The investment fund management company is gaining ground, consolidating its team and leading the sector in market share.
José Monges, director de CADIEM Administradora de Fondos, shares the manager's most recent milestones and explains the role mutual and investment funds play in the country's development.
Given the considerable economic momentum Paraguay has seen in recent years, and with an even more encouraging outlook for both local and foreign investment, CADIEM is strengthening its various business units, with the fund management company playing a crucial role in driving new forms of investment innovation in the country.
As well as having a legal, administrative and operational structure independent of the brokerage firm, CADIEM Administradora de Fondos Patrimoniales de Inversión S.A. now has specialised functions through a dedicated Executive Division, which in turn is organised into a Mutual Funds Department and an Investment Funds Department.
José Monges, executive director of CADIEM Administradora de Fondos, explained that each department thus focuses on the particular purpose and characteristics of the funds it manages, with a view to obtaining the best returns for investors and the best conditions for financing projects, with sound risk management and diversification of investments.
For mutual funds, he recalled that these instruments allow investment in a diversified portfolio of products accessible with tickets suited to what each client can invest. An important feature of these products is liquidity, that is, the ability to redeem the investment whenever desired, which in the case of the available funds is same-day. These funds are also invested in Certificates of Deposit (CDs) at leading banks, corporate bonds, Monetary Regulation Bills, Treasury bonds and others, in accordance with each fund's rules.
“Our Mutual Funds manager is responsible for managing this portfolio and seeking the best portfolio return for all the fund's investors. Our objective as a fund manager is to achieve the best return for the investor and the best diversified portfolio, and we also pay close attention to risk. The rules
always include a component on investment types or instruments with rated issuers, and that has to be diversified,” explained José Monges on the role of the Mutual Funds manager within the manager's structure.
The Investment Funds manager, for his part, acts as a project manager, since in these cases initiatives are developed that ultimately materialise in the real economy, raising money from investors to carry out large-scale projects, Monges said.
“Investment funds are variable-income instruments that invest in specific projects and offer varying returns, terms, currencies and tickets depending on the type of project. Another interesting feature of investment funds is that they democratise access so that more and more investors can be part of large-scale projects,” the executive added.
CADIEM Administradora de Fondos has its offices in one of the Paseo La Galería towers and is made up of a multidisciplinary team of highly qualified professionals working day to day on creating products, focused on the rigour of safeguarding clients' investments.
CADIEM Administradora de Fondos milestones
CADIEM Administradora de Fondos Patrimoniales de Inversión S.A. leads this thriving market in Paraguay with pride and optimism. Having been the first to enter the new era of mutual funds, registering the Fondo Mutuo Disponible Renta Fija en Guaraníes in 2014, it was also the pioneer in the investment fund market with the launch of the Industrial Facilities Investment Fund in 2020.
In 2025, CADIEM achieved the largest market share in this sector, with assets under management of USD 360 million, representing 20% of the total handled by fund managers in the country and growing 30% on the previous year.
The Mutual Growth Fund also met its objective of doubling the first investors' capital in seven and a half years. It is currently the largest guaraní mutual fund at CADIEM and in the market, with more than G. 860,000 million under management and over 8,000 investors, and it too recently saw its risk rating upgraded by the agency Fix SCR.
Among the investment funds managed by CADIEM, the launch of the Link Center real estate project stood out, at USD 105 million, the largest so far in the history of investment funds in Paraguay, marking the start of a new stage in developing projects of this kind, with considerable potential to attract foreign investment through this route.
The longest-running investment funds are also making notable progress. Industrial Facilities, which started at USD 22 million, today
has two plants, one operating and one under construction. Initiatives of this kind establish investment funds as an attractive instrument for companies to finance their long-term projects.
“With investment grade and the evolution of the industry itself, we will keep creating and taking part in new projects that matter to the economy. With regimes such as maquila and other tax incentives, plus a regional situation that puts Paraguay in an advantageous position, investment funds are superb vehicles for companies setting up in Paraguay and for the development and growth of local companies too,” stressed the director of CADIEM Administradora de Fondos.
As for the Forestry Fund, also managed by CADIEM and which at the time allowed investors to take part from G. 30 million, it is worth noting that it offers a share in a project spanning thousands of hectares where thousands of seedlings are growing, in the Department of Caazapá. “Those trees are growing, we are now in year 4, and at harvest they will become raw material for industry, creating a virtuous circle: reforestation is taking place, with environmental impact; industry will create jobs, and that brings social impact,” explained José Monges.
CADIEM Administradora de Fondos currently manages 4 mutual funds and 4 investment funds. More funds are planned for launch this year across both lines, mutual and investment funds, with the aim of continuing to offer clients more options and of being seen as a firm where they can diversify their investment.
“We are proud to work in a national industry with a global outlook. From the outset we helped create and develop the industry, and it is very rewarding to see how it is growing and how the market has grown, with several brokerage firms and a good number of fund managers too. All of that motivates us to keep working so that the industry grows and more investors enjoy the benefits of being part of a competitive, rapidly expanding market,” concluded José Monges.
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