Introduction
The tax burden on financial instruments in Mexico is high, posing a significant challenge to the development of the country’s financial market. This situation has turned into a “happy problem” for investors, presenting both advantages and disadvantages.
Investor Surprise: High Interest Rates and Taxes
Investors are pleasantly surprised by the high real interest rates they are earning. However, this surprise is followed by another as they realize the substantial taxes they must pay due to their financial gains.
This high tax burden is indirectly driving a shift in the financial culture of investors. Many clients of fund operators, who have accumulated millions over the past five years—more than 70% in Certificados de la Tesorería (Cetes)—are now diversifying their investments to minimize the tax impact on their financial gains.
Transition from Fixed-Income to Variable-Income Investments
Investors are moving away from fixed-income investments, such as government debt or Cetes, towards variable-income investments like stocks and other financial instruments. They aim to maintain high returns while minimizing taxes.
David Galarza, Director of Actinver Asset Management, describes this shift as part of the rapidly evolving landscape of Mexico’s fund operators.
Record-Breaking Growth in Mexico’s Fund Industry
In 2024, Mexico’s fund industry experienced unprecedented growth, with a 25% increase in assets under management, according to data from the Mexican Securities Exchange Association, headed by Álvaro García Pimentel.
This growth surpasses the industry’s previous annual average of 3% and even its best years with 6% growth in assets.
The fund industry now represents 12% of Mexico’s Gross Domestic Product, making it the second-largest institutional investor in the country.
Explosive Growth in Clients and Assets
The number of clients for fund operators skyrocketed in 2024, reaching an annual growth rate of 81% with 11.6 million accounts.
The industry comprises 36 brokerage firms, 31 fund operators, and three money market trading platforms.
This growth is attributed to attractive real interest rates, impressive performance in capital markets, high currency volatility, and a 20% average increase in the stock market.
Actinver’s Success Amidst Competition
Among the beneficiaries of this boom is Actinver, which has outperformed international giants operating in Mexico.
Celebrating its 30th anniversary, Actinver is now the second-largest Mexican institution, just behind Banorte. It aims to reach 300 billion pesos in managed assets by 2030 and surpass 500 billion pesos with custodial assets.
Actinver boasts its pioneering role and diverse financial culture tools, offering traditional instruments and derivatives—one of the few authorized to trade them—with cutting-edge systems and technology.
Key Questions and Answers
- What is the current tax situation for financial instruments in Mexico? The tax burden on financial instruments in Mexico is high, affecting the development of the financial market.
- How are investors responding to this tax situation? Investors are diversifying their portfolios, moving from fixed-income investments to variable-income instruments to minimize tax impact.
- What growth has the Mexican fund industry experienced? The Mexican fund industry saw a record-breaking 25% growth in 2024, with assets under management surpassing 4.2 billion pesos.
- How has Actinver performed amidst this growth? Actinver has outperformed international competitors, aiming to reach 500 billion pesos in managed assets by 2030.
