Following the SEC adoption of new rules for cybersecurity risk management, strategy, governance, and incident disclosure by public companies, 64.8% of public company executives say their organizations will strengthen their cybersecurity programs, according to a new Deloitte poll.
Over half of executives surveyed will also push their third parties to strengthen cyber programs (54.1%) in response to the new SEC rules.
Looking back, 53% of public company executives say that their organizations have been planning for and anticipating the newly issued SEC cyber rules. Within that group, executives’ organizations have prepared along various timelines inclusive of up to six months (17%), six to 12 months (19.1%) and more than a year (16.9%).
While one-quarter of those surveyed have yet to begin preparing to comply with SEC cyber rules ahead of their finalization (26.1%), they say their organizations will be compliant by mandatory deadlines.
“Leading public companies have invested considerable time into maturing their cyber, risk management and governance capabilities in anticipation of the now finalized SEC cyber rules,” said Naj Adib, a Deloitte Risk & Financial Advisory principal in cyber and strategic risk, Deloitte & Touche LLP.
In response to the new SEC cyber rules, just 33.9% of polled public company executives’ organizations have evaluated communications with third party service providers. An additional 27.4% are in the process of evaluating the same presently.
“Whether organizations are publicly traded or do business with public companies, clear communication from top leadership about cyber risk management expectations can help mitigate security risks within organizations themselves, but also within their broader supply chains and ecosystems,” said Daniel Soo, Deloitte Risk & Financial Advisory’s strategy and extended enterprise leader and a principal, Deloitte & Touche LLP.
“Increasingly, more executives understand cybersecurity is not just a CISO’s responsibility, but a multifaceted business risk that demands many groups work together to support. Responses to requirements like new SEC cyber rules should help make cyber risk management improvements that benefit many organizations whether they are publicly traded or not,” he added.
Dante Neyra and Conny De La Torre are the latest international financial advisorsto join Bolton Global Capital from Morgan Stanley.
The Neyra & De La Torre Group cover high-net-worth clients from various Latin American and European countries. As a team they manage approximately $200 million in assets under management.
Neyra has more than three decades in the financial industry. He has spent the last nine years as a Senior Vice President at Morgan Stanley in Fort Lauderdale and before that he served a fifteen-year tenure at Merrill Lynch. He started his career at Barnett Bank/Bank of America in 1989.
Conny De La Torre is a Financial Advisor, Portfolio Manager and Certified Financial Planner™. She started her career in 2013 at Merrill Lynch, where she began working with Mr. Neyra and in 2014, they both joined Morgan Stanley.
“The arrival of Dante and Conny to Bolton Global Capital is another testament to our firm’s successful efforts in recruiting top financial advisors. Many of their client relationships extend back three or more generations, which is a true testament to their professionalism and the trust their clients place in them. We are very pleased to welcome Dante and Conny to the firm” said Michael Averett, Bolton’s Head of Business Development. Thus far this year, Bolton has hired five advisor teams from Morgan Stanley with total client assets of $800 million.
Neyra and De La Torre will be based out of the Las Olas Financial District in Fort Lauderdale.
Christopher Shea joins Balanz USA after 16 years at Citi to establish Shea Wealth Advisory.
The 25-year industry veteran, who also previously worked at Morgan Stanley, has decided to leave the large financial firms to focus on delivering clients a more robust product offering and unparalleled client experience, which the large institutions have abandoned.
As stated by Claudio Porcel, Balanz Group President, “there is a drive towards independence, advisors are looking for a culture that is both client and advisor friendly, Balanz aims to provide this culture”. With this, Chris will continue to service high-net-worth clients globally and expand his practice, from Balanz’s new Coral Gables, Miami office.
As one of Citi’s most successful advisors, Chris has spent his entire career developing a substantial wealth management business that encompasses a global footprint that aligns perfectly with our strategy and growth trajectory, said Balanz USA CEO Richard Ganter.
Shea will continue to deliver guidance and advice to his clients, and now, with the resources of the Balanz global brand and independence-driven culture, he will undoubtedly grow his practice to the next level. Is a significant hire for our firm and creates what we consider to be an enormous opportunity for him and his clients, added Ganter.
In the same sense, Balanz USA Managing Director Fred Lucier said, “with his knowledge and expertise, Shea will be an important catalyst for our future growth”.
A graduate of Florida International University’s College of Business, and a recent Barron’s Top advisor, He focuses on comprehensive wealth management for ultra-high-net-worth families and individuals.
“With Balanz’s open architecture platform and superior technology stack I can be far more proactive with clients, provide best in class solutions, and will have access to unique intellectual capital”, said Shea.
Diego Daza will be joining together with Shea, and he will be his second-hand in the process of establishing his wealth advisory practice in Balanz USA. Daza is a highly experienced and accomplished portfolio registered associate, with a proven track record in esteemed financial institutions, including JP Morgan Chase and Citibank.
With 12 years of combined experience, including the last 7 years at Citibank, Daza has established himself as a specialist in servicing high-net-worth clients, the release added.
“His extensive experience and comprehensive knowledge of the industry have enabled him to understand and cater to the unique needs of affluent individuals. Diego’s expertise led him to become a valued member of Citibank’s top producer’s team as a Registered Service Associate, where he efficiently helped manage a book of over $250MM (AUM) in assets”, the firm said.
In addition to his vast industry experience, Daza holds a B.B.A from Towson University.
Shea’s hire is the first of many to come and sets the tone for Balanz USA moving forward: the firm will continue to hire top-tier financial advisors, offering them sophisticated wealth management services and independence, with the goal of helping these advisors grow their practice and give their clients best-in-class plans, strategies, and solutions to achieve their financial goals.
Safra New York Corporation, the holding company of Safra National Bank of New York (“The Bank”), announced the successful completion of its acquisition of Delta North Bankcorp, including its subsidiary Delta National Bank and Trust Company.
This strategic acquisition is a significant milestone for Safra National Bank and underscores the Bank’s continuous expansion in the private banking and wealth management business.
The acquisition strengthens the Bank’s market position among high-net-worth clients in the United States and Latin America, where the Bank has been providing premier private banking and financial services and has a long and successful track record.
Jacob J. Safra, Chairman of Safra National Bank of New York: “We are proud to have completed this acquisition, which represents an excellent strategic fit to our existing business in these markets. Clients will benefit from an organization that is fully dedicated to wealth management, providing the service, products and expertise that best meet their specific needs. We are confident that the Bank has all the attributes required to continue growing and prospering in a sustainable manner.
Simoni Morato, Chief Executive Officer of Safra National Bank of New York: “We very much look forward to working closely with Delta’s clients and employees and developing long term relationships. Together we will build on the strengths of our organization, not only in the United States, but also throughout Latin America.”
Headquartered in New York, with branches in Aventura, Miami and Palm Beach, and offices throughout Latin America, Safra National Bank is a leading private bank with approximately US$ 30 billion in clients’ assets. Safra National Bank of New York is part of the J. Safra Group.
BroadSpan Capital has announced that Mark Rosen has joined the firm as a Senior Advisor and Vice Chairman of the firm’s Advisory Board.
Rosen brings over 30 years of experience in international financial markets including the role of US Executive Director at the International Monetary Fund, a position he held until January 2021.
Prior to his time at the IMF, Rosen held various senior positions in the investment banking industry, including Chairman and CEO of the Latin American Investment Banking Division of Bank of America Merrill Lynch, holding the Chairman position at BAML until August 2018.
BroadSpan CEO Mike Gerrard commented: “We are delighted to have the opportunity to work with Mark. His experience at the IMF is a great asset for our sovereign restructuring group and his deep transaction knowledge will complement our M&A advisory efforts across the region”.
Rosen added: “The BroadSpan team has built a very impressive restructuring and M&A advisory platform. I am delighted to join and help expand the business in Latin America, as well as in other emerging markets around the world”.
About BroadSpan
BroadSpan Capital, founded in 2001, is an independent investment banking firm that provides corporations, partnerships and government institutions with impartial advice related to mergers & acquisitions and financial restructuring in Latin America and the Caribbean. BroadSpan delivers solutions to clients from its offices in Miami, Rio de Janeiro, São Paulo, Mexico City and Medellín and through affiliate offices located in 30 countries around the world.
U.S. stocks were lower in August as the S&P 500 and Nasdaq suffered their first monthly declines since February. One notable challenge that stocks grappled with in August was rates rising again, despite the prevailing narrative of broader disinflation. However, even with this month’s declines, equities are having a great year, with the Nasdaq attaining its best first 8 months to start a year since 2003.
The “Magnificent Seven” mega-cap tech stocks remain at the forefront of news, driving nearly 72% of the S&P 500’s gains this year. Notably, Nvidia Corp. (NVDA), a major player contributing approximately 14% of the S&P 500’s returns for the year, recently reported robust earnings amidst the surging demand for artificial intelligence technology.
On August 25, Fed Chair Jerome Powell spoke at the annual economic symposium hosted by the Federal Reserve Bank of Kansas City in Jackson Hole, Wyoming. Powell noted that the Federal Reserve may need to raise interest rates further to cool still-too-high inflation and noted both the progress made on easing price pressures as well as risks from the surprising strength of the U.S. economy. Although Powell’s stance was notably less hawkish compared to his messaging a year ago, there is a strong likelihood that the Federal Reserve will implement at least one more interest rate hike by year-end.
Small-cap stocks sold off during the month and have underperformed the broader equity market in 2023 thus far. We continue to see abundant opportunities in small to mid-cap stocks, given the compelling valuation of the Russell 2000 Value, which currently trades at only 10-12x earnings. This stands in stark contrast to the broader market, which hovers closer to 20x earnings, representing one of the biggest deltas we have ever witnessed.
Merger Arbitrage performance in August was bolstered by deals that made significant progress in securing U.S. regulatory approvals. Shares of Horizon Therapeutics traded higher after the U.S. FTC indicated it was open to settlement discussions ahead of the September 11th trial date, and the FTC and parties formalized a settlement on September 1st. The deal is expected to close shortly after the October 5th Irish High Court hearing. Spreads firmed on other deals that experienced similar regulatory wins including: VMware being acquired by Broadcom for $85 billion in cash and stock; Black Knight was acquired in September by ICE for $12 billion in cash and stock, ForgeRock was acquired by Thoma Bravo for $2 billion in cash in August, and NuVasive was acquired by Globus Medical in September for $4 billion in stock. Investors are actively deploying capital in newly announced deals like Abcam plc, which is being acquired by Danaher for $6 billion cash, and Capri Holdings, which is being acquired by Tapestry Inc. for $10 billion cash.
August saw a return of volatility, and the convertibles market gave up some of its gains for the year but rebounded slightly as we approached month end. New convertible issuance picked up in August after companies reported earnings. We saw a mix of issuance that included companies that are new to convertibles, along with some that are returning to refinance existing debt. This mix of issuance is good for our market and it has generally been at attractive terms with higher coupons and lower premiums than many existing issues. With equities having moved substantially off the lows this year, we think convertibles offer a compelling value proposition. They allow us to stay invested in the market with an asymmetrical profile that has increasing equity sensitivity while still offering a yield advantage and near term maturities that should limit downside participation.
Opinion article by Michael Gabelli, Managing Director and President of Gabelli & Partners.
CAZ Investments, a Houston-based investment manager, and Palantir Technologies, a builder of operating systems for the modern enterprise, announced a five years partnership for Palantir to provide its Artificial Intelligence Platform (AIP) in support of CAZ’s growth and innovation.
Palantir will provide CAZ with AI-powered solutions to accelerate partner onboarding and augment investment managers’ work with generative AI. The use of Palantir’s software aims to help CAZ automatically scale operations and meet growing demand.
AIP will offer CAZ executives a next-best action system to identify and recommend opportunities or content to improve retention and service to its partners, among other use cases, allowing it to provide differentiated investment services to its partners as it embarks on a crucial expansion period.
“The last few years have marked unprecedented growth for CAZ and a dramatic increase in demand for access to our curated opportunities,” said Christopher Zook, Founder and Chief Investment Officer of CAZ Investments. “We are excited to partner with the talented team at Palantir to ensure that we are able to scale our business for exponential growth, harnessing the power of AI to transform our processes.”
“CAZ is embarking on a remarkably ambitious AI transformation that will put exceptional demands on AIP. These are the partners we are looking for,” said Daniel Wheller, Head of Financial Services at Palantir. “We are proud to deploy Palantir AIP at CAZ, bolstering AI transformation.”
Palantir’s technology is currently deployed to solve some of the world’s most complex challenges in the government, defense, and financial sectors, including banking, asset management, anti-money laundering, and cryptocurrency.
CAZ Investments’ proprietary research process and global network identifies thematic investment opportunities across public and private markets. The CAZ team reviews 1,500 private investments in a typical year, but usually invests in approximately 10-12. Among CAZ Investments’ guiding principles is that it will align its interests with its partners, meaning the firm is the first investor in every opportunity it presents to its network.
This means that individual investors and investment advisors alike can participate knowing that CAZ is directly aligned with their success, or that of their client’s.
Inflation and ongoing market volatility remain the primary concerns of business leaders of mid-sized corporates and organizations surveyed by Citi Commercial Bank (CCB) in its first ‘Global Industry Insights Report’.
Of approximately 500 survey respondents, globally, a majority ranked inflation and market volatility as the two primary factors challenging the wellbeing of their business followed by the regulatory environment and trade.
The recent global business survey offers insights into the prevailing challenges and opportunities facing companies today. At the forefront of concerns is inflation, which emerged as the most ominous factor threatening businesses.
A 72% of respondents identified cost management as their primary obstacle to success, reflecting the pervasive pressure inflation exerts on operations and profitability. This unambiguous sentiment suggests that despite other evolving challenges, cost control remains a critical focal point for businesses in today’s volatile economic landscape.
While inflation worries loom large, the survey shows a relatively optimistic view on supply chain issues, a pain point that has plagued industries in recent years. A surprising 52% of respondents believe that the situation has improved over the last 12 months, with only 13% stating it has worsened.
Additionally, 36% report no change, painting a picture of either actual improvements in supply chain management or a more accustomed adaptation to existing challenges. This optimism may pave the way for companies to focus on other key areas, such as sustainability and international expansion.
Speaking of sustainability, the report shows that companies are taking strides in their commitments to becoming carbon neutral by 2050. With 55% of respondents affirming they are on track, led notably by healthcare companies, the move towards sustainability appears to be gaining momentum.
However, it’s worth noting that only 37% consider net-zero and ESG factors as a primary focus, signaling room for greater emphasis on these crucial issues.
Moreover, international expansion remains a tantalizing prospect for over half of the respondents, with Asia-Pacific markets being particularly attractive. Yet, despite these future-oriented plans, 27% express dissatisfaction with their financial goals for 2023, indicating that while there may be optimism for long-term growth and responsibility, short-term financial objectives remain a point of contention.
For additional information, please visit the website of Citi.
Venture capital firm 500 Global announced the UpNext summit will bring together investors, asset allocators, innovators, and policymakers to discuss a shared future for technology and innovation on October 5, at The Showroom in Washington DC.
The future of venture capital necessitates that stakeholders take a more active role in devising strategies and guidelines that produce social and economic value, according to the company’s announcement.
500 Global will present its new report, the 500 Global Rise Report, which outlines a plan for innovation in both developing and mature markets. “The upcoming ten years of technological progress and venture capital will, above all, be international. We, as investors, policymakers, and thought leaders, must collaborate to promote innovation worldwide and generate a positive and enduring impact,” stated Christine Tsai, CEO and founding partner of 500 Global.
According to the company information, UpNext functions as a platform for these key individuals to address pertinent challenges facing the establishment of a sustainable ecosystem that cultivates innovation and global expansion while enhancing competitiveness and ensuring national security.
Speakers at the event will include Magdalena Coronel, Chief Investment Officer of IDB Lab; Dami Osunsanya, Co-Head of SoftBank Group’s Opportunity Fund; L. Felice Gorordo, Alternate Executive Director of the World Bank; and Areije Al Shakar, Director and Fund Manager of Al Waha, among others.
The topics to be discussed are centered around the rise of the new era of global technology, emerging sectors in technology, next global companies, and global economies.
“Achieving the Silicon Valley dream doesn’t mean following the same playbook,” stated Courtney Powell, COO and Managing Partner of 500 Global, a prominent venture capital firm managing $2.4 billion in assets, dedicated to investing in founders building fast-growing tech firms. 500 Global concentrates on technology-driven markets to generate long-term value and drive economic growth, as stated on its website.
In the dynamic world of finance, asset securitization has emerged as a valuable bridge to multiple private banking platforms, enabling the conversion of underlying assets into what is known as “bankable assets”. “Bankable assets” can be effectively distributed through various private banking platforms. This process has become even more powerful by incorporating exchange-traded products (ETPs) as key tools for transforming underlying assets into bankable assets, the FlexFunds team explains in an analysis:
Securitization: a path to liquidity
Securitization is a financial process that goes beyond merely converting liquid or illiquid assets into securities. It also uses ETPs as instruments for this transformation. This process can become quite complex, but thanks to FlexFunds’ solutions, it can be carried out in an agile, straightforward, and cost-effective manner.
FlexFunds’ securitization program is crucial in facilitating access to multiple private banking platforms by designing and launching investment vehicles, similar to traditional funds, that enable strategy management and global distribution to international investors.
Securitization for multiple asset classes
One of the most notable advantages of securitization is its flexibility. It is not limited to a specific class of asset, which means both liquid and illiquid assets can be securitized. Most importantly, private banking treats these operations as debt, streamlining the process of registering a FlexFunds ETP compared to the complex and lengthy verification procedures associated with traditional funds.
Advantages of the asset securitization process
Asset securitization offers multiple advantages that make it attractive to both financial advisors and investors:
Improved liquidity and access to alternative sources of financing: Securitization converts illiquid assets into tradable securities, providing financial institutions with additional liquidity and access to alternative sources of financing.
Customization of securitized assets: It allows institutions to structure securitized securities according to investors’ preferences and needs.
Diversification of investments: Securitized securities can be backed by various types of assets, enabling investors to diversify their portfolios and reduce exposure to specific risks.
How are assets converted into Bankable Assets?
The process of converting assets into bankable assets through an ETP is relatively straightforward for FlexFunds’ clients. In five simple steps, they can bring their ETP to market, facilitating access to investors in the global capital markets:
Design the investment strategy for your ETP.
Sign the Engagement Letter.
Conduct Due Diligence.
Create the ETP.
Issue the ETP.
Once this process is completed, advisors can market the product, which combines a series of assets into a single investment vehicle, simplifying the investment process for their clients.
The Role of ETPs in Modern Finance
ETPs are exchange-traded products that track the performance of underlying assets, such as indices or other financial instruments. They trade on exchanges similarly to stocks, which means their prices can fluctuate throughout the day. However, these prices fluctuate based on changes in the underlying assets.
Since the launch of the first ETF in 1993, these funds and other ETPs have grown significantly in size and popularity. According to ETFGI data, as of the end of July 2023, ETFs in the United States reached a record of $7.6 trillion in assets under management (AUM). Their low-cost structure has contributed greatly to their popularity, attracting assets away from actively managed funds, which typically have higher costs.
By the end of July, the U.S. ETF industry had 3,180 products totaling $7.6 trillion in assets, from 289 providers listed on three exchanges.
Trends Toward 2027
According to a report by Oliver Wyman, Exchange-Traded Funds (ETFs) are projected to account for 24% of total fund assets by 2027, up from the current 17%. As of December 2022, total ETF assets under management in the U.S. and Europe reached $6.7 trillion, experiencing steady growth with a compound annual growth rate (CAGR) of approximately 15% since 2010. This growth is nearly three times faster than that observed in traditional mutual funds.
Despite various trends, such as increased demand from retail investors, tax and cost advantages, favorable regulation, growing demand for thematic ETFs, and direct indexing, positively influencing the growth prospects of ETFs, their launches face various challenges. These challenges include the high costs associated with establishing infrastructure and significant risk of failure. These obstacles have given rise to white-label ETF providers, a relatively novel business model that allows fund providers to bring their strategies to market quickly and efficiently.
Additionally, there is anticipated strong focus on technologies like artificial intelligence and autonomous learning to gain competitive advantages and provide greater value to customers. These trends also open up opportunities for wealth managers to expand their business models, especially concerning non-bankable assets, which represent a significant and growing portion of individuals’ total wealth today.
Asset securitization through ETPs offers innovative financial solutions that enhance liquidity, expand financing options, and enable portfolio customization. These strategies align with future trends in the financial sector, which are moving towards personalized solutions and adopting advanced technologies. FlexFunds stands out as a leader in this transformative industry, providing advisors with unique opportunities in modern finance.
If you wish to explore the benefits of asset securitization in greater depth, do not hesitate to contact our experts at info@flexfunds.com
