Vector Casa de Bolsa

Vector Casa de Bolsa (Vector) is a full-service broker-dealer and wealth manager with specialized products and services designed for individual investors, companies, institutional funds, and government and foreign investors. Celebrating its 50th anniversary, Vector stands as a testament to sustained excellence and innovation within Mexico's financial sector. According to the latest CNBV report on brokerage firms, Vector reported an impressive 2,531 million pesos in net operating income as of the third quarter of 2023, securing its position as the sector leader in total revenue from brokerage operations.

The only independent Mexican brokerage firm with a global presence spanning 11 countries, its international reach and diverse business lines have driven its organic growth, fostering trust among clients and investors.

Over the years, Vector has exhibited a comprehensive profile of financial solutions, successfully catering to varied client needs. The company’s asset management segment provides mutual funds and tailored institutional portfolio management, while its expertise in sophisticated financial engineering allows it to offer innovative investment opportunities through structured notes and derivatives for risk hedging. Adding further breadth to its robust services, the company offers fiduciary services and corporate financing solutions. This extensive and diverse product portfolio establishes Vector as a leading entity in the brokerage industry renowned for delivering specialized and creative investment solutions in Mexico.

A History of Excellence

Vector traces its origins back to 1974 when the brokerage firm Sociedad Bursátil Mexicana, known then as Soburmex, was founded. Fourteen years later, in 1987, Alfonso Romo and a group of investors acquired the company, transforming it into Vector Casa de Bolsa. The name Vector was chosen to symbolize direction, sense, and magnitude. The 1990s marked a period of steady growth for Vector, characterized by impressive performance and the establishment of its core values through a solid network of wealth promoters and collaborators dedicated to Mexico's economic development.

Vector's inception was part of a broader strategy to create a leading business group in Mexico's non-banking financial sector. As the new millennium approached, Romo and CEO Edgardo Cantú Delgado guided Vector through a period of enhanced performance by strengthening the brokerage business, developing a national coverage network, and expanding the range of products and services offered. Vector also pursued international growth, aspiring to become a global entity.

Though it started out as a compact company with around 40 employees, including the general directorate, a small promotion network, and IT and human capital departments, today, Vector has more than 1,000 employees across national and international offices. It operates in 11 countries and manages assets under custody totaling over $15 billion, representing the investments of more than 60,000 clients across 20 countries.

Vector Today: A Symbol of Solidity, Stability and Resilience

Vector’s journey in wealth management reflects constant adaptation to client needs and adept navigation through various market and structural shifts influenced by digital advancements and globalization. The onset of the digital age marked a significant shift in Vector’s strategy as it leveraged digital tools like e-Vector to enhance client engagement and investment strategies. This allowed clients global access to their portfolios while keeping them at the forefront of the booming ETF (exchange-traded fund) industry.

As the ETF market grew, Vector responded by diversifying its offerings to meet the growing demand for flexible investment solutions. This period also saw Vector delve into niche markets with products that aligned with client interests and values, such as the disruptive industry-focused mutual fund NEXTGEN and the ESG-oriented VECTUSA.

Over the decades, Vector has seen significant growth, with a 16 percent CAGR (compound annual growth rate) in AUM (assets under management) since 2008, surpassing industry standards. It manages a diverse range of 21 mutual funds, including mixed, strategic, and thematic funds, all designed to meet varied investment objectives. Responding to the low market penetration of mutual funds in Mexico, Vector launched Portafolios 360, a service that democratizes access to personalized investment starting with small, accessible amounts. This initiative aligns with its mission of financial inclusion by making such investments competitive with other retail banking products in Mexico. Vector also addresses the industry’s needs to handle rapid information flows by establishing a Quant area dedicated to underpinning its investment strategies with timely and informed decision-making for every client.

“By continuously refining our offerings based on market feedback and internal research, we have stayed ahead in a rapidly changing industry. Our ability to integrate advanced analytics and quantitative methods has solidified our market position,” says Delgado, president, and CEO of Vector Casa de Bolsa. These efforts by the company tackle significant industry challenges and enhance the overall client experience in wealth management, underscoring their commitment to financial inclusion in Mexico.

In the last five years, the brokerage firm has achieved sustained annual growth of 10 percent between Vector Casa de Bolsa and its international arm, VectorGlobal. “Our strategic plan and vision for the future is to drive growth with a focus on our clients and the evolution and strengthening of our core business, stock operations in Mexico. For 2024 and 2025, we plan to maintain our CAGR at 10 percent nationally and internationally and reach 300 billion pesos in assets under custody by the end of 2025,” says Delgado.

Journey Forward

Vector’s solid financial stability hinges on its sustainable business model, which is based on international growth, revenue diversification with more than 30 financial products and new lines of business, a focus on asset management and innovation and digital transformation under its Vector25 strategy. The company’s growth strategy for 2025 revolves around three key pillars—asset management, internationalization, and innovation and digital transformation.

Through funds and asset management, Vector consolidates its management and oversight process for financial asset portfolios, including stocks, bonds, and investment funds. Notably, Vector Fondos has received prestigious international awards, reaffirming its position as a leading operator in long-term debt. Simultaneously, Vector's ratings have been consistently elevated by agencies like Fitch Ratings and PCR VERUM, indicating a stable outlook.

As part of internationalization, Vector plans to further bolster its presence in international markets, particularly in Canada, Colombia, Chile, Ecuador, the U.S., Peru, Venezuela, Brazil, Uruguay, Panama, and other regions, through its subsidiary VectorGlobal. Having always prioritized technological innovation for superior user experience, the company has invested in cutting-edge platforms and applications to empower clients with real-time market data, trading tools, and investment analysis, facilitating informed decision-making and effective portfolio management.
For Vector Casa de Bolsa, the digitization and personalization of its online stock market operation platform in Mexico is a priority in its value proposition. Recently, the company relaunched e-Vector, the most comprehensive and innovative platform in the market, an app capable of concentrating and analyzing market data based on the Quant algorithm, which reviews nearly 2,000 issuers from the national and international markets to make the best financial decision. Vector is also the only brokerage firm that has developed its own metaverse as a meeting point for the world's leading innovators as part of the Objective Fintech Award, an initiative aimed at finding and promoting Fintech promises globally.

Starting this year, Vector Casa de Bolsa will maintain a strong focus on AI with its initial product, SofIA, the first virtual assistant entirely developed with generative AI in the Latin American financial sector. To stay ahead and as proof of its firm commitment to continuous innovation and adaptation to new emerging technologies, Vector is working on a state-of-the-art, 100-percent digital financial platform designed to restructure the way individuals and companies interact with their finances. This platform combines ease of use with powerful functionality, providing an unprecedented user experience in the financial sector regardless of the level of financial education. It will be launched in phases, being accessible from any device and offering comprehensive financial services without the need to visit a physical branch.

Vector’s unparalleled expertise in financial services enables it to address the intricate needs of its clients through customized investment mandates, selecting appropriate benchmarks, measuring risks, and managing investment committee governance, among other specialized services. This client-centric approach distinguishes it in a highly competitive industry, reinforcing its position as a leader in the asset management field.