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CNO Financial Group Enters VPC, Partly Owned by Janus Henderson

Víctor Matarranz HSBC International Wealth — Canva

Janus Henderson Group and Victory Park Capital Advisors (VPC), a firm specializing in private credit and majority-owned by Janus Henderson, have announced that CNO Financial Group, a U.S. life and health insurer and financial services provider, will acquire a minority stake in VPC. In addition, CNO will provide a minimum of $600 million in capital commitments to new and existing VPC investment strategies.

Founded in 2007 and headquartered in Chicago, VPC has a track record of nearly two decades providing tailored private credit solutions to both established and emerging companies. The firm was acquired by Janus Henderson in 2024, expanding Janus Henderson’s institutional and private credit capabilities. VPC has specialized in asset-backed private lending since 2010, in consumer credit, small business financing, real estate, litigation finance, and physical assets. Its set of investment capabilities also includes sourcing and managing customized investments for insurance companies. Since its inception, VPC has invested over $11 billion across more than 235 investments.

Headquartered in Carmel, Indiana, CNO offers life and health insurance, annuities, financial services, and workplace benefit solutions through its family of brands, including Bankers Life, Colonial Penn, Optavise, and Washington National. CNO manages 3.2 million policies and $37.3 billion in total assets to help protect its clients’ health, income, and retirement needs.

Transaction Commentary

“We are very pleased to welcome CNO as a strategic partner in our investment in VPC. This collaboration reinforces our shared belief in the long-term potential of asset-backed private credit markets and further deepens Janus Henderson and VPC’s insurance presence. By partnering with like-minded institutions, we continue to enhance our ability to deliver client-led solutions aligned with our strategy to amplify our strengths,” said Ali Dibadj, CEO of Janus Henderson.

“We are excited to partner with CNO to further accelerate VPC’s growth and expand and scale our investment capabilities for the benefit of our clients. CNO’s investment demonstrates VPC’s strong track record of delivering private credit solutions across sectors, our differentiated expertise, and our highly developed sourcing channels, as well as the significant value we bring to our investors and portfolio companies,” said Richard Levy, CEO and founder of Victory Park Capital.

Gary C. Bhojwani, CEO of CNO Financial Group, added: “Our investment alongside Janus Henderson in VPC underscores CNO’s strategic focus on partnering with firms that complement our investment capabilities. This partnership enables us to benefit from VPC’s unique and differentiated expertise in asset-backed credit, both as an investor and a strategic partner, while supporting our ROE objectives. We look forward to working with their highly experienced and respected management teams.”

According to the asset manager, this transaction adds to Janus Henderson’s recent momentum in the insurance space with the previously announced multifaceted strategic partnership with Guardian. Upon completion of this transaction, Janus Henderson Group will remain the majority owner of VPC.

Reasons to Invest in Water Infrastructure Through ETFs

| By Amaya Uriarte | 0 Comentarios

The challenge of water and sanitation has been one of the United Nations Sustainable Development Goals since 2016. And within this niche, there are investment opportunities—also through ETFs. Water is a vital element, not only for sustaining life, but also for the development of new technologies and industries. In First Trust’s opinion, water infrastructure represents “an attractive investment opportunity,” driven by new catalysts and emerging trends such as water-intensive manufacturing, the shift to liquid cooling for AI data centers, and hydraulic fracturing in the energy sector.

The firm explains that the reindustrialization of the U.S. economy will lead to a drastic increase in water demand in the coming years, especially in sectors that are major water consumers, such as semiconductor manufacturing. As these and other projects expand, First Trust forecasts that “substantial investments” will be needed in water infrastructure.

In addition, advances in generative AI have captured global attention. To meet the growing performance demands of AI, global data center capacity is expected to grow by 52% between 2024 and 2027. In this context, keeping high-performance processors cool presents a significant challenge for traditional air-cooling systems, which has led the sector to adopt liquid cooling. Here, the firm cites JLL estimates, indicating that hybrid cooling—70% liquid and 30% air—“has become the standard thermal management strategy for new data centers.”

Hydraulic fracturing (“fracking”) also continues to be a key driver of demand for water infrastructure, according to First Trust. Fracking involves injecting high-pressure water, sand, and chemicals into underground rock formations to extract oil and gas. A single fractured well can consume between 1.5 and 16 million gallons of water.

Moreover, fracking produces “flowback water,” a toxic byproduct that requires treatment using technologies such as microfiltration and reverse osmosis. “From sourcing water to its treatment, transport, and control, fracking processes—which consume vast amounts of water—generate considerable demand for water resources,” the firm notes.

In light of these emerging trends, investing in U.S. water infrastructure becomes increasingly important. The 2025 report by the American Society of Civil Engineers (ASCE) on the state of U.S. infrastructure gave poor marks to water systems, including a low pass for drinking water, a solid pass for wastewater, and a failing grade for stormwater systems.

This reflects decades of underinvestment, as data from the Congressional Budget Office shows that spending on water infrastructure has grown only 0.3% over the past 20 years. The ASCE estimates that $1.65 trillion will be needed between 2024 and 2033 for drinking water, wastewater, and stormwater infrastructure. With only $655 billion funded, “the remaining $1 trillion funding gap is the largest of any infrastructure sector.”

Investors can benefit from these macro trends by including ETFs that focus on water-related industries in their portfolios. One such option is the First Trust Water ETF, listed on the NYSE. It tracks the ISE Clean Edge Water Index, composed of 36 stocks focused on the drinking water and wastewater sectors, including water distribution, infrastructure development, purification and filtration, as well as related services like consulting, construction, and metering.

Another option is BlackRock’s iShares Global Water UCITS ETF U.S. Dollar (Distributing), which tracks the S&P Global Water Index. This year, its valuation has increased by just over 15%, through investments in companies involved in the global water sector, across both developed and emerging markets. As a complement, Amundi offers the Amundi MSCI Water UCITS ETF Dist, which aims to replicate the performance of the MSCI ACWI IMI Water Filtered Index.

A further option is the Invesco Water Resources ETF, based on the Nasdaq OMX Global Water Index, which seeks to replicate the performance of companies listed on global exchanges that produce products designed to conserve and purify water for homes, businesses, and industries. This ETF is listed on the Nasdaq.

U.S. and European Equities: Two Titans in the Portfolio

| By Amaya Uriarte | 0 Comentarios

After ten years of U.S. equity dominance, asset managers emphasize that this year’s resurgence in European equities remains intact. In their view, the factors that make it attractive are still valid: more reasonable valuations, a favorable monetary policy from the European Central Bank (ECB), and unprecedented fiscal stimulus measures.

According to Aneeka Gupta, Director of Macroeconomic Research at WisdomTree, we’ve seen a paradoxical first half of the year. In her analysis, 2025 was the year in which U.S. stock markets underperformed their international rivals by the widest margin since 1993. “Suddenly, it became fashionable to talk about how the era of American exceptionalism was coming to an end, as uncertainty rose around Trump’s tariff policies, along with the growing fiscal deficit, a weakening U.S. dollar, and the unveiling of DeepSeek,” she notes.

As a result, Europe emerged as the region making a major comeback in 2025. “Eight of the most profitable stock markets in the world were European, thanks to lower energy costs and the loosening of fiscal rules in Germany. The U.S. had outperformed Europe over the past five years by nearly 23.5% (measured in dollars), due to stronger earnings growth,” Gupta points out.

With this context in mind, the WisdomTree expert believes that equity risk premiums now show a wide gap: “Approximately 2% in the United States, 6% in Europe, and 7% in Japan and the broader emerging markets universe. Over the next twelve months, asset allocation decisions will depend on these valuation cushions, policy divergences, and the evolution of trade alliances.”

Don’t Overlook Europe

“In our view, attractive valuations make a strong case for European equities: they are currently trading at a substantial discount compared to the U.S. market. The twelve-month forward price-to-earnings ratio of the MSCI Europe index is currently at 14.6, slightly above its average since 1980, which is 14. By contrast, in the United States, valuations are approaching historic highs, with an expected earnings ratio of 22 times. In addition, the average dividend yield in Europe is approaching 3.3%, which far exceeds the U.S. average of around 1.3%,” argues BNP Paribas AM.

Despite Europe’s greater prominence this year, Hywel Franklin, Head of European Equities at Mirabaud Asset Management, believes it remains “a forgotten opportunity” on a structural level. According to his analysis, for much of the past decade, investors have overlooked this market, distracted by the extraordinary momentum of high-growth U.S. stocks. “Today, the difference between the two is quite striking. A single large-cap U.S. company now carries more weight in global indices than the entire stock market of any individual European country. That imbalance in attention is precisely what makes Europe so interesting,” Franklin comments.

Even after its strong performance so far this year, the Mirabaud AM executive considers that valuations remain attractive, both in absolute terms and relative to the U.S., reflecting the extreme levels of skepticism that have already been priced into European equities. “And here’s the key point: in the small and mid-cap (SMID) market, one in three companies is still trading more than 60% below its historical high. That’s not a market that’s ‘gone too far’; it’s a market with enormous recovery potential,” he argues.

Not Ignoring the U.S.

That said, the S&P 500 index continues to reach new all-time highs almost daily, despite the macroeconomic slowdown. “The U.S. equity market is experiencing a strong upswing, driven primarily by its tech giants and supported by solid fundamentals, an upcoming easing cycle, and a resilient global economic outlook,” notes Yves Bonzon, CIO of Julius Baer.

In his view, the fundamentals of U.S. companies also showed a strong earnings season and, on the other hand, the AI boom is gaining momentum, with both startups and established giants making bold bets on the growth and reach of this revolutionary technology.

“In addition to earnings optimism, U.S. companies continue to be models in capital return to shareholders. Share buyback authorizations in the United States reached one trillion dollars by the end of August 2025, compared to less than 900 billion dollars at the same time last year,” Bonzon comments.

Equities: Unstoppable?

What is clear for asset managers is that equities continued to climb the “wall of worry” during what is usually a quiet summer period in the Northern Hemisphere, with most regional indices hitting all-time highs in local currencies. As explained by Mario Montagnani, Senior Investment Strategist at Vontobel, the bullish sentiment is based on a strong second-quarter earnings season, optimistic forecasts, relief from tariff uncertainty, rate cuts, anticipated leadership changes at the Fed, and expected 2026 stimulus measures that could boost earnings per share (EPS) as in 2018.

“The earnings season delivered solid surprises with minimal tariff effects, marking a turning point in momentum and suggesting that previous revisions may have been too pessimistic. Looking ahead, earnings surprises are likely to play a key role in stock performance, given high valuations,” adds Montagnani.

However, the Vontobel strategist acknowledges that inflation remains the main driver of equity market developments. “Billions in tariffs now impact the U.S. economy each month, but who really bears the cost? The pass-through to consumer prices is more nuanced than many assume. Tariffs do not automatically get passed on to consumers. Their impact depends on factors such as a company’s competitive position, demand elasticity, distribution model, time lags, and supply chain structure,” he notes.

In his view, this is evident in “the U.S. Producer Price Index (PPI28) data, where importers often absorb the initial impact through margin pressure, and the historical correlation between the PPI and the U.S. Consumer Price Index (CPI29) has been weak, suggesting that producer prices are not a reliable predictor of consumer inflation.”

They Save More, Invest Less, and Seek Guidance on Social Media

| By Amaya Uriarte | 0 Comentarios

save more invest less social media guidance — Canva

Women are about to inherit a considerable share of the $124 trillion that makes up the so-called “great wealth transfer.” However, according to Capital Group in its latest report, many of them show reluctance to invest their inheritance. On average, women invest 26.4% of their inheritance compared to 36.2% of men.

The report reveals that four out of ten women wish they had allocated more to investment, versus three out of ten men. In addition, women save more—14.3% compared to 11.1% for men—and also spend a larger portion of what they receive, 15.4% compared to 11.3%. Another notable finding is the difference in the type of financial advice they seek. According to the report, 27% of women look for guidance on social media or from finfluencers, double the rate of men at 15%. Likewise, 68% of women trust that artificial intelligence and other technologies will improve financial advice through greater personalization and easier access, compared to 59% of men.

“In the next two decades, $124 trillion will change hands, and women will inherit a significant share of this wealth. Now is the time for them to take control of their financial future. Our study shows that although many save more and invest less, some later regret not having invested a larger portion of their inheritance. The good news is that it’s never too late to start,” said Alexandra Haggard, Head of Asset Class Services for Europe and Asia-Pacific at Capital Group.

Other Findings

The results also show that although women will play a central role in the redistribution of global wealth, barriers still persist in their relationship with investing. For Capital Group, this scenario presents a double perspective: a challenge for the financial sector and an opportunity for more women to take an active role in managing their wealth.

In Haggard’s view, many women turn to social media and financial influencers for financial guidance, but as their financial needs grow more complex, the role of professional advice becomes more important. “As the process of the ‘great wealth transfer’ moves forward, the wealth management sector must adapt to women’s growing influence over wealth. At Capital Group, we have partnered with wealth managers to provide thought leadership in investing, events, and training to help their female clients invest with confidence and build long-term wealth,” she explained.

This research is based on a survey of 600 high-net-worth individuals in Europe, Asia-Pacific, and the United States.

Ali Zaidi Joins DoubleLine as Head of International Client Business

| By Amaya Uriarte | 0 Comentarios

Países jubilación calidad — Photo courtesy

Ali Zaidi, until now head of client business for the Middle East and North Africa at Goldman Sachs Asset Management, has joined DoubleLine Capital as head of international client business. Within his responsibilities, he will lead the firm’s international client team in business development and client service outside the United States.

According to the asset manager, his work and that of his team will be “to help clients align their return and risk management objectives with active investment strategies tailored to a world undergoing both secular and cyclical changes.” Based in DoubleLine’s Dubai office, Zaidi reports to DoubleLine president Ron Redell.

“Under the leadership of CEO Jeffrey Gundlach, and on the strength of our long-tenured investment team and our client-centered service, DoubleLine has established itself as a leading active asset manager. I am delighted to welcome Ali on board. His extensive experience will elevate our firm by bringing our asset management expertise to global clients,” said Ron Redell, president of DoubleLine.

For his part, Zaidi stated: “As an independent, employee-owned firm, DoubleLine has an alignment of interests and values that resonates with clients. I am excited to join and offer our global clients the intellectual leadership and fixed income expertise of our firm.”

Before joining DoubleLine, Zaidi worked from December 2010 until mid-September 2025 at Goldman Sachs Asset Management as managing director, head of MENA client business and new markets, Dubai. In that role, he led a team of client coverage professionals based in London, Riyadh, Dubai, Abu Dhabi, and Doha.

In previous roles, he worked in credit and structured products structuring and sales (including Sharia-compliant products); equity and equity derivatives financial control; and financial services auditing. Over the course of his career, he has been based in London, Kuala Lumpur, and Dubai.

Cycle Shift: The Fed Resumes Rate Cuts

| By Amaya Uriarte | 0 Comentarios

After a nine-month pause, the Federal Reserve cut rates again at its latest meeting—a widely expected decision, though not without implications. Jerome Powell made it clear that the balance between inflation and employment—the core of the Fed’s mandate—has shifted, with growing concern over the deterioration of the labor market.

In line with his message at Jackson Hole, Powell emphasized that inflationary risks have moderated. The uncertainty generated by the Trump administration’s tariff policy remains, but the data points to contained inflation in both the short and long term. Metrics such as the “trimmed” CPI (Cleveland Fed) or the “sticky” CPI (Atlanta Fed) have risen since April, although two-year swaps indicate that the peak is already behind us.

The 5y5y swaps, meanwhile, remain stable and very close to the Fed’s long-term target, reinforcing the thesis that the monetary authority is comfortable with the projected level of inflation.

Labor Market: Tensions Beneath the Surface

The labor market is now at the center of attention. The sharp decline in immigration has reduced the supply of workers. And although demand has also moderated, the participation rate continues to decline, which keeps unemployment within the Fed’s comfort range… for now.

Revised forecasts for 2026 and 2027 anticipate lower unemployment, but the context remains fragile. The BLS revision placed job creation between March 2024 and March 2025 at 900,000 fewer workers than originally reported. The average number of new jobs created has fallen to just 29,000 per month over the past three months—well below the 70,000 to 100,000 needed to maintain equilibrium. This keeps the Fed on alert, with a high probability of further 25-basis-point cuts in October (87%) and December (92%), according to the futures market and the dot plot. Even so, only half of the FOMC members support this double cut.

Powell was clear: “Labor demand has weakened, and the recent pace of job creation appears to be below the equilibrium rate needed to keep the unemployment rate constant.”

Monetary Policy: The Path Toward Neutrality

Powell emphasized that there is no predefined plan: each decision will be made meeting by meeting. However, the new balance—less inflationary pressure and greater weakness in employment—suggests that rates should move toward neutral levels.

The Taylor Rule confirms that Fed Funds are still in restrictive territory. The projections implied in the futures and swaps curves appear reasonable, although the margin of error remains high due to macro uncertainty. Powell was unequivocal: “There is no risk-free path.”

Political Tensions and Mixed Signals

During the press conference, questions arose about the apparent disconnect between the economic projections—higher inflation and lower unemployment—and the moderate pace of monetary adjustment. Some interpret this as a sign of political pressure, particularly from President Trump.

The contrast between those favoring a moderate adjustment (Waller and Bowman, with 0.25%) and the more aggressive camp (Miran, proposing 0.5%) could be seen as a statement of independence in the face of external pressure. The Fed appears determined to distance itself from any partisan narrative.

Market Implications: Duration, Dollar, and Positioning

With the curve pricing in up to five additional cuts between now and December 2026, the risk now falls on those holding short dollar positions and long duration.

The OBBA fiscal plan, which balances stimulus with spending cuts, is favorable to growth in 2026. Monetary policy is easing while companies continue to report growth in earnings per share—an unusual combination at this stage of the cycle.

The normalization of the labor market following post-pandemic distortions reinforces the thesis that there will not be a demand-induced recession. The Atlanta Fed’s GDP model for the current quarter, in fact, anticipates an acceleration in growth.

Dollar Valuation and Flows Toward U.S. Assets

The dollar remains overvalued according to purchasing power parity, but its recent drop against the euro has been abrupt. Positioning and sentiment indicators suggest room for a consolidation of the euro’s gains.

Business confidence data in Europe, such as the ZEW or Sentix, deteriorated in September. This increases the likelihood of positive macroeconomic surprises in the United States, which could attract flows toward dollar-denominated assets.

From a technical standpoint, the positive divergence between price and the RSI (Relative Strength Index) reinforces this view of short-term support for the dollar.

Monetary Policy: The Explanation Behind One Cut and Two Pauses

| By Amaya Uriarte | 0 Comentarios

The week draws to a close with attention focused on how markets have reacted to the latest monetary policy decisions: the Federal Reserve (Fed) confirmed a 0.25% cut, while the Bank of England (BoE) and the Bank of Japan (BoJ) kept rates unchanged. As a result, the U.S. dollar edged higher on Thursday after a volatile trading session, the British pound weakened, and the dollar/yen rate dropped more than 0.52% immediately after the decision.

According to the view of international asset managers, Western central banks are currently at a point in the cycle close to the neutral interest rate. “That is, the equilibrium point at which interest rates neither restrict nor stimulate economic activity and may be influenced by various factors, such as productivity growth or demographics,” explains James Bilson, global fixed income strategist at Schroders. Despite the great expertise of monetary institutions, it is very difficult to determine exactly what the neutral rate is. In Bilson’s view, if a central bank believes it has reached neutrality, it is likely to react to new data differently than one that believes it is still in restrictive territory.

The Fed: A Balancing Act

In that pursuit of balance, data continues to serve as a compass for monetary institutions and, of course, for the Fed. According to Jean Boivin, head of BlackRock Investment Institute, the outlook for Fed rate cuts depends on the labor market remaining sufficiently weak, making future policy highly data-dependent. In fact, Powell referred to this as a “risk management” cut, emphasizing the move as a form of insurance against growing signs of labor market weakness.

For Boivin, it is important to take a broader view. “Powell acknowledged that there is no risk-free path for policy and the ongoing tension in his dual mandate to support growth and contain inflation. We see the real tensions elsewhere: keeping inflation in check and managing debt servicing costs. Again, a weak labor market gave the Fed cover to resume rate cuts. That tension between inflation and debt servicing costs could easily reemerge if Fed rate cuts help boost business confidence – and hiring. For now, markets see that tension easing – and the premium investors demand for holding long-term bonds has sharply declined in recent weeks,” he notes.

BoE: Containing Inflation

In the United Kingdom, the Bank of England (BoE) met market and expert expectations by holding interest rates steady, once again at 4%. According to Mahmood Pradhan, director of Global Macroeconomics at the Amundi Investment Institute, although the decision was clear, the monetary institution still faces tough choices on what to do next. “August figures showed that inflation is high and persistent, but growth is patchy, and the Fed appears to be back on a prolonged rate-cutting path. We believe the BoE will need to cut 25 basis points in December, and reducing its balance sheet by £70 billion over the next 12 months is in line with expectations, but the £20 billion reduction in gilt sales should support the bond market,” explains Pradhan.

According to Mark Dowding, BlueBay CIO at RBC BlueBay Asset Management, the BoE governor may want to cut rates if possible, but this will depend on price moderation or a faster cooling in employment data. His outlook is clear: “We continue to believe that stagflation risks are present in the UK, and therefore it will be difficult for the BoE to act. Meanwhile, political risks keep us cautious on the pound. Certainly, if Starmer were to step down suddenly at some point, we think this could lead to significant pressure on UK assets and the currency, due to fears of a more hard-left alternative.”

BoJ: A Hawkish Tone

In Japan’s case, the BoJ kept rates unchanged—a decision also widely expected by the market. However, experts noted the surprisingly hawkish tone, and a rate hike is now being priced in for the October meeting. According to Dowding, it seems plausible that the BoJ wants to wait for greater clarity around Japan’s political leadership following Ishiba’s departure. “If the LDP leadership race results in a ‘business-as-usual’ candidate like Koizumi, this could pave the way for a potential rate hike as early as October – a scenario that could also see the yen strengthen further,” says the RBC BlueBay AM expert.

For Christophe Braun, Director of Equity Investments at Capital Group, the BoJ’s decision underscores its cautious stance amid slowing inflation and global uncertainty, prioritizing stability over premature tightening. “By preserving policy flexibility, the BoJ signals its readiness to respond to external volatility while continuing to assess the strength of Japan’s economic recovery. Unlike the U.S. and Europe, where central banks are leaning toward rate cuts, Japan’s macroeconomic conditions require a more deliberate approach. The BoJ’s strategy supports the early stages of a deflationary cycle, rather than reversing course. We expect the yen to strengthen gradually as interest rate differentials narrow, which will increase Japan’s purchasing power and support domestic demand,” explains Braun.

The SEC Accelerates the Process to List Cryptocurrency ETPs

| By Amaya Uriarte | 0 Comentarios

The U.S. SEC approved new rules that simplify the listing of exchange-traded products (ETPs) based on commodities, including those backed by cryptoassets.

The measure will allow three national securities exchanges to list and trade these instruments under generic standards, eliminating the need for individual agency approval in each case. From now on, if an ETP meets the established requirements, the exchange will only need to publish information on its website within five business days after the start of trading. “This simplified listing process will benefit investors, issuers, other market participants, and the Commission by reducing the time and resources needed to bring new ETPs to market,” the regulator stated in a press release.

According to the SEC, the goal is to facilitate market innovation without compromising investor protection.

In the past, the agency had been criticized for delays and regulatory hurdles, especially regarding ETPs linked to cryptoassets. Until now, exchanges were required to demonstrate that they had surveillance-sharing agreements with regulated markets of significant size, which limited the development of such products.

New Eligibility Criteria

With the approved rules, the underlying commodities of an ETP may be considered eligible if they meet any of the following requirements:

Listed on a market that is a member of the Intermarket Surveillance Group.
Underlie a futures contract with at least six months of trading on a market regulated by the CFTC.
Represented in an ETF that allocates at least 40% of its net asset value to that commodity and is already listed on a national exchange.

In this way, ETPs based on cryptoassets will have a clearer and more direct path to market.

The SEC emphasized that exchanges will still need to file special applications when a product does not meet the generic standards. However, it left the door open for the criteria to be expanded in the future, for example, through objective quantitative standards that would provide more predictability and speed in the approval of new instruments.

Family Offices Rely on Equities and Alternatives to Face Geopolitical Uncertainty

| By Amaya Uriarte | 0 Comentarios

Family offices equities alternatives — Canva

The report, produced by One Goldman Sachs Family Office, gathered the opinions of a total of 245 decision-makers in family offices around the world on how they are approaching the current complex investment landscape.

“Family offices have shown extraordinary consistency in their investment approach, despite concerns over geopolitical tensions and protectionist trade policies. The 2025 results underscore how long-term orientation and flexibility enable family groups to manage volatility and seize opportunities,” says Meena Flynn, Co-Head of Global Private Wealth Management and Co-Head of One Goldman Sachs, in the report’s conclusions.

Key Findings

The document shows that portfolios remained in line with those of 2023, with slight shifts in allocations to listed equities (rising from 28% to 31%) and a slight decline in alternative assets (from 44% to 42%). Moderate increases in investments in private credit, fixed income, real estate, and private infrastructure partially offset the slight decrease in private equity. When it comes to risks, geopolitics remains the main concern. In fact, 61% of respondents cited geopolitical conflicts as the greatest investment risk, followed by political instability (39%) and economic recession (38%).

As in 2023, geopolitical conflicts remain the most cited investment risk, with 61% of respondents including it among their top three concerns (75% in APAC) and 66% expecting geopolitical risks to increase over the next year. Political instability (39%) and economic recession (38%) follow closely, with global tariffs not far behind (35%). According to the report, most now consider higher tariffs to be the new normal, with 77% expecting increased economic protectionism and 70% anticipating tariff levels to remain stable or rise over the next 12 months. Even so, respondents generally believe that the fundamental drivers of global growth and traditional investment themes remain intact.

Among the conclusions, it stands out that family offices are willing to allocate capital. In this regard, more than one-third of respondents plan to reduce their cash balances (currently at 12%) and invest in risk assets. Notably, most family offices plan to increase their exposure to private equity (39%), followed by equities (38%) and private credit (26%).

Innovation and Thematic Trends

Finally, a key trend is that family offices are becoming more open to investing in technology, especially in AI. “58% expect their portfolios to overweight the sector in the next 12 months. Widespread investments in artificial intelligence (AI): 86% have exposure to AI, largely through listed equities, although many cite concerns about valuation,” the report notes in its conclusions.

In addition to AI, a growing interest in cryptocurrencies has been observed: 33% invest in cryptocurrencies compared to 26% in 2023. A relevant nuance is that the APAC region shows the greatest interest in future investments.

Asset Allocation

Family offices maintain a strong weighting in risk assets, with public equities at 31% and alternatives at 42% (with private equity standing out at 21%). There are slight increases in real estate, infrastructure, and private credit, the latter booming due to its attractive yield. Exposure to hedge funds remains stable, though with greater interest in EMEA and APAC. Looking ahead, they plan to maintain overall stability with selective adjustments: more allocations to private equity (39%), public equities (38%), and private credit (26%), along with a reduction in cash (34%).

On the other hand, innovation is emerging as a central driver. Most are already investing in artificial intelligence, and many are integrating it into their investment processes, with expectations that the technology will gain more weight in portfolios. Interest is also growing in digital assets, especially in Asia-Pacific, as well as in secondary markets due to their increased transparency. Another emerging area is sports, where a growing number of family offices are seeking opportunities related to both teams and media/content.

AI: Five Trends Already Impacting the Financial Industry

| By Amaya Uriarte | 0 Comentarios

AI financial industry trends — Photo courtesy

“Artificial Intelligence Is Constantly Evolving, and That Makes It Both a Challenge and an Opportunity” — This statement was made by Elena Alfaro, head of global AI adoption at BBVA, during her presentation titled State of the Art of AI and Use Cases at BBVA, delivered at the first Funds Society Leaders Summit recently held in Madrid.

What Alfaro means is that “AI is constantly evolving, with impact across various sectors; anyone who feels it’s moving incredibly fast is not mistaken—this is a full-blown revolution.” Just one data point proves the case: ChatGPT has been the fastest-adopted technology to date, reaching 100 million users just two months after its launch. Moreover, the expert stated, “ChatGPT is the most successful product in history.”

In fact, Alfaro noted, today, OpenAI (the company that owns ChatGPT) is generating 700 million active users per week, of which around 20 million are paying users. The BBVA representative added that if the user bases of the main competitors in this field are added, there are likely more than 1 billion generative AI users worldwide. Furthermore, considering that AI is part of a technology ecosystem born in the U.S., it has taken only three years to reach 90% of users outside the U.S. (compared to the 23 years it took the internet).

Double-Digit Investment

The BBVA representative also pointed out that the drop in costs has been dramatic since its launch three years ago. This, combined with user interest, has led to spectacular growth in every sense. Reflecting this trend, job openings in the U.S. IT sector related to AI have surged by 448%, while non-AI IT jobs have contracted by 9%.

That said, hyperscalers have doubled down on their AI development investments. Alfaro recalled that the so-called Big Six increased their capex by 63% from 2023 to 2024—a figure that was already high, reaching $212 billion.

Alfaro did not shy away from acknowledging that it’s unclear whether all the major players in this race are generating profits. She cited NVIDIA as the obvious beneficiary—thanks to GPU sales—and Accenture for the success of its AI-related services business line. Additionally, she stated that OpenAI is expected to report revenues of $12 billion by the end of 2025. Even so, the expert explained that major tech firms will continue doubling down on their investments because “they are making a long-term bet on this technology.”

Five Relevant Trends in the Financial Industry

Given that something that happened in April already feels “almost like the Pleistocene” in this fast-moving space, Alfaro outlined five trends that are already impacting the financial industry and that users should understand and familiarize themselves with.

Expansion of Reasoning Capabilities in Language Models
Alfaro explained that we are now dealing with AIs that respond versus AIs that reason—and the final result can differ greatly depending on the task assigned. Reasoning AIs can break down problems through chains of thought, follow logical steps, take time to reason, and flag doubts when needed (she cited GPT-5, Gemini 2.5Pro, and Claude 3.7–4 as examples). On the other hand, non-reasoning bots offer faster responses without verifying or cross-checking information (GPT-4, Gemini 1, Grok 2, Deepseek Base). “This reasoning capability needs to keep advancing because otherwise, automating complex tasks will remain limited,” reflected the BBVA representative.
Multimodality
This refers to the shift from generative AI being text-only to now encompassing images, video, voice, music, or combinations thereof—capable of generating diverse outputs.
Evolution from Assistants to Agents
We are moving from bots that respond to human prompts to AIs that can be given goals and execute them autonomously. Alfaro forecasts that, eventually, each person could have their own “AI Chief of Staff” — capable of coordinating a group of AIs to carry out complex tasks.
Integration of Data and Tools
Currently, ChatGPT typically isn’t connected to internal corporate data sources (like Salesforce, Google Drive, Outlook, etc.), but “there is significant progress in enabling connectivity to integrate company data sources or apps.” She stressed the importance of this integration for task automation and added, “Security and compliance teams will play a fundamental role in this integration.”
Growth of No-Code Tools
“From now on, we’ll be able to do more complex things,” said Alfaro, citing Google Flows, a new tool that helps chain together processes, as an example of what’s coming next.

AI Use Cases at BBVA

Finally, the head of global AI adoption at BBVA shared that the bank is developing a portfolio of various projects across areas such as risk, operations, and software development.

One example is the mobile banking app Futura, which adapts to each user based on their activity and finances—for example, by identifying their most frequent operations and offering shortcuts. It also includes Blue, a chatbot similar to ChatGPT that answers user questions ranging from product inquiries to detailed personal finance queries.

BBVA is also engaged in a highly ambitious project grounded in the philosophy of AI adoption among employees: “This is a people project, not just a technology deployment project. Technology is very important, but it’s people who must adopt it,” she emphasized.

Launched in May last year, the initiative began by making AI capabilities available to a growing number of employees to help boost productivity, encourage creativity, and enable them to build their own assistants. The results, according to Alfaro, have been “extraordinary”: the program has achieved nearly 90% user retention and led to the creation of over 5,000 functional applications by people with no coding experience. Around 1,000 high-value use cases have already been identified and are being implemented, leveraging solutions from OpenAI and Google.

Conclusion: Better In Than Out

In conclusion, Alfaro emphasized that in the face of this revolution, “it’s better to be in than out; staying out doesn’t make much sense.”

She closed her talk on an optimistic note, asserting that humans won’t be left out of the equation. Instead, their role will evolve from task executors to orchestrators—though with important nuances: “We should always analyze tasks from the perspective of what makes sense for AI to do and what makes sense for a human to do.” She cited a study indicating that skills such as organization, prioritization, and training still require strong human involvement. In her view, the most likely outcome is a division of labor, leading to the evolution of current roles and the creation of new ones. “In that evolution, continuous training for all employees is key,” she concluded.