The prospects for this business in Latin America are optimistic, according to Moody's agency.
This year, the volume of investments is very small. From 2018 we have to think about what is going to happen in 2019. This Moody's Risk Rating Agency has seen a quiet panorama for Latin American Assets managers making it a "stable" prospect. industry
But not everything is calm the international firm has identified five areas that will determine business evolution next year.
Growth in AUM
Moody's assumes that the asset management (AUM) will grow regional financial managers based on high interest rates as the monetary policy in the region is normalized.
In addition, the portfolio of firms is expected to grow, as the penetration of the industry in the continent is still low.
The situation in the region is calm, and, according to the forecasts, the financial stability period supports the economy by 2%.
At the financial markets, Moody's crude prices for the region's economy will grow in 2019, and volatile episodes expected at some stock exchanges are global commercial conflicts.
Although the rating agency has shown that the newest governments in the country, such as the Jayr Bensonaro in Brazil, reduce the political risk in the region, there are a few unidentified pockets that can cause this problem.
Specifically, Moody's criticizes the government, who views Mauricio Macrini as a market bid at the elections in Argentina. The second goal is the policy of Mexican new President Andres Manuel López Obrard (AMLO), which has mixed signals to investors over recent months.
Demographic and social processes
Despite the population growth, it did not contribute to the development of the stock industry in Latin America. Moody's believes that these people may change when they start saving much of their profits.
In addition, more employment can support growth in the industry, "he added, adding that pension funds will help stabilize assets managed by the industry through long-term financing in the region. .
Infringement of technology in the industry also plays an important role in evolution asset Management future. They expect new applications and technological solutions that help them increase their presence and attract new customers.
Moody's assumes that it will continue to compete with FinTech's asset management team, and there are already synergies between B2B and fund consultants.