“The Obesity Market Could Exceed $150 Billion in Size”

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While technology stocks continue to attract investor interest, there is one sector that continues to deliver positive returns yet remains overlooked: healthcare. “It’s a sector that has been out of favor for several years now, and this situation became even more pronounced over the past twelve months,” explains Dan Lyons, co-manager of the Global Life Sciences strategy at Janus Henderson. Lyons notes that the sector is currently trading at its lowest level in the past 25 years.

Funds Society sat down with Lyons in October 2024 to discuss the team’s outlook at the time, when the U.S. presidential election was still a month away. Since last November, the manager acknowledges that concerns around regulation and drug pricing have weighed on a “substantial portion” of the sector. On top of that, tariff announcements have added another layer of complexity for these companies, many of which operate multinational businesses. All of this has led to outflows from the sector, putting pressure on valuations. “We could call it a perfect storm of negativity for our sector,” concludes Lyons.

Throughout the conversation, the manager repeatedly emphasizes that the core of their investment process lies in identifying the most innovative companies in the health segment and then determining whether they are trading at attractive valuations. Within the sector, biotech firms are generally the innovation leaders: “Two-thirds of the industry’s pipeline comes from biotech. Last year, over 80% of new launches came from the biotech industry,” Lyons illustrates, explaining why the Global Life Sciences strategy typically has a structural overweight in this segment. The manager anticipates further innovation in 2026, citing medical advances in early treatment of Alzheimer’s disease, cardiovascular conditions, and new therapies for pancreatic cancer.

It is worth noting, however, that due to the inherently riskier nature of their business, biotech companies also tend to suffer the most in uncertain markets. This has happened again: the sector plunged 50% between November 2025 and April 2024, although it has since rebounded sharply. “It has been a challenging environment for our portfolios,” the manager admits. Still, he prefers to see the glass as half full, interpreting the sector’s recovery as a sign that the market may be starting to believe “the regulatory environment might not be that bad after all.”

How Has the Portfolio Rotated in 2025?

It’s been a year of two halves. In the first half, we rotated toward companies in earlier commercial stages and, to some extent, scaled back our enthusiasm for early-stage development firms that weren’t being properly rewarded for taking on risk.

As we enter the second half of the year, we’re seeing that the market is more willing to take on risk. The context of interest rates has also helped, with the first rate cuts. As a result, we are now slowly increasing our exposure again to early-stage development companies. We’re also excited about companies in the late-stage development phase with solid access to capital. These are firms developing new drugs for rare diseases, such as Avidity or Dyne.

Last Year You Were Very Bullish on Obesity Treatments. Do You Still Hold That View?

We remain very bullish on the potential size of this market opportunity. We believe the obesity market could exceed $150 billion. There is more than enough room to capture even a 10% market share.

We’ve seen leadership, particularly from companies like Eli Lilly, consolidate even further. The next-generation product it launched last year, ZepFound, is capturing three-quarters of new patients—it has become the preferred choice for people starting obesity treatment. And we believe the market could open up even more now that they’re able to launch the drug both in the U.S. and globally, making it more accessible.

Last year, Eli Lilly also reported positive phase 3 data for an oral drug using the same mechanism, called Orfoglipron. So during 2026, we’ll see the launch of an oral option, which will help expand access and somewhat democratize the market, as it won’t require cold chain storage.

We are playing this theme both through large companies like Eli Lilly and smaller biotechs, such as Medcera, which we hold in the portfolio. They were in early-stage development of a similar drug to Eli Lilly’s, and they were acquired by Pfizer, which will now lead the remaining trials.

Innovation Is the Compass of Your Research Process. Where Is It Pointing in 2025?

It’s truly been a year of tremendous breakthroughs. In this uncertain environment, we’ve focused heavily on companies that have recently received drug approvals and have successfully delivered those treatments to patients despite the regulatory noise. Many of these companies are seeing spectacular new drug launches. One example is Madrigal, which launched a drug called Rosdifra (also known as MASH) for fatty liver disease. It’s the first of its kind, and it’s on track to become a blockbuster, since many patients in the U.S. suffer from this condition, which is a major cause of liver transplants. If this disease can be treated early and transplants avoided, it results in huge savings for the healthcare system and better outcomes for patients.

Another example is Verona (VRNA), a UK-based biotech that developed a new type of medication for COPD, a nebulized therapy that’s gaining strong market traction. It’s a new area meeting an unmet need. The company was just acquired by Merck for over $10 billion. In the case of Verona and Madrigal, we’re talking about market opportunities between $5 billion and $10 billion.

Another emerging market is autoimmune diseases, where companies like Argenx are active. It already has a drug with $4 billion revenue potential. But this is on a different scale—it’s like the NVIDIA of the healthcare sector.

So, Do You Anticipate More M&A in the Healthcare Market?

Yes, because big pharma needs additional revenue and is looking to biotech companies to get it. Firms like Pfizer or Bristol-Myers are losing patent exclusivity and seeing sales fall. They need to bring in these new products. Across the industry, we estimate they have around $1 trillion in spending power, which allows them to engage in many deals to build their product pipelines.

We are already seeing this reflected in our portfolios, with more big pharmaceutical companies becoming comfortable with the regulatory and pricing environment, as they are starting to deploy capital. We’ve seen over five of the companies in our portfolio involved in M&A activity in the second half of the year.

What Impact Could the Big Beautiful Bill Have on the Pharmaceutical Sector?

We’ve come from several years of expanding healthcare coverage, with more people gaining access to healthcare services. This law has started a period of contraction, reducing access to some of those services. There’s a lot of work to be done in Congress to avoid that, because it’s extremely unpopular to remove a benefit people already enjoy. But in percentage terms, the contraction is relatively small, and I believe it’s very manageable.

The law also includes some positive aspects that have helped the sector. For example, for companies developing orphan drugs for rare diseases: under the previous IRA law, these producers faced the risk of future price caps, and the current legislation has corrected that.

You Have Kept Some Underperforming Companies in the Portfolio. Why?

When we hold companies going through challenges, as we have with United Healthcare, we always assess whether the valuation still looks attractive and whether the original compelling element of their business model remains. We also evaluate if they can return to more normalized margins. In United Healthcare’s case, we believe the return of the former management team can fix the situation, which is why we not only held the position but slightly increased it.

We’ve had similar experiences with another portfolio name—a company developing a vaccine for a market estimated at $7 billion that we believe will become the market leader. But due to controversy around vaccines and the anti-vaccine stance of Robert F. Kennedy, the company’s valuation is heavily depressed. We’ve held onto our investment because we don’t believe that market is going away.

Asia-Pacific: The Largest UCITS-Holding Region After Europe

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Within the European fund industry, the acronym UCITS enjoys great popularity and trust—but what about beyond Europe’s borders? The reality is that, according to aggregated data from the ECB, it is estimated that out of the €21.5 trillion held in UCITS and AIFs domiciled in the EU, €9.7 trillion corresponded to domestic funds. This means that €11.8 trillion are in the hands of investors outside the EU member states.

According to the latest report published by the European Fund and Asset Management Association (Efama) and prepared with exclusive data from Broadridge’s Global Market Intelligence (GMI) to analyze international UCITS distribution trends, thanks to the European passport regime, those €11.8 trillion are divided into two segments. On one hand, there are funds domiciled in EU countries and held by investors located in another member state, which reached €6.1 trillion at the end of 2024. On the other hand, there are those funds domiciled in the EU and held by investors located outside the EU, which reached €5.7 trillion.

“Over the past decade, the net assets of cross-border funds have grown considerably faster than those of domestic funds. While the assets of domestic funds increased by 83%, the assets of cross-border funds held in another EU country grew by 145%, and cross-border funds held outside the EU grew by 133%. Interestingly, in the past two years, the growth rate of cross-border funds outside the EU has outpaced that of intra-European cross-border funds, underscoring their increasing relevance on a global scale,” the report reveals.

According to the report, one of the main drivers behind this growth has been the increase in net sales. As the figures show, cross-border funds—especially those marketed outside the EU—have consistently attracted greater investment flows compared to domestic funds and cross-border funds within the EU.

Asia-Pacific: Largest Holder

One of the conclusions presented in the report is that, as of the end of June 2025, the Asia-Pacific region accounted for 8.7% of cross-border UCITS holdings. Specifically, net UCITS assets in the region grew by 18% during 2024, although they declined slightly in the first half of 2025 (-4%).

“Over the past five years, cumulative asset growth has been 22%. This relatively moderate long-term growth reflects the impact of the sharp decline recorded in 2022, after which net assets took two years to fully recover. Net sales have generally been positive in recent years, with 2022 as the only exception,” the report explains.

Specifically, Hong Kong, Singapore, Japan, and Taiwan are the main Asian markets for cross-border UCITS. According to the report, following widespread redemptions in 2022, Singapore and Taiwan drove the regional recovery in 2023, recording net inflows of €9 billion and €4 billion, respectively.

In 2024, total net inflows into Asia-Pacific rose significantly to €34 billion, supported by continued strong demand in Singapore (€12 billion) and Taiwan (€6 billion), as well as a notable recovery in Hong Kong, where investors contributed €11 billion in new net investments. During the first six months of 2025, this positive momentum continued, with significant net inflows into Singapore and Hong Kong totaling €7 billion.

Geographic Overview

Looking at other regions, it is notable that the countries of South America and Central America accounted for approximately 3.3% of cross-border UCITS holdings at the end of the first half of 2025. According to the report’s data, as of the end of June 2025, Latin American investors held €246 billion in cross-border UCITS, excluding ETFs, and net assets fell by approximately 8.5% in the first half of 2025, after growing by 15% the previous year and 24% over the past five years.

“Total holdings remain below their 2021 peak. Net sales have been relatively weak in recent years, with two consecutive years of net outflows in 2022 and 2023. The market returned to positive territory in 2024, with net inflows of €4 billion, but so far in 2025, it has once again recorded net redemptions of €5 billion,” the document states.

Regarding the Middle East and Africa (MEA), the countries in this region accounted for approximately 1.2% of cross-border UCITS holdings at the end of June 2025. In the case of North America, the United States and Canada account for only 0.2% of cross-border UCITS holdings. “All of these are concentrated in Canada, since, although the United States is the largest fund market in the world—with total net assets exceeding €40 trillion in 2024—regulatory barriers effectively prevent the distribution of non-U.S. funds in that country,” the report explains.

It also highlights that U.S. fund managers widely use UCITS to market funds to investors outside the U.S., given that funds domiciled in that country cannot easily be marketed to international investors for tax and regulatory reasons. According to the report, it is also important to note that U.S. investors residing outside the U.S. do invest in UCITS, mainly through wealth managers in Latin America, offshore jurisdictions, or international regions.

Lastly, the offshore region represents 0.8% of European cross-border UCITS and includes several Caribbean countries and the Channel Islands, commonly defined as offshore financial centers, such as Bermuda, Curaçao, Guernsey, and Jersey. There is also an “unassigned international” region, as referred to in the report, which represents approximately 17.6% of cross-border UCITS assets that cannot be linked to a specific end-investor location.

Capital Strategies Partners Reaches a Distribution Agreement with ARK Invest

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Capital Strategies Partners has signed an agreement to distribute the investment products of ARK Investment Management (ARK Invest or ARK) in Spain, Portugal, Chile, Colombia, Peru, and Brazil.

The asset manager highlights that ARK Invest, founded in 2014 by Cathie Wood, “has established itself as one of the most globally recognized asset managers, thanks to its exclusive focus on disruptive innovation.” Its strategies, centered on artificial intelligence, robotics, biotechnology, blockchain, and next-generation energy, position it as a reference for investors seeking exposure to the drivers of technological and economic change.

“We are very pleased to welcome ARK to our group of represented managers. Cathie Wood and her team bring a distinctive vision, aligned with our mission to offer investors innovative, high-quality solutions,” said Daniel Rubio, founder and CEO of Capital Strategies Partners, following the announcement.

For her part, Cathie Wood, founder, CEO, and Chief Investment Officer of ARK Invest, commented: “At ARK, our mission has always been to democratize access to the most relevant investment opportunities of our time, driven by disruptive innovation. We already work with investors in Europe and Latin America, and this collaboration with Capital Strategies strengthens our ability to expand that mission in Spain, Portugal, and other key markets in the region. This agreement allows us to empower more investors to participate in the technological transformations that are redefining the world, and to position their portfolios with a long-term growth vision.”

According to Stuart Forbes, Global Head of Distribution at ARK Invest, this agreement with Capital Strategies builds on their established presence in Europe and enables them to strengthen their reach in Latin America, especially in Chile, Peru, Brazil, and Colombia. “Thanks to their local expertise and trusted relationships, we can bring our research-based strategies to new investors and expand access to the disruptive technologies that will define the economy of the future,” he noted.

JP Morgan Private Bank Adds Justo Schiopetto as Banker in Miami

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Capital Strategies Partners y ARK Invest
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J.P. Morgan Private Bank announced the promotion of Justo Schiopetto to associate and banker for its Miami offices. The professional previously worked at JPMorgan Chase in Dallas, Texas, according to his LinkedIn profile.

Caterina Gomez, VP of JP Morgan Private Bank and Head of Market Business Management for Latin America Regions (excluding Brazil), published a welcome post on her LinkedIn profile, in which she reported that Justo Schiopetto has taken on the role of associate and banker “by joining our Latin America team in the Miami office.”

“Justo brings years of experience in wealth management,” Gomez added. From his new position, Schiopetto will serve the needs of the bank’s ultra-high-net-worth clients, according to the same post.

According to his professional profile on the social network LinkedIn, the new banker at JP Morgan Private Bank in Miami joined JPMorgan Chase in June 2021 as an Investment Banking Credit Analyst. Previously, he worked for three years at Cohen Aliados Financieros and was also a consultant – risk advisory at Deloitte Argentina, among other professional experiences.

Academically, he holds a Bachelor’s Degree in Business Administration and Management from UCA (Pontifical Catholic University of Argentina) and a Master’s in Finance from Universidad Torcuato Di Tella.

Revolution in Funds? The SEC Endorses Dual Structure with ETFs

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A Regulatory Change in the United States Could Enable Asset Managers to Integrate ETFs and Mutual Funds in Their Portfolios, in an Industry Witnessing the Unchecked Growth of Exchange-Traded Funds

A regulatory change in the United States could enable asset managers to integrate ETFs and mutual funds in their portfolios, in an industry that is witnessing the growth—with no limits in sight—of exchange-traded funds. Experts consulted by Funds Society confirmed that the regulator seeks to modernize and simplify the structure of investment funds in the United States and indicated that it would be a positive move for retail investors. However, they also warned that it could benefit large-scale managers to the detriment of smaller firms.

At the end of last September, the SEC issued a statement titled “Back to Basics: Statement on Exemptive Relief for ETF Share Classes,” making public its intention to approve a request submitted by DFA (Dimensional Fund Advisors) to allow open-end funds (mutual funds) to simultaneously offer exchange-traded shares (ETFs).

“The Commission is taking a long-awaited step toward modernizing our regulatory framework for investment companies, reflecting the evolution of collective investment vehicles from being primarily daily redeemable funds to exchange-traded funds (ETFs),” stated Commissioner Mark T. Uyeda in that statement.

The proposed regulatory change targets the domestic U.S. market, and although the regulation has not yet been ratified, it holds transformative potential for the entire industry.

“As mutual funds and ETFs become more democratized, assets tend to shift toward ETFs, since traditionally fees are lower and taxes, without a doubt, are also much lower,” explained to Funds Society Gil Baumgarten, CEO of Segment Wealth Management, an RIA based in Houston, Texas.

“Reducing the barriers to converting open-end funds into closed-end ETFs through a share-class matching scheme—like the one proposed by Dimensional Funds—is positive for investors and will accelerate the trend of converting other mutual funds into ETFs if the SEC approves it,” he added.

It is expected that many other asset managers who have already submitted similar requests (more than 80, according to global law firm Ropes & Gray) will file similar amendments to align with the DFA model.

“The measure seeks to modernize and simplify the structure of investment funds in the United States, which until now have had to keep their traditional mutual funds and their ETFs separate, even though they often invest in the same assets and follow the same strategy,” said Jorge Alejandro Antonioli, Investment Development Manager at Supra Wealth Management.

“At the asset manager level,” he continued, “this creates duplicate costs, different legal structures, and lower operational and tax efficiency. With this measure, the SEC would allow, under an exemption regime at first, a fund to have two classes: one exchange-traded class (ETF) that investors can buy and sell during market hours and another non-traded class that operates with an end-of-day NAV as mutual funds traditionally do.”

Main Advantages

The regulatory change has benefits associated with greater liquidity, lower management costs, and access without investment minimums, noted the expert from Supra WM. “It is always good for retail investors to have more investment options; being able to access the same asset through two different financial instruments simply gives the retail investor more options, and that is always good,” said María Camacho, a market analyst with a recognized track record in the industry.

In her opinion, the issuance of active ETFs is becoming more common, and in this way one could access either a mutual fund or an ETF to obtain active portfolio management. “I firmly believe in the added value of active management and consider that if an advisor knows how to select good active managers, their client will achieve above-average results,” she added.

Baumgarten also believes the change should benefit retail investors. “It may not necessarily result in lower fees, although it’s possible,” he stated. ETFs offer better liquidity and a more favorable tax treatment than traditional open-end funds, and the tax-free exchange that would be offered through share class conversion would be highly beneficial for long-term shareholders, from his point of view.

From Supra Wealth Management, Antonioli noted that the SEC proposal could put downward pressure on the revenue earned by traditional firms and could pave the way for firms to adopt new billing models, such as fee-based schemes or the adoption of a fiduciary system.

The CEO of Segment Wealth Management assessed that if the regulation is approved, it will likely accelerate the disappearance of 12b-1 fees, more than directly affecting commissions. “Many mutual funds already offer no-load share classes,” he said. “Brokerages and fund companies are reluctant to give up 12b-1 fees, which are essentially a form of retrocession.”

Baumgarten explained that some ETFs “include nominal 12b-1 fees, but nothing comparable to what is typical in traditional open-end funds. This share class conversion will accelerate the end of the traditional open-end mutual fund model and will force most companies to adopt changes similar to those proposed by Dimensional Funds. This will hurt brokerages and the portion of the business that depends on commissions, as well as the IRS (U.S. tax authority), due to reduced tax collection.”

Camacho, for her part, admitted that downward pressure on fees “is a constant reality,” although she stressed that what matters is net return: “If there’s a manager who charges more than another but delivers better net-of-fees results, I will always prefer the more expensive one, because they deliver better outcomes.”

Some Industry-Level Risks

The reality is that the rule change could strengthen large firms with investments in infrastructure, technology, scale, and distribution, and conversely, could become a challenge for smaller firms, warned the expert from Supra.

“The implementation of the new measure by the SEC,” he added, “will constitute a regulatory and economic paradigm shift that will benefit managers with scale, technology, and operational muscle to sustain daily regulatory, compliance, and evaluation processes. At this point, I believe the regulation should take care to avoid creating ‘too big to fail’ giants and ensure appropriate conditions so that small or mid-sized managers with strong track records are not absorbed or driven out of the market.”

In the same vein, Camacho noted that “with technological and regulatory progress, we are increasingly seeing more concentration among asset managers, where good managers will always be able to attract more assets than poor managers, resulting in capital concentration among the best managers.”

“The shift toward the ETF structure has been underway for several decades,” stated Gil Baumgarten from Segment Wealth Management. The expert does not believe the rule will result in the disappearance of mutual fund companies, “but it will force them to convert their structures to ETFs and should promote consolidation. The smaller, less competitive firms already under pressure from investors’ preference for lower-cost index products will be the most affected. Many of them have probably been debating whether to offer ETFs for some time without taking action; this regulation will finally compel them to do so,” he concluded.

Vinci Compass Announces a Strategic Relationship With Ares Management

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Vinci Compass announced a strategic relationship with Ares Management to expand access to Ares’ semi-liquid product portfolio for qualified and professional investors in Uruguay, Argentina, Brazil, and Mexico.

Ares’ semi-liquid solutions aim to provide core exposure to private markets, including Ares’ leading areas in private credit, private equity, real estate, infrastructure, and secondary market businesses. As part of this relationship, Vinci Compass will market Ares’ full range of semi-liquid solutions available in the region.

Ares is a leading global alternative investment manager offering clients complementary primary and secondary investment solutions across the asset classes of credit, real estate, private equity, and infrastructure. As of June 30, 2025, Ares’ global platform had over USD 572 billion in assets under management (AUM), with operations in North America, South America, Europe, Asia-Pacific, and the Middle East.

The firm manages approximately USD 50 billion in capital through its wealth channel and maintains one of the largest and most well-resourced private markets distribution platforms.

Vinci Compass is a global alternative investment platform with a strong presence in Latin America, operating in segments such as private equity, credit, real estate, infrastructure, forestry, equities, global investment products, and corporate advisory. Since its merger/full integration between Vinci Partners and Compass, the firm manages approximately USD 53 billion, with a presence in Brazil, Argentina, Chile, Colombia, Mexico, Peru, and Uruguay, in addition to offices in the United States.

JP Morgan Private Bank Hires Antonio López Doddoli in Houston

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J.P. Morgan Private Bank announced the addition of Antonio López Doddoli to its Latin America team as vice president and banker at its Houston offices.

Caterina Gomez, VP of JP Morgan Private Bank and head of market business management for Latin America regions (ex Brazil), welcomed the professional on LinkedIn, where she confirmed that López Doddoli is joining the bank’s Houston office.

“Antonio brings over 10 years of wealth management experience to his new role, in which he will serve the needs of our ultra-high-net-worth clients,” Gomez stated in her post on the social network.

Before a brief period as deputy director at Kapital Bank, López Doddoli spent more than a decade at Intercam Banco, where his last position was deputy director. Previously, he was a consultant and analyst at London Consulting Group and a partner consultant at Manage & Growth Consulting. Academically, he earned a bachelor’s degree in financial planning and services from Tecnológico de Monterrey and completed an Executive MBA (MEDEX) in senior management at IPADE Business School.

U.S. and China: Staged Performance or Possible Trade Escalation?

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In this last quarter of the year, geopolitical developments appear to have shifted the focus away from tensions surrounding the U.S. administration’s tariff policy. However, since last week, we have witnessed a resurgence of tensions between China and the United States, occurring just ahead of the scheduled meeting between Trump and Xi at the APEC summit later this month.

What happened? “On Thursday, October 9, China’s Ministry of Commerce announced the expansion of restrictions on rare earth exports, extending the limitations to foreign exporters and technologies related to rare earth elements. The following day, the Trump administration responded swiftly by imposing a 100% tariff on all Chinese products, in addition to those already in place,” summarizes Elizabeth Kwik, Director of Asian Equity Investments at Aberdeen Investments.

As clarified by Nannette Hechler-Fayd’herbe, Head of Investment Strategy, Sustainability and Research, CIO EMEA at Lombard Odier, since a meeting in Geneva in May 2025, the United States and China had been consistently postponing the implementation of tariffs and import restrictions that had been mutually threatened. According to the expert, with just a few weeks remaining until the formal end—on November 10—of the negotiated truce, the diplomatic tone has shifted, and the stakes are now higher.

“In the short term, Chinese restrictions complicate U.S. efforts to stockpile rare earth elements—metallic components essential for everything from electric vehicle motor magnets to smartphones, medical imaging, and missiles. In response, President Trump threatened to impose 100% tariffs on Chinese imports, as well as new export controls on critical chips and software aimed at curbing China’s technological advances starting November 1, and suggested he might cancel a planned meeting with President Xi Jinping. More recent comments from both sides have been more conciliatory, but escalation remains possible, and we expect a volatile few weeks ahead,” adds Hechler-Fayd’herbe.

In her view, this escalation in trade relations should not be underestimated, although it could be interpreted as a prelude to negotiations ahead of a series of deadlines. “Our expectation is that the United States and China will reach a compromise, given their level of economic interdependence; however, the risks of further escalation persist, so we are closely monitoring every development,” she notes.

Impact for Investors
Following last week’s events, Christian Gattiker, Head of Research at Julius Baer, believes that what was supposed to be a refreshing pause for the markets felt more like an “ice bucket challenge” by the close of last Friday’s session.

In his assessment, the impact was uncomfortable but ultimately healthy. “As in previous instances, we expect an eventual resumption of dialogue and some symbolic concession thereafter. From an investment perspective, we advise staying calm. The political calendar, inflation dynamics, and sentiment constraints argue against a prolonged tariff campaign. Volatility at this stage should be seen as part of the normalization process, not the beginning of a new bearish phase. The ‘cold shower’ could ultimately prove to be the healthiest outcome of all,” states Gattiker.

In this context, investors have shown concern and, as a result, Chinese stocks and Asian markets in general have suffered. “Although part of this may be short-term noise and profit-taking after the recent rally, the retaliatory measures may be more about posturing ahead of the summit. There is a possibility that both sides will ultimately find common ground to limit the impact on the markets and, in particular, Trump has previously calmed tensions when U.S. stocks and bonds began to suffer the consequences of such escalations. Moreover, on Sunday, he struck a more conciliatory tone. We will continue to closely monitor the situation,” acknowledges the Director of Asian Equity Investments at Aberdeen Investments.

“There Is No Bubble in Miami; There Is a Housing Shortage”

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Miami offers “significant opportunities in the condominium-for-sale segment” to Latin American investors seeking capital preservation and income in U.S. dollars, and the city is not facing a real estate bubble threat, as some reports suggest. Instead, prices are rising because “the supply fails to meet the structural housing demand,” said Juan Carlos Tassara, a native of Peru and founding partner of Core Capital, a real estate investment fund management company, in an interview with Funds Society.

Peruvian capital continues to strengthen its presence in the U.S. real estate market, especially in South Florida, driven by the search for stability and diversification amid the political uncertainty shaking the Andean country. Tassara stated that more than 60% of the capital from Peru managed by his fund is already invested in the United States and that the proportion “continues to increase year after year.”

Since 2005, the executive has also been a founding partner and director of Grupo Edifica, a housing development company in Peru that later expanded to the United States. Internationally, he is a partner at North Development, a company dedicated to developing real estate projects in Miami.

The latter firm announced in mid-September 2025 that it had secured a combined $220 million in C-PACE (Commercial Property Clean Assessed Energy) financing and a mortgage loan for the construction of the Domus Brickell Center project. Core Capital contributed an additional $40 million.

This financing represents the largest ground-up C-PACE construction loan to date in South Florida and will allow the team to implement energy-efficient and resilient features that will set a new standard for luxury residential development in Brickell, according to a company statement.

In the interview, Tassara explained that Core Capital manages various funds with different return expectations depending on the project’s profile and region. For example, the Edifica Global Fund (FEG) invests in real estate projects in Miami (Brickell) and targets annualized returns between 13% and 17% in U.S. dollars (net of fees) for Class E investors.

Core Capital maintains a strong focus on private real estate debt, although it also manages diversified funds that combine debt, private equity, and other asset classes. Its model seeks to generate attractive returns through structured loans to real estate developments supported by the group’s experience.

Permanent Political Crisis and Offshore Investments


“Our investor base understands that, in an environment of uncertainty, diversifying in U.S. dollars and in solid markets is a strategic decision, not a short-term reaction,” explained the executive.

Following the ousting of Peruvian President Pedro Castillo at the end of 2022, the country entered a political crisis that some analysts now consider “permanent.” This situation led to a capital outflow exceeding $22 billion between 2021 and 2024, equivalent to 9% of its GDP. “A significant portion of those funds migrated to the United States,” continued Tassara, “where investors found legal security, macroeconomic stability, and competitive opportunities in the real estate sector.”

“Through Core Capital, we have directly channeled this trend: more than 1,000 Peruvian investors participate in our funds, and over 60% of the Peruvian capital we manage is invested in U.S. projects, mainly in South Florida. This interest deepens year after year, with investors seeking to preserve their capital and generate income in U.S. dollars,” he described.

According to Tassara, the appetite of Peruvian investors for offshore assets continues to expand, and the United States remains the main destination. “Although some consider alternatives in Europe or Central America, most still view the United States as a ‘safe harbor’ amid regional volatility, thanks to its combination of security, liquidity, and accessibility,” he noted.

Miami, Epicenter of Opportunities


Florida—and particularly Miami—continues to be the main investment hub for North Development and Core Capital. The firm currently has two new projects under development and is evaluating residential opportunities focused on both short- and long-term rentals.

Far from fearing an oversupply, Tassara maintains that the market remains solid: Florida receives more than 250,000 new residents each year, in addition to natural population growth of 120,000 people, while developments take between 4 and 5 years to complete, making it difficult for developers to keep pace with population growth. In his view, this dynamic keeps structural demand unsatisfied and supports rising prices.

Tassara identifies particular opportunities in the condominium segment aimed at Latin American investors seeking capital preservation and income in U.S. dollars. The executive addresses this demand through the vertical integration of his three key units: North Development (project development and execution), Core Capital (structuring and funding), and North Management (operational and hospitality management).

Employment, Productivity, Immigration: Effects of the H-1B Visa Fee Hike

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Oxford Economics has reduced its forecast for net migration to the United States (legal immigration minus unauthorized emigration) in response to a slowdown in legal migration and the expected effects of the H-1B visa fee increase. Less immigration implies slower labor force growth and, therefore, a tighter labor market, which in turn would moderate the rise in the unemployment rate in the coming years.

The report “New visa fees cloud the immigration outlook” by Oxford Economics, prepared by Michael Pearce, examines the consequences of the new U.S. immigration policy. The study indicates that the arrival of legal immigrants could average around 775,000 people per year, representing an annual reduction of about 140,000 individuals compared with the organization’s previous estimates. Adding unauthorized departures, the adjusted total net migration could be around 400,000 people per year—well below the recent pace of 1.1 to 1.2 million annually.

These revisions imply that, in the medium to long term, the U.S. population could be about 566,000 people below previous projections, and the labor force could shrink by around 350,000 people relative to September estimates.

The Oxford Economics research notes that, with such limited labor force growth, future economic performance will be increasingly conditioned by the level of productivity the U.S. economy is able to maintain. In other words, with little demographic momentum, the key will be how much each additional worker can produce.

The change in the H-1B fee


One of the most significant changes analyzed in the study is the introduction of a one-time fee of $100,000 for initial H-1B visa applications. This fee, which must be paid by the employer, is an order of magnitude higher than the fees previously in effect. Those who already hold H-1B visas are not required to pay it.

The H-1B program initially grants up to 65,000 visas per year, plus 20,000 additional ones for U.S. master’s degree graduates. Since demand for these visas typically far exceeds supply (for example, there were more than 340,000 valid applications for fiscal year 2025), they are usually allocated by lottery.

The study points out that the $100,000 fee is especially burdensome for entry- or mid-level positions (except in very high-paying fields such as medicine or law), which could suppress demand for new professionals under this category. In addition, the government proposes modifying the lottery system to favor workers with higher wage levels, which would tend to encourage mid- and high-level hiring at the expense of entry-level positions.

These changes could reduce the number of new H-1B petitions below the permitted cap, leading to a net contraction in this type of visa. It is particularly relevant that nearly 70% of current beneficiaries work in computing or technology fields, suggesting a direct impact on that sector.

The study also notes that around half of H-1B visas are granted to individuals already in the U.S., many of them transitioning from student visas. In turn, many beneficiaries can support their spouses with associated work permits. Therefore, if the appeal for foreign students declines, this could create a ripple effect on the H-1B program and on legal migration overall.

The inflow of foreign students slows


The report warns that a slowdown in the inflow of foreign students is already being observed. Their numbers have been growing at a much slower pace during the year studied, and some student permits show a reduction of around 7% compared with the previous year. Part of this is due to the U.S. administration having temporarily suspended the issuance of student visas at one point, later resuming processing under stricter rules (for example, requiring disclosure of social media accounts).

This trend is concerning, the report says, because students on visas often have the opportunity to work temporarily after graduation (for example, through the Optional Practical Training, or OPT, program, with additional extensions for STEM fields). A sustained decline in student numbers would affect legal migration and, consequently, the entry of new workers into the labor market.

Nevertheless, the analysis acknowledges that there is uncertainty about the magnitude of the actual impact, since the administration has not published monthly visa issuance data since July (as of the report’s date), and some indicators—such as work authorization permits—already show a trend toward deceleration.