Assets Under Management (AUM) will rise as GDP expands, the
, and interest rates rise, Moody's Investors Service has forecasted.
According to the credit rating agency, higher
interest rates will increase
investor appetite for fixed-income funds while also lowering pressure on
asset managers to reduce fees.
"Peru, like Argentina, will likely benefit from rising investor inflows into Brazil, especially after Peru implements New Fund of Funds (FoF) rules," Moody's said.
Likewise, investors will favor dollarized funds instead of local currency (Soles) funds.
"Equity funds will likely remain volatile, but we expect commodity process to rise, increasing dollar inflows into mutual funds," it added.
Furthermore, AUM could rise faster if Peru enacts qualified investor rules and closed-end fund regulations.
Editor's note: Based on information provided by Moody's.
(END) NDP/DTK/MVB