“One of Capital Group’s priorities is to boost its business outside the United States”

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Photo courtesyMario González, Head of Iberia, US Offshore & Latam at Capital Group
Independence and flexibility are the words Mario González, Head of Iberia, US Offshore & Latam at Capital Group, repeats most often when detailing the firm’s business strategy. González observes that clients are increasingly leaning toward working with fewer firms, expecting them to become more involved in aspects that extend beyond capital management.
In this interview with Funds Society, he highlights the growth potential that the Iberia, Latam, and US Offshore regions hold for Capital Group, as well as its expansion plans in alternatives and ETFs.

Interview

You have consolidated the transition toward new leadership at the firm. What momentum is Mike Gitlin bringing to Capital Group’s project?
Mike has been CEO for three years. He was previously our head of fixed income and has been with Capital Group for about 10 years. He transformed our fixed income business significantly, doubling its assets: we went from roughly $250–300 billion to over $600 billion today. For us, leadership changes are a natural process. We are in our fifth or sixth generation of leadership. We are independent, a partnership. This type of process impacts our business far less than it does our competitors. Mike has introduced a very clear commitment to the business outside the United States, alongside a sharp focus on the client, who increasingly wants to work with fewer managers and under a partnership format.
I think Mike has identified this trend very well: becoming what we call a “partner of choice”—that is, moving beyond being a mere vendor to build a close relationship with the client. Clients value having relevant strategies, but they are paying more and more attention to the value proposition outside of investment. In our case, we have reinvested in advisor education, for instance: helping our partners make their advisors more efficient, navigating major shifts in their business, and investing in tools… I believe these are major vectors that Mike has led.
In this context, what role do Iberia, US Offshore, and Latam play?
A very important one. We have a series of markets outside the United States—around 12 to 15—that are fundamental to our expansion, and these three are part of that group. Both Spain and US Offshore are highly consolidated markets. In Spain, we work with all the major distributors, and they increasingly view us as a partner rather than just a fund provider. The mandate with CaixaBank for its advisory business is one example. The team in Spain has grown; we are now 10 people. We rank among the top 10 brands, and even in the top five across certain metrics.
Regarding US Offshore, it is a very different market, but one with strong cultural and business ties. We see major banks in Spain and wealth managers expanding their teams dedicated to Latin American clients. It is a business increasingly concentrated in US Offshore, purely advisory-focused. We have a team of 10 people with a presence in Miami, New York, and Texas. While many of our competitors are cutting resources or changing distribution models, we are growing and reinvesting. In US Offshore, vehicle flexibility is essential. Ultimately, advisors in the United States have a portion of their business dedicated to offshore clients and another increasingly bulky domestic portion, and we offer investment solutions for both sides. When it comes to vehicles, flexibility is on the rise as demand grows for UCITS funds on the offshore side, or SMAs.
The Latam division is newer. In Mexico, Chile, Brazil, etc., we started at the end of last year in a very strategic manner. Capital Group often arrives late to markets—Spain is an example—but when we enter, we do so with a very long-term commitment. Here, we are heavily focused on three segments: institutional—the Afores, the AFPs, that is, the pension world; second, wealth management, with a strong presence from our global partners, where we maintain strong relationships with Santander, BBVA, UBS, and HSBC; and third, central banks and sovereign wealth funds. We have a strong focus on Mexico, which is structurally a very interesting market, particularly the Afores segment. We are also closely following the pension reform in Chile.
In which of these areas is there the most capacity for continued growth?
We have significant growth capacity across all three regions. In Spain, we have grown very consistently over the 12 years we have been in the market, but we believe there is increasing consolidation, and structurally, we are very well positioned. Another positive aspect of being independent is that we face no distractions. Many of our competitors have to focus on the next dividend or hitting short-term figures… That is not our case. If you lack scale, corporate transactions will occur, but we possess stability, independence, and scale, which provides us with a strong growth platform.
In Spain, we can and should keep growing within this partnership environment through new capabilities. Recently, the alliance with KKR in hybrid funds within the alternative investment space served as an example of innovation. In the future, we might bring over our active ETF range, which has seen immense success in the United States. And in Offshore, it is the same story: we continue growing and reinvesting. It is a very interesting region because it is strong in areas that Europe lacks. Speaking of the pension world, Mexico has a very solid model that serves as a benchmark for the region and other parts of the world. Latin America, in a selective manner, is very attractive to us; it is all about growth.
One of your most significant moves has been the agreement with KKR in private markets. How has this private credit and equity offering permeated the market?
It is a new asset category. We were the first to announce this type of alliance with an alternatives firm—in our case, KKR—and it is the first to translate into concrete products. We started in the United States, where we launched two public-private products focused on debt, and more recently, one focused on equity. Now, we are bringing this proposition to the international level.
Clients are attracted to the idea, but we need to work with them so they understand the role these solutions play within portfolios. It is not a pure building block they are traditionally accustomed to. What we offer is a first step for clients entering the alternative space. In the United States, distribution is much simpler because the vehicle can be distributed nationwide. In Europe, the landscape of vehicles and regulation is somewhat more complex. Nevertheless, strategies that take a holistic view of the entire debt market—both private debt and public debt—will become much more widespread in the market going forward.
And what type of underlying asset is the local buyer demanding most?
There is significant concern about market concentration, which is sparking very interesting debates. Whether passive management is the best way to gain market exposure is a question we frequently discuss with our clients globally. We see clients in certain asset classes—for instance, US equities—where that concentration is even more pronounced, and they are beginning to realize that high-quality active management can be compelling. Not all active management is good, but high-quality active management in the current market environment can be very attractive. There is exposure to equities, US equities, diversification outside the United States, increasing interest in European equities, and emerging markets could potentially be the next major growth engine. In short, we are seeing strong demand.
Fixed income is once again providing diversification and income, meaning we observe interesting opportunities despite tight pricing. On the credit side, for example, we detect significant demand. Even in emerging market debt, which began strategically in the institutional space, it is now permeating private banking and wealth management, where it is starting to be viewed more structurally in portfolios. We are also seeing interest in blend strategies.
Has it been straightforward to introduce these hybrid vehicles into US Offshore wealth management structures?
We are in a phase of working with our clients to understand the role these vehicles can play in portfolios. Conceptually, however, the idea is very attractive. The vehicle structure also dictates which clients can access these types of products. These funds are structured as UCITS Part 2, meaning they require professional clients. Within that universe, adoption has been good, though we are in the early stages of these efforts, making the educational component highly relevant.
Midway through this year, there were efficiency adjustments in the European product lineup. What drove this decision?
We aligned our resources more efficiently. We do this periodically every 10 to 15 years. We review our product offering to ensure it remains efficient and aligned with client demand. For us, launching new strategies or altering existing ones is a rare occurrence. When we consider launching a product, we evaluate whether it will see demand 5, 10, or 15 years down the line. A similar logic applies to closing a fund. In the United States, our fund mortality rate is close to zero. In Europe, it is also quite low. This does not mean we do not innovate, but we focus on areas of the portfolio where we have deep expertise. Innovation is targeted. That is how we have grown over nearly 95 years: completely organically.
You reached $150 billion in active ETF assets under management in four years. Has this growth come from fresh capital?
We launched our active ETF platform on February 22, 2022, the day before the invasion of Ukraine. It has been a success. We rolled it out in stages. Today, we have 25 active ETFs, the vast majority of which—about 21—have over $1 billion in assets. It is almost entirely fresh money. We launched active ETFs in response to our clients. Some were advisors, primarily in the United States, while others wanted access to our strategies via the ETF wrapper. Almost all of it is new money—I would say over 80% of the assets under management in these products. We have added more than 50,000 new advisors in the United States who are buying our active ETFs.
Our partners, especially global ones, ask for flexibility in our strategies, so we decided to provide access to them through different vehicles. It was with that philosophy that we launched the active ETF platform. We also introduced structural innovations, such as our liquidity program. Furthermore, new client segments are coming aboard. In Mexico, for example, Afores are now permitted to invest in active ETFs, meaning institutional clients are paying attention to these vehicles. In Canada, we also have an institutional client expressing interest.
Are there plans to adapt this system to UCITS products?
We are currently exploring how to translate this offering outside the US market into the UCITS framework. We view this as something we must offer our clients over the medium to long term to gain market share in Europe and attract Latin American investors who prefer this format—all while offering flexible solutions to our clients in Europe and Asia. Looking ahead 5, 10, or 15 years, we believe active ETFs will play an important role outside the United States as well, and we want to be part of that growth.
Active ETFs in the European market represent an attractive segment over the medium and long term. We may not directly compare it to the trajectory in the United States, as every market and regulatory framework is distinct. There is significant reliance on regulatory developments, but initiatives like the EU’s Savings and Investments Union (SIU) could boost the adoption of these vehicles.
The launch of model portfolios composed 100% of active ETFs was a direct response to US RIAs. Are the Spanish and Latin American markets mature enough for distributors to delegate asset allocation to white-label model portfolios?
In the US market, we are seeing an increasing application of model portfolios, though perhaps not as extensively as in Spain. It offers numerous advantages, the most prominent being resource efficiency, allowing private bankers to focus on managing client relationships and acquiring new business while leaving investment implementation to specialized teams. This introduces a valuable level of specialization and industrialization.
In US Offshore, major American wealth managers are driving this model portfolio model forward, and adoption among bankers is growing incrementally. This represents another global trend we observe, not just in Spain. Another major shift worldwide is the migration toward Discretionary Portfolio Management Services (DPMs).
This shift seeks industrialization, standardized outcomes, regulatory risk protection, and better margins. The second trend within the advisory space is the movement toward model portfolios. Ultimately, three models emerge: the move toward independent advisory, transitioning clients to DPMs, and shifting to model portfolios. These three dynamics are unfolding across all markets with varying intensities. These shifts alter client requirements, introducing demand for greater customization. It is a very dynamic period, and one where we intend to compete actively.

The New Map of Wealth Havens: High-Net-Worth Individuals Are No Longer Betting Everything on Switzerland

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Switzerland is still considered to this day to be synonymous with a wealth haven. Political stability, institutional strength, banking secrecy—at least in its historical form—and a wealth management industry built over generations transformed the country into one of the top destinations for major international fortunes.
However, there are signs of a shift. This does not mean the wealthy are abandoning Switzerland. In fact, the most recent data shows that the country continues to be one of the world’s major wealth management and custody hubs. What is changing is something deeper: high-net-worth families are no longer relying on a single haven and are beginning to build a distributed wealth architecture across multiple jurisdictions.
This transformation is taking place amid rising geopolitical risks, trade tensions, fiscal uncertainty, and the potential for a financial shock to spread rapidly from one market to another.
The International Monetary Fund warned in its April Global Financial Stability Report that risks to global financial stability remain elevated. The war in the Middle East, inflationary pressures, and the risk of renewed tightening of financial conditions combine with vulnerabilities in debt markets, investment funds, and other non-bank financial intermediaries.
The message for high-net-worth individuals differs from the one markets receive: when uncertainty rises, it matters not only what assets you own, but where they are held in custody, under what legislation, and from which jurisdiction they can be administered.

Switzerland Remains a Haven, but It Is No Longer Alone—and Hong Kong Has Overtaken It

The data point that best summarizes this transformation comes from Boston Consulting Group. Global offshore financial wealth reached $15.7 trillion in 2025, an 8.4% increase, driven both by market performance and a higher demand for geographic diversification. However, the business remains highly concentrated: the top ten wealth booking centers captured nearly 90% of new inflows and account for more than 80% of existing global wealth.
What is truly significant is who now holds the top position. Hong Kong narrowly displaced Switzerland as the world’s largest global wealth booking hub. The Asian financial center reached approximately $2.9 trillion, while Switzerland remained at virtually the same level.
This shift, however, should not be interpreted as the end of Swiss dominance. BCG estimates that international wealth in Switzerland grew by 7.6% during 2025 and that the country will continue to benefit from capital flows seeking safety during episodes of geopolitical uncertainty. Over the next five years, the consulting firm projects annual growth close to 6%.
In other words, Switzerland is not losing its status as a safe haven; it is simply ceasing to be the sole major safe haven. That distinction is fundamental.
The new approach to wealth management increasingly resembles an investment portfolio. A family might hold a portion of its financial assets in the United States, use Switzerland for specific private banking and custody needs, establish fiduciary structures in another jurisdiction, maintain a residence in a third country, and use Singapore or Hong Kong to access the Asian market.
It is not necessarily about relocating all assets. It is about preventing any single jurisdiction from concentrating all the risk.
Henley & Partners identified this exact phenomenon in its 2026 Wealth Mobility Report: high-net-worth individuals and their families are building what it calls “sovereign portfolios,” composed of residence rights, citizenship, investments, and businesses distributed across different countries. More than 28% of the applicants the firm served in the first five months of 2026 were already living outside their country of nationality.
The concept is particularly relevant for wealth management: diversification is no longer limited to equities, bonds, real estate, or private assets; it now extends to the legal geography of one’s wealth.

Singapore Gains Ground

One of the primary beneficiaries of this transformation is Singapore. Henley & Partners placed the city-state among the most attractive jurisdictions for international wealth in 2026, while BCG notes that its position as a diversified financial hub allows it to serve as a bridge between Asian and Western markets.
International wealth booked in Singapore grew by 10.3% in 2025, and BCG expects it to maintain a growth rate of around 9% annually over the next five years. The consulting firm also highlights that the city-state has attracted more than 2,000 family offices and over 100 independent wealth management firms.
Singapore’s advantage extends beyond tax considerations. Institutional stability, deep financial markets, connectivity with China and the rest of Asia, an advanced wealth management infrastructure, and a relatively neutral geopolitical stance form part of a proposition that is particularly attractive to Asian families and capital seeking to diversify between East and West.

United States: Financial Safe Haven and Risk Source at the Same Time

The United States occupies a paradoxical position. On one hand, it remains the world’s largest generator of private wealth and concentrates a massive proportion of global financial assets. UBS reported that the United States generated more than 440,000 new millionaires during 2025, representing nearly half of the new millionaires created globally that year.
On the other hand, growing political, fiscal, and trade uncertainty is leading even some wealthy Americans to seek greater international optionality.
Henley & Partners found that applications from US citizens for residence and citizenship programs nearly doubled in 2025 compared to the previous year and remained elevated in 2026. Almost half of those applications were directed toward European programs, and over a quarter went to Latin America and the Caribbean.
This does not imply that the United States is losing its appeal as a financial hub. On the contrary, it means that a jurisdiction can simultaneously be the primary investment destination and a country from which some families wish to secure an alternative exit strategy. The distinction lies between where the capital is held and where a family wants the option to live, operate, or protect a portion of its interests.
The underlying reason is that geopolitical risk is no longer an exclusive variable for governments and large institutional investors. It is also becoming a core variable in wealth planning.
The IMF warns that financial markets have absorbed geopolitical shocks relatively smoothly so far, but it also points out that such stability should not be taken for granted. Vulnerabilities include high debt levels, refinancing risks, interconnections between banks and governments, and the sensitivity of flows to emerging markets amid shifts in global risk perception.
In this environment, wealth management logic evolves. A family no longer asks simply: In which asset should I invest? They now also ask: In which country do I want to hold that asset?
And further: What happens if that country enters a political, financial, fiscal, or geopolitical crisis? The answer often points to greater dispersion.

The Gulf Enters the Equation

The United Arab Emirates represents one of the most compelling cases.
The country has emerged as one of the top destinations for international wealth in recent years, particularly for entrepreneurs, investors, and families from the Middle East, Asia, Europe, and other regions.
Henley & Partners awarded it one of the highest competitiveness scores for wealth mobility in 2026, with 85.3 points, driven by factors such as connectivity, investment access, safety, family inclusion, and long-term residence options.
However, the war in the Middle East is also testing that position. The response observed by Henley is revealing: the surge in inquiries from UAE residents seeking alternative residency or citizenship options does not necessarily signify an exodus. Rather, it reflects a search for contingency plans.
The family remains in Dubai, Abu Dhabi, or another Gulf city, but builds a secondary option in Europe, Asia, or the Americas. That is precisely what defines the new wealth map.

Latin America: The Next Chapter

For major Latin American fortunes, this phenomenon takes on a specific dimension. The region has historically relied on the United States and, to a lesser extent, Europe and Switzerland, as destinations to diversify wealth, access international markets, and mitigate local risks.
Yet the strategy is evolving toward a more complex structure. A Latin American family’s wealth portfolio may encompass a blend of assets and jurisdictions: investments in the United States, international private banking, investment vehicles in Luxembourg, US trust structures, exposure to Asian markets, and potentially a second residence or citizenship.
The goal is not to replace one haven with another, but to build wealth redundancy. This shift is particularly relevant for the wealth management industry, as it forces private banks and family offices to move beyond mere asset allocation and begin delivering a truly international wealth architecture.

The New Competition Is No Longer Switzerland Versus Singapore

The emerging market is not a race to determine which location will become the new single “paradise” for ultra-high-net-worth individuals; it is far more sophisticated.
BCG identifies two major networks taking shape: one centered around Hong Kong and Singapore, closely tied to Asian capital, and another structured around Switzerland, the United States, and the United Kingdom, with a strong presence of European, Latin American, and Middle Eastern wealth.
In parallel, the Gulf—particularly the United Arab Emirates—is striving to serve as a bridge between these major wealth centers. Consequently, competition is no longer fought solely over taxes or financial secrecy.
Factors now in play include political stability, legal certainty, market depth, access to investment opportunities, connectivity, regulation, family office services, residency, succession planning, and the capacity to operate internationally. The result is a far more fragmented map.
And likely a more resilient one as well. For major families living in a world where financial, political, and geopolitical shocks can cross borders with extreme speed, the new wealth haven is no longer a single country: it is the capability of not having to depend entirely on any single one.

GAM’s Transformation Bears Fruit: Narrowed Losses and Solid Capital Inflows

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“Our first-half results demonstrate that the strategic measures taken over the past two years are translating into better commercial results and a stronger financial performance,” stated Albert Saporta, CEO of GAM Group, following the presentation of the first-half results for the year.
According to the published figures, the pre-tax loss under IFRS narrowed by 39% to CHF 24.7 million (H1 2025: CHF 40.4 million). “The first-half loss was materially reduced due to a leaner operating model and strict cost discipline,” the asset manager explained.
Most notably, assets under management rose to CHF 12.7 billion as of June 30, 2026, up from CHF 12.5 billion recorded on December 31, 2025. Additionally, gross capital inflows reached CHF 900 million, with a strong focus on alternative investments. “GAM’s transformation is beginning to bear fruit: assets under management are increasing thanks to solid gross capital inflows and improved performance, while client redemptions have decreased substantially,” they stated.
“We generated nearly CHF 1 billion in gross inflows and, excluding the redemption of a single segregated account by a client undergoing a post-merger restructuring, underlying net flows were positive. Assets under management increased, investment performance remained strong, and our loss was significantly reduced, driven by a 17% reduction in operating expenses compared to the first half of 2025. We remain focused on our priorities: delivering strong investment performance for our clients, growing assets through disciplined distribution, continuing to enhance operational excellence, and maintaining strict cost discipline,” Saporta noted.
When highlighting key financial metrics, the asset manager also emphasized that its investment performance strengthened during the first six months of the year. “96% of applicable AuM in alternatives and 84% of applicable AuM in fixed income outperformed their respective three-year benchmarks. Over five years, the corresponding figures were 85% and 91%, respectively. Overall, across all of our business lines, 64% of applicable AuM outperformed its three-year benchmark and 58% outperformed its five-year benchmark as of June 30, 2026, compared to 61% and 54% as of December 31, 2025,” they highlighted.

Strategic Vision and Transformation

Following the transformation program launched by GAM two years ago, the Group now combines a lower cost base and a simplified operational structure with an expanded range of differentiated investment capabilities. According to the company, its model brings together specialized in-house teams and selected strategic investment alliances, providing multiple avenues for organic growth moving forward without proportionally increasing the Group’s fixed cost base.
In this regard, it continued to simplify its operational structure while maintaining its partnerships with Swiss Re ILS and Gramercy Emerging Market Debt, which completed their first full year during this period and are now fully integrated within GAM. “Establishing a longer real track record expands eligibility for due diligence processes and mandate selections by institutional investors, which will drive future distribution opportunities,” they noted.
During the first half, GAM continued to reinforce its commercial capabilities through its operating model and an integrated data architecture, enabling greater use of data, artificial intelligence, and specialized market intelligence across marketing, distribution, and client service. These capabilities support more effective digital distribution, deeper client engagement, improved product positioning, and the identification of institutional opportunities. The company also bolstered its distribution talent across Europe and Asia by adding senior client-facing personnel in Germany, Italy, Iberia, and Japan, further strengthening local coverage in its core markets.
A key highlight of the six-month period was its alternatives business. The Alternative Investments division generated the majority of gross inflows during the period. The GAM Swiss Re Cat Bond UCITS Fund closed the reporting period with nearly USD 2 billion in assets, supported by continued client demand alongside improved valuation and trading conditions. Additionally, the GAM LSA Private Shares strategy surpassed USD 250 million in assets, while the emerging market debt range expanded through the alliance with Gramercy.
Finally, GAM continued to develop its Specialist Active offering across equities, fixed income, and multi-asset investments, including active special situations strategies. During this period, the GAM Sustainable Emerging Markets Equity strategy exceeded USD 250 million in assets, while the European equity team established a one-year investment track record at GAM, laying an important foundation for future institutional distribution.

FDS Partners Reinforces Latam and US Offshore Team with the Appointment of Ana Ramírez

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Photo courtesyAna Luisa Ramírez, Senior Director of Distribution at FDS Partners
In a decision aimed at reinforcing the capabilities of distribution firm FDS Partners in the Latin American and US Offshore markets, the company announced the addition of Ana Ramírez and Mercedes Delclaux Squella to its ranks, alongside the arrival of Patricia Beans as an advisor to the board. With their combined capabilities in institutional distribution, corporate finance, financial analysis, and asset management, the company stated in a press release that it anticipates strengthening its coverage and strategic expansion in the region.
Ramírez joined as Senior Director of Wealth Management for the US Offshore business, after five years at the Chilean financial group Bci. “With great enthusiasm, I begin a new challenge at FDS Partners, where I hope to continue deepening my knowledge of the Miami market, continue learning, and contribute all my experience to this new project,” the professional wrote in a LinkedIn post about the move.
Prior to her appointment, Ramírez served as Head of Institutional Distribution at Bci. This role led her to relocate to Miami two years ago, where she is currently based.
In her two-decade career, according to her profile, the professional also worked as Institutional Distribution Manager at Ameris Capital and spent nearly 11 years at LarrainVial. There, she reached the position of Discretionary Portfolio and APV Manager. In addition, she was an Investment Strategy Analyst at Compass Group (currently Vinci Compass) at the beginning of her career.
FDS highlights Ramírez’s experience leading regional commercial strategies, structuring investment platforms, and negotiating distribution agreements with global managers. “Ana’s institutional expertise and long-standing relationships across Latin America make her an exceptional addition to our team,” said Lars Jensen, Managing Partner of the firm, in the press release.
Delclaux complements the strengthening of the team dedicated to the region, joining as Sales Associate for US Offshore. The professional brings experience in corporate loans, financial analysis, and asset management in Latin American and U.S. markets. Previously, she worked at Banco Sabadell Miami.
“Mercedes brings a valuable combination of analytical rigor and commercial drive,” Jensen added, noting that her capabilities will help support clients in private and institutional banking channels.
In addition to these appointments, FDS reported that they recruited Patricia Beans as an Advisory Board Member and independent counselor for the firm.
With forty years of experience in the global financial services industry in hand, the professional leads the consultancy she founded, Beans Consulting Services LLC. This firm is dedicated to advising organizations regarding client strategies, business transformation, and execution.
Jensen described her arrival at FDS as “invaluable” for the firm and highlighted the professional’s “experience leading global transformation initiatives and her expertise in governance matters.”

Lack of Regulatory Support: The Main Obstacle for Family Offices Facing Digital Assets

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Family offices are steadily increasing their focus on cryptocurrencies and digital assets as part of their investment strategies. This is according to a study conducted by Ocorian among business family members and senior family office executives across 16 countries, who collectively manage $119.37 billion in wealth.
According to the research, 86% of respondents are taking steps to incorporate these types of assets into their portfolios. However, the rollout of these strategies is being conditioned by growing regulatory demands and the difficulty of finding specialized providers capable of responding to the compliance and reporting obligations associated with this asset class.

Regulation: The Main Obstacle Moving Forward

The report highlights that 70% of family offices considering investments in cryptocurrencies and digital assets face difficulties accessing external services to help them manage regulatory compliance and reporting obligations. Only 30% consider this aspect not to be an issue.
The lack of specialized support comes within a broader challenge related to increasing global regulatory complexity. Barely 8% of family offices consider themselves “very well prepared” to face global regulatory requirements, while 74% state they are in a “fairly solid” position, though acknowledging that the regulatory landscape demands constant adaptability. Furthermore, 18% rate their level of preparedness as merely “average,” underscoring the need to strengthen specialized support.

Industry Demands More Specialized Advisory Services

Rebecca Thorpe, Global Head of Regulatory Consulting at Ocorian, points out that family offices are incorporating digital assets at a rapid pace, but warns that “the complex and rapidly shifting regulatory and reporting obligations attached to these assets cannot be ignored.”
In her view, regulators are struggling to keep pace with market innovation, and traditional service providers do not always possess the capacity required to support this evolution. Consequently, finding agile, specialized advice has become one of the primary hurdles for high-net-worth investors seeking to capitalize on the opportunities offered by digital assets.
The study concludes that as the market for cryptocurrencies and other digital assets matures, the availability of regulatory compliance solutions will be a key factor in accelerating their adoption into family office investment portfolios.

InCadense Bets on Accelerating Fee-Based Adoption in Latin America with BlackRock Alliance

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Photo courtesyA.J. Harper (left), Managing Partner and Co-Founder of inCadense; and Francisco Rosemberg (right), Managing Director and Head of Wealth and Family Capital for Latin America at BlackRock
Amid the evolution of the fee-based model in Latin American and US Offshore markets, wealth management technology company inCadense and American asset manager BlackRock announced a partnership aimed at accelerating the transition toward more scalable, transparent, and portfolio-centric advisory models in the region.
According to executives Francisco Rosemberg, Managing Director and Head of Wealth and Family Capital for Latin America at BlackRock, and A.J. Harper, Managing Partner and Co-Founder of inCadense, in an interview with Funds Society, the strategy consists of combining the global asset manager’s investment expertise with the technology company’s infrastructure.
In this partnership, inCadense brings its Unified Managed Account (UMA) structure—which enables bundling multiple investment strategies within a single account—along with its iTAMP, created to allow advisors and managers to deploy international managed accounts without needing to build the entire operational setup from scratch.
“The migration toward fee-based models, the growth of managed accounts, and the demand for more sophisticated investment solutions do not happen overnight. What we have observed is that the demand already exists, both in Latin America and in offshore markets,” says BlackRock’s Rosemberg. “What was missing was the infrastructure to connect advisors, solutions, and clients. That is exactly what this partnership seeks to do: bridge that gap and accelerate that transformation.”
The executives also highlighted the growth of fee-based models in Latin America, where penetration still hovers around 10% to 12% in domestic markets, compared to 53% in the United States and 42% in Europe (according to Cerulli data).
“The demand already exists. The challenge is eliminating complexity so that advisors can offer holistic solutions to their clients. That is precisely why we developed this infrastructure,” says Harper, from inCadense.
They also discussed the expansion of managed accounts in the United States, which currently manage $16.4 trillion in assets and continue to record strong growth, alongside the evolution of fee-based portfolios—moving beyond simple ETF allocations to incorporate mutual funds and alternative assets, such as private credit, private equity, and real estate.
For both executives, the primary barrier to this transformation was never investor demand, but rather the lack of a technological infrastructure capable of connecting advisors, custodians, and asset managers across different markets and jurisdictions.

Why did BlackRock and inCadense decide to form this partnership?

Francisco Rosemberg (BlackRock):
“We are observing wealth managers across Latin America and in offshore markets evolving toward fee-based advisory models. These models are more scalable, more transparent, and ultimately designed to deliver better outcomes for clients.
BlackRock’s role in this partnership is to provide investment capabilities, portfolio construction expertise, and support advisors in transitioning from a transactional model toward a long-term wealth consultancy model.
inCadense complements that effort by offering technological infrastructure. Its Unified Managed Account (UMA) and Separately Managed Account (SMA) capabilities simplify portfolio implementation across different jurisdictions, custodians, and currencies.
We believe this collaboration will help reduce much of the operational friction that historically hindered the adoption of fee-based models in the region. Ultimately, it is a model that offers greater cost transparency, strengthens advisor-client alignment, and transforms the role of the advisor—who stops acting as a product distributor to focus instead on financial planning, portfolio construction, wealth management, and long-term advice.”
A.J. Harper (inCadense):
“The biggest challenge was never demand. The challenge was always infrastructure. When the industry shifts away from distributing standardized products, such as mutual funds, toward delivering complete portfolio solutions, overall operational complexity increases significantly.
Investors want customization. They want a portfolio built specifically for them, not a one-size-fits-all product. Until today, many advisors simply lacked access to the technology required to deliver that experience.
It was precisely to solve that problem that we created the iTAMP (International Turnkey Asset Management Platform). Our platform connects advisors to multiple custodians, execution platforms, and operational workflows within a single infrastructure designed specifically for the international market.
Our goal is to remove day-to-day operational complexity for advisors so they can dedicate their time to client relationships rather than account reconciliations, rebalancing, trade execution, or administrative processes.”

What is a Unified Managed Account (UMA)?

A.J. Harper:
“A UMA allows the advisor to build a single, integrated portfolio using multiple investment strategies simultaneously. Within the same account, it is possible to combine ETFs, fixed income, equities, SMAs, private investments, and alternative strategies.
Each of those strategies can be managed by specialized teams, while the overall portfolio remains coordinated according to the client’s risk profile and goals. Instead of selling individual products, the advisor delivers a comprehensive investment solution.”

Why is this movement happening right now?

Francisco Rosemberg:
“We believe Latin America is reaching a pivotal inflection point.
Fee-based models are already well established in mature markets. Today, approximately 53% (according to Cerulli data) of assets managed in the United States follow this model. In Europe, market share hovers around 42%. In offshore markets, we estimate penetration close to 35%, up from nearly 20% just over five years ago.
In Latin America, however, we are still at an early stage. Across the entire region, we estimate penetration at around 20%, while in domestic markets that percentage still sits around 10% to 12%. That illustrates the size of the opportunity.
The demand is already there. Virtually every conversation we have with wealth managers trends in the same direction: they want to migrate toward portfolio-centric models and long-term advisory.
What was missing was the technological infrastructure to make that transition viable. That is precisely what this partnership intends to offer.”

How does Latin America differ from the United States in this regard?

A.J. Harper:
“The United States built an exceptional infrastructure for managed accounts. But it was designed specifically for the American domestic market.
The international advisor operates in a completely different reality. They handle multiple currencies, varying jurisdictions, numerous custodians, and very distinct regulatory environments.
Our role is to bring the US managed accounts experience to Latin America, but tailored to the specific needs of international markets. That is what makes our platform a genuinely international solution.”

Who will be able to use this platform?

A.J. Harper:
“There are different user profiles. The first group consists of advisors affiliated with large wealth management institutions. These firms can integrate their existing infrastructure with the iTAMP and deploy the platform to their advisors.
We also serve independent RIAs, external asset managers, family offices, and multi-family offices. These institutions typically already work with one or more custodians.
Our platform integrates directly into the operational environments they already use. We are not asking them to change their infrastructure; we connect directly to how they already operate.”

Which countries are leading the adoption of fee-based models?

Francisco Rosemberg:
“We are seeing progress across the entire region. Brazil and Mexico are among the markets accelerating this transformation the fastest, although adoption is growing across virtually all of Latin America.
Infrastructure remains one of the main hurdles. When we look at our own ETF franchise, we see this exact trend. Between 2018 and 2021, only 3% of flows into BlackRock’s iShares franchise came from model portfolios. Over the last two and a half years, that share has increased to approximately 15%.
When we expand that analysis to include model portfolios managed by wealth managers overall—not just BlackRock models—we estimate that roughly 30% of ETF utilization is now tied to model portfolios. That demonstrates how adoption accelerates once the proper infrastructure becomes available.”

How do you view the evolution of fee-based advisory in the region?

Francisco Rosemberg:
“Initially, much of the market focused on ETF-only models. But we believe that is only the first stage. Portfolios will evolve to incorporate a much broader range of solutions, including ETFs, mutual funds, SMAs, active ETFs, and alternative investments.
Today, nearly 70% of model portfolio providers already offer—or plan to offer—exposure to private markets, primarily private credit, private equity, and private real estate, typically through interval funds.
We believe Latin America will follow a similar trajectory as its infrastructure matures.”

Can the US market serve as a benchmark for this movement?

Francisco Rosemberg:
“Without a doubt. Today, the US managed accounts industry oversees approximately $16.4 trillion in assets. In 2025 alone, that market grew 19.1%, outperforming even the S&P 500 during that period, and attracted $1.08 trillion in net inflows.
In the first quarter of 2026, even as the S&P 500 declined by 4.3%, managed accounts continued to attract capital, gathering approximately $388 billion in net inflows. Projections indicate this market could reach around $21.8 trillion by 2028, growing at an annual rate close to 12%.
This shows that the transformation is driven not merely by market performance, but primarily by a structural shift in how advisors serve their clients.”
A.J. Harper:
“For many years, it was relatively easy for advisors to distribute financial products. Deploying customized portfolios, however, required an extremely complex operational setup.
Our goal is to make portfolio implementation as simple as selling a mutual fund used to be. Technology should sit in the background. Advisors should spend their time with clients; we take care of the infrastructure.”

Salaries in Sovereign Wealth Funds, Who Is Who?

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Sovereign wealth funds (SWFs) have become one of the most powerful and least visible employers in global finance. These state-owned vehicles collectively manage more than $12 trillion in assets, investing in equities, bonds, infrastructure, real estate, private equity, and private credit across every continent, while offering careers that combine institutional investing with a geopolitical dimension that is hard to find in the private sector.
The guide “Sovereign Wealth Fund Jobs 2026: Roles, Salaries & How to Get Hired” reveals a highly selective labor market where professionals with experience in investment banking, private equity, or institutional management can access compensation packages that reach up to $600,000 per year.

The Sovereign Wealth Fund Club

Sovereign wealth funds operate under low visibility, but that does not mean they lack relevance; quite the contrary. At the top of the sector sits Norway’s Government Pension Fund Global, the largest sovereign wealth fund in the world with over $2.1 trillion in assets and equity stakes in more than 9,000 companies across 70 countries. It is followed by giants such as China Investment Corporation, Abu Dhabi Investment Authority (ADIA), Kuwait Investment Authority, and Hong Kong’s Exchange Fund.
The ranking also includes major Gulf players like Mubadala Investment Company, ADQ, Investment Corporation of Dubai, and Dubai Investment Fund, as well as Asia-Pacific institutions like Korea Investment Corporation and Australia’s Future Fund.

How Much Does a Sovereign Wealth Fund Pay?

The main difference compared to other institutional investors lies in the combination of competitive salary, stability, and global exposure. According to the guide, investment positions are broken down into three main levels:
  • Analyst / Associate: Annual salary ranging between $120,000 and $250,000.
  • Investment Officer / Portfolio Manager: Annual salary ranging between $200,000 and $600,000.
  • Director / Senior Investment Professional: Annual salary of $500,000 or more.
The $200,000 to $600,000 range for an Investment Officer or Portfolio Manager represents the study’s most significant data point, placing sovereign wealth funds in direct competition for specialized talent against private equity firms and hedge funds.
These compensation packages have consolidated and increased to such an extent that they are now as competitive as those offered by major Wall Street firms—and in many cases superior—without factoring in additional perks provided by these funds, particularly regarding job security.

Who Pays the Most?

Although funds rarely publish full salary structures, the market identifies clear regional differences, summarized below based on key insights from the report:
  • Gulf Funds (ADIA, Mubadala, ADQ, ICD):
    • The most aggressive compensation packages in the market.
    • High salaries, competitive bonuses, and tax advantages in several jurisdictions.
    • A strong focus on direct investments and private markets.
  • Norway (Government Pension Fund Global):
    • Solid compensation, though generally less aggressive than Gulf funds.
    • Institutional prestige and exposure to one of the largest portfolios on the planet.
    • Strong emphasis on governance and long-term management.
  • Singapore (GIC and Temasek, though Temasek operates under a distinct corporate structure):
    • Competitive packages with a strong professional development component.
    • Greater openness to junior profiles compared to other sovereign funds.
    • Focus on training and international rotation.
The guide highlights that Gulf funds have intensified international hiring to reinforce teams in private equity, infrastructure, technology, and private credit, putting upward pressure on compensation.

The New Star Profile: Direct Investment

The traditional portfolio manager role is evolving. Today, sovereign wealth funds seek professionals capable of deal sourcing, leading co-investments, and executing direct investments, particularly in private assets.
Areas in highest demand include private equity, infrastructure, real estate, private credit, technology, artificial intelligence, and energy transition. This shift explains why many funds are recruiting talent directly from Blackstone, KKR, Apollo, Brookfield, and other alternative asset managers.
However, unlike major investment banks, most sovereign wealth funds do not engage in mass campus hiring for university graduates. The most common path involves building prior experience in investment banking, private equity, equity research, or asset management before transitioning into the sovereign sector.

Mergers & Inquisitions

The most notable exceptions are select graduate development programs at GIC and Temasek, which maintain training schemes for high-potential junior profiles.
Beyond salary, sovereign funds offer three advantages that are difficult to replicate:
  1. Long-Term Investment Horizon: They are not subject to quarterly public market pressures.
  2. Access to Large-Scale Deals: They participate in major acquisitions, strategic infrastructure, and national-level projects.
  3. Job Stability: State backing reduces the volatility characteristic of other financial segments.

The Key Takeaway for Latin America

For Latin American wealth management, asset management, and investment banking professionals, the message is clear: sovereign wealth funds are establishing themselves as direct competitors for specialized talent. The growth of private markets and the expansion of Gulf investment vehicles are creating opportunities for profiles with experience in deal structuring, sector analysis, and alternative asset management.
At a time when major global asset managers are also reinforcing their distribution and private markets teams, SWFs add an extra dimension: the ability to manage capital at a scale that transcends financial return and directly intersects with state economic strategy.
In other words, the appeal is no longer just how much they pay, but the magnitude of the decisions they enable you to make. In that domain, few employers in the financial world can compete with those who manage the savings of entire nations.

Liquidity Needs Make Continuation Funds Shine

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In a context where exits from private equity assets continue to show a complex landscape and appetite for the asset class remains bright, it is no surprise that continuation funds are establishing themselves as a popular liquidity solution in the market.
From being a fringe solution a decade ago, these vehicles have become a more everyday proposition, increasingly popular among asset managers and investors alike. And the figures reflect an expanding market.
Data from Preqin show that continuation funds went from 13 vehicles, with $9 billion in assets in 2018, to 123 closed vehicles globally last year, totaling $75 billion.
One of the ingredients behind this growing popularity is related to liquidity dynamics within the private equity market, which continue to evolve. “While exit activity has improved, driven by some large transactions, overall distribution remains below the historical norm and many investors continue to seek new ways to achieve liquidity solutions,” Schroders noted in a recent report.
Looking ahead, expectations are for momentum to continue, considering that this type of fund is becoming increasingly attractive to GPs.

Growing Interest

A survey conducted by Bain & Company earlier this year showed that 27% of the asset managers surveyed had initiated or completed a continuation vehicle transaction in the last 24 months.
Of this total, 22% involved a single-asset deal, 3% involved multi-asset strategies, and the remaining 2% used a mix of single-asset and multi-asset investments.
Projecting into the future, expectations are even more dynamic. Four out of ten GPs expect to explore one of these transactions within the next one to two years. 24% anticipate making single-asset investments, 5% multi-asset investments, and 11% both.
The drive behind this interest, as outlined in the Bain survey, lies in the search for liquidity. When asked about the strategic reasoning behind continuation deals—both executed and projected—53% pointed to providing liquidity for existing LPs.
The other priorities highlighted were acquiring more capital to use in add-on M&A (42% of respondents) and resetting investment horizons for assets that require a longer holding period (33%).
“It is clear that continuation vehicles are becoming an established part of the liquidity toolkit. Beyond delivering capital to LPs, many GPs are using them to refinance assets and fund mergers and acquisitions for ‘buy-and-build’ strategies,” the consulting firm concluded in its report.

The Importance of the Secondary Market

The boom in continuation vehicles has reinforced the importance of secondary markets. According to Schroders, both LP-driven portfolio sales and continuation investments continue to grow, to the point that 2026 is shaping up to be a new record year for capital raising.
“Continuation investments in particular are becoming an increasingly established feature of the private equity ecosystem. While they continue to benefit from cyclical liquidity needs, our analysis shows that their growth is largely structural, reflecting their ability to retain ownership of high-quality assets with greater upside potential while providing optional liquidity to existing investors,” the firm stated in its report.
All in all, this phenomenon has left its mark on the secondary market. Figures from specialized advisory firm Evercore Private Capital Advisory show that transaction volume in the first half of 2026 exceeded $120 billion.
This represents a 20% increase compared to June 2025 and positions it as the strongest first half on record. Furthermore, they emphasized that these data consolidate the strong results of last year, when annual volume grew by 40% to $226 billion.
It is worth noting that, of the total capital accumulated in secondary transactions this year, the largest share comes from GP-led activity, at $65 billion. In contrast, LP-driven transactions totaled $56 billion.
“Single-asset continuation vehicles represented the largest share of GP-driven activity, concentrated in high-quality assets,” Evercore emphasized in its report.

BlackRock To Offer Access To Select European UCITS Funds Via Tokenized Shares

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BlackRock has announced the launch of its first tokenized fund access offering in Europe through on-chain share classes for select money market funds within the BlackRock Institutional Cash Series (ICS) range. Through this initiative, the asset manager expands blockchain-based capabilities to Europe’s largest liquidity management platform, with the objective of enhancing efficiency, transparency, and accessibility.

To execute this, BlackRock will leverage J.P. Morgan’s Kinexys asset tokenization platform, enabling the new ICS fund share classes to issue digital tokens on the Ethereum blockchain. According to the manager, this framework will allow eligible investors to access tokenized versions of existing liquidity management strategies while preserving the institutional strength and regulatory oversight inherent to money market funds.

“The new tokenized share classes offer several key features, including access to a yield-generating money market fund backed by broad scale and high liquidity. Additional capabilities include the ability to transfer tokens between investors 24 hours a day, 7 days a week, alongside near-real-time visibility and movement of positions on the blockchain. Each token represents an underlying share of an ICS fund, while the official shareholder register will continue to be managed via the fund’s traditional transfer agent infrastructure,” the firm stated.

New Use Cases for Money Market Funds

BlackRock notes that tokenized share classes enable the direct transfer of fund holdings between authorized digital wallets using smart contracts—automated software programs that execute once predefined conditions are met. According to the firm, this technology will unlock new application layers for money market funds, including:

  • Corporate Treasury Optimization: Streamlining liquidity management and capital efficiency.

  • Digital Collateral Management: Facilitating real-time pledge and transfer mechanics.

  • Broadened Distribution Channels: Expanding delivery via banks, wealth management platforms, and digital networks.

  • Financial Ecosystem Integration: Seamlessly embedding liquidity into broader tokenized market structures.

Beccy Milchem, Global Head of Liquidity Distribution and International Cash Management at BlackRock, noted: “This launch represents a major step in the evolution of how investors access and manage their liquidity, while contributing to the modernization of capital markets infrastructure.”

Hannah Winter, Head of Digital Cash at BlackRock, emphasized: “Tokenized money market funds allow high-quality, short-term investments to transition into digital environments while maintaining the exact same standards of capital preservation, liquidity, and risk management.”

Kara Kennedy, Global Head of Market Development at Kinexys by J.P. Morgan, added that “tokenization has moved from concept to execution,” pointing out that tokenizing share classes brings native blockchain functionalities to established institutional products.

Partnership with Kinexys by J.P. Morgan

Kinexys serves as the dedicated blockchain business unit within J.P. Morgan Payments. Its tokenization platform plays a pivotal role in issuing and managing the lifecycle of the tokenized shares, handling critical operations such as token minting and burning.

Furthermore, Kinexys functions as the operational bridge between on-chain activity and the traditional transfer agent infrastructure, ensuring full alignment with existing operational workflows while introducing digital asset functionality.