage. The underlying issue, he explained, is the rising cost of U.S. government funding, with 3.5% to 4% of GDP currently going to pay financial interest.
This has led to tensions within the Department of Government Efficiency (DOGE), which has attempted—questionably—to cut fiscal spending and impose tariffs worldwide. “That means some forms of tariffs are here to stay,” said Holdsworth.
Warning signs are also emerging. Although retail investors have continued to favor U.S. equities, consumer confidence has declined, with unemployment and inflation as top concerns. According to Holdsworth, “hard data will start to weaken,” noting recent signs of dwindling household excess savings and rising debt defaults.
“The main damage is being felt in the U.S.,” he said during his presentation. However, this also creates opportunities: although U.S.-specific issues typically weaken the dollar, the greenback has remained strong. For Investec, this indicates “there are opportunities outside the U.S.” and that “we must focus our attention elsewhere.”
Given the overvaluation of U.S. assets—while prices elsewhere seem more “normal”—and the unusual dynamics of the U.S. dollar and Treasury bonds, the latter no longer appear to serve as a traditional safe haven, although they may still function as a store of value, he noted.
Consequently, Investec has been reducing U.S. exposure in its balanced and cautious multi-asset strategies, placing greater emphasis on European, emerging market, and Japanese assets, with a particular interest in the yen.
European Appeal
In this context, as investors struggle to interpret U.S. market dynamics, one region is gaining prominence in market conversations: Europe.
The continent, explained Niall Gallagher, Investment Manager of European Equities at Jupiter Asset Management, “is at a very interesting juncture,” increasing its attractiveness as an investment destination.
In addition to valuations—more compelling than those in the U.S.—the London-based firm sees a potential tailwind from capital flows. As U.S. equities have become more prominent in global indices, the weight of European and Japanese stocks has declined.
What does this mean? “If there’s a major shift in flows away from the U.S., Europe is well positioned,” Gallagher stated. Moreover, the Old Continent offers a “relatively diverse market,” which becomes especially important when the market’s concentration—particularly among U.S. tech giants—grows “increasingly uncomfortable.”
Santiago Mata, Sales Manager for LATAM and U.S. Offshore at the firm, added that the political uncertainty in the U.S. “is something we’ll have to get used to,” especially at a time when the correlation between stocks and bonds is challenging the traditional 60/40 portfolio model.
Private Markets
Alternative assets—a category of growing interest among private banks and wealth management channels—also held a prominent place at DAVINCI’s Masterpiece, represented by Brookfield Oaktree Wealth Solutions.
Óscar Isoba, Managing Director and U.S. Offshore and LATAM Head at the firm, emphasized the crucial role semi-liquid strategies have played in democratizing this asset class.
Addressing Latin American audiences that are increasingly turning to private markets in search of higher returns and lower volatility, Isoba stressed the role of advisors in accelerating this trend. While Latin America still lags in adopting these strategies, it is a phenomenon already underway in the region, he explained.
“We are bringing institutional solutions to the wealth segment,” Isoba highlighted. For investors beginning to build their alternative portfolios, he recommended starting with private credit—a category he described as historically “consistent,” even during periods of higher inflation.
The Power of Technology
The event also underscored the importance of technology in asset management. Michael Heldmann, CIO of Systemic Equity at Allianz Global Investors—together with its partner Voya Investment Management—discussed the Best Styles Global Equity strategy, a global equity fund that leverages big data, artificial intelligence, and computing power to optimize returns.
How does it work? Through the human expertise of the investment professionals involved and the technological systems applied to their investment process over the past 25 years—with strong historical results—the strategy identifies different types of companies. These include “cheap” assets, firms involved in positive trends, and defensive companies.
They have thus categorized five investment styles: value, momentum, revisions, growth, and quality.
Technology has also enabled them to minimize “unrewarded risks”—such as currency fluctuations and commodity prices—while enhancing returns through artificial intelligence.
Columbia Threadneedle Investments has announced that it will offer its range of active ETFs in Europe. According to the firm, it plans to launch four equity UCITS vehicles in the UK and Europe over the course of this year, subject to regulatory approval. These four new active ETFs will offer European clients exposure to global, U.S., European, and emerging market equities. The firm also noted that its goal is to expand the range and include active fixed income ETFs next year.
The initial product range will be managed by Chris Lo, Senior Portfolio Manager, and his team based in the United States. They currently manage $15 billion in assets across 13 U.S.-domiciled funds. Columbia Threadneedle has a strong track record in designing and managing ETF strategies tailored to client needs, with $5.5 billion in assets under management across 14 U.S.-domiciled ETFs.
The new active equity ETFs launching in the European market will leverage the firm’s expertise in ETF and systematic solutions management. According to Columbia Threadneedle, the new lineup is built on the investment approach of the Columbia Research Enhanced Core ETF, a Morningstar five-star rated fund that combines quantitative analysis with Columbia Threadneedle’s extensive fundamental research capabilities. “The active equity ETFs will be truly active, designed to outperform the index,” the firm states.
Following the announcement, Richard Vincent, Head of Product (EMEA) at Columbia Threadneedle Investments, explained: “We are continuously looking to develop and expand our investment offering for clients, providing innovative, high-value products and solutions that complement our existing range. In this regard, bringing active ETFs to Europe and building on the foundation of our successful U.S. platform is a natural expansion that draws on years of experience delivering ETF solutions to our U.S. clients.”
A Clear Vision
Columbia Threadneedle’s new European active equity ETFs aim to meet various needs of discretionary fund buyers. First, by offering high-conviction core equity positions as fundamental building blocks for portfolios—strategies aligned with benchmark indices but designed to generate alpha through genuine stock selection.
The firm also emphasizes that this is a proven, consistent, and replicable investment strategy, combining quantitative and fundamental analysis within a rules-based, repeatable, and easy-to-understand framework. In addition, it offers transparency and cost efficiency: daily disclosure of investment decisions, a portfolio designed to minimize transaction costs, and competitive fees.
“We are excited to bring this innovative and differentiated investment strategy to the European market in an active ETF format. These four new active ETFs will complement our existing open-ended fund offering, expanding options for clients seeking core active components for their portfolios. Active ETFs are increasingly being adopted by clients as an efficient way to implement portfolios. By leveraging our U.S. track record, we can offer clients excellent value. We believe this represents a genuine growth opportunity for us in the region,” said Michaela Collet Jackson, Head of Distribution and Marketing for EMEA at Columbia Threadneedle Investments.
Jupiter Asset Management has announced the appointment of William López as the new Head of Europe and Latin America. Until now, López served as Head of Latin America, Iberia, France, and US Offshore. With this internal promotion, he expands his responsibilities in response to a broader review of the firm’s approach in the EMEA region.
According to the firm, US Offshore will remain under his responsibilities. The appointment is intended to further advance the firm in some of its key international markets, as well as to strengthen its focus on managing cross-border key accounts, working closely with the existing sales teams in each market.
One such team is the Iberia team, led by Francisco Amorim, Head of Business Development for Iberia at Jupiter Asset Management since fall 2024. The team also includes Susana García, Sales Director, and Adela Cervera, Business Development Manager. “Jupiter’s team in the Iberian region works very closely with William to drive business growth in this market, aiming to optimize sales capabilities and foster commercial momentum,” the firm explained.
On May 19, 2025, Coinbase will officially be added to the S&P 500, becoming the first major crypto platform to join the world’s most iconic stock index. For experts in the crypto space, this milestone marks an unprecedented level of institutional validation for the digital asset sector.
“This is not a symbolic gesture but a structural confirmation: Coinbase has met the rigorous standards for stability, liquidity, and profitability required by the index committee, which only admits well-established companies from the U.S. corporate elite,” says Dovile Silenskyte, Director of Digital Assets Research at WisdomTree.
Coinbase’s inclusion coincides with a moment of strong momentum in the market: Bitcoin has surpassed $100,000, and altcoins such as Solana, Ether, and XRP are seeing significant capital inflows. “This reinforces renewed investor interest in the crypto ecosystem, and inclusion in the S&P 500 means Coinbase will begin channeling passive flows from the trillions of dollars tracking this index,” adds Silenskyte.
In the first week of May, Bitcoin surged past $100,000 and is now very close to its all-time high of $110,400. “Altcoins also rallied, in some cases even outperforming Bitcoin. Ethereum, for example, gained 28% against Bitcoin last week, driven both by the trade agreement and the successful rollout of the long-awaited ‘Pectra’ upgrade on the Ethereum mainnet. On the more speculative end of the market, memecoins posted even steeper gains, in some cases up to 125%,” notes Simon Peters, analyst at eToro.
However, experts remain cautious, and the current rally in crypto assets comes with nuances. For example, Manuel Villegas, Next Generation Research Analyst at Julius Baer, points out that Ethereum is not to silver what Bitcoin is to gold. “Their fundamental drivers are very different. In the short term, volatile —and noisy— macroeconomic conditions may obscure these distinctions, causing Ethereum to behave like a high-beta version of Bitcoin, but in the long run, each token’s fundamentals will prevail. Flows into Ethereum ETFs have been minimal —at best—. At the same time, we clearly see institutional interest in collateral management and stablecoins, where significant activity may concentrate on Ethereum. Meanwhile, its supply remains inflationary, as network activity is still limited,” Villegas notes.
The Coinbase Case
Focusing on Coinbase, it’s worth highlighting that the company, which survived the bear market and regulatory pressure of 2022–2023, successfully transformed itself: it cut costs, diversified revenues into areas like staking, custody, and blockchain infrastructure, and posted GAAP profits in 2024, which cemented its eligibility.
“This inclusion accelerates the institutionalization of the crypto world and removes barriers for traditional investors, who now see Coinbase as a legitimate gateway to the sector. It also sends a clear signal to traditional financial firms: Wall Street is no longer watching from afar—it is participating, allocating capital, and gaining exposure —even passively— to crypto. What was once marginal is now an integral part of the global financial architecture. Crypto assets are no longer knocking on the system’s door — they’ve been handed the keys,” concludes Silenskyte.
Bull Market
Current market conditions are dominated by macroeconomic and geopolitical factors, suggesting that volatility driven by external events will remain present. As for this asset class, crypto regulation in the U.S. and the UK is expected to remain one of the most relevant drivers throughout the rest of the year, with stablecoins being the key issue in the U.S. and spot ETFs the top priority in the UK.
According to Julius Baer, the crypto market’s rally reflects an improvement in risk sentiment, driven by the easing of trade tensions between the U.S. and China. Silenskyte explains that Bitcoin’s price increase is fundamentally based on its scarcity, with institutional demand outpacing supply. Meanwhile, due to differing fundamentals, Ethereum is likely to continue diverging from Bitcoin in the long term, despite currently being influenced by similar macroeconomic trends. “Regulatory developments in the U.S. and the UK will be key factors shaping the market going forward. Investors should act with caution, as macro-driven volatility will remain,” she notes.
In their view, sentiment in the crypto market appears to have shifted significantly, in line with improved sentiment across financial markets following signs of easing U.S.–China trade tensions. “That said, both Bitcoin and Ethereum have also rallied due to multiple acquisitions happening in the background, among which Coinbase’s $2.9 billion acquisition of the non-listed options trading platform Deribit marked a turning point in the pause in crypto sector M&A activity,” concludes the Julius Baer analyst.
The growth of assets managed by the investment fund industry in Mexico continues to show double-digit annual rates. According to figures from the Mexican Association of Brokerage Institutions (AMIB), as of the end of April, this indicator posted a year-over-year increase of 24.3%. This marks the fourth double-digit increase so far this year, as detailed in a statement.
Measured on a monthly basis, the assets of Mexican investment funds grew by 1.64%, reaching 4.6 trillion pesos (228.35 billion dollars). Of that total, 3.2 trillion pesos (156.85 billion dollars) are invested in debt instruments, while 1.4 trillion pesos (75.5 billion dollars) are allocated to equities.
Undoubtedly, in the Mexican investment fund market, fixed income investment still holds overwhelming dominance and preference among the investing public, representing more than twice the amount invested in equities. However, this is also seen as an opportunity for market growth, the statement emphasized.
The number of investment funds operating in Mexico has remained relatively stable: during April, fund managers reported 634 investment funds, just two fewer than in March.
While fixed income dominates in terms of assets under management (AUMs), there is a greater number of equity vehicles. Out of the total, 380 funds are dedicated to equities, while 254 strategies are invested in debt instruments.
The number of total clients continues to grow month over month. During the referenced period, the assets managed by the industry came from 12.4 million total clients, representing an increase of 301,758 clients compared to January. This reflects a 2.48% growth over the last three months.
Analysts have noted that the market’s growth remains solid, though there are also signs of caution given the current context of the Mexican economy. In that regard, their expectations for the remainder of the first half of the year remain similar to those at the start of the year, while waiting to shape the outlook for the second half.
Insigneo announced the addition of Jorge Oliveira to its network of financial advisors as Senior Vice President.
With a career spanning more than two decades in the field of wealth management, Oliveira has provided advice to individuals, families, and corporate leaders in the planning and preservation of complex wealth. His expertise in investment strategies, risk mitigation, and long-term estate planning has been key in guiding clients to make decisions aligned with their financial goals, the firm stated in a release.
“With 20 years of experience as a financial advisor, I’m excited to join Insigneo and leverage its platform to continue prioritizing my clients’ success,” said Oliveira.
Before joining the firm specialized in wealth management, he held key positions at leading institutions such as Oppenheimer, Morgan Stanley, Wells Fargo, Smith Barney, and Merrill Lynch, where he built strong expertise in designing sophisticated financial plans, tax strategies, and multigenerational investment structures for high-net-worth clients. He holds a degree in Accounting from St. John’s University in New York and a certification in financial planning from NYU – School of Continuing and Professional Studies, according to his LinkedIn profile.
“We are thrilled to welcome Jorge Oliveira to Insigneo,” said Alfredo Maldonado, Market Head for New York and the Northeastern United States. “His deep industry knowledge and commitment to excellence in client service make him an ideal addition to our team,” he added.
Oliveira’s integration into Insigneo’s network represents another step in the firm’s growth strategy, as it continues to add talent and experience to further enhance the quality of its wealth management services.
Markets appear to have breathed a sigh of relief following the truce agreement between Washington and Beijing, which includes a reduction in tariffs on Chinese exports to the U.S. from 145% to 30% for a period of 90 days. “The news that China and the U.S. have rolled back policies that, in practice, amounted to a trade blockade between the two countries has been warmly welcomed by the markets. Investors are hopeful that this three-month window will be used to negotiate a lasting agreement that, while unlikely to remove all tensions stemming from strategic competition, at least provides a more predictable environment for companies,” says Sean Shepley, Senior Economist at Allianz Global Investors.
According to experts, markets gained ground, led by cyclical sectors. “In the U.S., inflation stability offered slight relief, though the rise in durable goods prices was not fully offset by the slowdown in service inflation. In Europe, cyclical sectors such as automotive rebounded, though sector rotation began to show signs of fatigue by the end of the period, with defensive sectors making a comeback. Investors are now waiting for a new catalyst, as the good news appears to be already priced in,” summarizes Edmond de Rothschild AM.
According to the firm’s analysis, U.S. economic data for April have yet to reflect the impact of the increased tariffs, either in prices or consumer spending. “The Consumer Price Index (CPI) for the month stood at 2.3%, so the anticipated acceleration has not yet materialized, not even in goods. Services continued to ease. Meanwhile, falling oil prices helped slow energy and food inflation. The Producer Price Index (PPI) showed imported goods prices rising slightly from 2.3% in March to 2.5%,” they note.
With PMI releases still pending this week, analysts at Banca March believe market attention in the U.S. will focus on negotiations over the tax reform promoted by President Trump. “According to House Speaker Mike Johnson, the proposal could go to a vote next Monday. The new law gains relevance after Moody’s downgraded the U.S. credit rating. Market attention will also be on Treasury auctions, particularly a $16 billion 20-year bond issue scheduled for Wednesday,” they explain.
The Truce Between Washington and Beijing
In the view of Paolo Zanghieri, Senior Economist at Generali AM (part of Generali Investments), the unexpected and swift agreement to temporarily de-escalate trade tensions between China and the U.S. shows there is a sort of “Trump option,” even if the exercise price is higher than expected. “Following the truce, we have revised our growth forecasts for the U.S. and the eurozone to 1.6% (from 1%) and 1% (from 0.9%), respectively, and reduced our forecast for Fed rate cuts from three to two by year-end. In terms of asset allocation, we have strengthened our preference for investment grade bonds while maintaining a slight overweight in equities. The peak of uncertainty has passed, and trade protectionists no longer seem to hold the upper hand in the U.S. administration—but caution is still warranted,” explains Zanghieri.
He first points out that the truce with China is temporary, with the suspension of punitive tariffs set to expire on July 8, though he expects it to be extended until the U.S. reaches agreements with key trading partners. “This extension, while welcome, would not fully resolve the uncertainty that continues to hinder corporate capex planning,” he adds.
Second, he notes that the universal 10% tariff and the 25% tariffs on steel, aluminum, automobiles, and auto parts remain in effect, with few exemptions, which will impact both growth and inflation. “U.S. trade authorities are still assessing potential security threats from imports of semiconductors, pharmaceuticals, critical minerals, and commercial aircraft, among others, which could trigger new sector-specific tariffs,” he explains.
Lastly, Zanghieri highlights that the only near-finalized deal—with the UK—has very limited scope and includes provisions aimed at excluding China from British supply chains in strategic sectors. “Beijing would strongly oppose this becoming a standard feature of all trade agreements,” he concludes.
Navigating the 90-Day Pause
In the view of Andrew Lake, Chief Investment Officer and Head of Fixed Income at Mirabaud Asset Management, the rhetoric may sound familiar, but this latest chapter in the tariff saga comes with a notable shift: “The real negotiations are not between the United States and its trading partners, but between the White House and the U.S. bond markets.”
According to Lake’s analysis, a subtle yet significant change has emerged in recent weeks: Trump appears far less reactive to stock market volatility than during his first term, when he often measured his success by the performance of the S&P 500. “This time, the key indicator is U.S. funding costs. He wants lower Treasury yields, lower interest rates, and a weaker dollar. When Treasury yields started to break down in April, the tone changed. Now it is the bond market—not equities—that seems to be driving policy adjustments,” they explain. In Lake’s view, with most of the 90-day pause still ahead, markets remain optimistically positioned, buoyed by news of deals with the UK and China.
For Lake, the real question is whether financial markets, encouraged by optimism over tariffs, can look past current data and focus instead on the potentially better economic expectations now being priced in for the second half of the year.
“Clearly, we are in a worse position than at the start of the year, with 10% now seemingly the minimum tariff rate, but that is still much better than the situation just a few weeks ago. Doubts remain, but if this is now the ‘new normal,’ then we would expect agreements with other major trading partners to follow in the coming months. As we return to a ‘wait-and-see’ mode, our positioning remains cautious. Markets are rising on narrative, not fundamentals, and we have been reducing risk during these rallies. We prefer rotating into high-quality credit, where spreads have widened to levels we consider ‘recessionary.’ We are building exposure gradually at attractive entry points,” he concludes.
