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Will 2025 Be the Year of Private Equity Reacceleration?

The recent challenges facing the private equity market could be overcome as rate cuts and lower inflation set the stage for an improvement in multiples. According to Rainer Ender, Global Head of Private Equity at Schroders Capital, although 2024 saw a significant slowdown in deal activity, signs of recovery are emerging, suggesting that the private equity market could be more dynamic in 2025.

“Just like in 2023, we have seen wide bid-ask spreads and reduced liquidity. When interest rates rise, so do the financing costs for acquisitions, which lowers the EV/EBITDA. Buyers pay more to secure fewer loans, reducing the amount they are willing and able to offer for assets,” says Ender.

In his view, rising interest rates have put downward pressure on cash flows, while inflation has increased costs for companies that lack proper pass-through mechanisms. Meanwhile, sellers have tried to exit assets when leverage was cheap and multiples were rising. Ender believes this dynamic has created a mismatch between the price buyers are willing to offer and the price sellers are willing to accept. Even amid these challenges, he sees several developments suggesting that 2025 may bring more favorable conditions.

“Although EV/EBITDA multiples for large acquisitions have declined, the global value of deals is increasing, a trend driven by the preference for larger investments in established companies. Exit prices in the global market have stabilized, and there has been a recent uptick in sponsor-to-sponsor exits (where one PE fund sells to another PE fund). However, a significant valuation gap persists, as small and mid-sized company acquisitions are trading at a steep discount compared to their larger counterparts, a trend that suggests a perceived value discrepancy in the market,” Ender points out.

Secondly, he believes that many of the factors putting downward pressure on multiples will dissipate, and the decline in interest rates and lower inflation should lay the foundation for an improvement in multiples. “We also believe that investors could benefit by following the money and considering GP-led secondary transactions. Nearly half of the record-high secondary transaction volume in the first half of the year came from these vehicles, also known as continuation funds. These funds align the financial incentives of GPs and LPs, creating potential benefits for all stakeholders: the original sponsor, new and existing investors, and the company or companies within the new fund structure,” he emphasizes.

Finally, Ender notes that conditions will also favor a focus on small and mid-cap markets, which are diversifying. “Recent history has demonstrated their potential to perform well in periods of volatility, and the law of large numbers (probability theory) makes it inherently easier to generate higher multiples in smaller companies. Operating in small and mid-cap markets also reduces dependence on the still-stagnant IPO market for exits. Moreover, after successfully helping a small or mid-sized company grow into a large-cap company, exits can be larger in the market, where a significant amount of dry powder—capital already raised and seeking opportunities—remains available. If we combine the recent period of volatility with the dot-com crash, the global financial crisis, the eurozone crisis, and the COVID-19 pandemic, we see that the Global Private Equity Index outperformed the MSCI ACWI Gross Index by an average of 8%,” argues the Schroders Capital expert.

Additionally, he highlights that, structurally, the nature of committed capital allows firms to retain ownership of assets during crises and sell them when market conditions are favorable, avoiding the kind of “fire sales” at low valuations. “The generally more rigid nature of private equity also prevents people from falling into psychological investment traps, such as panic selling at the worst possible moment. From a fundamentals perspective, private equity firms tend to have a different sector mix compared to public markets, focusing on less cyclical industries such as healthcare and technology while maintaining lower exposure to banks and heavy industry. Additionally, private equity tends to favor growth and disruption, seeking companies with high expansion potential. They also prefer business models with recurring cash-generating revenues, as these tend to be less volatile,” he concludes.

Focus Financial Adds Former Charles Schwab CFO to Its Financial Board

| By Amaya Uriarte | 0 Comentarios

Focus Financial Partners has announced the appointment of Peter Crawford, former Chief Financial Officer of Charles Schwab, to the board of its parent company. Focus is an interdependent network of wealth management, business, and related financial services firms. The appointment is effective immediately.

Crawford has decades of experience in the financial services industry. He served as CFO of Charles Schwab from 2017 until his retirement on September 30, 2024.

As Chief Financial Officer, he oversaw treasury and controller functions, FP&A, investor relations, and vendor management. Throughout his 22-year career at Charles Schwab, he held a series of leadership roles across the company.

“We are pleased to welcome Peter to our board,” said Dan Glaser, Chairman of the Board of Focus’s parent company and Operating Partner at Clayton, Dubilier & Rice. “With his extensive experience in the wealth management industry, Peter will provide valuable insights as we continue to grow and evolve the company,” he added.

For his part, Crawford stated: “I am honored to join the board of such a proven leader in the fiduciary advisory space, particularly at this exciting time of transformation for the company. I look forward to working closely with my fellow board members to advise the Focus management team on the execution and ongoing implementation of its strategic evolution.”

The Rebound in European Private Debt Operations Experienced in 2024 Will Continue This Year

| By Amaya Uriarte | 0 Comentarios

Private credit was one of the most in-demand assets among private market investors in 2024. Not only did it gain popularity, but European market operations rebounded over the past twelve months, reinforcing its appeal. According to experts at Pictet AM, this trend is expected to continue in 2025.

“It is important to note that this is a growth asset class, starting from an approximate value of €400 billion, which is only a third of the size of this market in the U.S. It is also expanding into small and medium-sized enterprises, which are increasingly turning to direct loans, as traditional bank financing is difficult to obtain,” explain Andreas Klein, Head of Private Debt, and Conrad Manet, Client Portfolio Manager, both from Pictet AM, in their latest analysis.

They argue that smaller transactions, especially those aimed at growth or transformational capital—where direct loans are the primary alternative to banks—are largely shielded from competitive dynamics. This contrasts with the larger-volume end of the market, where renewed competition from syndicated and high-yield loans generates excess capital, lower interest rates, and weaker protective clauses.

“In fact, yield-to-maturity spreads in European direct loan operations have declined by nearly 1% since early 2023 in the core and upper-middle segments, falling below 6% for the first time. Some loans have even been issued at 4.5% and 5%, often without creditor covenants. This has coincided with historically high levels of investment capacity, to the point that private equity and private debt funds now hold a record $2 trillion available for investment. A weak mergers and acquisitions market has contributed to this, creating a scarcity of opportunities. As a result, loan transaction margins have shrunk, with a relaxation of protective clauses,” the experts highlight.

However, they clarify that the reduction in margins in the lower-middle market—defined as transactions with companies generating up to €15 million in operating profit—has been more modest, around 0.2%. This is because there are fewer private debt funds competing in this segment, and banks have a limited presence due to capital constraints, particularly regarding credit lines. “In this lower-middle segment, yield spreads remain stable, and risk parameters are more controlled, leading to an improved risk-adjusted return premium compared to the more traditional, higher-volume segment. Specifically, leverage is decreasing in the lower-middle market, with more transactions closing at less than four times debt/EBITDA. Additionally, strong protective clauses for investors prevail in this segment,” Pictet AM analysts emphasize.

Another factor investors value in direct loans is their relatively low default rate. According to the experts, default rates have risen to around 6% in syndicated loans but remain below 2% on average in direct loans. However, they caution that default rates could rise due to lingering inflationary pressures and a potentially slower pace of interest rate cuts by European central banks compared to previous cycles. This could create tensions, particularly in more cyclical and leveraged segments, such as high-yield and leveraged loans.

“However, in 2025, we expect the lower-middle segment of direct loans to benefit from improving economic conditions and a rebound in M&A activity. That said, Europe’s economic recovery may not be uniform, and volatility is possible. Therefore, we are focusing on less market-sensitive and less volatile sectors such as medical technology, software, and business services. These sectors provide diversification, more stable income, and better capital preservation. On the other hand, we are avoiding more cyclical segments within the industrial and consumer sectors. Additionally, while most of the market continues to issue loans with light protective clauses, we hold single-lender positions, allowing us to structure customized agreements that better protect capital,” add the experts at Pictet AM.

They acknowledge that smaller companies can be riskier but emphasize their focus on businesses operating in and dominating niche markets with high entry barriers and limited competition. “Often, these companies exhibit the defensive qualities of major industry leaders—sometimes even better. Moreover, private equity funds tend to overweight loans to private equity-owned businesses, where transaction volume is higher, though potentially offering less value. However, maintaining a significant proportion of loans to company founders can be a strength if the right network is in place. That’s why our portfolio balances loans to private equity-owned companies with direct loans to founders, providing an additional layer of diversification,” they note.

Overall, Pictet AM expects that in 2025, the lower-middle segment of direct loans will remain a superior and more stable source of income and capital preservation. It can complement more traditional allocations to the upper-middle segment, special situation debt, and private equity debt. “It can serve as a strategic component in any private credit portfolio, both for investors taking their first steps into this asset class and for more sophisticated investors looking to diversify their portfolios,” the experts conclude.

Álvaro Vértiz, Promoted to Head for Latin America and the Caribbean at DGA Group

| By Amaya Uriarte | 0 Comentarios

Álvaro Vértiz has been promoted to Head for Latin America and the Caribbean by DGA Group, the global advisory firm founded by Albright Stonebridge Group.

The firm announced in a statement that it “has expanded the roles of several executives on its Americas team, thereby strengthening its ability to help clients navigate complex policy, reputation, and financial issues on a global scale.”

Along with Vértiz, Adam Cubbage, currently New York Director, was promoted and appointed Director of DGA Americas; and Ryan Toohey, Head of the CCA practice in the U.S., will join the DGA Group Executive Committee.

“I’m happy to share that I’m starting a new position as Head for Latin America and the Caribbean at DGA Group!” Vértiz wrote on his personal LinkedIn profile.

“Adam, Ryan, and Álvaro exemplify the caliber of collaborative leadership that defines DGA,” said Edward Reilly, CEO of DGA Group. “After leading the development of DGA’s multidisciplinary offerings in New York, Washington D.C., Chicago, and Mexico City, we are pleased that they are now taking on expanded roles, working with DGA leadership across the Americas to continue providing the best advisory services to our clients,” he added.

Vértiz joined DGA in 2023 as Partner and Country Head for Mexico. Previously, he worked for nearly seven years at BlackRock, where he built his career: he joined as Director and Head of Legal & Compliance for Mexico, and after four years, he was promoted to Chief Operating Officer. Three years later, he became Head of Digital, Board Member, and Head of Business Strategy and Strategic Partnerships at the firm.

Before that, he held positions at Prudential Real Estate Investors, GE Capital Americas, Citi, and PWC.

The U.S. Wealth Management Industry Could Face a Shortage of 100,000 Advisors by 2034

| By Amaya Uriarte | 0 Comentarios

Due in large part to a growing demand for advisory services driven by the proliferation of sophisticated financial products, the U.S. wealth management industry is experiencing a period of strength and stability. However, threats are on the horizon: the sector could face a shortage of approximately 100,000 advisors by 2034, according to a report by McKinsey & Co.

In its report, the strategic consulting firm suggested that it is necessary to “change the operational model of advisors to increase productivity (through lead generation, teamwork, and an AI- and technology-enabled shift toward value-added activities) and attract new talent to the industry much faster than before.”

The study also warned that, in the long term, hiring veteran advisors is not a solution: there will be around 110,000 advisor retirements, leading to a decline in the total number of advisors by about 0.2% annually over the next decade.

This shortage is approximately—according to the global consulting firm—30% of the 370,000 advisors estimated to be needed in 2034 to meet the growing demand for wealth management in the United States.

Additionally, about 27,000 advisors switch firms or go independent each year, according to the study. The decline in supply and the emergence of private equity investments in advisory firms have already driven up hiring costs, the report added. The study was authored by Jill Zucker, Jimmy Zhao, John Euart, Jonathan Godsall, and Vlad Golyk, representing the views of McKinsey’s Financial Services Practice.

The report breaks down and analyzes the increasing demand for advisory services, driven by the rise in U.S. household wealth and the growing demand and willingness to pay for human advice. It also compares this with the decline in the number of advisors.

“The advisor workforce has grown by only 0.3% annually over the past ten years (…) The number of advisors is expected to decline by around 0.2% annually. Retirements outpace hiring, as advisors are, on average, ten years older than members of similar professions. An estimated 110,000 advisors (38% of the current total), who represent 42% of the industry’s total assets, will retire in the next decade,” the report noted.

The report’s authors believe that if this fundamental supply bottleneck is not resolved, the industry will continue to face a zero-sum competition for advisor talent. “While hiring experienced advisors is crucial to the success of many firms, the industry should also adopt a long-term perspective and develop sustainable strategies to attract more advisors to the sector, help them grow faster, and enable established advisors to be more productive,” they stated.

The First Catastrophe Bond ETF Ready to Begin Trading on the NYSE

| By Amaya Uriarte | 0 Comentarios

Catastrophe bonds, whose returns have consistently outperformed high-yield debt markets in recent years, are about to become accessible to a broader segment of investors.

Next month, the Brookmont Catastrophic Bond ETF, based on a portfolio of up to 75 of the 250 so-called “catastrophe bonds” in circulation, could begin trading on the New York Stock Exchange (NYSE)—a global first.

“It’s an asset with a lot of nuances, and our goal is to demystify it,” said Rick Pagnani, co-founder and CEO of King Ridge Capital Advisors Inc, which will manage the ETF, in an interview cited by Bloomberg. The fund will be overseen by Brookmont Capital Management LLC, based in Texas.

Pagnani, who until last year led Pimco’s insurance-linked securities division, stated that “it is difficult to create a diversified catastrophe bond portfolio for a typical individual investor.” By packaging catastrophe bonds into an ETF, “we aim to lower some of the barriers to entry,” he said.

The market, dominated by U.S. issuances, is currently valued at approximately $50 billion, according to Bloomberg.

According to Pagnani, the pipeline of projects remains “strong and growing,” which could help push the market to $80 billion by the end of the decade.

Brookmont and King Ridge are still finalizing the lineup of partners involved in launching the ETF. They aim to raise between $10 million and $25 million in initial capital. The ETF is registered with the SEC.

The fund will cover risks ranging from Florida hurricanes and California earthquakes to Japanese typhoons and European storms, according to the prospectus filed with the U.S. market regulator.

As outlined in the prospectus, it is an actively managed ETF that, under normal circumstances, will invest at least 80% of its net assets in catastrophe bonds. It will not have restrictions on specific issuances, risks, or geographic exposure. However, the document notes that at times, the fund may have a relatively higher exposure to U.S.-related risks.

Additionally, it may occasionally have a greater concentration in Florida hurricane-related catastrophe bonds than in other regions or risks due to the higher availability of such investments relative to the global market.

Vanguard Has the World’s Largest ETF

| By Amaya Uriarte | 0 Comentarios

Vanguard became the world’s largest ETF at the start of this week, marking a milestone in an industry valued at $11 trillion, according to a statement from the firm.

According to figures from the asset manager, financial agencies, and the market, Vanguard’s S&P 500 ETF (NASDAQ: VOO) now manages nearly $632 billion in assets, after recording approximately $23 billion in inflows so far this year.

The increase in inflows pushed VOO above the SPDR S&P 500 ETF Trust—commonly known in the market as SPY—which lost its title as the world’s largest ETF, now managing around $630 billion in assets.

Nonetheless, the competition between the two funds remains very close. While SPY is no longer the largest ETF in terms of assets, it remains highly valued by asset management professionals for its ease of trading and low costs, features that allow fund managers to enter and exit the market quickly.

SPY was launched in 1993 by the U.S. stock exchange and State Street Global Advisors, making it one of the longest-running ETFs still in operation today. This fund has long benefited from a significant first-mover advantage in terms of size and trading volume. Now, with its rapid growth, Vanguard has surpassed SPY, marking a new chapter in the global ETF industry.

The scale of operations in both funds is enormous, although SPY continues to set the standard in this segment. According to Bloomberg data, over the past twelve months, SPY has averaged daily trading volumes of $29 billion—the highest for any ETF. In contrast, Vanguard’s VOO averaged $2.8 billion in daily trades.

Vanguard’s alternative emerged in 2010 and immediately experienced rapid growth, thanks to the firm’s reputation and loyal following among investors. This includes financial advisors looking to boost their commissions. Over the past twelve months, VOO has attracted more than $116 billion, setting a record for annual inflows.

The appeal of the index-based fund highlights the profile of Vanguard’s core clients, such as cost-conscious financial advisors and retail investors with a long-term investment focus.

The “buy-and-hold” strategy has been a key differentiator between the two ETF giants. While VOO investors favor this approach, SPY is valued by professional traders for its high liquidity and narrow spreads. However, its higher trading volume often results in significant flows in both directions (inflows and outflows).

Analysts highlight a key fact: VOO has never experienced an annual net outflow since its launch in 2010, whereas SPY has recorded net withdrawals in five years over the same period.

Remittances: The Flows That Sustain State Economies in Mexico Are at Risk Due to Trump

| By Amaya Uriarte | 0 Comentarios

Last year, Mexico received another record amount of remittances from its workers abroad, primarily in the United States. Official figures indicate that remittance income totaled an unprecedented $64.75 billion. However, due to changes in U.S. immigration policy, the outlook could shift.

As an indication of the importance of remittances for Mexico and its top recipient states, the Latin American country solidified its position in 2024 as the world’s second-largest recipient of remittances, surpassing China (which received $48 billion). Only India ranked higher, reporting inflows of $129 billion.

The significance of remittances in Mexico is already reflected in key indicators. For example, their share of GDP increased from 2.0% to 3.6%. Additionally, they now account for 5.2% of private consumption, compared to 2.8% in 2010.

“Without a doubt, remittances serve as an important supplement to household income. When compared to total wages (as estimated by the National Occupation and Employment Survey, ENOE), the proportion stands at 16% (2023),” noted the Banamex research team.

Seven States at Risk

Although all states in Mexico receive remittances, seven states are particularly dependent on these flows. In some cases, remittances have become essential to state economies, with entire communities relying almost entirely on them.

In 2024, seven states accounted for more than half of the total remittance inflows. Michoacán, Guanajuato, and Jalisco each received around $5.5 billion, representing 8.7% of the national total for the first two states and 8.5% for the third. Combined, these three states accounted for 25.9% of the country’s total remittances.

These states, which have historically seen high levels of migration, have consistently led in remittance inflows since data collection by state began in 2003. Mexico City, the State of Mexico, Chiapas, and Oaxaca complete the list of the seven states that received over half of the country’s remittances, with 7.2%, 7.1%, 6.4%, and 5.3%, respectively, for a total share of 52%.

Over the past decade, Mexico City and Chiapas have significantly increased their share, rising from 5.4% and 2.9% in 2003, respectively. Meanwhile, Michoacán has seen a decline in its share, dropping from 12.4% in 2004.

According to Banamex, in some states, remittances account for more than 10% of GDP. The inflow of these funds has reached levels similar to those of Central American countries that are highly dependent on remittances.

For instance, in 2023, remittances to Mexico represented more than 20% of GDP in Guatemala, El Salvador, Honduras, and Nicaragua. Meanwhile, in Chiapas, the share reached 16%. In three other states—Guerrero, Michoacán, and Zacatecas—remittances accounted for 13.8%, 10.9%, and 10.6%, respectively.

Moreover, in some Mexican states, remittances play an even more crucial role due to socioeconomic conditions. In Chiapas, Guerrero, and Zacatecas, remittances represent 52.7%, 50.8%, and 47.7% of total payroll income, respectively.

As a result, the income generated abroad by workers from these states or with ties to them is equivalent to half of what the entire employed population produces in those regions. When combining salaries with remittance income, one in every three pesos in household income in these states originates from abroad. These states are among the most economically disadvantaged in Mexico, with high levels of informal employment (74.6%, 78.3%, and 60.6% of the Economically Active Population).

The Trump Factor

The return of Donald Trump to the U.S. presidency and his policies against foreign workers, particularly undocumented immigrants, could alter the conditions and flow of remittances to Mexican states that rely on them.

Banamex warns: “Trump’s return to the White House and the immigration policies implemented in the early days of his administration, along with a projected weakening of the U.S. labor market—including for workers of Mexican origin and Mexican-born individuals—suggest a potential decline in remittance flows. This could limit migration and further discourage the hiring of undocumented workers.”

“In addition, we anticipate increased volatility in these flows over the coming months, partly due to growing fears of deportation among migrants, which could reduce work hours and encourage temporary savings for survival. For 2025, we estimate a 2% increase in nominal U.S. dollars, reaching $66 billion, though risks remain tilted to the downside,” stated the Mexican bank.

One potential mitigating factor for those dependent on remittances in Mexico is a possible currency depreciation. However, nothing is certain, and remittance flows remain another likely casualty of Trump’s return to the White House

Sustainable Investment Remains Strong Thanks to Europe and Its Ability to Adapt to Political Cycles

| By Amaya Uriarte | 0 Comentarios

Despite Donald Trump’s return to the White House and the rise of right-wing parties in Europe, asset managers remain optimistic about the outlook for sustainable investment this year. So far, sustainable investment funds have shown significant growth in recent years. According to 2023 data, these funds reached approximately €500 billion in assets under management, with Europe accounting for 84% of this total—around €420 billion.

How Do Investment Firms View 2025?

According to Pascal Dudle, Head of Thematic and Impact Investing at Vontobel, sustainability will remain important despite challenges posed by recent political shifts. It will be driven by companies maintaining their commitment for reasons ranging from economic opportunities to risk management.

“A key example of this was the unexpected yet encouraging support from ExxonMobil’s CEO during COP29 in November, urging incoming President Trump not to exit the Paris Agreement and to keep the U.S. Inflation Reduction Act (IRA) intact. 2025 will also see continued investor scrutiny of the myriad ESG approaches being offered, with stricter strategies, such as impact investing, likely among the winners,” says Dudle.

He also believes that energy transition is here to stay, as clean technologies are now economically viable, scalable, and come with limited technological risk. “The need for reliability and resilience should, in particular, drive investments in infrastructure, such as increasing investment in power grids to ensure their reinforcement and modernization,” he adds.

Trump’s Challenge to Sustainable Investment

While investors—and Europe—continue their shift towards sustainability, the Trump administration has taken a different path. His first term was marked by rollbacks in environmental protections, the U.S. withdrawal from the Paris Agreement, and skepticism toward climate science. These policies affected the global sustainable finance ecosystem, meaning his return could once again test the resilience of ESG investment.

In his second term, Trump has declared a “national energy emergency,” in line with his campaign promises. According to experts at Allianz Global Investors, the measure aims to strengthen the U.S. fossil fuel sector, the world’s largest oil producer, and cut energy prices by 50%.

“His actions will complicate the fight against climate change. Additionally, skepticism surrounds Trump’s ability to halve energy prices as he claims. During the 2020 pandemic, even when oil prices turned negative, U.S. energy costs only dropped by 19%. Other factors, such as his order to replenish the Strategic Petroleum Reserve, could even push prices up in the short term,” state Greg Meier, Senior Economist at Allianz Global Investors, and David Lee, U.S. Energy Sector Specialist at Allianz GI.

Their conclusion is clear: “While Trump’s actions reinforce his commitment to fossil fuels, their actual impact on lowering energy costs will likely be limited and far from his stated expectations.”

Key Takeaways for Investors

In this context, Sophie Chardon, Head of Sustainable Investment at Lombard Odier Private Bank, believes investors should focus on sectors less exposed to political shifts, such as infrastructure, digitalization, energy efficiency in buildings, water management, and precision agriculture.

“From an investment perspective, Trump’s second administration could increase sectoral and regional divergence as the U.S. loses momentum in sustainable investments. After the sharp declines in sustainable investment valuations in late 2024, earnings dynamics are now in control, making stock selection crucial,” Chardon explains.

She also highlights that while the U.S. may slow its climate efforts under Trump, global momentum—especially from China and the EU—should keep the transition to green energy moving forward.

“Investors will need to focus on sectors that are less exposed to policy risks and on those aligned with long-term demand for clean technologies, infrastructure, and climate resilience,” she insists.

Europe’s Advantage in ESG Investment

According to Deepshikha Singh, Head of Stewardship at Crédit Mutuel Asset Management, investment prospects remain uneven.

“Investors may witness significant rollbacks in federal climate action and reporting standards. Trump’s pick to lead the SEC, Paul Atkins, has been openly opposed to the SEC’s climate disclosure rules. However, states like California and New York will likely continue setting ambitious climate goals,” Singh states.

Despite this, Singh sees Europe maintaining its leadership in sustainable investment, which could be a key advantage for investors.

“European companies that align with strict ESG regulations could attract more capital, while U.S. companies struggling to meet international standards could face higher costs and reduced access to foreign markets. The alignment of the European financial sector with the Paris Agreement and COP29 goals presents opportunities for those prioritizing green investments.

Additionally, Europe may seek to influence global financial markets by expanding ESG disclosure requirements for internationally operating companies, which could impact U.S.-based multinationals and other global corporations,” Singh explains.

The Future of ESG Investment Amid Political Cycles

For Singh, sustainable investment’s resilience lies in its ability to adapt to political cycles. While she acknowledges that Trump’s policies may pose challenges for some aspects of ESG investing, she sees it as unlikely that the overwhelming global shift toward sustainability will be reversed.

“Investors, driven by both risk management and opportunities, will continue to integrate ESG factors into their portfolios, even in the face of opposition. The demand for transparent and responsible investments will persist, regardless of who is in the White House.

In fact, Trump’s second term could even emphasize the urgency of private-sector leadership in driving the sustainable investment movement in the U.S. and beyond,” Singh concludes.

Jupiter Asset Management Presents Its First Actively Managed Global Sovereign Debt ETF

| By Amaya Uriarte | 0 Comentarios

Jupiter Asset Management has announced the launch of the Jupiter Global Government Bond Active UCITS ETF, the Group’s first exchange-traded fund (ETF), in collaboration with HANetf, a specialist in white-label ETFs.

Jupiter has been exploring new ways to distribute its products and expand access for more clients to its extensive investment expertise. With greater execution flexibility, a high degree of transparency, and competitive pricing, active ETFs offer clients an alternative and democratized entry point. In line with Jupiter’s truly active high-conviction investment management approach, active ETFs also provide investors with the potential for higher returns than traditional passive products.

The Jupiter Global Government Bond Active UCITS ETF, or GOVE, aims to outperform traditional sovereign bond investments by offering a diversified portfolio of developed and emerging market government debt, with low correlation to equities and other risk assets. Due to their complexity, potential for market inefficiencies, and sensitivity to macroeconomic factors, global sovereign bonds represent an ideal asset class for an active ETF.

The fund is managed by Vikram Aggarwal, a sovereign debt investment manager who has been with Jupiter since 2013. The fund’s investment strategy focuses on identifying inefficiencies in sovereign bond market valuations by comparing Jupiter’s perception of the current economic regime with market expectations. This contrarian approach seeks to capitalize on opportunities when there is a significant divergence between perceived and actual economic conditions.

“We are pleased to partner with HANetf for the launch of our first active ETF. We have been exploring new ways to provide clients with access to Jupiter’s extensive investment expertise, and today’s launch is part of that strategy. We know that greater transparency, faster execution, and competitive pricing are driving clients to increase their exposure to active ETFs. We believe Jupiter’s truly active investment approach and differentiated product offering position us very well to grow assets in this exciting new space,” said Matthew Beesley, CEO of Jupiter.

Hector McNeil, Co-Founder and Co-CEO of HANetf, stated: “We are delighted to work with Jupiter on its first active ETF at this pivotal moment for the market. Net inflows into active ETFs from European clients increased by more than 50% between Q1 and Q2 of 2024. Total assets under management in Europe now exceed $41 billion, and as clients increase their allocations, we are seeing very strong growth momentum.”