“Transparency is on the clients’ side. We are starting to witness, albeit slow, a secular trend towards an advisory fee-based business model”

  |   For  |  0 Comentarios

Photo courtesy

2023 is a year of milestones and celebrations for L. José Corena, Managing Director of MFS Investment Management for the Americas. He will be celebrating 25 years with the firm; MFS will soon celebrate its 100th anniversary; and September 21st has been the official opening of the MFS Miami office, from where Corena and his team will serve MFS clients in Miami, Mexico, the Caribbean, Colombia, and the southwestern United States (Texas, Arizona, and Southern California).

This opening, says Corena, is the culmination of the asset manager’s efforts to strengthen its presence in the Americas, further demonstrating its commitment to collaboration and growth across its distribution footprint. Consider, last year, it opened an office in Montevideo adding to an existing office in   Santiago de Chile which opened nearly a decade ago. Additionally, MFS has a representative office in Colombia and an investment office in Sao Paulo, Brazil.

As for Mexico, Corena explains that the company is hard at work and formulating its next steps. However, he hints that there could be more updates “shortly”. “Mexico is a large, unique, and complex market given its idiosyncrasies, but it provides an excellent opportunity for active global managers like MFS.

In relation to the Americas institutional business, the MFS executive clarifies that business emanates primarily from AFPs, AFOREs, insurance and re-insurance cos., family offices and selective local opportunities in key regions.    While not currently working with any third-party distributors in the Americas to cover these segments, MFS has had relationships in the past. “We know the institutional segment provides a great opportunity for us to continue to build on our overall competitive market share in the region. We have done a lot of work recently and are evaluating how  to best penetrate, service and support  these key segments” he notes.

Trends in the Offshore Industry

“Opportunity” is a frequent word in Corena’s conversation with Funds Society. The head of the Americas sees an opportunity in the shift in the way business is done in the Non US Cross Border  market, as the number of  asset managers continues to proliferate, the distribution model continues to evolve and the independent model gradually takes over: “It’s extremely important for us that the business continues to grow and evolve during this post-Covid world, and that it continues to do so in a diversified way, both from a distribution and product offering perspective”.

Regarding how the distribution model has evolved, Corena says, “It’s definitely more complex  right now given how the independent model has taken centre stage. You can imagine, contrary to the past, instead of going to one distributor / company to visit 20 financial advisors, as an example, today it has shifted to having to  go to, potentially, to twenty different places and see these same  financial advisors (FAs). One can easily see the challenges this poses.  That said, the independent model has proven to be dynamic. It provides the financial advisor a great deal of flexibility and ownership of their business. While this can create more distribution challenges, we feel MFS is uniquely qualified to support clients who adopt this model.”

Another trend Corena sees is the general flow of business toward clean asset classes: “The largest distributors are definitely moving the needle  towards the ‘fee-based’ business model , which I firmly believe  is the right approach long term, as it benefits the overall client/advisor relationship ,” he says.

Corena points out that “transparency is also on the side of the client”, who now has more access than ever to see what they’re paying for an advisor’s services and for their mutual funds, as well as comparing fees and services with the competition and giving them the ability to evaluate the best value proposition for their financial situation. “Looking at big-picture trends today, we are definitely seeing a trend towards fee-based models with an emphasis on institutional share classes combined with retail A shares”, he explains. The MFS executive adds that “as the younger generation of financial advisors continues to grow in the business, they will definitely be more inclined to adopt the fee-based advisory model to their practice,” but he is also witnessing adaptation to this model   among advisors who have been in business for a long time. The more experienced cohort is aiming towards building partnerships and teams   in order to grow their overall business in a more sustainable, long-term manner. However, Corena concedes that there is a part of the business “that is going to continue to be transactional in nature and will not find its way to an advisory model”.

Another opportunity, he believes, is also changing the distribution model in the industry: “By going independent, we’ve seen many of these FAs joining advisory platforms, retooling their business and approach, and tailoring their practice to fit their client needs. The independent model   provides them the freedom to pursue more clients and provide more flexibility. The beauty is that as these teams grow within the independent channel it allows for the creation of specialized sub-teams with part of the team focused on handling the purely transactional needs of clients, while another part of the team focuses on building their business through an intergenerational lenses, where clearly an advisory fee based model is optimal”. 

Product Trends

The change in the way the Non-US Cross Border industry does business is, of course, also being driven by the levels in interest rates not seen in the last two decades. “This is an important message to convey to our clients”, Corena says, especially since many have not experienced a period of aggressively rising interest rates like the current one. Corena states that “what worked over the last two decades will definitely not work today or going forward, given this new normal.” Having said that, Corena makes it clear that he believes “it is important and healthy that we get rates back to historically normal levels, because the low-rate environment over the last 10-15 years has been quite atypical.

Another message that Corena believes is important to convey to clients is that while the market selloff last year was historically harsh and has altered the historical performance of many investment products, it is important we accept the fact that volatility will remain for some time. But he notes, “the other side of that coin” is all the repricing has led to an abundance of opportunities that are available to investors now in the fixed income market.

“So far in 2023, we have seen actively managed strategies experience inflows across both its fixed income and equity strategies”, he says.

Corena highlighted the importance of the role active management will have in this new market environment. He makes it clear that he is not against passive management but feels that the current environment will favour experienced and highly skilled active managers: “Looking at where we are and the environment, we’re in, selectivity will be key. At the end of the day, if you are a responsible long-term wealth manager, active management plays a vital part in the overall portfolio and can complement passive exposure.”

Another topic that comes up is investors’ growing interest in alternative investments. “Alts” as an asset class that has attracted a lot of interest and inflows over the past twelve to twenty-four months. But Corena is clear: “MFS has no plans to launch private credit or private equity products. Our responsibility is to create long term value for our clients by allocating capital in a responsible and disciplined manner. We will continue to assess where the best opportunities to fill gaps within our product line and do so thoughtfully and methodically.

While he admits that Alternatives are “an interesting asset class,” he is a bit concerned about their growing ‘commoditized’ popularity: ” Investing in alternatives is not for everyone, given their unique structure and the lack of daily liquidity some of these products have. To that end I feel they have a place as part of a well-diversified portfolio and clients should come prepared to ask really difficult questions to ensure they fully understand the risks associated with alternatives, and really any investment opportunity before them.”

Truist Partners with Standard Chartered to Strengthen Trade Finance Capabilities in Emerging Markets

  |   For  |  0 Comentarios

Standard Chartered Americas announced that it has entered a trade finance partnership with Truist Bank that will enhance Truist clients’ ability to conduct global business.

Through this strategic partnership, Truist Bank and Standard Chartered aim to create a seamless and efficient business environment for importers and exporters in the U.S. Standard Chartered will provide centralized processing, analytics and tracking services by leveraging the Bank’s unique network, local expertise, infrastructure, and technology.

Truist’s corporate and commercial clients will benefit from Standard Chartered’s ability to fulfill their trade finance needs in emerging markets in Asia, Africa and the Middle East.

The firms will be expand its trade finance services, specifically in the area of Export and Import Letters of Credit. Through this collaboration, Truist will have access to Standard Chartered’s network and its real-time transaction monitoring capabilities for the entire value chain of documentary trade. This will allow Truist’s clients to confirm, advise, or discount letters of credit through Standard Chartered, especially in markets where the latter has a presence.

The partnership also includes provisions for Standby Letters of Credit (SBLC). Truist clients will be able to execute performance and commercial contracts in markets that require local expertise, facilitated by Standard Chartered’s SBLC delivery capabilities. The partnership enables Truist to process and issue end-to-end SBLCs through Standard Chartered’s network, aiming to improve turnaround times and provide transparency on cost.

“We are proud to have a strong network across the world’s most dynamic emerging economies and regions, which have the U.S. as its major trade partner. This presents immense opportunities for companies looking to expand their reach and tap into these new markets,” said Chris Burtch, Head of Financial Institution Sales at Standard Chartered Americas. “We are thrilled to be partnering with Truist and facilitate its clients’ cross-border trade finance needs across our footprint. With our expertise in navigating the complex landscape of cross-border trade, we are confident that we can support Truist clients, help them achieve their business objectives and unlock new opportunities for growth.”

“Many of Truist’s corporate and commercial clients operate in the global economy and require solutions that allow them to complete transactions effectively across borders and throughout the supply chain,” said Chris Ward, Head of Wholesale Payments at Truist. “This partnership will allow our clients to more efficiently achieve their goals, scale their business, invest in their teams and build their communities.”

Disruption in Sports Offers Play for Growth

  |   For  |  0 Comentarios

The sports investment world is changing a lot. Technology, media, and telecommunications companies that are involved in sports have been some of the most resistant sectors, even through economic ups and downs and shifts in business strategies, based on research by Morgan Stanley.

The rights to broadcast some significant U. S. professional sports teams will end in the next two years. This could lead to a clash between old media companies that are losing money and wealthy tech businesses trying to increase profits. The change is being driven by a surge of foreign capital into major U. S. sports, a big sports distributor’s plan to alter its business model, and the merger of two strong media and promotions firms that concentrate on live sports events.

This upheaval might present investors with a chance. “Consumer spending on sports has gone up due to the popularity of live games and branded merchandise. The legalization of sports betting in the United States has further boosted this trend,” explains Ben Swinburne, a media analyst at Morgan Stanley. “As a result, sports provide a constant growth in revenue, boost asset value, and often offer better return on net operating assets.” Recent poor performance of these stocks reflects uncertainty but provides an appealing entry point, according to Swinburne. He believes that sports assets and sports rights will continue to appreciate despite these factors.

Traditional Media Companies Are Rethinking the Bundle

For years, traditional broadcasters have dominated sports monetization, controlling over 80% of sports rights contracts. They are expected to have a total average annual value of $24.5 billion in 2023 and 2024.

The scarcity of professional team franchises, as well as the relatively fixed supply of content, has fed the rising value of rights to air or stream games and matches. Programming rights fees in the U.S., including professional and college sports, grew at an annual rate of 6.3% to go from $15.5 billion in 2018 to $19.8 billion in 2022, and are expected to reach $31.6 billion by 2030. Broadcasters have passed along the increased costs with higher advertising rates, distribution fees and viewers’ cost to tune in. But consumers have pushed back, “cutting the cord” by getting rid of bundled cable packages in favor of streaming services.

“There are more consumers that don’t consume enough sports on TV to continue to prop up cable bundles,” says Swinburne. “Cord-cutting has reached a level where subscriber losses more than offset price increases, sending down distribution revenues for national networks.”

Still, a full transition to streaming will happen more slowly than the market thinks, Swinburne says, with an estimated 50 million pay-TV households expected to remain by 2030, down 25% from today and 45% below a peak in 2014. Linear TV should also maintain a stronger share of consumer spending than streaming through at least the end of this decade.

To stay competitive in the rights market during this transition, the traditional media industry will need to consolidate, though perhaps at valuations lower than current levels. Broadcasters could also consider a specialized bundle created to appeal to a growing and passionate audiences of sports fans whose demand for content isn’t likely to be affected by price.

“This approach would allow a robust, consumer-friendly sports offering to scale profitably while allowing general entertainment services to continue serving non-sports fans at attractive price points,” Swinburne says.

Opportunity for Big Tech

If legacy broadcasters aren’t able to pivot to streaming and continue to see revenues diminish, they may not have the appetite or ability to boost their investments in broadcast rights for sports. This could create an opening for big tech companies to move in, including market-leading streaming services. In fact, Swinburne expects tech companies to claim a bigger portion of sports rights ownership and distribution over time. Especially since sports entertainment has consistently demonstrated a capacity to be translated and consumed via established and emerging digital platforms such as social media, broadening sports assets’ appeal for potential distributors as an opportunity to extend reach.

“We would be less bullish on sports rights, in the near term at least, if not for the emergence of big tech companies as legitimate buyers, especially in the U.S.,” says Swinburne. “Owners of sports assets will increasingly need these well-resourced firms to step in to sustain asset and earnings inflation,” concluded.

Majority of US Workers Are Already Using Generative AI Tools, But Company Policies Trail Behind

  |   For  |  0 Comentarios

More than half of US employees are already using generative AI tools, at least occasionally, to accomplish work-related tasks. Yet some three-quarters of companies still lack an established, clearly communicated organizational AI policy.

The new survey from The Conference Board finds that 56 percent of workers are using generative AI on the job, with nearly 1 in 10 employing the technology on a daily basis. Yet just 26 percent of respondents say their organization has a policy related to the use of generative AI, with another 23 percent reporting such a policy is under development.

The urgency for establishing clear AI usage guidelines will only rise as the technology continues to accelerate in capability and scope: Already, 55 percent of respondents say that the current output of generative AI tools they’re using matches the quality of an experienced or expert human worker.

The latest workforce survey from The Conference Board was fielded from July 26 to August 13 and polled nearly 1100 US employees—predominantly office workers. Respondents weighed in on how they’re using generative AI, the approach their managers and organizations are taking to the technology, the impact on productivity and job prospects, and more.

Among the most notable themes of the study, it stands out that in total, 56% of respondents use generative AI tools for work tasks.

Additionally, 31% say they use generative AI frequently and regularly, whether daily (9%), weekly (17%), or monthly (5%).

However, 25% say they use generative AI occasionally and 44% have never used generative AI.

Workers who’ve adopted generative AI, a large majority—71%—say their managers or organizations are aware of their usage and are primarily using generative AI tools for basic, foundational tasks involving text.

In Addition, most respondents—63%—say generative AI tools have positively impacted their productivity.

To see the complete report you can access the following link.

 

Insigneo Hires Evelyn Benbrahim to Drive Growth in New York and Northeast Markets

  |   For  |  0 Comentarios

Photo courtesy

Insigneo announced the addition to its team, Evelyn Benbrahim, who brings over a decade of experience from Morgan Stanley.

Benbrahim’s appointment comes as part of Insigneo’s strategic efforts to expand its presence in the New York and Northeast markets, building on the recent appointment of Alfredo J. Maldonado to lead its expansion in New York City.

With more than 10 years of experience at Morgan Stanley, Benbrahim has established herself as a trusted advisor in the financial industry.

Alfredo J. Maldonado, Managing Director and Market Head for New York and the Northeast at Insigneo siad: “We are delighted to welcome Evelyn Benbrahim to our growing NYC office, an amazing professional whom I respect, and I am certain she will achieve new heights for her clients at Insigneo.”

The addition of Evelyn Benbrahim underscores the company’s dedication to offering clients access to top-tier talent in the financial industrym, the firm added.

 

Bolton Global Recruits Ernesto Cucalón and Luisa Muro from Morgan Stanley

  |   For  |  0 Comentarios

Photo courtesyErnesto Cucalón, Bolton Global Capital

Bolton Global Capital has recruited Ernesto Cucalon from Morgan Stanley as the most recent financial advisor to join the firm from this major wirehouse. Cucalon has more than 26 years of experience in International Portfolio Management and Estate Planning serving ultra-high net worth clients in Mexico and Colombia. 

For the last 12 years Cucalon has worked at Morgan Stanley as an Executive Director where he has managed a book of over $300 million in assets under management. Prior to that, he was a Senior Vice President at Merryl Lynch where he initiated his career in 1997.

Cucalon will be joined at Bolton by Luisa Muro as a Portfolio Associate. Muro formerly worked at Morgan Stanley, Merrill Lynch and Andersen Consulting. Her ample experience in the industry dates to 2005.

“Recruiting top industry professionals like Ernesto and Luisa is a major win for Bolton Global Capital. Ernesto is an experienced advisor who will undoubtedly continue to grow and enjoy tremendous success at our firm. We are looking forward to working with both of them” said Michael Averett, Bolton’s Head of Business Development.

Cucalon graduated from ICESI with a degree of Business Administration in his native Cali, Colombia. He also holds an MBA from the University of Miami as well as a certification in Financial Management from the School of Advanced Financial Management.

Muro graduated from the University Metropolitana in Caracas, Venezuela with a Bachelor of Science in Business Administration and a specialization in Marketing from Foothill College.

Cucalon and Muro will be based out of Bolton’s Miami office at the Four Seasons Tower in Brickell Avenue.

Tommy Campbell Supervielle and Regina García Handal Launch White Bridge Capital

  |   For  |  0 Comentarios

Photo courtesy

Former Citi bankers specializing in Latin American clients, Tommy Campbell Supervielle and Regina García Handal, have founded White Bridge Capital, a firm specializing in advising families on real estate asset management and liability management.

“We want to use our experience in international financial firms to provide a comprehensive service to families. This includes identifying, structuring and managing real estate investments in the U.S. and Mexico, as well as formulating financing strategies to meet their needs,” said Campbell Supervielle.

García Handal, on the other hand, noted that Latin American investors “have increased their interest in investing in the U.S. Real Estate sector” and that U.S. investors” are looking to expand their assets by taking advantage of the nearshoring trend that Mexico offers.

With the premise of “building bridges” for U.S. and Latin American families, White Bridge Capital assures that real estate is an effective way to diversify the investment portfolio of such families while establishing a new line of business for wealth preservation abroad.

According to the founders of White Bridge Capital, the creation of the company is based on three essential pillars: the redefinition of supply chains due to the current geopolitical phenomenon, the inclination of both Latin American and American families to explore diversification options outside their countries of origin, and the emergence of opportunistic real estate acquisitions, driven by the increase in interest rates and the resulting price dislocation, a situation not seen since the 2008 crisis.

In addition, the founding partners noted that their extensive experience in structuring financings helps the firm to also specialize in addressing the growing need of high net worth families for comprehensive advice on how to streamline their debt and increase their financial flexibility.

Recently, both founders were appointed to the advisory board of Vertix Group, a Florida-based private real estate lending company.

About the Founders

Tommy Campbell
Joined Citi in 2007 in New York and worked in the Corporate and Investment Bank in New York and Buenos Aires until late 2012 when he moved to Miami to join Citi Private Bank. Within the Private Bank, his early years were focused on growing the financing platform for Latin American clients, culminating in his promotion to head of the business, which he led for several years. More recently, he has held other key positions at Citi Private Bank, including Head of New Business for all of Latin America and Head of Mexico. He graduated with honors from Texas A&M University – Mays Business School.

Regina Garcia Handal
She has more than 14 years of corporate experience, with 12 years focused on the real estate sector, both in Mexico and the U.S. Her career includes prominent positions in renowned financial institutions worldwide, such as Blackstone, Credit Suisse and GE Capital. Most recently, she served as Director of Commercial Real Estate Lending for all of Latin America at Citi Private Bank. Regina holds a degree in Actuarial Science from the Universidad Anahuac in Mexico City.

—

US Vehicle Electrification Will Be a Protracted, Decades-Long Process

  |   For  |  0 Comentarios

A new study from The Conference Board projects that even if new EV sales rise gradually to 100% by 2040, 40% of all cars and trucks on the road in 2040 might still be powered by fossil fuels.

According to The Future of US Vehicle Electrification and GHG Emissions, businesses must be prepared to manage their operations in a bifurcated and rapidly changing market environment.

In 2022, the share of electric vehicles (EVs) sold in the US hit a record high of nearly 6%.

“EV adoption is set to surge in the coming decade, but new vehicle sales tell only part of the story,” said Alex Heil, Senior Economist at The Conference Board. “Americans are holding on to their cars longer than they once did, with the average age of light vehicles exceeding 12 years in 2022. As a result, the US may need to support both a rapid ramp-up in EV charging and continued operation of fossil fuel infrastructure for decades to come—unless private investment, policy incentives, and consumer demand can spur even faster EV adoption and vehicle replacement.”

EVs are likely to reach 50:50 parity with fossil-fuel vehicles in 2038.

In this scenario, EVs account for 66% of new cars and light trucks and 25% of new medium and heavy trucks by 2032, before reaching 100% of all new vehicles by 2040.
The transition to EVs will create a bifurcated transportation fuel system that persists for at least the next three decades.

Reaching net zero by 2050 will be doubtful without accelerating electrification of the transportation sector: If EV sales reach 100% by 2040, annual greenhouse gas (GHG) emissions from fossil fuel vehicles would fall by 51% based on current performance standards—a dramatic drop, but still far off the US goal of net zero in 2050. Indeed, a sizable portion of GHG emissions would remain in the absence of greater efficiencies for fossil fuel vehicles and potential adoption of alternative fuels like hydrogen for difficult-to-electrify subsectors. Businesses face a transition risk in the decades ahead until near-complete electrification has occurred.

In the interim, investments in fossil fuel infrastructure—including refineries, storage tanks, and fueling stations—would still be necessary, despite the decline of the gasoline and diesel markets in general. The rate of decline will determine the profitability of any such investments, integration of charging and refueling stations, and the willingness of businesses to commit financial resources.
EV Transition Will Require a New Policy Framework for US Infrastructure Funding.

Among the serious complexities of electrification is its impact on the federal Highway Trust Fund (HTF), which has historically funded the maintenance and replacement of US road and transit through gasoline and diesel taxes.

In a supporting brief, EV Adoption Could Exacerbate Transportation Infrastructure Funding Shortfall, The Conference Board finds that fuel tax revenue could fall by 60% assuming EVs reach 100% market share of new vehicles by 2040. This will exacerbate challenges to the HTF—which is already chronically underfunded because gas taxes have not been raised since 1993.

Ultimately, an alternative funding mechanism may be needed to ensure the viability of US transport and supply chains: Businesses might have to prepare to pay for new costs such as fees based on vehicle miles traveled (VMT) or on electricity used for charging.

While HTF revenue is paid today when motorists purchase fuel, a future system may be based on peak demand or specific impacts on infrastructure during use.
This shift to a new system, while not entirely costless in itself, could open up new efficiencies via better route choices or time-of-day planning.
Data security will become a critical issue for businesses and households.

A new system of telematics—data collected from vehicles via sensors or smart devices for pricing and revenue collection—would be needed to implement a more dynamic charging and cost recovery system.

The Rise of Private Equity in Tech M&A

  |   For  |  0 Comentarios

Private equity firms have been a bright spot in the M&A market this year. Private equity led 57% of public-to-private technology deals in the first half of 2023—almost double their share of public-to-private technology deals in 2020, 2021 and 2022.

To discuss the landscape of opportunities in technology M&A, Morgan Stanley’s Capital Connections Summit brought together top executives from the private equity and venture capital community. Investors gathered in Pebble Beach, California to discuss the M&A outlook for software companies and key themes to watch for the next wave of M&A.

“We brought together the top private equity and venture capital funds in the world, because these two cohorts will inevitably work together on deals—more so than they ever have in the past,” says Umi Mehta, Global Head of Technology Private Equity and Venture Capital Investment Banking, which hosted the Capital Connections Summit. “The intention of the Summit was not only to highlight private equity firms as the most active tech M&A buyers in the near- and medium-term, but venture capital funds as partners that help scale and monetize private equity’s future assets.”

Private Equity’s Evolution to Tech M&A Dominance

Private equity firms have evolved into subject matter experts that offer technology companies operational expertise and the opportunity to invest in sales, marketing, and research and development, according to EB Kapnick, Head of East Coast Technology M&A. They are looking for quality technology companies with the potential for growth, with enduring business models that have large total addressable markets.

“Private equity companies have growing expertise and specialization in software technology, and they are making tech companies more interesting to strategic buyers,” Kapnick says. “With their experience, they can make good companies even better, which makes them a competitive buyer. They’re not just reducing costs but increasing margins, accelerating growth and bringing in new leaders.”

They are also raising larger funds—available capital now stands at a record $2.49 trillion. In this market, private equity firms will often pay comparable or even higher premiums than strategic buyers. Melissa Knox, Global Head of Software Investing Banking, notes that the bid-ask spread between technology buyers and sellers is finally narrowing this year. This is helping to fuel more private equity M&A activity, especially as sellers temper their valuation expectations following peak levels in 2021.

How the Macroeconomic Environment Cooled IPOs

In 2022, higher interest rates, inflation and recession concerns weighed on companies’ profits and share prices in the consumer spending, advertising, and tech industries. In 2022 and 2023, public tech companies felt pressure to do more with less, prioritizing operational efficiencies and cost reductions. However, these efforts can take time and public markets are not always willing to wait, which is why some public tech companies will consider returning to private ownership. Selling their companies to a financial sponsor gives them the opportunity to rebuild without the pressure of delivering returns in a difficult market environment.

Private companies, meanwhile, are now more hesitant to consider IPOs and more open to the possibility of selling. “The bar to go public is much higher in terms of scale and financial profile,” Knox says. “It’s hard to manage employees and financials on a quarterly basis. A lot of private companies will rather merge or be acquired than go through an IPO.”

Private Equity Firms Eye Cloud Companies Amid AI Disruption

The consolidation of cloud-based software firms could also create additional takeover opportunities for private equity companies. Many cloud companies flourished after the boosts to remote work and e-commerce in 2020 and 2021, but more recent innovations in artificial intelligence may obviate some of these businesses, while creating greater demand for others. For example, a cloud-based customer support company might be negatively affected by AI’s potential to disrupt customer relationship management, while companies that provide cloud computing and optimization could benefit from the massive amounts of data and computing power that AI requires. “There will be cloud companies that get disrupted by AI,” Kapnick says. “Not everyone is going to be a winner in this.”

AI may also spur more strategic M&A activity, as companies seek new capabilities, customer segments and buildouts of their own platforms. AI companies are also attracting venture capital, as firms seek opportunities to provide growth-stage money and fund future M&A targets.

“It’s going to be another wild ride in tech in the next few years,” because of the revolutionary “platform shift” of AI, Kapnick says. “Like 1996 before the dotcom wave, or 2017 before the big cloud wave, the amount of spend that moves to technology is going to be unlike anything we’ve ever seen.” In addition to AI’s domino effect, private equity firms are also watching vertical software companies with large total addressable markets in sectors such as healthcare, media and industrials.

Northern Trust Asset Management Names New CIO of Global Asset Allocation

  |   For  |  0 Comentarios

Northern Trust Asset Management (NTAM), a leading global investment management firm with $1.1 trillion in assets under management as of June 30, 2023, announced that Anwiti Bahuguna, Ph.D., has been hired as Chief Investment Officer of Global Asset Allocation.

In this newly created role, Bahuguna will oversee NTAM’s entire asset allocation effort. As a member of Northern Trust’s Investment Policy Committee, she will be a key contributor in the development of the firm’s asset allocation recommendations. Bahuguna will report to Northern Trust Asset Management Global Chief Investment Officer Angelo Manioudakis.

“Increasingly, our clients are looking for holistic asset management solutions to their most complex investment challenges,” Manioudakis said. “With the addition of such an accomplished investment professional to our team, I am confident we can continue meeting the evolving needs of investors.”

Bahuguna will now oversee the firm’s asset allocation and multi-manager teams. Bahuguna’s appointment, in conjunction with the appointments of Michael Hunstad to Deputy Chief Investment Officer and CIO of Global Equities and Sheri Hawkins to Head of Investment Platform Services earlier this year, further strengthens NTAM’s investment capabilities.

NTAM’s multi-asset and multi-manager portfolios had $125 billion in assets under management and assets under advisement as of June 30, 2023.

Bahuguna joins NTAM with 25 years of industry experience. Most recently, she was head of U.S. multi-asset strategy at Columbia Threadneedle Investments, where she was responsible for approximately $45 billion in assets under management.

Previously, she served as the lead portfolio manager for the firm’s asset allocation funds and separately managed accounts. She was actively involved in setting the firm’s capital market assumptions, strategic asset allocation, tactical asset allocation, manager selection, and derivative overlays. Bahuguna holds a Ph.D. in economics from Northeastern University and a bachelor’s degree from St. Stephen’s College, University of Delhi.