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    Just Common
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    August 08, 2025, 02:18:03 AM
     #3421

    Investment Funds in El Salvador Rise 18.2% Year-on-Year to $1.59B.


    El Salvador’s investment fund industry continues its rapid expansion, with total assets under management—across both open-end and closed-end funds—reaching $1.59 billion as of June 2025. This represents an 18.2% increase from the $1.345 billion recorded in the same period of 2024, equivalent to an additional $245 million in managed assets.
    Open-end funds offer investors liquidity to enter or exit at any time, while closed-end funds require maintaining investments for a fixed period. Among the most notable performers is the Liquid Income Open Investment Fund, managed by Bancoagrícola, which doubled its assets in one year from $72.8 million to $149.2 million. With over 1,800 investors, including individuals and businesses, it delivered an annualized daily return of 4.40% in June 2025.
    In the closed-end segment, the Fixed Income Closed Investment Fund I remains the largest, with $657.8 million in assets and a 9.03% annualized daily return. The country now has four asset managers and 15 authorized funds—six open-end and nine closed-end—compared to 12 a year ago. Open-end funds are mainly allocated to fixed-term deposits, representing 30.9% of their portfolios.
    The Integrated Stock Exchange between El Salvador and Panama also showed growth, with $88.7 million in cross-border transactions recorded by June 2025, up from $53.3 million the previous year. Meanwhile, the El Salvador Stock Exchange (BVES) traded $2.22 billion in 3,863 transactions during the same period, with the repurchase agreement market leading activity at $885.7 million and an average yield of 5.6%.
    Open-end funds provided 53% of the liquidity in the repurchase agreement market, reinforcing their role as a key financing source in the economy. With diversified portfolios, competitive yields, and AAA ratings, investment funds are consolidating their position as one of the most secure and profitable savings alternatives in El Salvador.

    https://elsalvadorinenglish.com/2025/08/07/investment-funds-in-el-salvador-rise-18-2-year-on-year-to-1-59b/
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