Investment funds in Mexico had a “round year” in 2024, recording their largest growth of the decade in assets under management, both in terms of percentage and absolute variation in resources. According to statistics published on the website of the Mexican Association of Stock Market Intermediaries (AMIB), the total assets of Mexican funds closed last year at a total of 4,255,509 million pesos (212,775.45 million dollars).
The total amount of assets at the end of 2024 represents an increase of 25.23% compared to the final data of the previous period, and of 957,397 million pesos (47,869.85 million dollars). This is the largest increase of the decade, both in percentage and in absolute figures in managed resources, exceeding the increase of 19.32% and 550,435 million pesos (27,521.75 million dollars) recorded in 2023.
Between 2020 and 2024 – that is, in the balance of the current decade – Mexican funds have reported an increase of 74.69%, equivalent to 1,819,482 million pesos (90,974.1 million dollars), since throughout the period analyzed the assets managed in Mexican investment funds have reported increases.
With the final data from last year, assets managed in Mexican investment funds now represent 12.39% of the country’s GDP, an increase of 1.79 percentage points year-on-year and also the highest growth rate during the decade, in addition to the second advance in line after the setbacks in 2021 and 2022 due to valuation effects on Mexican GDP.
The creation of new investment funds in the country, however, was modest last year. At the end of 2024, a total of 634 funds were registered, only 6 more than at the end of 2023. Only two debt investment funds emerged last year, going from 252 to 254 funds, while the remaining four new investment funds were registered in the equity segment, with a total of 380 vehicles at the end of 2024.
Regulation, a driving factor for the advancement of the fund market
Last year, some modifications to the regulation for the investment fund sector in the country came into force, previously approved in 2023, which has since been considered a driving factor for the development of the market.
The main modification to the Investment Funds Law is the one related to the incorporation of Hedge Investment Funds as a new type within investment funds. Among the relevant aspects, the following stand out:
These Hedge Investment Funds may operate with any investment asset indicated in their information prospectus, and their investment strategies may be subject to change depending on market circumstances or the specific needs of the Hedge Investment Fund in question.
The shares representing the share capital of the Hedge Investment Funds may only be acquired by qualified and institutional investors, and therefore may not be offered to the general investing public.
These funds are not required to establish maximum holding limits per shareholder. They may be established as a founding partner by an authorized investment advisor under the terms of the LMV, which implies an exception to the general rule for investment funds of always having an investment fund operating company in their constitution.
The possibility is established for hedge investment funds to contract price providers, so that they can carry out a transparent valuation of the assets subject to investment.
In addition to the creation of hedge funds, the reform also establishes other areas subject to modification, which provided a better environment for promotional tasks, which has triggered an increase in clients among market managers. Thus, the best year of the decade for Mexican investment funds ends, with favorable expectations for this period that begins.
Source: fundssociety