Pioneros 2023: Jointly Creating an Investment Ecosystem

Advisors add value to platforms and support clients, opening huge possibilities within the Mexican investment market. Mexico has over 7,300 certified advisors nationwide, so the industry has much potential to develop and drive an investor economy. With this in mind, "Pioneros 2023" by GBM brought together many players in the Mexican investment ecosystem, aiming to professionalize financial advice and increase the number of investors in the country.

Only 2% of Mexico’s population has an investment account. In addition, Mexico has few financial advisors for a country of its size. Brazil, for example, has over 16,000 independent financial advisors, which points to a significant opportunity in Mexico. "At GBM, we believe there is much to do in Mexico since the population is underinvested and the market potential is positive. In the country, there is a great opportunity for growth since the mutual fund industry is worth about MX$3 trillion (US$168.1 billion), far below in terms of penetration concerning comparable countries, in which 75% of these assets are invested in debt instruments," said Alicia Arias, CFA - Director of Advisor Acquisition, GBM, and Co-Founder, Mujeres en Finanzas, during the event. 

During the event, Vanguard presented the "Advisor's Alpha" study, which explains the value financial advisors can add through a personalized and strategic approach. In particular, the study identifies four key areas in which advisors contribute to their clients' investments to build confidence:

• Financial value: proper planning increases the likelihood of achieving the client's objectives. 

• Portfolio value: a properly diversified portfolio can result in better net returns based on the client's risk tolerance. 

• Emotional value: by allowing the advisor to transmit confidence and security to clients in times of euphoria or stress due to fluctuations in financial markets, guiding them to make better decisions for their wealth.  

• Time value: by offering to perform tasks that individual investors cannot perform on their own, either due to lack of time, willingness or experience.

The current economic climate has created uncertainty among investors of all sizes. The Fed must account for the cumulative lagged effect of monetary policy, including tightening lending standards, explains Jeremy Siegel, Senior Advisor of Investment Strategies, Wisdom Tree. He adds that if there is a structural shift in labor supply, real wages must rise.

There is a "normal" US recession caused by rate hikes and credit tightening, explains Gabriela Santos, Global Markets Strategy, J.P. Morgan Asset Management. This affects companies and their profits. A recession is possible but it would be one that markets can absorb. 

"What is needed is to bring people closer to investments so that they know where to invest, how to put together a portfolio and, above all, to stay invested during the different stages of the market, and financial advisors are needed," says Arias.