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.
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.
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.
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).
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.
The fintech LAKPA announced the authorization of its Registered Investment Advisor (RIA) in the United States by the Securities and Exchange Commission (SEC). This will allow them to expand their reach, according to a statement.
The technology firm specialized in financial advisory for high-net-worth investors – linked to the Chilean group LarrainVial – highlighted that this decision marks progress in its expansion plans, with the ambition of becoming the largest community of financial advisors in Latin America.
With the green light from the SEC, LAKPA’s RIA will enable them to directly manage the offshore assets of clients in the region, especially in markets such as Mexico, where international diversification is a key component of wealth management.
Until now, explained the fintech, these assets had been managed through indirect agreements with other financial institutions. In this way, they expect to provide greater efficiency, security, and transparency, they highlighted.
Currently, the fintech has more than 50 strategic alliances with local and global brokerage firms and asset managers. The RIA’s approval opens the door to expand these agreements to U.S. broker-dealers and custodians, strengthening the open architecture of its platform and multiplying the investment options available.
“This step not only expands our capabilities, but also reaffirms our commitment to ethics, transparency, and the building of a solid and reliable financial ecosystem in Hispanic America,” stated Alicia Arias, commercial director at LAKPA México, in the press release.
Despite the financial volatility unleashed by the arrival of President Donald Trump in the United States, as well as uncertainty stemming from factors such as the eventual review of the USMCA and the implementation of a controversial reform in the country’s judicial branch, if 2025 had ended in September, it would have marked a historic period for investment returns in Mexico’s financial market.
The numbers leave no room for doubt. Domestic market stocks are already yielding a rate slightly above 30% annually, their best period since 2003. Fibras are delivering a cumulative return of 31%, marking the best year since 2011. The Mexican peso has appreciated by 13%, the best performance in 50 years as of a September close. And Cetes, the leading government securities in the domestic market, maintain an average real rate close to 5%, ranking among the best periods in the past 20 years.
Looking at long-term government debt yields, the trend is the same: the M bond, the most influential instrument in this segment of the domestic market, is showing a return of 15.6% so far this year. Udibonos, in turn, are yielding 16.3%. In both cases, yields of this magnitude haven’t been seen since at least 2010, and on a cumulative basis, it’s the best historical return as of September.
“This 2025 is shaping up to be an exceptional year and a reminder that peso-denominated assets have been by far a better alternative than the dollar,” says Franklin Templeton in a report titled “Couldn’t Be Better! The Best Year for Mexican Assets.”
For its part, Banco Base considers that strong returns in the Mexican market are precisely linked to volatility, since the country remains a partner of the world’s largest economy, and factors such as the trade war and general global financial uncertainty are causing capital to shift toward the closest emerging market to that power—one that offers attractive yields and enjoys relative financial and political stability. That country, without a doubt, is Mexico.
Banamex also highlights this year as one of great returns for Mexican assets, unless something extraordinary occurs in the next two months. Stability and certainty—despite being a low-growth economy—are the main draws for both domestic and global investors, says the bank (recently sold in a majority stake to a local businessman who acquired 25% of the firm).
How far will the Mexican market go? That’s the question among analysts and traders, as they speculate on what might happen over the next two years when the country must face two challenges that will test the resilience of its economy. The first factor is the upcoming review of the USMCA with the United States and Canada. On that point, even though significant tension and potential disagreements are expected—especially with the U.S. negotiating team—everyone is betting that the free trade agreement will prevail, though it will be a period of volatility and uncertainty.
The second medium-term factor is the crucial midterm legislative elections in 2027, during which the recall referendum mechanism provided by the constitution could also be brought to the table—in this case for current president Claudia Sheinbaum. The president currently enjoys solid public approval, but it is unknown whether—even as a strategy—she herself might promote this process. What is certain is that the election to renew the lower house (Chamber of Deputies), along with nearly 20 gubernatorial races, will be a moment of uncertainty for the country’s economy.
However, at the end of last year, most analyses warned of potential risks for Mexico with the return of President Trump to the United States—some even predicting an imminent recession in Latin America’s second-largest economy. Reality has proven otherwise and confirms that expectations are not always fulfilled.
It is no surprise that private assets are growing rapidly, driven by institutional allocations and increasing flows from private wealth. However, the industry continues to be constrained by a lack of transparency, with no common system to classify exposures, measure performance, or effectively communicate strategies. Against this backdrop, MSCI launched MSCI PACS, a proprietary asset classification framework designed to bring order, comparability, and consistency to private markets.
By covering a wide range of private assets, including private companies, real estate, and infrastructure, PACS provides detailed classifications that can be used to compare, analyze, and communicate portfolio strategies and performance effectively throughout the investment lifecycle, according to the firm in a statement.
“Private markets are at an inflection point, with growing relevance in the global financial ecosystem,” said Luke Flemmer, Head of Private Assets at MSCI. “With PACS, MSCI introduces the infrastructure that will define how private assets are identified, compared, and analyzed globally in the years to come.”
MSCI PACS is a global taxonomy created specifically for private assets. It builds on decades of MSCI’s leadership in providing standards and tools, including the Global Industry Classification Standard (GICS®), which is used to categorize and compare publicly traded companies around the world.
PACS, offered as an AI-powered managed data service, applies consistent sector tagging at scale, providing a strong foundation of transparency and comparability to the private markets industry.
The launch of PACS reflects MSCI’s broad commitment to equipping private markets professionals with the tools, research, and data needed to improve transparency and support informed decision-making across their portfolios.
Fund return, or fund return versus a benchmark, is usually the most common factor investors use when assessing a fund’s performance. However, more sophisticated investors will utilize a set of metrics that reveal what’s happening beneath the surface of fund performance.
Active Share: Measuring Active Management
The Active Share ratio measures the percentage of a fund’s portfolio that differs from its benchmark index. A fund with a low active share is very close to an index tracker fund or ETF, and investors could easily replicate a large proportion of the fund using one of these vehicles at a much lower cost. Active share reveals whether a manager is actually implementing their stated strategy or simply hugging the benchmark.
FirstRateData, a financial data provider, notes that funds with active equity strategies typically have 70-90% active share ratios. Funds claiming active management but with an active share below 60% are usually charging active fees for benchmark-like performance. Conversely, an extremely high active share (above 95%) may indicate an excessive concentrationrisk.
Tracking Error Volatility: Understand A Fund’s Risk Profile
Tracking error is the standard deviation of a fund’s performance relative to the performance of its benchmark index. Unlike active share, which shows the fund’s return difference, the tracking error shows the deviation in terms of volatility. Volatility is a common proxy for portfolio risk, so other things being equal, a fund with a lower volatility is preferable.
Active equity funds typically operate with a tracking error between 4-8%. Lower levels are often indicative of closet index tracking, whereas higher levels can signal excessive risk-taking.
Volatility is often combined with the fund’s return to calculate the Sharpe ratio, which is the units of return per unit of volatility. So a fund returning 20% with a 15% volatility would have a Sharperatio of 1.33 (20/15). This would make the fund’s risk-adjusted returns superior to a fund with 22% return and an 18% volatility, which would have a Sharpe ratio of 1.22. Quantquote notes that the best of class funds have a Sharpe ratio higher than 2, with a Sharpe below 1 usually being a signal of poor fund performance.
Asset Flow Momentum: Reading the Market Signals
The assetflow is the direction, magnitude, and consistency of capital flows into or out of a fund. Asset flows represent the collective judgment of the investment marketplace. In general, a slow and persistent flow in or out of a fund may represent the popularity of the fund’s strategy; for example, value-focused funds as a group experienced a consistent outflow since 2010. However, a sudden or dramatic acceleration in outflows may signal an imminent issue with the fund. Conversely, a sudden inflow of capital can be a predictor of a decline in returns as the fund may struggle to scale up the size of its investments.
Expense Ratio Efficiency: Value Beyond the Headline Number
Whilst expenseratios are widely reported, the absolute expense ratio matters less than whether those expenses translate into value creation. A 1.5% expense ratio might be reasonable for a specialized emergingmarkets strategy, strong performance and a low correlation with the broader market, while a 1.0% ratio could be excessive for a large-cap growth fund that clings tightly to the benchmark index.
Fees are a persistent drag on long-term performance and compound over time. However, blindly choosing the cheapest option often leads to suboptimal outcomes. The key is understanding whether higher fees fund genuine value-added activities like superior research, risk management, or access to unique opportunities.
It is important to consider the total cost of fund ownership, which includes transaction costs as well as tax efficiency, and not just the headline expense ratio. Funds should have stable expense ratios over time, which should usually decline as asset-under-management has grown and the fund manager is able to pass some of the scale benefits to investors.
Style Drift: Staying True to The Investment Strategy
Styledrift occurs when a fund moves away from its stated investment mandate, usually in response to being in an unpopular investment category. For example, a value fund may gradually move towards a growth-focused investment thesis to boost returns and attract more capital. Typically, the fund will signal this by reframing its investment thesis by redefining some of the core definitions of its target investments, so what constitutes a value stock or a large cap may change.
Style drift can undermine portfolio construction and risk management, as an investor will often have several fund strategies in a single portfolio. When funds change their characteristics without notice, investors may unknowingly take on unintended exposures or increase their concentration risk as more funds crowd into popular investment themes.
To protect against this, it is important to monitor the key style characteristics over time, such as the average market capitalization, sectorweightings, fundamentalratios (P/E, P/B, ROE), and geographicexposure for each fund. In addition, tracking these factors in aggregate at the fund level can provide some insights into overall portfolio concentrations and a gradual drift in the component fund’s strategies.
Written by Ryan Maxwell, director of research at FirstRate Data.
Humanoid robots are machines designed to mimic the human body and perform human tasks, combining sensors, artificial intelligence, and dexterity to operate in real-world environments such as manufacturing, logistics, healthcare, and consumer services.
In this industry, the main players are mostly Chinese companies like UBTech Robotics. However, Western firms such as Tesla are also developing humanoid robot models. The potential is vast: Goldman Sachs projects that the global humanoid market could reach $38 billion by 2035, while Morgan Stanley forecasts up to 1 billion robots by 2050, expected to generate around $5 trillion in revenue.
ETFs Are Emerging to Capitalize on This Investment Megatrend
KraneShares is preparing to launch the first humanoid robotics-focused ETF in the European market: the KraneShares Global Humanoid and Embodied Intelligence Index UCITS ETF (KOID) has been approved by the Central Bank of Ireland (CBI) for listing on the London Stock Exchange.
This is the latest in a wave of ETF launches this year. KraneShares had already introduced the first version of this ETF on the Cboe U.S. exchange. Shares of the fund—which has global exposure to companies primarily based in the United States, China, and Japan, and seeks to replicate the MerQube Global Humanoid and Embodied Intelligence Index—have risen 28% from its June launch through the end of September.
Following this launch came ETFs from Roundhill and Themes ETF, a firm affiliated with Leverage Shares. Roundhill acknowledges on its website that humanoid robotics “represents one of the most transformative frontiers in artificial intelligence and automation.” To capitalize on this potential, it launched the Roundhill Humanoid Robotics ETF (HUMN) at the end of June, an actively managed fund listed on the Cboe. As of September 30, its shares had appreciated 20%.
Themes ETF, meanwhile, introduced the Themes Humanoid Robotics ETF (BOTT) in August. This is a passively managed product that aims to track the Solactive Global Humanoid Robotics Index and is listed on the Nasdaq.
