LinkedIn / Kathleen M. Hutchinson, Director of the SEC Office of International Affairs.
The U.S. Securities and Exchange Commission (SEC) has announced the appointment of Kathleen M. Hutchinson as the new Director of the Office of International Affairs (OIA). The OIA is the department responsible for advising the Commission on international policy, coordinating with regulatory authorities around the world to facilitate cross-border oversight and enforcement, and providing technical assistance.
Hutchinson had served as Acting Director of the OIA since January 2025. Her career at the SEC began in 2003 as a staff attorney in the Office of Compliance Inspections and Examinations (now the Division of Examinations), before joining the OIA in 2008. Within the office, she has held several leadership positions, including Associate Director and Deputy Director, and has served twice as the office’s Acting Director.
“Kathleen has demonstrated a deep commitment to public service and to our mission for more than two decades. I greatly appreciate her willingness to take on the permanent leadership of the Office of International Affairs. She has successfully led numerous international initiatives alongside our counterparts abroad, and I have complete confidence in her continued leadership and guidance on international policy and cooperation,” said Paul S. Atkins, Chairman of the SEC.
For her part, Kathleen Hutchinson said: “The extraordinary talent of the team in the Office of International Affairs makes it a true privilege to work every day in service of investors and our markets. Advancing the SEC’s international priorities through collaboration with foreign counterparts—on policy and supervisory matters, as well as enforcement and technical assistance—is essential to enabling the SEC to fulfill its mission. I am grateful to Chairman Atkins for this opportunity and look forward to continuing to work with the Commission, my colleagues at the SEC, and international authorities to address the regulatory challenges facing global markets today.”
Hutchinson holds a Juris Doctor and a master’s degree in International Relations from the Washington College of Law and the School of International Service at American University, as well as a bachelor’s degree from Binghamton University. She began her legal career in private practice at law firms in Washington, D.C., and New York.
Amundi recently held its World Investment Forum 2026, titled “Age of Empires?”, where several leading figures from the worlds of economics and finance explored the major macro trends currently shaping the global landscape, as well as the investment opportunities they present.
The event opened with Valérie Baudson, CEO of Amundi, who shared her outlook for the coming year and discussed the firm’s strategic plan. Baudson highlighted the accelerating fragmentation of the multilateral order and the “evident” competition for critical resources, technological supremacy and the race to develop AI capabilities.
On the economic front, she pointed to the resilience of the global economy, which is becoming increasingly diversified; reaffirmed Europe’s resilience and the slowdown in U.S. growth; and noted the divergence within the Chinese economy. In this context, according to Baudson, “fiscal and monetary policy, both in developed and emerging markets, has become increasingly important,” while markets “continue to offer opportunities, provided you know where to look.”
As a result, “in the age of empires, geopolitics has regained primacy over economics.” The relationship between the United States and China will continue along a path of uneasy coexistence, but Europe “can act as a balancing force,” and as the world adapts to the energy crisis, “we are entering a new geoeconomic regime.”
Overall, Baudson believes the U.S. economy is likely to remain strong, although inflationary pressures will persist, “testing the monetary policy of the new Federal Reserve Chair.” In Europe, she expects growth to remain moderate this year, but over the longer term the agenda will revolve around “greater spending on defense and infrastructure, more resilient supply chains and progress in the energy transition.” Asia, meanwhile, will continue to display “multiple pillars of growth,” with Baudson highlighting China and India in particular, while paying special attention to countries dependent on oil and gas imports.
“Markets will adapt to this new reality while continuing to offer opportunities for investors. Artificial intelligence, which was once primarily a technological phenomenon, is now an energy phenomenon that is transforming the competitive landscape,” she said, adding that cybersecurity “will remain a risk we must keep firmly in mind, as will the cost of usage.”
Baudson also emphasized the “quiet but persistent questioning” of U.S. sovereign assets as a pillar of global stability. As “regional dynamics matter increasingly,” diversification “must also take into account currency, region and sector, as well as supply chain exposure and energy security.”
In this environment, Baudson said Amundi’s mission “is clear: to provide clients with resilient portfolios capable of capturing the transformative opportunities ahead.”
From a business perspective, the CEO detailed that retirement solutions and the digitalization of savings are the firm’s two priority growth drivers. To achieve this, Amundi has set two objectives: supporting new digital players and helping banks accelerate their digital transition, with the goal of doubling the number of digital partners by 2028.
Geographically, the firm is focusing on Asia, where it aims to reach €150 billion in investment inflows by 2028. It also plans to “significantly increase market share in Northern Europe, from the UK to Germany,” while noting that its strategic plan also calls for “a stronger presence in high-potential regions such as Latin America.”
According to Baudson, achieving these goals will require innovation in securitization. She highlighted the launch of the first tokenized money market fund and reaffirmed Amundi’s commitment to remaining a leader in responsible investing. She also referenced innovation in both passive and active ETFs, as well as the expansion of technology and digital services through Amundi Technology.
Janet Yellen
Following her opening remarks, Baudson held a conversation with Janet Yellen, former Chair of the Federal Reserve and former U.S. Treasury Secretary, who admitted that the most challenging period of her career was the phase of financial instability, during which she felt like a true “firefighter” dealing with problems created by an “unregulated shadow banking system.”
Yellen acknowledged that concerns about the energy shock “are dominant,” but said the Fed is monitoring inflation appropriately and does not expect an interest rate hike in the coming months, while the possibility of a rate cut has “virtually disappeared.”
She also stated that she had “never before seen threats to central bank independence that come close to those we have witnessed over the past year,” noting that central banks were granted independence so they could focus on price stability and resist pressure from elected political leaders seeking interest rate policies that help manage public debt. In the United States, she said, the interest burden has become “genuinely problematic.”
Regarding the labor market, Yellen said that those who understand AI best “are very optimistic about productivity gains,” but she also noted that productivity improvements often take time to materialize.
“Sometimes it can take decades. AI may move faster, but there could still be a lag,” she said.
Bullard and Trichet
James Bullard, former President of the Federal Reserve Bank of St. Louis, and Jean-Claude Trichet, former President of the European Central Bank, completed the lineup of prominent speakers at the forum, focusing on the evolving monetary order.
Bullard argued that governments appear reluctant to raise taxes or control spending, which in his view will eventually create “problems at some point in the future,” with implications for central bank independence.
“We are approaching an unfavorable policy mix similar to what we saw in the 1970s, when undisciplined governments and central banks, lacking a coherent plan and inflation targets, combined with extensive exchange-rate manipulation, generated substantial volatility and ultimately numerous recessions across many countries,” he said.
At the same time, he encouraged policymakers to “do everything possible” to promote technological progress and rising living standards, while avoiding political developments that “take us back to a past that did not work.”
Bullard also addressed central bank projections. While he described scenario analysis as “useful” and helpful in “visualizing possible paths, pricing markets and calculating returns under different conditions,” he emphasized its limitations and argued that assessing future risks requires collaboration between central banks and the private sector.
For his part, Trichet described Europe’s role in today’s fragmented geopolitical landscape as “very important.”
“Perhaps I am too optimistic, so I should be cautious,” he said, before noting that the four currencies issued by the major central banks of the advanced economies—the U.S. dollar, euro, yen and pound sterling—share the same definition of price stability.
“In my view, this is extremely important,” he said, arguing that since the explosion of retail finance, “this represents the most dramatic change in the international monetary system since the end of the modern era.”
“That makes me somewhat more optimistic about our ability, despite all the challenges, to preserve both price stability and financial stability,” Trichet concluded.
Franklin Templeton has announced the completion of its acquisition of 250 Digital, an active cryptocurrency investment management firm led by digital asset industry veterans Christopher Perkins and Seth Ginns. According to the firm, the transaction includes 250 Digital’s investment team as well as all liquid cryptocurrency strategies previously managed by CoinFund. As part of the agreement, Franklin Templeton will invest in those strategies.
The completion of the acquisition reflects Franklin Templeton’s long-term commitment to building infrastructure within the digital asset ecosystem and its conviction in the technologies that, according to the firm, will shape the next generation of institutional investing.
Business Division
With the completion of the transaction, Franklin Templeton has formally established Franklin Crypto, its dedicated active digital asset management division. Perkins will serve as Head of Franklin Crypto, while Ginns will assume the role of Chief Investment Officer (CIO), working alongside Tony Pecore, a long-time digital asset investment specialist at Franklin Templeton. Franklin Crypto will report directly to Sandy Kaul, Franklin Templeton’s Head of Innovation.
Franklin Crypto will provide institutional investors with actively managed cryptocurrency strategies, combining the investment expertise of the former 250 Digital team with Franklin Templeton’s global distribution platform. The new division complements Franklin Templeton’s existing digital asset capabilities, which already include a fully dedicated team focused on fundamental research, active portfolio construction and institutional risk oversight.
Portfolios are undergoing a structural transformation. Investors now have broader and more efficient access to new asset classes—from private markets to digital assets—than ever before. This shift is redefining the investment opportunity set while increasing portfolio complexity. These are among the key conclusions of “Built to Last: How Bond ETFs Are Powering a Portfolio Evolution,” a study published by BlackRock.
The firm argues that the modern asset allocation framework is no longer “a simple balance between stocks and bonds, but a multidimensional architecture encompassing public and private exposures, liquid and illiquid strategies, and both traditional and alternative sources of potential returns.”
At the same time, investors are increasingly asking what can help maintain portfolio cohesion in this more complex environment. According to the report, fixed income “can no longer be viewed solely as a counterbalance to equity risk,” as its role has evolved significantly.
“Fixed income can simultaneously meet liquidity needs, support potential income generation, facilitate disciplined rebalancing and provide a mechanism for managing portfolio volatility across changing market environments,” the report states.
Modern fixed income through ETFs
This evolution in portfolio construction is occurring alongside a transformation within fixed income markets themselves. Once viewed as opaque, dealer-driven and operationally cumbersome, the bond market is becoming increasingly digitalized, transparent and indexable.
At the center of this modernization are fixed income ETFs.
According to the study, fixed income ETFs now represent more than $3 trillion in global assets, with $669 billion in inflows during 2025 alone—exceeding the combined total inflows recorded in 2022 and 2023.
Fixed income ETFs have effectively translated the scale and breadth of the bond market into investment exposures that are tradable, transparent and operationally efficient. What began as a tactical liquidity management tool has evolved into a strategic allocation vehicle used by institutions, financial advisors and wealth investors worldwide.
The report argues that fixed income ETFs sit at the intersection of two defining trends: growing portfolio complexity and the modernization of fixed income market structure.
On one side, portfolios are increasingly incorporating more illiquid, volatile and differentiated return streams. On the other, fixed income markets have become more transparent, indexable and technologically advanced.
Bond ETFs bridge these developments by providing “the scalable liquidity, income precision and execution efficiency required to support increasingly sophisticated portfolios.” As a result, fixed income ETFs are uniquely positioned to fulfill the expanded role that bonds can play in modern portfolio construction.
A stabilizer for portfolios exposed to digital assets
Digital assets have continued to grow as more investors allocate capital to the asset class.
Cryptocurrencies, for example, have experienced rapid expansion. According to BlackRock, the total cryptocurrency market capitalization currently stands at approximately $2.4 trillion, while exchange-traded products (ETPs) providing crypto exposure have grown from $4 billion to $120 billion in assets over just three years. Today, more than 300 crypto ETPs are listed globally.
Looking ahead, the report notes that more than 75% of institutional investors expect to increase their allocations to digital assets, while 59% plan to allocate more than 5% of their assets under management to cryptocurrencies.
Over the past five years, Bitcoin has exhibited a different performance profile from bonds, with a monthly correlation of 0.21 between Bitcoin and the Global Aggregate Bond Index, compared with a 0.43 correlation between global equities and Bitcoin.
“Balancing Bitcoin allocations with bond allocations can therefore help smooth overall portfolio performance across different market environments,” the report notes.
Fixed income ETFs can also help mitigate the impact of cryptocurrency market downturns “by providing diversified exposure across duration and credit risk through a broad range of bonds, while consolidating that exposure into a single vehicle to simplify investing and facilitate efficient rebalancing.”
When portfolio allocations drift from their targets, bond ETFs allow investors to adjust exposures quickly and cost-effectively without having to buy or sell individual bonds, making portfolio rebalancing more efficient and operationally straightforward.
Institutional investors around the world are reshaping their investment strategies as three major megatrends—artificial intelligence (AI), the energy transition and deglobalization—continue to redefine the global economic landscape. According to Nuveen’s latest Global Institutional Investor Survey, these themes are having a profound impact on portfolio construction and long-term capital allocation.
The report shows that AI has become the single most influential investment theme, with 63% of institutional investors identifying it as the megatrend most likely to shape their investment decisions over the next five years. The energy transition ranks second at 40%, followed by deglobalization at 36%.
“Institutional investors are facing a defining moment shaped by three transformative megatrends: the AI revolution, the energy transition and the forces of deglobalization. These are not merely abstract concepts—they are driving real investment decisions. Institutions are investing heavily in AI infrastructure and energy production, adjusting regional exposures in response to trade disruptions and significantly increasing allocations to private markets. The common thread is that investors are taking decisive action to position portfolios for a new investment landscape,” said Harriet Steel, Global Head of Institutional Distribution at Nuveen.
Nearly every institution is investing in AI
The survey highlights an unprecedented level of institutional commitment to AI, with 96% of institutions actively investing in AI-related opportunities. In addition, 75% believe AI will generate a significant increase in economic productivity over the next decade.
Investors are allocating capital to cloud infrastructure, computing capacity and semiconductors, AI model development and software, as well as energy generation to support the technology’s rapid expansion. Among investors allocating capital to AI, 39% view energy production and infrastructure as the most attractive investment opportunity.
“Nearly every conversation we have with institutional investors includes a discussion about the many ways to position portfolios around AI. Over the past 12 months, we have seen not only broader recognition of AI’s transformative potential, but also a much more sophisticated approach to investing in it. Interest in cloud infrastructure and semiconductors remains strong, but investors are increasingly seeking more direct exposure to the energy generation and transmission assets needed to power this revolution,” Steel added.
The energy transition: from risk to opportunity
Institutional investors are also changing the way they approach energy and climate, shifting from a risk-management perspective toward an opportunity-driven investment strategy.
According to Steel, investors are increasingly seeking exposure to new forms of energy generation, particularly as energy demand continues to rise across multiple sectors globally.
“At Nuveen, this translates into tangible investment opportunities across both public and private markets—from utility companies positioned to benefit from faster earnings growth to private investments in clean energy infrastructure, energy storage and the construction of data centers that support AI growth,” she said.
One notable finding from the survey is that 64% of institutions agree that the expected surge in energy demand strengthens the investment case for clean energy. Energy innovation and infrastructure projects remain the top destination for capital among impact-focused investors.
Trade, tariffs and geopolitics reshape portfolios
Nearly all respondents (91%) made portfolio adjustments in 2025 in response to trade, tariff and geopolitical developments.
Among investors reallocating capital geographically, more than one-third (36%) increased their exposure to Europe, reflecting a strategic effort to diversify amid rising uncertainty.
Among those shifting sector allocations, the most frequently cited areas included AI-related technologies (cloud computing, machine learning and industrial automation), alternative credit and private equity, cryptocurrencies, blockchain technology and digital assets, energy (including renewables, semiconductors and utilities), cybersecurity and healthcare (biotechnology, pharmaceuticals and life sciences).
While 74% of respondents believe that 2025 has been more positive than negative for their portfolios, nearly half (44%) expect the unprecedented tariff and trade measures introduced this year to have lasting implications for investment strategy.
Looking ahead, 48% of investors expect the dominance of U.S. capital markets to diminish over the next decade.
Views on interest rates remain divided. Nearly half (47%) expect the Federal Reserve to implement gradual, steady rate cuts that would support financial markets, while 32% anticipate an uneven or unpredictable easing cycle that could increase market volatility. Another 12% expect rate cuts to be paused or delayed because of renewed inflation, while 8% foresee a faster pace of easing amid concerns over a sharper economic slowdown.
Accelerating allocations to private markets
Approximately 81% of institutional investors plan to increase their allocations to private markets over the next five years, with more than half (51%) expecting to raise those allocations by between five and fifteen percentage points.
Private infrastructure, corporate credit and private equity are the leading alternative investment priorities over the next two years. Forty-three percent of institutions plan to increase allocations to private infrastructure and corporate credit, closely followed by private equity (42%).
“The scale and pace of institutional capital flowing into private markets remain significant. Institutional investors continue to capitalize on the powerful combination of benefits offered by private markets: diversification away from public market uncertainty, enhanced income generation and the potential to improve risk-adjusted returns. As new technologies make it easier to integrate private market investments into existing portfolios, we expect this structural shift to accelerate, particularly as investors seek resilience in an environment of persistent volatility,” Steel concluded.
Although diversification remains one of the key advantages of private markets, nearly half (46%) of institutions identified diversifying their alternative credit allocations as a top priority over the next five years.
The preferred segments within private fixed income include investment-grade private companies (44%), investment-grade private infrastructure debt (44%) and private asset-backed securities (ABS) (40%).
In addition, nearly half of investors (46%) plan to add one or two new types of alternative credit investments over the next two years, while 15% expect to add three or more.
Beyond expanding diversification within private markets, investors are also looking beyond developed economies. Among those planning to increase allocations to below-investment-grade public fixed income, 48% intend to raise exposure to emerging market debt, compared with 27% a year earlier.
Women and younger collectors are reshaping the global art market, according to The Art Basel and UBS Survey of Global Collecting 2025. The report, prepared by economist Clare McAndrew, founder of Arts Economics, provides an updated picture of the trends, motivations and behaviors of high-net-worth individuals investing in art.
Conducted in collaboration with UBS, the survey is based on responses from 3,100 high-net-worth collectors during the first half of 2025 across ten key markets: the United States, the United Kingdom, mainland China, Hong Kong, France, Switzerland, Germany, Japan, Brazil and Singapore. It examines everything from purchasing preferences and event attendance to relationships with artists and galleries.
Women take center stage—and embrace more risk
Against a backdrop of global economic uncertainty, the report finds that women are not only maintaining their presence in the market but are also taking on higher levels of risk in their collecting decisions.
As Clare McAndrew, founder of Arts Economics and the report’s author, explains: “At a time of increasing global economic uncertainty, this survey offers a valuable opportunity to examine how collectors are adapting to risk, with a particular focus on gender differences. Contrary to the common stereotype that women are more risk-averse than men, the findings show that, in the context of collecting, women are equally aware of potential risks but are often more willing to take them in practice by acquiring works across a broader range of non-traditional media and actively supporting emerging or lesser-known artists. Women also collected and spent more on works by female artists, a trend that is equally evident among younger collectors. As wealth continues to shift both vertically and horizontally in the years ahead, these trends are likely to encourage greater balance and diversity in future collecting.”
In 2024, women’s average spending on art and antiques was 46% higher than that of men. In mainland China, female collectors led spending, with figures more than double those of their male counterparts. Their collections also contain a higher proportion of works by female artists and demonstrate a strong openness to emerging talent.
More art in portfolios and greater diversity in buying habits
The report shows that high-net-worth individuals increased the share of their wealth allocated to art in 2025, with the average rising to 20% of total wealth, up from 15% the previous year. Among ultra-high-net-worth individuals with more than $50 million in assets, the average allocation reached 28%.
The study also highlights a diversification of purchasing channels and formats. Although paintings remain the most commonly acquired medium, attendance at art fairs continues to grow, with 58% of collectors purchasing through them, while digital platforms are gaining momentum: 51% of collectors bought works via Instagram, and direct purchases from artists doubled compared with the previous year. Two out of every three collectors acquired works by artists they had discovered within the previous 18 months.
Younger generations redefine collecting
Millennials and Generation Z are driving a generational shift in collecting habits.
Millennials lead spending on decorative arts, design and jewelry, reflecting interests more closely tied to lifestyle. Generation Z, meanwhile, dominates categories such as collectible handbags, sneakers and luxury assets, with average spending on sneakers nearly five times higher than that of other generations.
Within the fine arts market, younger collectors distinguish themselves by exploring a wider range of media, from digital art—where Generation Z is the most active—to photography and works on paper, which are particularly favored by millennials.
Family tradition and philanthropy
Despite the market’s dynamism, family legacy remains a cornerstone of collecting: nearly 90% of younger collectors who inherited artworks chose to keep them. Overall, 80% of respondents plan to pass their collections on to their children or spouses.
At the same time, philanthropy is becoming increasingly important. One-quarter of collectors plan to donate part of their collections, reflecting a broader desire to connect wealth with social and cultural causes.
Brazil strengthens its position
The report also highlights Brazil’s growing importance in the global art market.
“The Art Basel and UBS Survey of Global Collecting 2025 reveals how collectors are becoming more engaged, connected and active. Brazil stands out in particular for its strong appetite for established artists and its leadership in art fair participation. With 72% of high-net-worth collectors planning to acquire works over the next 12 months and 69% intending to attend more art events in 2026, the country continues to demonstrate both maturity and momentum. These indicators reinforce its importance within the global collecting landscape,” said Valéria Milani, Head of Sales at UBS MFO Consenso.
Cautious optimism in the art market
Despite a slight decline in purchase intentions—from 43% in 2024 to 40% in 2025—84% of collectors remain optimistic about the short-term outlook for the art market. Meanwhile, selling intentions have fallen to 25%, suggesting a more stable, long-term approach to collecting.
“The great wealth transfer is influencing not only financial flows but also collector engagement. As younger generations and more women take responsibility for managing wealth, their collecting decisions increasingly reflect personal values and social awareness. Many are drawn to works that speak to identity, community and purpose. This shift points to a more thoughtful, values-driven approach to collecting that connects wealth with creativity and meaning in ways that resonate with today’s world,” said Paul Donovan, Chief Economist at UBS Global Wealth Management.
A market in transformation
For Noah Horowitz, CEO of Art Basel: “The Art Basel and UBS Survey of Global Collecting 2025 provides a fascinating snapshot of how our field is evolving in 2025. Millennials and Generation Z are approaching the market with new behaviors, tastes and modes of engagement, while the growing influence of women collectors and support for female artists are having a significant impact on the trade. We also see younger collectors expanding their interests beyond traditional categories into digital art, design and lifestyle objects, purchasing works through an increasing variety of channels. These valuable insights help guide our efforts to support galleries and their artists, cultivate new generations of collectors and expand the global art ecosystem.”
With greater diversity across generations, gender and values, global art collecting is entering a new phase in which creativity, sustainability and personal identity are becoming the new drivers of cultural value.
The 2026 FIFA World Cup will not only mark a historic milestone with its expansion to 48 teams and its joint hosting by three nations—the United States, Mexico and Canada. It could also become the sporting event that cements the convergence of the digital financial industry and the entertainment economy, driving the mass adoption of electronic payments, digital wallets, tokenization and new forms of retail investing.
The tournament, which FIFA itself expects to be the most profitable in its history, is projected to generate approximately $13 billion in revenue for the governing body and more than $40 billion in global economic impact, according to estimates compiled by various international analysts.
Beyond tourism and traditional consumer spending, however, the 2026 World Cup arrives at a time when the digital financial ecosystem is far more mature than it was during Qatar 2022. The widespread adoption of digital wallets, instant payment systems and investment platforms has significantly expanded the opportunities to monetize the relationship between fans and sports organizations.
From the traditional fan to the digital financial consumer
Today’s fan no longer simply buys tickets or official merchandise. They participate in loyalty programs, acquire digital assets, interact through mobile applications and use financial tools that barely existed a decade ago.
The digitalization of the fan experience creates an opportunity for fintech companies, payment processors, investment platforms and wealth managers to bring financial services to millions of people who have historically had limited engagement with the formal financial system.
This trend is particularly relevant in Latin America, where, according to the World Bank, financial inclusion gaps remain significant, even as smartphone penetration and digital payments continue to grow at rates well above those of traditional banking services.
Fan tokens evolve into a new sports economy
One of the fastest-growing segments is fan tokens—blockchain-based digital assets that allow supporters to participate in polls, earn rewards and access exclusive experiences.
According to DataIntelo, a global market research and consulting firm, the global fan token market reached a value of $3.8 billion in 2025 and could grow to $18.6 billion by 2034, representing a compound annual growth rate of approximately 19.3%. More than 170 sports organizations have already launched fan token initiatives, while the ecosystem now includes around 28 million active wallets.
Academic research also suggests these instruments are generating meaningful levels of engagement. A study conducted by European researchers found that fan token polls attract an average of roughly 4,000 participants and engage nearly half of all token holders.
The experience of the 2022 FIFA World Cup in Qatar also demonstrated the close relationship between sporting events and the financial performance of these assets. Researchers found that fan token returns generally increased ahead of the tournament, while match results triggered significant fluctuations in both prices and trading volumes.
The World Cup as a catalyst for digital payments
The 2026 edition will also serve as a stress test for digital payment infrastructure. Millions of international visitors will make cross-border transactions, hotel reservations, online purchases and mobile payments, reinforcing the importance of digital wallets and fintech platforms.
The scale of the event is expected to benefit companies operating payment networks, remittance services, foreign exchange providers, digital banks and mobility applications—industries that have become indirect beneficiaries of the expanding sports economy.
At the same time, the rise in digital transactions brings greater fraud risks. Specialists at Check Point Research have already warned of an increase in fake websites, fraudulent applications and scams involving cryptocurrencies and counterfeit World Cup tickets, highlighting the growing need for stronger financial education and cybersecurity.
Wealth management and retail investing: a new frontier
For the wealth management industry and retail investment platforms, the World Cup represents an opportunity to introduce concepts such as diversification, thematic investing and the digital economy to a new generation of users.
Sport is increasingly becoming an economic asset in its own right. The convergence of blockchain technology, digital payments and community participation is creating new models in which fans evolve from passive consumers into active participants in financial ecosystems connected to their favorite teams and brands.
In that sense, the 2026 World Cup may be remembered not only as the tournament with the largest number of participating teams and the biggest global audience, but also as the event that accelerated the transformation of the traditional sports fan into a new kind of participant: the digital financial consumer.
Flexstone Partners (Flexstone), a global private markets investment manager with $12 billion in assets under management (AUM) and an affiliate of Natixis Investment Managers, has announced that it has reached an agreement to acquire Glouston Capital Partners (Glouston), a Boston-based private equity secondary markets manager with more than $3.4 billion in assets under management.
According to the firms, the combined platform will manage more than $15 billion in assets across primary, secondary and co-investment strategies, serving institutional investors across North America, Europe and Asia. The combined entity brings together two highly complementary businesses: Flexstone’s global primary and co-investment platform and Glouston’s North American secondary market capabilities, which operate largely in different geographies with minimal strategic overlap. Glouston’s experienced team, strong General Partner (GP) relationships and disciplined approach to the North American middle market will significantly strengthen Flexstone’s secondary platform and enhance its ability to meet the evolving needs of institutional investors.
“Flexstone Partners is delighted to welcome the experienced Glouston Capital Partners team as we embark on this new phase of growth. Glouston brings a complementary middle-market investment philosophy and a long track record of disciplined execution. Their expertise in the secondary market is a natural fit with our culture and broadens the range of private capital strategies Flexstone can offer investors through our platform,” said Eric Deram, Managing Partner and Chief Executive Officer of Flexstone Partners.
About the transaction
The investment and management teams at Flexstone will remain unchanged, ensuring continuity for clients while adding deep middle-market secondary expertise. Glouston’s investment strategy and investment team will also remain intact following the closing of the transaction. Glouston’s six partners will continue to manage the secondary business from Boston, applying the same investment process and criteria that have historically defined the firm’s investment approach.
“This partnership represents a natural evolution for Glouston Capital Partners. Flexstone’s global platform, complementary GP relationships and strong distribution network will allow us to expand our reach while maintaining the investment discipline and team-based decision-making that our Limited Partners (LPs) value. We are excited to join forces and continue building a leading secondary platform with the resources and scale needed to compete effectively in today’s market,” said Red Barrett, Senior Managing Partner at Glouston Capital Partners.
As part of the transaction, Glouston’s partners will reinvest a significant portion of their equity ownership in the combined entity and will become Managing Partners of Flexstone, ensuring strong alignment of interests. Flexstone’s partners will also make an additional capital investment alongside the Glouston team.
Expanding the private markets offering
According to Philippe Setbon, Chief Executive Officer of Natixis Investment Managers, investor demand for large-scale, high-quality private markets solutions continues to grow. “Private assets are a core pillar of Natixis Investment Managers’ long-term growth strategy, with Flexstone Partners playing a key role. Glouston Capital Partners’ experienced team, strong institutional relationships and differentiated middle-market strategy are an excellent complement to Flexstone’s private equity business. This integrated platform is uniquely positioned to meet clients’ evolving needs in one of the fastest-growing segments of private markets,” Setbon said.
The combined platform will operate from five offices—New York, Boston, Paris, Geneva and Singapore—and will include 37 investment professionals. Flexstone will continue to manage its primary and co-investment strategies across private equity, private debt, infrastructure and real estate, serving an institutional Limited Partner (LP) client base primarily located in Europe and Asia.
Glouston will lead the combined firm’s secondary investment strategy and U.S. distribution, while Flexstone’s secondary investment team—comprising three professionals in Europe and one in New York—will join forces with Glouston’s investment leadership team. Following the closing of the transaction, Glouston’s strategies will be marketed under the Flexstone Partners brand. The Glouston team will continue operating from Boston as part of Flexstone’s expanded global platform. Existing fund structures, LP agreements and investment mandates will remain unchanged following the rebranding.
In 1988, Jonathan Steinberg, CEO of WisdomTree, acquired The Penny Stock Journal, a broadsheet newspaper dedicated to the lowest-quality stocks. “Everything they covered was destined to go bankrupt—it was basically a marketing scam. I thought I could do something better,” he recalled during INSITE26, BNY’s annual conference in Denver. He transformed it into Individual Investor, hired analysts, and began producing independent research for retail investors. In 1997, he published his first article about ETFs when the vehicle held just $40 billion in assets and only three products existed. “I was struck by the leap forward that the ETF represented as a structure,” he said.
What surprised him most, however, was the industry’s slow pace of adoption. The first ETFs had launched in 1993, yet by 1997 no additional products had come to market. It took another seven years before the next wave arrived. “Asset managers and distribution platforms were extraordinarily slow to evolve,” he said. That inertia created an opportunity: exactly twenty years ago, WisdomTree launched its first 20 ETFs. Today the firm manages $170 billion in assets but competes with firms overseeing between $1 trillion and $14 trillion. “As CEO of a smaller asset manager, I try to make the right decisions with the least amount of information possible, always trying to stay one step ahead,” he explained.
His assessment of today’s investment landscape was unequivocal: “This is a golden age for investing. Fees have fallen, investment vehicles have become more sophisticated. Today, even the smallest investor can have a better experience than the wealthiest person in the world could have had 20 years ago.”
The question he asked himself seven years ago
Seven years ago, before tokenization had become an industry-wide discussion, Steinberg posed a question internally that would shape WisdomTree’s long-term strategy: “What could do to ETFs what ETFs did to mutual funds?” The answer led him to act long before a consensus had formed.
“I knew that if I started when this conversation became mainstream, it would already be too late for a small boutique manager like WisdomTree,” he said.
The decision required an uncomfortable leap. “I had to do something that made me extremely uncomfortable: make a strategic investment in a startup that had built a tokenization platform and a regulatory framework for its tokens—in other words, a programmable wrapper.”
That platform was eventually acquired by the Depository Trust & Clearing Corporation (DTCC), but WisdomTree retained its own version and continued developing it. Today, the firm has $1 billion in tokenized assets and the world’s largest portfolio of tokenized real-world assets. Its latest milestone is a money market fund that operates and settles 24/7 on blockchain.
“It is the first real-world asset that behaves on-chain like a native crypto asset,” Steinberg said.
Two weeks ago, the firm filed with regulators to launch tokenized ETFs under the same framework.
For the financial intermediaries attending the conference, however, his message was one of tactical patience.
“For now, this is irrelevant to you—seriously. Your opportunity lies in the regulated exchange-traded markets, and that opportunity is enormous.”
Tokenization, he argued, belongs to the next generation of clients.
“It’s like the internet. We don’t really know how it works—it simply exists, integrated into everything we do. What will happen is that BNY, other financial institutions, and WisdomTree will bring financial services onto blockchain.”
Farmland instead of BlackRock or Blackstone
While many competitors rushed into private credit, WisdomTree chose a different path: farmland.
“We went into farmland, where there isn’t a BlackRock or a Blackstone,” Steinberg said.
Today, WisdomTree is the third-largest owner of farmland in the United States, managing 180,000 acres through an evergreen “one-and-twenty” structure.
“Our competitors are the Mormon Church, Bill Gates, and family farmers—not BlackRock or Blackstone. It’s a much better business.”
More broadly, Steinberg challenged the prevailing narrative around private markets.
“Most investors give up liquidity and transparency far too easily. And high fees can corrupt investment advice.”
He openly questioned recommendations that investors allocate as much as 30% of their portfolios to private assets.
“That sounds like a lot.”
He was equally skeptical of proposals to incorporate private assets into 401(k) retirement plans.
“I think that’s aggressive. I don’t agree with that approach.”
The ETF as the future wrapper for private assets
WisdomTree’s alternative approach is to bring private assets into the ETF structure itself.
“While my competitors are putting private credit into interval funds, we’re going to put private assets into ETFs.”
Whereas interval funds may hold up to 90% of their assets in illiquid investments, WisdomTree’s proposed structure would cap private exposure at 15%, while eliminating K-1 tax forms, paperwork, lock-up periods, and investment minimums or maximums.
Before the end of the first quarter next year, the firm expects to launch ETFs providing exposure to both farmland and venture capital.
For Steinberg, the rationale is straightforward.
“I don’t want to be the last person buying SpaceX. A tremendous amount of value creation happens before companies ever reach the public markets.”
He also sees clear historical parallels.
“I often ask why the mutual fund industry was so slow to adopt ETFs. Part of it was transparency—portfolio managers didn’t want to disclose their holdings—but fees also played a major role. They were earning high fees, and that made them resistant to adopting what would ultimately have been a better experience for clients.”
Over the past 24 months, roughly 120 mutual fund companies launched their first ETF in 2025 or 2026.
“I’m amazed they literally waited until 2026,” he said.
His guiding principle—and the one he encouraged advisors in the audience to embrace—is simple:
“How do I genuinely help my client achieve the life they ultimately want? That means truly putting yourself in their shoes, rather than placing yourself above them.”
Against a backdrop of tight credit spreads, strong demand for fixed income, and the growing role of artificial intelligence as an investment driver, Christopher Hult, portfolio manager of the CT (Lux) Credit Opportunities Fund at Columbia Threadneedle Investments, discusses the key opportunities and risks he currently sees in credit markets. Hult maintains a defensive positioning focused on high-quality issuers, identifies the automotive sector as one of the market’s most vulnerable areas, and argues that active management is particularly valuable in today’s volatile environment. He also examines how AI-driven capital spending is reshaping corporate financing needs, highlights opportunities in the utilities sector, and shares his views on the evolution of private credit.
How do you view valuations today? Where do you see the most attractive opportunities?
Credit valuations have been elevated for some time, but we believe they are fully justified. Corporate fundamentals remain strong, earnings growth has been impressive, and the macroeconomic backdrop has consistently delivered positive growth. Demand for credit is insatiable.
One consequence of tighter spreads is reduced dispersion in returns. The additional compensation available for more cyclical issuers has narrowed considerably. Spreads may remain tight for an extended period, so we do not want to position ourselves aggressively against the market. However, because we are no longer being adequately compensated for taking cyclical or lower-quality credit risk, we maintain a defensive bias focused on higher-quality issuers.
Is there a sector that appears particularly vulnerable?
The automotive sector. This year the industry is facing a changing regulatory environment as governments roll back some of their commitments related to electric vehicles and climate policy. As a result, what was already a significant capital expenditure cycle is being extended.
Manufacturers must now maintain expensive parallel investment programs: continuing to develop electric vehicle platforms, battery systems, and software while also investing in traditional internal combustion engines and hybrid technologies. This prevents the capital efficiency gains that would come from focusing on a single technology.
At the same time, competition from Chinese manufacturers is putting additional pressure on margins. Given these dynamics, we prefer to remain underweight the sector.
Following the sharp interest rate hikes of 2022, global fixed income has staged a strong recovery with attractive real yields. Is this still a favorable environment for buy-and-hold portfolios? How are your clients positioning their portfolios?
All-in yields remain attractive across fixed income markets, and we continue to see strong interest from a broad range of investors.
That said, we expect market volatility to persist. This is an environment that requires careful investing and agile decision-making, which strengthens the case for active management.
We believe the term premium has not yet fully adjusted, so we favor shorter maturities while looking for opportunities to increase inflation protection.
Fixed income investors have been closely watching the wave of AI-related bond issuance. Do you find these hyperscaler bond offerings attractive? How are you gaining AI exposure through fixed income investments?
As artificial intelligence applications continue to proliferate, the race to build the infrastructure supporting them has triggered one of the largest capital investment cycles in recent history.
We estimate cumulative investment needs between 2025 and 2030 will approach $6 trillion. This enormous buildout is creating unprecedented financing requirements. While the major technology companies generate significant operating cash flow, the scale of the investments required is leading them to explore multiple financing sources.
In the public credit markets, technology companies are issuing increasing amounts of debt, although index concentration and risk premiums are also rising. Given the hyperscalers’ high credit quality, the issuance itself is not a credit concern. The real question is whether the market is large enough to absorb the supply and what level of concession investors will require.
We entered this period underweight technology but have gradually increased our exposure over the past nine months, as sector spreads have repriced relative to the broader market. Even so, we will remain nimble and reduce exposure if we believe investors are no longer being adequately compensated for the continued supply likely to reach the market.
What other themes are you identifying within the investment grade fixed income universe?
The adoption of artificial intelligence technologies will affect many sectors, particularly electric utilities and power grids, given the rapidly growing demand for electricity generation. We see significant opportunities in this area.
Utilities’ capital investments generally translate into growth in their regulated asset base. This allows companies to earn higher regulated returns across their customer base under existing regulatory frameworks. As a result, their cash flow profiles should remain resilient regardless of how the AI industry ultimately develops.
In addition, utilities have the ability to issue hybrid debt, enabling them to raise capital while preserving their existing credit ratings. At the same time, the structural features of hybrid securities—including subordination, call optionality, and coupon deferral—offer higher yields, creating attractive investment opportunities.
We are also closely monitoring the rapid growth of private credit. Although public and private markets generally finance different segments of the economy, we remain alert to any spillover effects stemming from negative developments in private credit.
Ultimately, we do not believe private credit represents a systemic risk to the financial system, given banks’ limited exposure to leveraged private credit funds and the fact that the investor base is primarily institutional with long-term investment horizons.
Nevertheless, to mitigate potential contagion risks, we have made it standard practice to gradually take profits on our exposure to U.S. bank credit while identifying opportunities to rotate toward European financial institutions.
With inflation concerns rising due to the war with Iran and the disruption of shipping through the Strait of Hormuz, what is your macroeconomic outlook for the second half of 2026? What do you expect from the Fed and the ECB?
The European Central Bank has raised interest rates because inflation has moved above its target. This comes despite the fact that tighter monetary policy could further weaken growth prospects, which have already deteriorated due to the consequences of the conflict in the Persian Gulf.
The ECB hopes that this single rate increase will allow it to preserve its inflation-fighting credibility while buying time for the conflict to end and maritime traffic to return to normal.
Before the conflict, the ECB had become the envy of many developed-market central banks after successfully bringing inflation back to target while gradually lowering rates toward what it considered a neutral policy stance. However, if the conflict drags on, it may be forced into additional rate hikes as inflationary pressures increase.
Being constrained by a single policy mandate raises the risk of repeating the mistakes of 2008 and 2011, when rate hikes driven by higher energy prices ultimately had to be quickly reversed.
The Federal Reserve enjoys greater flexibility, partly because of its dual mandate of employment and inflation. Even so, the market is now pricing in a Fed rate hike before the end of the year.
