Within DWS’s CROCI Methodology: From a Value Framework to an Economic Measurement Framework

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Photo courtesyColin McKenzie, Head of the CROCI Strategy at DWS.

In this industry, having a sound methodology can mean the difference between the success of investment strategies and being just another manager. Since 1996, DWS has used its own proprietary valuation methodology to analyze global companies, known as CROCI. According to Colin McKenzie, Head of the CROCI Strategy at DWS, it is not merely a value framework—it is an economic measurement framework.

He notes that this approach allows them to identify opportunities across value, quality, and growth, and to build strategies capable of participating in vastly different market regimes while anchoring to the same underlying philosophy. In this interview, McKenzie discusses how the methodology has evolved, what it entails, and what it contributes to their investment strategies.

How has the CROCI model evolved?

The core objective of the CROCI methodology has remained unchanged for over 30 years; what has evolved is our capability to execute it, as corporate reporting standards and disclosure requirements have improved significantly over time. For instance, the model was enhanced to reflect the growing use of employee stock option plans in the early 2000s; adjustments for operating leases grew more sophisticated as disclosures improved (though, more recently, many have been brought fully onto the balance sheet under specific conditions); and, more recently, the expanding availability of ESG-related information has provided additional insight into companies’ long-term economic sustainability.

At the same time, the rise of intangible assets has made economic analysis more important than ever. Traditional accounting often treats investments in areas such as research and development, software, intellectual property, and brand building differently from physical investments, making comparisons across companies and sectors difficult. CROCI aims to correct these distortions wherever possible, enabling companies to be evaluated on a more economically consistent basis.

A defining feature is that it recalculates the balance sheets of hundreds of companies to derive their true Economic P/E. How often is the database for these companies reviewed and updated?

The CROCI database is continuously updated by a dedicated team of analysts who review company models whenever new financial information becomes available. Across our entire global coverage, this accounts for approximately 70,000 hours of company analysis and database updates each year. Each company is reviewed using a consistent economic framework, which helps ensure comparability across sectors, regions, and accounting regimes.

This depth of research is one of the main differentiating factors of the CROCI process and reflects the importance we place on understanding the true economic position of every business. At the same time, the process is designed to be agile. Under normal market conditions, company models are continuously updated as new information arrives. However, during periods of exceptional economic shift or uncertainty, we can accelerate the process significantly.

This combination of analytical depth and responsiveness enables us to maintain discipline, even during periods of market volatility and earnings seasons. While market sentiment and stock prices can swing rapidly, our goal remains ensuring that the underlying economic data is as current and comparable as possible. As valuations adjust, the investment process can respond efficiently using the latest fundamental company data without needing to alter the core investment philosophy.

Why is the Cash Return on Capital Invested metric particularly useful for fund selectors today compared to traditional P/E or Price-to-Book ratios?

Traditional valuation metrics, such as the price-to-earnings (P/E) ratio or price-to-book ratio, can be useful, but they are heavily influenced by accounting conventions and often fail to offer a consistent foundation for comparing companies across different sectors, countries, and business models. This challenge has become even more acute in a world where intangible assets, intellectual property, and software play an increasingly central role in value creation.

The CROCI framework addresses this by rebuilding these indicators from an economic perspective, creating a consistent measure of the capital invested in a company and the cash returns generated by that capital. Investors can view this as conducting venture capital-style due diligence on publicly traded equities.

What advantages does this offer?

This allows us not only to calculate a more meaningful valuation indicator, such as the Economic P/E, but also to derive consistent measures of quality—through the cash return on capital invested—and growth—through changes in a company’s underlying economic earnings power. This distinction is vital because, ultimately, investors need to understand not just how much they are paying, but why they are paying it. By placing valuation, quality, and growth on the same economic footing, CROCI enables investors to compare companies on truly equivalent terms.

For fund selectors, this can be especially valuable in today’s market environment, where valuation dispersion remains elevated and accounting indicators often struggle to reflect the true economic reality of modern businesses. The strength of the CROCI framework lies in providing a consistent lens through which to evaluate valuation, quality, and growth together, allowing capital to be allocated based on economic reality rather than accounting presentation.

Today’s quantitative universe is dominated by multi-factor strategies driven by big data or advanced algorithms. What sets CROCI’s quantitative approach apart?

We view CROCI as an active, systematic approach, so in many respects it can be seen as a blend of both. Portfolio construction is systematic and rules-based, which brings consistency, transparency, and repeatability. However, the foundation of the process is fundamentally research-driven, rather than relying on statistical factor mining or purely data-driven optimization.

The most important part of CROCI is not the portfolio algorithm, but the underlying economic analysis of the companies. Our analysts reconstruct financial statements to understand how companies actually create value, generate cash flows, and earn returns on capital.

For that reason, we often describe CROCI as a systematic approach to fundamental investing. The research process is grounded in fundamental analysis, while portfolio execution is systematic. This combination allows us to apply the discipline of quantitative investing without losing sight of the economic realities of the companies in which we invest.

AI Will Transform Asset Management Operations

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A global study of 178 senior asset management executives published today by Clearwater Analytics reveals a decisive shift in the asset management industry: a majority of managers expect artificial intelligence to transform their front-, middle-, and back-office operational functions over the next 12 months. The study, titled “GenAI and the Data Divide,” indicates that 62% of managers expect AI to transform how firms generate and synthesize information, 58% expect a radical change in decision-support systems and portfolio recommendations, and 57% anticipate a transformative impact on predictive modeling and stress testing.

Adoption is accelerating in tandem: 95% of firms increased their budget allocated to AI last year, and 85% plan to increase it by at least an additional 50% over the next 12 months. However, the analysis also identifies the key factor in capturing this transformation: a 23 percentage point gap exists between how entities value the completeness of their data versus its accuracy. While 79% consider their data to be complete, only 56% believe it to be accurate. This divide is emerging as the primary differentiator between firms realizing measurable returns on their information and those still waiting to monetize it.

A Year of Operational Transformation

The report reflects significant consensus among investment professionals regarding where AI will deliver the deepest impact over the next 12 months. Leading the list is content automation and data synthesis: 62% of managers are confident that AI will facilitate a profound or transformative shift in generating standardized reports and synthesizing complex data into concise summaries.

The industry’s reliance on predictive modeling will also undergo an AI-driven overhaul. Fifty-seven percent of respondents anticipate a transformative impact on how their firms analyze historical and current data to forecast results and evaluate stress-testing scenarios. Close behind, 58% expect AI to revolutionize decision-support systems, specifically by proposing potential actions or parameter adjustments, such as rebalancing portfolios based on specific objectives and constraints.

Souvik Das, Chief Technology Officer (CTO) at Clearwater Analytics, stated: “Our data shows that the global investment community is no longer just curious about AI. It is deploying it to solve the most labor-intensive operational tasks in asset management. By automating the heavy lifting of data synthesis and scenario modeling, firms are reclaiming thousands of hours that can now be redirected toward alpha-generating activities.”

Tactical Success in Day-to-Day Operations

The study also provides an assessment of the effectiveness of AI tools currently in use. Far from being a theoretical benefit, AI is already delivering measurable tactical advantages in daily work.

The first advantage is natural language interaction: 73% of surveyed managers rate the use of natural language AI agents to query data-dense investment platforms, risk management systems, and reconciliation tools as “effective.” Second is deep analysis: 62% of respondents consider AI agents effective for delving into complex topics like regulatory compliance, with nearly half (47%) describing these tools as “very effective.”

Third is workflow automation: The drive toward straight-through processing continues to gain momentum, with 63% of managers successfully using AI to automate repetitive workflows, such as daily report generation. The final advantage is multi-agent orchestration: 62% of firms report success in using AI to trigger operations based on data thresholds or specific schedules, indicating progress toward more autonomous and sophisticated system behaviors.

Solving the Data Dilemma

Data quality has historically been one of the industry’s greatest challenges. This study demonstrates that managers now understand why it is more critical than ever. Seventy percent of surveyed professionals note that deploying AI has intensified their focus on data governance, with 8% describing this shift in focus as “drastic.” Two-thirds (66%) consider their AI tools effective in managing the intricacies of alternative data—an area historically complex to scale.

That progress in alternative data is real. However, it has failed to close the truly decisive gap: only 56% of firms rate their data as accurate or reliable, compared to 79% that consider it complete. AI is focusing attention on data, but it has not yet resolved the underlying trust issue.

“What is striking is that AI adoption is forcing fund managers to confront data management fundamentals like nothing ever has before,” adds Souvik Das. “The confidence observed in alternative data management is telling. It suggests that firms investing in AI are also the ones investing most in ensuring data accuracy, and that both priorities must advance hand in hand. It represents a fundamental shift in how the industry perceives complexity,” he concludes.

Divergence in Adoption

Although most of the sector demonstrates an optimistic stance, the study highlights a growing divide between leaders and laggards. In several areas—such as software delivery and workflow coordination—between 12% and 18% of managers still foresee “little or minor impact” from AI. This divergence suggests that while the technology is ready, firms’ internal infrastructure and cultural maturity vary significantly.

The Impressions Left by Kevin Warsh’s First Jackson Hole

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Wikimedia CommonsKevin Warsh, Chair of the US Federal Reserve

At a time when monetary policy and interest rates are front and center, all eyes have recently been turned toward the US Federal Reserve and its new chair: Kevin Warsh. Last week, during the central bankers’ symposium in Jackson Hole—held in the town of the same name in Wyoming—the official surprised global investors with a tone that was somewhat more hawkish than expected.

The event served as a platform for the economist to reaffirm his commitment to the fight against inflation. This left international markets with the impression that reference rate hikes could occur in the North American country this year. However, Warsh did not refer to the Treasury’s announcement regarding increased government bond buybacks.

“Warsh did not surprise much at Jackson Hole, maintaining a generally hawkish tone and a commitment to price stability without signaling an imminent rate hike or setting a policy threshold,” noted Alessia Berardi, Head of Global Macroeconomics at the Amundi Investment Institute. This message, she explained, represents a “major hurdle” for rate cuts and maintains a higher-for-longer bias, with further tightening still possible if inflation accelerates.

“The speech confirmed little appetite for alternative views on what matters most to the Fed and a limited preference for forward guidance. Short-term interest rates will remain the primary tool, with unconventional tools playing only a limited role,” the professional noted.

From EBC Financial Group, market analyst Felipe Mendoza agrees with the diagnosis. In his view, Warsh’s somewhat hawkish tone deviated from market expectations and emphasized the 2% target for inflation. “This stance could reaffirm that the Federal Reserve will prioritize the fight against inflation even if it means extending or tightening the monetary cycle, immediately raising the probability of a September rate hike to 50% in the futures market,” he stated.

Market Expectations

Broadly speaking, the Fed chair’s remarks do not stray from the norm. For Paul Donovan, Chief Economist at UBS Global Wealth Management, the content of the speech “was not particularly deep,” emphasizing consumer prices rising above 3%, without mentioning the impact of tariffs driven by Donald Trump’s White House on them. “In the absence of any inflation shock, the comments are consistent with stable US monetary policy,” he noted.

What stands out about this particular speech—Warsh’s first at Jackson Hole—is that it follows a Fed meeting that felt different, marking a style that is harder for investors to read.

On this occasion, wrote Seema Shah, Global Strategist at Principal Asset Management, “Warsh cleared up much of the ambiguity left by the July FOMC press conference, providing a clearer picture of a Federal Reserve that keeps its focus firmly on bringing inflation back to its target and is prepared to raise rates if progress stalls.”

While the expectation at Principal—and among other global market participants—is that upcoming inflation data will show improvement, the probability of a rate hike in September increased. “The positive market reaction highlights that investors value clarity in monetary policy, even when that clarity comes accompanied by a more restrictive message,” Shah said.

For Mendoza at EBC Financial Group, the market reaction is less conclusive. “The asset response to this speech reflects a hasty recalibration of expectations in an environment of high volatility. The initial strength of the dollar and the correction in the S&P 500 responded to short-term rate adjustments; however, market dynamics showed interesting decoupling nuances,” he commented. “Following the initial impact of the remarks, markets eased and even reversed their initial direction,” he added.

For the analyst, this “mixed reaction across different assets suggests that the market has not yet fully priced in the scenario.”

A New Style at the Fed

The Fed is always on the radar of international financial institutions, given the importance of US interest rates to the global economy. But in the Warsh era, investors are paying particularly close attention, searching for signals in an environment of lower visibility.

“From day one, Warsh has abandoned forward guidance. He wants financial markets to assess economic prospects rather than be guided by a Fed that telegraphs its moves; in this way, as he has argued, market pricing will provide useful information to the Fed itself,” explained Sonal Desai, CIO of Fixed Income at Franklin Templeton, in a recent market commentary.

Furthermore, for some, this presentation put the spotlight on the Fed’s credibility at a time when global capital is growing increasingly nervous about US debt.

“US risk assets have performed well for years, but bond investors are increasingly demanding compensation in the form of higher yields,” stressed Allianz GI in a commentary authored by Chief Economist Christian Schulz and Fixed Income CIO Jenny Zeng.

As the professionals explained, “bond investors have to absorb growing financing needs stemming from investment in artificial intelligence, high fiscal deficits, and debt refinancing.” This occurs, they added, in an environment where some of the primary sources of demand are weakening, as households are saving less, the Fed continues to shrink its balance sheet, and international investors are diversifying their reserves.

Tariffs, Speculators, and Shrinking Supply: What is Behind the Surge in Copper Prices

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Commodity markets have long been in the spotlight for investors. Recently, attention has focused on metals—specifically copper. At the root of this is the recent surge in its market price driven by the Democratic Republic of the Congo’s (DRC) ban on copper concentrate exports, “which exacerbated an already tight market situation,” according to UBS.

The firm highlights another destabilizing factor: copper production in Chile and Peru has continued to be “disappointing,” with cumulative year-to-date output down 4% compared to the same period last year, despite a 2% year-over-year uptick in June. “Weather-related disruptions in Chile and slow project ramp-ups have weighed on supply,” the firm notes.

Adding to these supply-side issues are pressures on the demand side. In this regard, UBS points to an increase in shipments to the United States ahead of a potential decision on refined copper imports as an additional source of tension, “which has drawn metal into the country, reshaped global trade flows, and drawn down inventories in other regions.”

Carsten Menke, Head of Next Generation Research at Julius Baer, notes that the White House “has remained very quiet on the topic of copper import tariffs, and President Trump’s apparent strategy of doing nothing is becoming increasingly evident to the market.” In this environment, the US “continues to import refined metal, depleting stocks in other regions and thereby pushing prices to historic highs.” On this point, Menke emphasizes that since there is no deadline for President Donald Trump to make a decision, “the trend is expected to continue in the short term.”

Is the Situation Sustainable?

Menke argues that the current market shortage “is artificial, not real,” suggesting that “prices should return to levels more justified by fundamentals over the medium term.” He explains that the US copper market review related to tariffs “should have been carried out nearly two months ago.” Until now, Menke continues, “the White House has maintained silence on the matter, suggesting that President Donald Trump has not yet made up his mind about imposing tariffs on refined metal imports.” The US is a major net importer of refined copper, primarily from Canada, Chile, and Peru. At the same time, it is a net exporter of ores and concentrates due to a lack of domestic smelting and refining capacity.

“Trump has the following options: import tariffs of 15% starting in January 2027 and/or 30% starting in January 2028; imposing no tariffs; or doing nothing. Doing nothing means leaving the copper market in limbo, which appears to be the president’s strategy right now. The result is that the US continues importing refined metal, which continues to accumulate as inventory,” Menke argues.

This situation drives price increases, which are further accelerated by very bullish positioning from short-term and speculative traders in US futures markets. “For once, Chinese traders appear to be sitting on the sidelines of the speculation,” says Menke, adding that because Donald Trump faces no deadline to act, “copper prices are expected to remain elevated, at least in the short term,” even though they should return to fundamentally justified levels over the medium term.

At UBS, analysts believe global copper demand remains supported by resilient economic activity, steady growth in China, and artificial intelligence-related investment across Asia—as copper, among other commodities, is used in cables, power systems for vehicles, and electrical grids, as noted by Aneeka Gupta, Director of Macroeconomic Research at WisdomTree. Therefore, “given that the market is likely to remain in deficit through the end of the year, price weakness should be limited,” leading the firm to maintain a constructive outlook on copper, expecting prices to hit their target of $15,500/MT in the coming quarters and recommending long exposure.

However, other firms see risks in this scenario. Bank of America notes that while investments in energy resilience will accelerate and supply constraints are expected to keep the market in deficit through 2026 and 2027, they also point out that metals demand in China has slowed and could grow by just 0.5% year-over-year in 2026—the weakest growth since 1988. Additionally, demand in Europe and the United States is slowing down due to the war with Iran.

As downside risks to copper prices, the firm points to the impact of trade wars on confidence, potential re-exports from China, and a “drastic slowdown” in global demand next year.

Javier Villegas (Franklin Templeton): “A Leader Must Back Their Opinions with Knowledge, Experience, and Proven Results”

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Photo courtesyJavier Villegas, Head of Latam and Iberia de Franklin Templeton.

In an environment of hyperconnection and overinformation, social networks and digital platforms play a leading role, including within the financial world. Industry professionals are aware that access to financial and investment information has been democratized, but they warn that it is necessary to properly distinguish those profiles that provide accurate, verified, and serious information.

Javier Villegas, Head of LatAm and Iberia at Franklin Templeton, is clear about who his financial role models are, but he also recognizes that greater access to financial information presents an opportunity to foster investor education. We spoke in this interview about his vision regarding so-called finfluencers.

Who Do You Consider a Finfluencer in the Industry?

If I had to point to two role models, I would choose Jenny Johnson, CEO of Franklin Templeton, and Sandy Kaul, Head of Digital Assets and Innovation at our company. Both combine a solid track record, a global vision, and the ability to analyze and even anticipate, to a certain extent, the evolution of the industry. Regarding Jenny, I would highlight her strategic perspective on the major trends that will define the future of asset management, always focused on promoting financial education and, ultimately, achieving better results for investors. Sandy, for her part, has become one of the most recognized voices in financial innovation and digital assets due to her deep knowledge and pedagogical ability to explain complex concepts in a simple manner, both to investors and to the general public.

What Do You Believe Someone Must Have to Be a Benchmark for You?

For me, influence does not depend on the number of followers, but on credibility. A role model, especially in the financial field, must back their opinions with knowledge, experience, and proven results. I also value having a long-term vision, far removed from the short-term noise that predominates on social networks and in financial conversations. Keeping one’s eyes on the future and promoting education to help investors make informed, well-reasoned decisions are also essential qualities.

What Do You Look for Someone to Provide When You Seek a Reference Point in the Sector or Industry?

Above all, I look for analytical capability and a vision of the future. In an environment of overinformation, which often generates misinformation, it is especially valuable to have role models capable of separating what is relevant from the noise, interpreting structural changes, and anticipating their impact on the markets.

Taking into Account Your Conversations with Clients, How Are They Perceiving the World of Finfluencers?

Professional investors are increasingly demanding and selective. They value voices that offer rigorous analysis, experience, and a global perspective. In a complex and constantly evolving environment, they seek benchmarks that help them understand the markets and make well-founded decisions, not profiles that merely follow trends.

Historically, Who Were the Influencers of the Industry?

In essence, the qualities of what I consider a true role model have barely changed: they must have credibility based on knowledge, experience, a solid track record, and the ability to offer well-grounded analysis. What has evolved is the way messages are disseminated. Immediacy and a constant flow of information on social media require great pedagogical skill and synthesis to explain complex concepts with clarity and rigor. In this context, the best finfluencers are those who help interpret current events, quiet the noise, and provide a practical perspective—and forward-looking vision—that facilitates better investment decisions.

How Do You Think This Figure Has Evolved?

Today, any professional with knowledge and communication skills can participate in the conversation. This has democratized access to financial information and fostered investor education. It is a positive evolution as long as it is backed by rigor and responsibility, since, as I mentioned in previous answers, true influence continues to be based on credibility, experience, and the ability to offer a useful perspective on the future.

The United States Will Have to Share AI Leadership With China, According to Global Investors

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The United States will have to share global leadership in AI with China in five years as the gap between both countries narrows, according to a new global study conducted among institutional investors and wealth managers handling $513 billion in assets by fund manager Robocap. The study, conducted among senior executives at insurance asset managers, pension funds, family offices, and wealth managers, revealed that 56% believe the U.S. and China will be joint leaders in the global AI race, while only a third expect the U.S. to maintain its current market leadership position. Barely 2% believe China will surpass the United States.

As detailed by the manager in a statement, China already leads the AI race in specific areas such as patent volume, research talent generation, and some physical applications of AI in robotics. However, the U.S. is widely considered the leader due to its dominance in private investment, high-end semiconductor design, and the world’s most powerful frontier models.

Interestingly, the study by Robocap—a firm dedicated to investing in robotics, automation, and AI—found that around one in twelve respondents (8%) believe another country or group of countries could surpass both the United States and China.

Almost all (99%) expect the value of the AI market in the UK—currently the third largest by value—to increase over the next five years, according to the study conducted among firms based in the UK, U.S., UAE, Saudi Arabia, Singapore, Hong Kong, Germany, and Switzerland. About 28% foresee a dramatic increase.

Furthermore, all expect the United Arab Emirates and Saudi Arabia to succeed in their goals of becoming global AI hubs for research and data centers over the next five years. Approximately 60% believe they will be very successful.

However, all agree that AI regulation in the UK and the European Union is too strict and, as a result, has limited creativity and innovation, including 30% who strongly agree with this statement. Virtually all (96%) believe they are following the right energy policy to meet their ESG (environmental, social, and governance) goals and AI ambitions.

Nonetheless, a majority (60%) believe that energy policy should prioritize AI sovereignty, compared to 40% who believe the focus should be on limiting energy production.

BNP Paribas AM Names Four Chief Investment Officers to Lead Its Platform

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Photo courtesyTop: Guy Davies, Deputy Global Head of Investments, Chief Investment Officer and Global Head of Fundamental Active Equity and Olivier de Larouzière, Chief Investment Officer and Global Head of Fixed Income. Bottom: Laurent Clavel, Chief Investment Officer and Global Head of Multi-Asset and Robinson Rouchié, Chief Investment Officer and Global Head of Systematic & Quantitative Investments.

BNP Paribas Asset Management (BNP Paribas AM) has announced the appointment of four new Chief Investment Officers, effective September 1, 2026, to lead its investment platform reporting to Rob Gambi, Global Head of Investments. These appointments reinforce the firm’s fund management and solutions capabilities as it enters its next growth phase and accelerates the execution of its AMplify 2030 strategic plan.

“These appointments represent a significant milestone,” notes Gambi, adding that the firm is implementing “an organization designed to leverage the scale and breadth of BNP Paribas AM’s fund management and solutions capabilities across the entire risk and client spectrum. These appointments allow us to better position our global platform for the future, reinforce our client focus, and accelerate innovation.”

Guy Davies will be the new Deputy Global Head of Investments, Chief Investment Officer and Global Head of Fundamental Active Equity. Until now, Davies was Chief Investment Officer (CIO) and Global Head of Fundamental Active Equity at BNP Paribas Asset Management since 2016. In addition, he has served as Deputy Global Head of Investments since March 2022. Davies joined BNP Paribas AM in 2008 through the acquisition of IMS Limited. Previously, he was a founding partner and co-Chief Executive of MM Asset Management. He began his career at Mercer Investment Consulting.

Olivier de Larouzière will hold the position of Chief Investment Officer and Global Head of Fixed Income. De Larouzière joined BNP Paribas Asset Management in 2019. Previously, he was co-CIO of Fixed Income at Ostrum Asset Management (Natixis Asset Management) and held various portfolio manager positions at Crédit Lyonnais Asset Management and Écureuil Gestion (Caisse d’Épargne).

Laurent Clavel assumes responsibility as Chief Investment Officer and Global Head of Multi-Asset. He joined BNP Paribas Asset Management following the acquisition of AXA IM in 2025. He held several leadership roles at AXA IM, including Global Head of Multi-Asset and, previously, Head of Quant Lab and Head of Macroeconomic Research. He began his career at the French Ministry of Finance (INSEE, Treasury, Budget).

Robinson Rouchié has been named new Chief Investment Officer and Global Head of Systematic & Quantitative Investments. He joined BNP Paribas Asset Management in 2020 as Chief of Staff to the Chief Investment Officer (CIO). Previously, he held several positions across various divisions of the BNP Paribas Group, including Investment Banking, Wealth Management, and CIB, where he served as Chief of Staff to the CEO of CIB Americas, leading and executing key strategic projects across the region (U.S., Canada, Latin America).

Singapore, Zurich, and Monaco, the Most Expensive Cities for a Premium Lifestyle

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Singapore has reaffirmed its leadership for the fourth consecutive year as the world’s most expensive city for maintaining a premium lifestyle, followed by Zurich and Monaco, according to Julius Baer’s Global Wealth and Lifestyle Report 2026.

Zurich’s rise, which placed it three spots higher, was due to the strengthening of the Swiss franc, backed by the country’s reputation for stability and the currency’s role as a “store of value” in times of uncertainty, according to the wealth manager. Singapore’s long-held leadership is due to high housing and automobile prices, the two categories with the highest weighting in the index, along with the strength of the Singapore dollar, the report added. The index compares prices in U.S. dollars.

As Christian Gattiker, Head of Research at Julius Baer, summarizes: “Currencies are once again taking center stage, but the real key lies in how currencies, assets, and investor decisions interact.” In his view, “what is clear in 2026 is that the world remains a complex place and uncertainty stays at a very high level.” In this context, “stable cities and countries become even more attractive,” emphasizes Julius Baer’s head of research.

The bank’s Lifestyle Index ranks 25 cities by analyzing price inflation for 20 luxury items and services, such as housing, automobiles, business class flights, school tuition, and tasting dinners. The survey interviewed 360 high-net-worth individuals with family bankable assets of $1 million or more between February and March 2026.

For high-net-worth individuals, the cost of maintaining a high standard of living has increased “significantly” over the past 12 months, with an average increase of 10.2% in this year’s index in U.S. dollars, according to the report. The rise in gold prices is reflected in the index, with a 16.4% increase in jewelry and 15.5% in watches.

Barcelona consolidates its stability within international luxury

The Catalan capital, the only Spanish city in the ranking, retains 15th position worldwide; exactly the same position it occupied in the 2025 edition. Far from representing a lack of dynamism, this stability reflects the city’s ability to maintain a competitive positioning in a particularly volatile year for major economies.

The analysis prepared by Julius Baer shows a city with a balanced profile. Barcelona excels in categories linked to premium consumption, such as watchmaking, jewelry, and private healthcare, while maintaining relatively more moderate costs in housing, automobiles, and air travel, which helps contain the total cost of a high-net-worth lifestyle.

The report concludes that the concept of wealth is evolving toward a broader, more strategic vision. The ability to preserve purchasing power, access different jurisdictions, maintain a high quality of life, and diversify risks is consolidating as one of the main assets for major international fortunes.

Other relevant positions in the study

Dubai fell to 14th place in the ranking, although Julius Baer indicated that this decline reflects rising costs in other cities rather than increased affordability in the financial hub. The Swiss bank also noted that “much has changed” in the Middle East in the months since the index data collection, which took place before the conflict with Iran. As a result, the outlook for residents and internationally mobile individuals and families “is now less clear,” it stated.

Sydney recorded the biggest climb in this year’s ranking, moving up six spots to eighth place. Julius Baer attributed this partly to the strength of the Australian dollar and the country’s “geographic isolation”; the cost of importing high-end products significantly boosted Sydney’s position on the list, according to the bank.

For the first time in three years, no city in the Americas appeared in the top 10. This is mainly due to the depreciation of the U.S. dollar against other major currencies, despite strong local price increases. Even so, North America recorded significant wealth accumulation over the past year, with an astounding 47% of high-net-worth individuals reporting a significant increase in the value of their assets.

The report concludes that wealth can no longer be measured solely in financial terms: today it also integrates mobility, security, health, resilience, and adaptability—elements that will define the assets of the future.

Capital Group Names Guillermo Veiga as New Chief Information Officer

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Photo courtesyGuillermo Veiga, Chief Information Officer at Capital Group

Capital Group, a global active investment management firm, has announced the appointment of Guillermo Veiga as Chief Information Officer. He will join the firm in November to replace Marta Zarraga, who will retire at the end of the year. Veiga will relocate to California from Singapore, where he currently serves as Group Chief Information & Operating Officer at Standard Chartered Bank.

“Technology, data, and artificial intelligence play an increasingly important role in how we deliver investment excellence, serve our clients globally, and grow our business,” said Rob Klausner, Chief Operating Officer at Capital Group. “Guillermo brings an exceptional combination of deep technological expertise, operational leadership, and a track record in global transformation. His journey leading large, complex organizations makes him the ideal leader to drive Capital’s long-term strategy and position us for the opportunities ahead.”

Born in Uruguay and raised in Spain, Guillermo began his career as a hands-on technician and has held senior management positions in Europe and Asia at Amazon Web Services, Cisco, and Banco Santander, combining deep technical mastery with solid operational experience.

“I was drawn to Capital Group’s long-term commitment to its people and culture, as well as its client-focused mindset,” said Veiga, adding that “Capital Group is at the forefront of technology, and I am excited about the opportunity to help lead the company through a period of global expansion, at a time when data and artificial intelligence have an increasing capacity to transform how we work.”