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By: Isabel Gottlieb
Since taking office in December, Argentina President Mauricio Macri has won over foreign investors by pulling the nation out of default and restoring the credibility of its data. Now, he’s also beginning to get a vote of confidence from the country’s $17 billion mutual fund industry.
Funds that buy assets maturing in more than 18 months have soared 66 percent this year, outpacing the growth in those dedicated to shorter-term investments, according to Moody’s Investors Service. The trend is likely to become even more pronounced in the coming months amid increasing optimism about Argentina’s economic outlook, said Moody’s analyst Carlos de Nevares.
Macri’s administration has gained investors’ trust by stepping up efforts to tame high inflation that has long plagued South America’s second-biggest economy. After boosting interest rates to as high as 38 percent in March, the central bank has trimmed them to just below 30 percent amid signs consumer price increases are slowing. Month-over-month inflation eased for the second straight month in July.
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