BoE, BoJ, and Fed: Three Meetings That Highlight the Divergence Among Central Banks

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Central banks take center stage this week, as the Bank of England (BoE), the Bank of Japan (BoJ), and the U.S. Federal Reserve (Fed) will hold their respective meetings. These three monetary institutions have been less active than the European Central Bank (ECB), which has cut interest rates by 25 basis points at each meeting since last September, so expectations for further changes are low.

How have these central banks behaved so far? The BoE’s monetary policy has positioned itself between that of the Fed and the ECB. “Rates have been lowered by 25 basis points per quarter, but concerns about inflationary pressures—exacerbated by rising regulated prices and increases in employment-related taxes—have slowed a faster pace of monetary easing, amid divided opinions among BoE policymakers. A more decisive rate cut is likely approaching, given signs of declining employment, unfilled vacancies, and wage growth, but a cut as early as June would surprise the market,” notes Sean Shepley, senior economist at Allianz GI.

In contrast, the BoJ remains a case apart: while other central banks have hesitated to lower rates in a persistent inflation environment, the BoJ has been reluctant in recent months to raise rates from its current ultra-loose policy, despite inflation exceeding its target. “The institution remains focused on shifting domestic inflation expectations away from levels close to zero and sees risks to growth as potential obstacles to achieving that goal. All indications suggest that, for now, this inaction will remain the BoJ’s prevailing stance,” adds Shepley.

Since December, the Federal Reserve has kept its monetary policy unchanged, after swiftly reducing its target rate from 5.25% to 4.25% over the last four months of 2024. For this meeting, it is expected to maintain the status quo, as it has shown reluctance to take new action.

According to Erik Weisman, Chief Economist at MFS Investment Management, the only point of interest may come from the new set of forecasts in the Summary of Economic Projections (SEP), which could point to slightly slower growth, combined with slightly higher inflation.

“We’ll also be watching the dots—the Fed’s interest rate forecasts—which could shift to indicate only one rate cut this year. Overall, none of this is likely to surprise investors. The Fed will probably acknowledge that the backdrop remains uncertain, and that the best course is to do nothing. As for potential rate cuts, it’s fair to assume they’ve been delayed, and none is likely before the fourth quarter of this year,” Weisman argues.

Focus on the Fed

Although no changes or cuts are expected from the Fed, investment firms agree that the pressure on Powell and the central bank has increased. “One of the hallmarks of U.S. President Donald Trump’s two terms has been his willingness to publicly challenge the Fed Chair whenever he believed interest rates were too high or that the institution had acted too slowly. In fact, Trump has claimed he should participate in monetary policy decisions and has attempted to undermine the central bank’s authority. Moreover, before taking office, U.S. Treasury Secretary Bessent even said that if the government announced in advance who the next Fed Chair would be, it could weaken the current chair’s power,” notes the senior economist at Allianz GI.

These pressures are compounded by the complex geopolitical environment. “If not for exogenous shocks, tariffs, and oil, it seems the Fed has successfully concluded the post-pandemic monetary policy cycle, to borrow Christine Lagarde’s phrasing about the ECB two weeks ago. May’s U.S. CPI data was particularly encouraging. While it’s highly likely that the Fed will reaffirm its ‘wait and see’ stance this week, the FOMC’s dot plot for 2026 and 2027 could show some divergence among members, with hawks and doves emerging, divided over the risks of persistent inflation in the U.S. We wouldn’t be surprised if only one rate cut is shown in the new dot plot. However, we believe the longer-term dots will be more interesting,” says Gilles Moëc, Chief Economist at AXA IM.

According to his estimate, assuming the median projection remains unchanged from March, three cuts (to 3.37%) are expected in 2026. “However, the dispersion around the median might be more telling than the median itself. In fact, we could see a group of doves pushing for quicker cuts and faster convergence toward neutrality,” he adds.

Will the Fed Make More Cuts?

Philip Orlando, Senior Vice President and Chief Market Strategist at Federated Hermes, sees potential for the Fed to cut rates twice this year. “CPI and PCE inflation indicators have declined year-to-date through April and are now at four-year lows. The Fed’s June 18 monetary policy meeting includes an updated summary of economic projections. Officials will need to reconcile their restrictive monetary policy—since the upper bound of the federal funds rate is currently at 4.5%—with the fact that nominal CPI is only 2.3% year over year,” he explains.

In his view, there is significant room to lower rates to 3% over the next 12–24 months, and he expects two quarter-point cuts later this year: “The most likely timing would be September and December, and we expect the Fed to set the stage for these cuts at its June and July 30 FOMC meetings, as well as at its Jackson Hole summit in Wyoming from August 21 to 23. With the prospect of lower rates and no recession on the horizon, we maintain our target of 6,500 for the S&P 500 this year and 7,000 in 2026,” he says.

Markets Watch the Dot Plot

Finally, Harvey Bradley, Co-Head of Global Rates at Insight Investment, notes that beyond Fed Chair Powell’s press conference, markets will closely watch the Fed’s quarterly dot plot for signals on how and when the central bank might resume its cutting cycle.

“In both March and December, the median projection was for two rate cuts by year-end, which is roughly what markets are currently pricing in. Given the uncertainty facing markets, it’s difficult to predict whether the forecasts will change significantly. On one hand, Fed members may now factor in a higher effective tariff rate, with early signs of tariff-related inflation beginning to show. On the other hand, less volatile—or ‘stickier’—sources of inflation, especially in major categories like rent, are showing impressive and potentially sustainable signs of disinflation. The labor market is also showing some cracks, with continuing jobless claims at cycle highs. This could help the Fed continue normalizing its monetary policy. Altogether, the projections may remain largely unchanged,” he argues.

Insight’s base case is for two cuts this year, followed by further reductions in 2026 toward a terminal rate of 3%, driven by below-trend growth outcomes—a landing zone the Fed would likely describe as “broadly neutral.” “In any case, while the Fed remains on hold, we believe this could be a good opportunity for investors to lock in relatively high yields in fixed income while they are still available,” concludes Bradley.

AI Washing: The New Concern for Institutional Investors and Wealth Managers

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A new global study by Robocap, a fund manager and investor specializing in robotics, automation, and artificial intelligence (AI) equities since 2016, reveals that 37% of pension funds, insurance asset managers, family offices, and wealth managers—with a combined total of $1.183 trillion in assets under management—are very concerned about false claims made by some companies regarding their use of artificial intelligence and its purported positive impact on operations. An additional 63% expressed moderate concern about this issue.

Based on their experience, Robocap identifies “different types of AI washing.” This may include companies that claim to use AI when they are in fact relying on less sophisticated algorithms. It may also involve overstating the effectiveness of their AI compared to existing techniques or falsely asserting that their AI solutions are fully operational.

Looking ahead, 26% of the professional investors surveyed believe AI washing will worsen slightly over the next three years, while 3% expect it to worsen considerably. However, nearly two-thirds believe the issue will diminish, and 7% think it will remain unchanged.

Robocap is a thematic equity fund focused on pure-play publicly listed companies operating in the global robotics, automation, and artificial intelligence space. This fast-growing theme includes AI-powered cybersecurity, AI software, general automation, industrial robotics, healthcare robotics, drones, autonomous vehicles, key components, semiconductor automation, space robotics, logistics automation, and a wide range of AI applications throughout the entire value chain.

Robocap’s pure-play approach means it invests only in companies where at least 40% of revenues are related to robotics, automation, and AI. Currently, 85% of the portfolio’s revenues are directly tied to this theme. The fund manager is supported by a team of experienced investors and an advisory board of leading technology experts and entrepreneurs who help guide investment decisions.

The Robocap UCITS Fund, launched in January 2016 and managed by a specialized team based in London, aims for a 12% annual return over an economic cycle. It has achieved a net annualized return (CAGR) of 11.84% and a net return of 181% since inception.

Following the release of the study, Jonathan Cohen, founder and Chief Investment Officer (CIO) of Robocap, stated:
“Much like greenwashing, AI washing is a real issue for investors seeking exposure to companies that truly benefit from the growth and operational efficiencies AI can offer. We believe there is a significant misunderstanding and misuse of the term ‘AI,’ as well as a wide gap between technological innovation and the actual revenue derived from it. When selecting investment opportunities, we look for companies with solid underlying exposure to the AI, robotics, and automation theme, a strong business model supported by excellent technology, a good management team, and attractive valuation.”

Israel-Iran Conflict and the Oil Risk: Economic and Geopolitical Impacts

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The escalating conflict between Israel and Iran has significant implications for the global oil market. Although Israeli attacks have so far mainly targeted military facilities and nuclear infrastructure, any expansion of the conflict into oil-producing areas—particularly if it affects Iraqi output—could remove around 5 million barrels per day from the market.

This would represent a critical reduction, considering that the spare capacity of OPEC+Russia, estimated at about 7.5 million barrels per day, would shrink by nearly 70%.

Such a scenario greatly increases the risk of a major global supply shock, potentially pushing oil prices back toward the psychologically significant $100 per barrel level.

Political Strategies and Likely Scenarios

While the most plausible scenario is that Iran will seek to preserve what remains of its nuclear capabilities and eventually return to negotiations with the United States, the current U.S. administration under Trump—marked by relative passivity and permissiveness toward Israel—creates the possibility of an intensification of the conflict.

Israel might view Iran’s current weakness—resulting from the damage inflicted on key allies such as Hamas, Hezbollah, and Assad’s former regime in Syria—as a unique opportunity to permanently neutralize the Iranian nuclear threat.

Some political analysts even suggest that Trump may have deliberately enabled this scenario in an effort to force a definitive resolution of the Iranian nuclear issue. However, an extreme escalation would inevitably provoke retaliation from Iran, especially if the survival of Ayatollah Ali Khamenei’s regime is perceived to be at stake.

A possible Iranian response could include attacks on Saudi oil facilities or a blockade of the strategic Strait of Hormuz, through which between 18 and 20 million barrels of crude oil and refined products transit daily. Such a situation would likely force the U.S. to reconsider its strategy, balancing the goal of eliminating the nuclear threat with maintaining a degree of regional stability under the current Iranian regime.

Economic and Financial Consequences

A severe oil supply shock would significantly increase global energy costs and slow down global economic growth. The impact would be particularly acute for economies heavily reliant on imported oil, such as Europe and China. A slowdown in China would be especially concerning given its central role in the current global economic context and its strategic interest in preventing further Middle Eastern tensions.

The United States, on the other hand, would be in a relatively more favorable position thanks to the energy independence it has achieved over the past decade. Nevertheless, it would not be immune to the secondary effects of a deep global slowdown. In this context, the perception of the U.S. dollar as a safe-haven asset could be strengthened, relatively favoring dollar-denominated assets—especially Treasury bonds and U.S. equities—compared to more vulnerable regions.

Market Reaction and Perception

In recent days, market risk indicators seem to have priced in the peak of the conflict, as reflected in relatively restrained movements across key assets. U.S. Treasury yields have risen slightly, while the dollar and gold have shown downward trends. Meanwhile, stock indexes have maintained surprising stability, seemingly downplaying the severity of potential risks.

This apparent calm could be supported by the reduced intensity of oil usage in global production compared to previous decades and the belief that the remaining spare capacity, although limited, could partially offset a temporary supply disruption from Iran and Iraq.

Complacency Risks in the Markets

However, the current stability may be overlooking critical factors. A sustained disruption of supply from the Middle East would be difficult to manage without causing significant price tensions, given the limited real spare capacity of OPEC+Russia in a prolonged conflict scenario.

Moreover, a genuine escalation could trigger important second-round effects, such as significant inflationary pressures that would force central banks to maintain restrictive monetary policies for a longer period, further slowing global economic activity.

Conclusion and Outlook

The Israel-Iran conflict has the potential to trigger a major global economic shock, the exact impact of which will largely depend on the duration and depth of the conflict, as well as the response capacity of key players in the international energy market.

The prevailing uncertainty requires close monitoring of developments in the Middle East. The complacency seen in the markets so far could be quickly reversed if tensions escalate further, once again highlighting the region’s critical importance to global economic stability.

For investors, maintaining defensive and diversified positions—especially in safe-haven assets—may be a prudent strategy while the evolution of the conflict and its geopolitical and economic implications become clearer.

Gold as a Strategic Asset

In this context, gold is an attractive asset. Despite its strong performance since 2023, our valuation model shows a slight deviation from its theoretical price.

 

Since the beginning of the Russia-Ukraine war in 2023, gold has become a strategic asset. Since then, countries like Russia, Turkey, India, and China have increased the gold holdings in their reserves, diversifying away from the U.S. dollar.

The percentage of international reserves invested in gold has risen from 20% to 24%, and it continues to grow. The potential for gold to remain a structural source of demand is clear when considering differences in country-level positioning. China, for example, has only invested 7% of its total foreign currency deposits in gold, meaning its purchases could support gold prices. Additionally, it’s worth noting that approximately 60% of gold demand comes from central banks and financial investments, and the appetite of central banks for this commodity is relatively insensitive to price fluctuations, as they do not seek economic returns.

Open Outlook for Rate Cuts

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Photo courtesyJerome Powell, presidente de la Fed.

At its June meeting, the Fed kept interest rates unchanged—for the fourth time—and acknowledged that uncertainty has declined, although it still sees it as “elevated.” According to global asset managers, while the Fed’s actions were in line with expectations, its updated economic projections leave the door open for two rate cuts before the end of the year.

The case for placing two rate cuts on the radar is based on the Fed recognizing that economic uncertainty has “eased,” which could pave the way for rate cuts if inflation remains under control. “A more relaxed stance on economic uncertainty could signal greater openness to rate cuts in the second half of the year, as long as other macroeconomic indicators remain stable,” says Bret Kenwell, an analyst at eToro in the U.S.

“Powell emphasized the role of impending tariff hikes in worsening economic prospects and the importance of the Fed not acting prematurely before the full effects of trade policy are understood—in a meeting that was otherwise uneventful. However, for a growing number of members, ‘waiting’ now implies not cutting rates at all this year. Somewhat surprisingly—given the potentially negative long-term impact of tariffs on growth and employment—the Fed has revised down its forecast for rate cuts in 2026 from two to one,” adds Paolo Zanghieri, Senior Economist at Generali AM (part of Generali Investments).

Cuts in 2025?

Ray Sharma-Ong, Head of Multi-Asset Investment Solutions – Southeast Asia at abrdn Investments, points out that the dot plot from Federal Open Market Committee (FOMC) members still projects two rate cuts for 2025. However, he notes that projections for 2026 and 2027 have been revised, and only one cut is expected in each of those years. Moreover, Sharma-Ong believes that given current uncertainty around economic outlook and trade policy, the Fed might ultimately implement only one—or even no—cut this year, contrary to the two cuts indicated in the dot plot for 2025.

“This is due to a lack of clarity about the final form of tariffs, the evolution of tariff pauses, and trade negotiations. These developments remain uncertain and will impact economic, inflationary, monetary, and market sentiment outcomes,” notes the abrdn expert.

Simon Dangoor, Head of Fixed Income Macro Strategies at Goldman Sachs Asset Management, explains that FOMC members continue to expect short-term inflation to be largely transitory, and their tolerance for rising unemployment remains low. As a result, he states: “We expect the Fed to hold its stance at next month’s meeting, but believe a path could open up for the Fed to resume its easing cycle later this year if the labor market weakens.”

Dan Siluk, Global Head of Short Duration & Liquidity and Portfolio Manager at Janus Henderson, believes this moderate decision by the Fed indeed leaves the door open for rate cuts in the second half of 2025. “The Fed is clearly signaling it’s in no rush but is prepared to act if inflation continues to moderate and labor market weakness deepens. The upward revision in inflation forecasts may temper expectations for aggressive easing, but maintaining the rate path for 2025 reassures markets that the Fed remains flexible,” he explains.

He also adds that “markets will now look to Powell’s Q&A for greater clarity on the Fed’s reaction function, particularly how it weighs recent moderate inflation data against persistent geopolitical and tariff-related risks.”

Doubts Remain

However, other investment firms are less confident about future rate cuts. “We believe the Fed will remain on hold with no interest rate changes this year, but we foresee gradual rate cuts next year under the leadership of a new Chair.

The conflicting risks to growth and inflation make keeping rates steady the logical choice for the Fed this year. The August review of monetary policy could lead to some changes in the Fed’s operations, but we believe the impact will be limited. The appointment of Powell’s successor will carry greater importance. Under new leadership, we think the committee will use next year’s inflation moderation as an opportunity to start moving toward a more neutral policy,” says George Brown, Senior Economist at Schroders.

This view is echoed by Raphael Olszyna-Marzys, International Economist at J. Safra Sarasin Sustainable AM, who believes Powell’s repeated assertion that the economy remains strong carries significant weight, despite the uncertainty and tariff impact. “As Jerome Powell stated, ultimately the cost of tariffs must be paid, and some of it will fall on the end consumer. We know that’s coming, and we want to see these effects before making premature judgments. This implies it is unlikely the Fed will resume its rate-cutting cycle—unless the labor market suddenly weakens—at least until September,” notes Olszyna-Marzys.

Key Decision Drivers

Allison Boxer, Economist at PIMCO, highlights that revisions in the Fed’s economic projections point to a more uncertain outlook. “Fed officials made stagflationary revisions to their forecasts, with median forecasts for both inflation and unemployment rising, while growth projections fell. Their outlook implies that both sides of the Fed’s dual mandate—price stability and maximum employment—are moving in the wrong direction. Given this contradiction, the projections showed Fed officials split on rate outlooks, with most divided between holding rates steady or cutting by 50 basis points by year-end,” Boxer explains.

PIMCO’s view also sees diverging paths for the Fed: cutting gradually or minimally if the labor market proves resilient, and cutting more significantly if labor weakens. “Given recent labor data and rising uncertainty, our base case is for a return to a gradual rate-cutting pace later this year,” adds the economist.

Jean Boivin, Head of the BlackRock Investment Institute, explains that the Fed has long faced a delicate balancing act between supporting growth and containing inflation. “Powell stated that he expected tariffs to generate significant inflation in the coming months. And although the Fed’s base case seems to be that tariffs will have a one-off inflationary impact rather than a lasting one, it is clearly acknowledging the potential for more persistent inflation, depending on the size and duration of tariffs. It has slightly revised its inflation forecast upward for the coming years. Still, we believe the Fed is underestimating the magnitude of future inflationary pressures,” says Boivin.

Another factor some firms believe could come into play is the leadership change at the Fed, with Powell having 11 months left in his term. “Looking ahead to 2026, we expect leadership changes at the Federal Reserve to further shift the policy landscape. Jerome Powell’s term ends on May 15, 2026, and a new chair is expected to be appointed. Potential successors—such as Kevin Hassett, Kevin Warsh, and Scott Bessent—are viewed as more moderate and aligned with President Trump’s pro-growth, low-rate agenda. Moreover, four of the twelve voting FOMC members will also rotate next year. This shift could support the economy ahead of the midterm elections scheduled for November 3, 2026. Consequently, we expect the Fed’s projected rate cuts for 2026 and 2027 to evolve as we approach 2026,” says Sharma-Ong.

83 Trillion at Stake: How Securitization Can Help Capture the HNWI Heir

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In a financial environment marked by evolving generational preferences and constant technological innovation, asset securitization emerges as a strategic tool for the new generation of asset managers. As younger investors gain access to financial advice earlier—and with different demands—managers face the need to adapt products, operating models, and distribution channels. Securitization, traditionally associated with complex structures and institutional investors, is finding renewed relevance in service of this transformation, according to FlexFunds.

During 2024, the growth in wealth and the population of high-net-worth individuals (HNWI) worldwide was solid, with increases of 4.2 % and 2.6 %, respectively. However, the real inflection point for the sector is the imminent, massive wealth transfer to Generation X, Millennials, and Generation Z—collectively known as next‑generation HNWIs. It is estimated that by 2048, more than US $83.5 trillion will have been transferred to these cohorts, marking a structural shift in the wealth‑management landscape.

According to Capgemini’s World Report Series 2025: Wealth Management, this phenomenon is occurring alongside a strong stock‑market rebound which, despite macroeconomic volatility, drove sustained growth in HNWI wealth levels over the past year.

This new scenario also implies a profound shift in investment profiles. Bank of America’s 2024 study confirms that younger HNWIs are reshaping their portfolios with a more diversified, digital, and alternative mindset:

  • Only 47 % of their portfolios are in traditional equities and bonds, compared to 74% for those over 44 years.
  • 17% already invest in alternative assets—versus 5% in older generations—and 93% plan to increase that exposure.
  • 49% own cryptocurrencies, and another 38% are interested in acquiring them, making crypto the second-largest growth opportunity after real estate.
  • Physical gold also draws interest: 45% already hold it, and another 45% are considering adding it to their portfolio.

These figures reflect not just new preferences, but a structural transformation in wealth-building.

A new client, a new challenge for managers

Northwestern Mutual’s 2024 Planning and Progress study, cited by the CFA Institute, shows that younger generations in the U.S. seek financial advisors at an earlier age. The average Baby Boomer began that relationship at age 49, Generation X at 38, and Millennials at just 29 (see Figure 1).

 

Figure 1: Age at which clients begin working with a financial advisor

 

Source: Northwestern Mutual Planning and Progress Study 2024

 

The great wealth transfer demands new strategies

The imminent generational wealth transfer represents an unprecedented opportunity—but also a significant threat for traditional managers. Over 80% of next‑generation HNWIs say they would change firms within the first two years after inheriting if their values and expectations aren’t met.

Each HNWI generation has specific needs. Faced with this structural shift, managers must deeply review their engagement strategies, products, and services to effectively meet more sophisticated and segmented demand.

 

Additionally, young investors state that they prioritize products with environmental or social impact, while others lean towards digital and customizable solutions. This presents a dual challenge for emerging managers: meeting sophisticated expectations and building portfolios combining performance, purpose, and transparency.

In this context, new advisors must focus on building relationships and offering personalized, results-oriented services—understanding and delivering what new investors genuinely value and are willing to pay for.

This new approach implies rethinking the perception of financial advice to emphasize a connection-based approach, which will help attract younger investors.

Securitization: From technical instrument to enabling strategy

Securitization allows transforming liquid or illiquid assets into tradeable financial instruments. Traditionally used by banks or large managers to package mortgages, loans, or income streams, specialized platforms like FlexFunds are democratizing its use—enabling independent or boutique managers access to this financial engineering with greater agility.

“Securitization can be a pathway for asset managers and investment advisors to create customized investment vehicles that allow them to repackage investment strategies, and enhance global distribution by facilitating capital raising on international banking platforms—all without requiring costly structures or complex infrastructure,” says Emilio Veiga Gil, executive vice president of FlexFunds.

This flexible packaging capability allows managers to:

  • Convert personalized strategies into listed securities (ETPs).
  • Include alternative assets in structures tailored to different risk profiles.
  • Align investment vehicle time horizons with young clients’ goals.

Democratization and scalability

Securitization also supports scalability, a critical factor for new managers. Many operate from agile, non‑bank structures and seek efficient solutions to enter new markets. By using investment vehicles, they can scale distribution without sacrificing personalization.

According to the II Annual Report of the Securitization Sector 2024–2025 by FlexFunds and Funds Society, 56% of advisors surveyed have managed an investment vehicle—demonstrating solid expertise in the field—while 40% have yet to use this tool, highlighting a growth opportunity.

Transparency, traceability and trust

Another key advantage is the traceability provided by investment vehicles. In an environment where young people value transparency, audited structures with validated periodic information become a reputational asset.

New generations have more access to information—and greater skepticism. Offering products with clear structures and transparent return flows builds trust and loyalty.

Today, next generation HWNI seek investments aligned with their values (sustainability, technology, social impact). Through securitization, asset managers can repackage alternative assets—such as renewable energy, green loans, or digital assets—into accessible listed securities, meeting new investor preferences within the regulatory framework.

To adapt to this new client profile, managers should prioritize:

  • Customized, diversified investment portfolios
  • Promoting geographic diversification through offshore solutions
  • Developing value‑added services focused on wealth and tax planning
  • Implementing personalized concierge services; next‑generation HNWIs expect services beyond finance: health, education, cybersecurity, travel, etc.
  • Bridging the digital gap and modernizing communication channels
  • Educating heirs and strengthening their connection to the firm

A more open future, if managed with vision

The key for securitization to become a competitive advantage lies in its strategic use. It’s not just about bundling assets, but rethinking how these products can broaden access, enhance young investors’ experience, and build sustainable business models.

Mass personalization and digital integration will be key differentiators. Managers who can combine financial engineering with purpose and digital intelligence will have the edge in winning young clients.

Asset securitization has ceased to be an exclusive instrument for large institutional players—it is transforming into an enabler of innovation, scalability, and trust for the new generation of managers. In a context where young investors seek advice earlier and with higher expectations, this tool can bridge structural sophistication with the ease of use demanded by the future of asset management.

ZINK Solutions Adds José Ignacio García as Partner and Wealth Planner in Miami

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ZINK Solutions announced the appointment of José Ignacio García, who joins the firm as Partner and Wealth Planner as part of the expansion strategy launched by the wealth advisory and planning company, founded in 2021 and now operating offices in Miami, New York, and Madrid.

García’s addition supports the firm’s objective of further developing and specializing its alternative wealth planning offering, which delivers integrated solutions to the families it serves.

“We are very pleased to welcome José Ignacio to the team and with the potential he brings. With this hire, ZINK Solutions continues to successfully position itself as a relevant player in the market, offering comprehensive advisory services to major families across the Americas,” said Miguel Cebolla, Partner and CEO of the firm.

María Concepción Calderón and Manuel Sánchez-Castillo, also Partners at the firm and former colleagues of García, added: “Bringing on a professional of José’s caliber advances our vision for serving top-tier clients.”

García brings over three decades of experience in the financial sector, having held senior roles at major institutions. He began his career at Banco Santander Private Banking Internacional (PBI), where he was Country Manager; later served as Managing Director at Andbank, and General Manager America at Credit Andorra. His most recent role was Executive Director at Charles Monat, a global provider of wealth planning solutions based on insurance structures.

“After evaluating the professionalism and quality of services offered by ZINK Solutions, I made the decision to continue supporting my clients and relationships in the region from a platform that provides exceptional versatility, added value, and solidity—along with the human quality of a team I’ve known for more than 25 years,” said García.

He holds a degree in Business Administration from California State University. His profile combines strong technical training with strategic business insight, positioning him as a key asset in expanding the firm’s reach and depth of services. ZINK Solutions has experienced steady growth in the areas of Private Banking, Wealth Planning, and Corporate Solutions, including M&A, among other businesses.

The Resilience of Emerging Economies Creates Opportunities in India, China, and Brazil

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Despite showing resilience in the first quarter, investment firms remain alert to the potential impact of U.S. tariffs on emerging markets, with Asia seen as the most vulnerable region and Latin America the least. While keeping this risk on their radar, they acknowledge that emerging markets’ macroeconomic fundamentals remain solid and that central banks still have room to maneuver—opening up a wide range of opportunities.

“It is too early to accurately assess the impact on growth, given the risk of new retaliations or even the potential for negotiation during the 90-day truce. But it is clear that growth will adjust. Emerging market growth has always been reliant on global trade and, as in 2018/2019, a decline in global trade will hurt exports. Similarly, high uncertainty in the coming quarter will at least limit business sentiment and investment, as questions about supply chain positioning will prevail,” said Guillaume Tresca, Senior Emerging Markets Strategist at Generali AM, part of Generali Investments.

On the tariff impact, Tresca foresees increasing differentiation across emerging market regions, with Asia being the most affected. On average, Asia faces tariffs above 20% and sends over 15% of its exports to the U.S. However, Asian central banks have remained conservative and still have room to ease monetary policy.

He also expects countries in Central Europe, the Middle East, and Africa (CEEMEA) to benefit from their integration into the EU value chain and their relatively lower exposure to U.S. exports. “Latin American countries are more immune than European ones, as their tariffs are higher. Among them, Mexico benefits from the USMCA for certain exports, and Brazil’s exports to the U.S. are limited. That said, there is a risk of secondary impact on Chile and Peru‘s mineral exports to China if China slows significantly,” he added.

A Question of Resilience

Schroders’ Emerging Markets team notes that EM equities have outperformed the U.S. market this year, driven by political uncertainty in the U.S. (tariffs and dollar) and the launch of China’s DeepSeek AI investment model.

“The damage from tariffs appears to be very U.S.-centric, as they are not yet high enough to stop trade flows. The U.S. has large twin deficits and an overvalued currency. Once short-term volatility subsides, that’s a clear medium-term positive for emerging markets,” they argue.

Olivier D’Incan, Global Equity Fund Manager at Crédit Mutuel Asset Management, notes that emerging markets tend to grow faster than developed economies, driven by a rising middle class and expanding economic infrastructure. “In recent years, high U.S. interest rates have weighed on emerging market currencies, but the Fed’s expected rate cuts by year-end should ease that pressure,” he explained.

That said, he also acknowledges that recent geopolitical tensions surrounding global trade cannot be ignored and that companies with high U.S. exposure may face short-term volatility. “Several high-quality companies that are leaders in their domestic markets are capitalizing on these long-term trends, providing global investors an opportunity to diversify beyond the U.S. economy,” D’Incan added.

In Search of Opportunities

When discussing opportunities, D’Incan highlights India as the country with the strongest structural growth. “Its growing middle class is driving domestic consumption, while the government’s ambitious infrastructure spending plans continue to fuel economic momentum,” he stated.

He also points to China, where a shift in government tone has boosted confidence in its commitment to resolving the property market crisis and supporting GDP growth. According to D’Incan, although the market has begun to rebound, “we believe valuations remain quite attractive, and the prospects for fiscal and consumption stimulus make us increasingly optimistic.”

From Schroders’ perspective, in an economy as large and a stock market as deep as China’s, there will always be opportunities for active managers. “We focus on identifying well-managed companies with attractive long-term return profiles, as well as those we consider undervalued. Many of these firms have refined their business in highly competitive domestic markets and are now global leaders. On the aggregate level, Chinese equity valuations are reasonable, and low consumer confidence means there’s a lot of cash in bank accounts that could be invested in the equity market. In our view, further market appreciation will require new fiscal measures to improve property price prospects and boost consumer confidence,” they argue.

Finally, D’Incan also sees clear opportunity in Brazil, which went through a “perfect storm” in 2024. According to his analysis, political uncertainty over budgets, currency depreciation, and persistent inflation triggered several rate hikes. “We currently see valuations as potentially attractive, and we expect that rate cuts later in the year, combined with growing investor interest ahead of the 2026 presidential election, could draw capital back to the country,” he concluded.

Accessing Emerging Markets

In this context, Schroders emphasizes that the landscape of opportunities in emerging markets—i.e., the countries and companies in the MSCI Emerging Markets Index—has changed radically over the last 30 years, as developing countries opened their markets to foreign investors and improved regulatory and operational regimes. The biggest shift has been China, which has grown from zero to 30% of the index, while Latin America’s weight has declined by over 20%.

“Given the potential for future evolution, the ability of active investors to anticipate benchmark index changes and invest beyond them is valuable. It allows active fund managers to identify and seize attractive investment opportunities ahead of others,” Schroders stated.

According to the firm, in practice, this means active funds can enter a market before it is added to an index. Moreover, unlike index-tracking products, they typically have the flexibility to invest when they deem it attractive, rather than being bound to a specific date.

Investors Back UCITS Despite Tariff Uncertainty in the Eurozone

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All UCITS categories attracted capital inflows in the first quarter of 2025, demonstrating investor confidence despite ongoing uncertainty around tariffs, according to the latest statistical report published by the European Fund and Asset Management Association (Efama).

In the view of Bernard Delbecque, Director of Economics and Research at Efama, despite the decline in fund asset values, UCITS recorded strong inflows across all categories throughout the quarter. “The fact that fixed income funds remained the best-selling category indicates that investors were still exercising caution; however, rising concerns over impending U.S. tariff hikes did not deter investors from purchasing equity and multi-asset funds,” he noted.

Key Figures

During the first quarter of 2025, net assets of UCITS and AIFs experienced a slight decline of 1.1%, reaching €23.2 trillion. According to Efama, despite this drop, both fund types attracted net inflows totaling €217 billion, showing a slight decrease from the €238 billion recorded in the fourth quarter of 2024. Of these inflows, UCITS accounted for the vast majority with €213 billion, while AIFs recorded €4 billion—a significant decrease from the €21 billion of the previous quarter.

Long-term funds showed solid performance, posting net inflows of €179 billion. All long-term fund categories recorded net inflows, with bond funds remaining the top sellers at €75 billion, although down from €91 billion the previous quarter. Equity funds also performed well, registering €64 billion in net inflows, an increase from €60 billion at the end of 2024. Multi-asset funds rebounded with €20 billion in net inflows, a significant increase compared to €7 billion in the previous quarter.

ETFs continued their growth trajectory, with UCITS ETFs reaching €100 billion in net inflows. Meanwhile, long-term funds under SFDR Article 9 (Sustainable Finance Disclosure Regulation) marked their sixth consecutive quarter of net outflows, totaling €7.9 billion. In contrast, Article 8 funds, which focus on sustainable investments, attracted €42.6 billion.

Finally, European households showed strong interest in fund purchases, with net acquisitions of €79 billion in the fourth quarter of 2024—up from €62 billion in the previous quarter. This marked the second-highest quarterly level since Q2 2021, driven primarily by households in Germany, Spain, and Italy.

Juan Alcaraz Steps Down as CEO of Allfunds and Will Be Replaced by Annabel Spring

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llfunds, together with its Group CEO and founder, Juan Alcaraz, has announced that he will be leaving the company to pursue new challenges. The company highlights that, after a distinguished career at Allfunds, during which he successfully led the firm’s growth and expansion, Juan Alcaraz will take on an advisory role over the next twelve months to ensure a smooth leadership transition.

Juan Alcaraz founded Allfunds 25 years ago and has served as CEO with distinction, guiding its development into a leading global platform for wealth management businesses and their end clients. Today, Allfunds has over €1.5 trillion in assets under administration, serving 940 distributors in 66 countries. “As CEO and founder, Juan Alcaraz was a pioneer in the development of open fund architecture in Europe over three decades and built Allfunds from the spark of an idea and a small business unit within Banco Santander into a global leader in WealthTech,” the company emphasizes. In its official statement, the entire Board wishes to thank Juan Alcaraz for his significant contribution to Allfunds and extends best wishes for his future endeavors.

“Juan Alcaraz has led Allfunds with great dedication since its inception, navigating key milestones such as the IPO in 2021, and has worked tirelessly in service of the business, our clients, and shareholders. We are grateful for his exceptional leadership and entrepreneurial spirit over the years and wish him much success in his upcoming projects,” stated David Bennett, Chairman of Allfunds.

Regarding his departure, Juan Alcaraz, founder of Allfunds, said: “It has been a tremendous privilege to be part of Allfunds’ growth and to have witnessed both the business and its people thrive over more than two decades. I have agreed with the Board that this is the right time for the company to begin a transition to new leadership. It has been an honor to work with everyone at Allfunds, especially the members of the Executive Committee and the Board. I leave the company in very capable hands, well-positioned for the future and with strong business momentum heading into 2025 and beyond.”

Annabel Spring, New CEO

Following Alcaraz’s departure, the company’s Board is overseeing the succession planning and has appointed Annabel Spring as the new CEO of Allfunds, who will assume the CEO role in June.

According to the firm, Annabel Spring brings extensive experience to Allfunds after a distinguished career in wealth management and banking spanning 30 years and four continents. She joins Allfunds after six years at HSBC, where she most recently served as CEO of Global Private Banking and Wealth Management. Prior to that, she spent nearly a decade at the Commonwealth Bank of Australia, where she held the role of Group Executive for Wealth Management. Annabel began her career at Morgan Stanley, initially in investment banking before moving to Corporate Strategy, where she was Global Head of Group Strategy and Execution.

According to the announcement, under her leadership, Allfunds will continue to drive innovation and foster strong relationships with clients and asset managers, leveraging its robust business model to achieve sustainable long-term growth.

“The Board is pleased to welcome Annabel Spring as our new CEO. Her extensive experience leading global wealth management businesses, deep knowledge of international banking, and focus on people, technology, and client experience make her the ideal leader for the next stage of Allfunds’ growth. Annabel’s strong relationships with the global client base and a wide range of asset managers, built over many years, will support Allfunds’ future growth strategy,” added Bennett.

For her part, Annabel Spring, new CEO of Allfunds, stated: “Allfunds is a global leader in its field, with a strong reputation in the wealth management and banking community. The trends supporting the continued growth of global wealth are solid, and I believe Allfunds is very well positioned to seize this great opportunity. I am excited to join Allfunds and to work alongside the Board, the Allfunds teams, and our global partners to continue innovating, growing, and delivering value for our clients and shareholders.”

Transforming financial advisory in Mexico and Chile: the key to the independent and technological model

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Photo courtesyAlicia Arias, Commercial Director of LAKPA

In an increasingly demanding financial environment, where technology is redefining the rules of the game and inclusion becomes an unavoidable priority, voices like that of Alicia Arias, Commercial Director of LAKPA, gain special relevance. LAKPA is a fintech company aspiring to become the largest community of independent financial advisors in Spanish-speaking Latin America. Currently, it has over 260 advisors in Chile and is actively expanding into the Mexican market.

In this exclusive interview for the Key Trends Watch by FlexFunds and Funds Society, Arias shares her vision on the transformative role of independent financial advisory and the challenges faced by wealth management in Latin America.

Far from viewing the financial industry as an environment reserved for a few, Arias sees it as a tool to generate real impact in the lives of individuals and companies. “Participating in this industry gives us the opportunity to make a difference in society,” she states. With a career that includes leadership positions at firms like BlackRock and GBM, her current focus is on bringing investment solutions to a broader audience and empowering independent financial advisors.

Simultaneously, she promotes initiatives aimed at modernizing and humanizing the sector, such as the non-profit association Mujeres en Finanzas, which encourages the development of diverse talent in the industry. From her perspective, fostering greater representation and professionalism not only enhances service quality but also broadens access to opportunities that have historically been limited to a few.

In her role at LAKPA, Arias drives an independent financial advisory model that seeks to professionalize and scale the service in Latin America. “Today, there are fewer than 5,000 active advisors in Mexico for a population of over 100 million.” For Arias, the key lies in freeing advisors from operational tasks through technological platforms that allow them to focus on the client and autonomously choose the segment they wish to serve, from affluent profiles to ultra high net worth individuals.

The expert highlights the enormous potential of the affluent segment, often overlooked by large institutions: “Many investors with $200,000 or $300,000 end up trapped in generic products or with poor advisory.” She firmly believes that, with the right tools, it is possible to offer them high-quality service. “We are seeing more and more advisors building their portfolios around this segment, with independence, structure, and access to global solutions. To me, that is a real transformation of the advisory model in the region,” she concludes.

Three key trends in financial advisory

For Arias, the future of wealth advisory revolves around three major trends:

  1. Fee-based accounts: a transparent model that eliminates traditional conflicts of interest in the industry and places the client at the center.
  2. Technology as an enabler: platforms that automate administrative processes and free up the advisor’s time to generate real value.
  3. Independent advisory: a service centered on the investor, without conflicts of interest and with an open architecture. Until the arrival of players like LAKPA, this was only accessible to high-net-worth clients.

Collective vehicles: efficiency and access from an expert’s perspective

In her opinion, collective investment vehicles are particularly attractive in the context of independent financial advisory. Products like ETFs have become key tools due to their efficiency, liquidity, transparency, and low cost, allowing advisors to build diversified portfolios with access to markets that were previously restricted.

“A client enters an ETF at the same price as an institutional investor,” she emphasizes, highlighting the democratizing role of these instruments. From her perspective, these types of solutions enable the provision of professional and competitive advisory, even in segments like the affluent.

Alternatives on the rise: perspective on wealth demand

From her experience, alternative assets have ceased to be exclusive to the institutional world and have become a growing trend in wealth management. “Financial advisors are already allocating a portion of portfolios to these types of strategies,” she states. In her opinion, two factors have been key to this evolution: on one hand, innovation in vehicles—such as semi-liquid funds, evergreen funds, or those with more frequent liquidity windows—which make them more suitable for this segment; and on the other, the emergence of technological platforms that allow access to funds from major managers with tickets starting at $20,000.

According to Arias, advisors are already incorporating between 10% and 15% of alternatives in more aggressive portfolios, with private debt funds being particularly attractive due to their generation of recurring income and lower exposure to the J-curve. In contrast, she observes that in many cases, traditional private equity may overlap with the business exposure that clients already have in their own companies. “That’s where private debt makes more sense: it allows for real diversification,” she concludes.

Financial education: the real challenge in capital raising

The biggest obstacle faced by financial advisors today is not the lack of available capital, but the lack of financial education among potential investors: “The money is there, but the client still doesn’t have the necessary information to take the first step,” says Arias. To illustrate this, she cites a figure from the Bank of Mexico: resources in demand accounts—that is, money that is not invested or is invested for very short terms—amount to over 400 billion pesos, a figure that doubles the size of the investment fund industry in the country.

In her opinion, this idle capital could be generating returns if there were greater awareness of the available alternatives, something in which advisors can play a key role. Additionally, she explains that the location of assets largely depends on the client’s profile: while higher-net-worth individuals tend to invest offshore, thanks to their operational capacity and access to international custodians, the affluent segment usually keeps their money onshore.

The irreplaceable role of the advisor in the face of technological advancement

For the expert, technology is revolutionizing financial advisory, but the human role remains essential. “Many professions are going to disappear or transform, but that of the financial advisor is not one of them,” she states. She cites a Vanguard study that classifies human tasks into basic, repetitive, and advanced. The first are easily automatable; the second, such as relating, teaching, or building trust, are not.

From this perspective, the value of the advisor lies in their ability to connect with the client. “Technology can optimize processes, but it doesn’t replace empathy or personalization. Those are the true competitive advantages,” she maintains. In her view, financial advisory, due to its high human component, will not only withstand technological change but will become even more relevant.

A more human and conscious future for wealth management

Looking ahead to the next 5 to 10 years, Arias identifies two key challenges for the sector: the climate crisis and the retirement crisis. “We will live longer, but not necessarily better if we don’t plan properly,” she warns. The industry must take an active role, designing sustainable solutions tailored to real needs, especially in underserved segments.

In this context, empathy will be the critical skill for the advisor. “Trust is built by listening, understanding, and acting with sensitivity. No platform replaces that,” she emphasizes.

Arias concludes with a strategic outlook: the growth of the sector will not come solely from technology, but from a combination of digital tools and expert advisory. “The hybrid model is the catalyst. Technology alone is not enough. People need guidance, trust, empathy,” she points out.

In a continent with significant gaps in access to quality financial services, Alicia Arias’s vision paves the way for a model that bets on independence, technology, and, above all, human talent as the engine of transformation.

Interview conducted by Emilio Veiga Gil, Executive Vice President of FlexFunds, in the context of the Key Trends Watch by FlexFunds and Funds Society.