Allfunds Assets Under Administration Surge 21.3%, Driven By Alternative Investments
| By Amaya Uriarte | 0 Comentarios
BlackRock To Offer Access To Select European UCITS Funds Via Tokenized Shares
| By Amaya Uriarte | 0 Comentarios
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.
Latin American Wealth Migration Triggers A “Wave Of Advisors” In US Offshore Business
| By Amaya Uriarte | 0 Comentarios
Historically, access to high-net-worth and ultra-high-net-worth clients (HNWIs/UHNWIs) in the US Offshore segment was monopolized by traditional private banking. Global institutions such as UBS, J.P. Morgan, Citi Private Bank, and Santander Private Banking controlled both custody and distribution through closed or guided architectures.
However, the ecosystem has shifted radically due to three primary drivers:
Proliferation of Independent Advisors (RIAs and Multi-Family Offices): Private banking professionals have migrated en masse toward independent firms in Miami or intermediary platforms (independent broker-dealers), demanding open architecture and products free from parent-company bias.
Demand for Private Markets and Liquid Alpha: Clients are no longer satisfied with traditional stock and bond portfolios; they are actively demanding private credit, real estate, infrastructure, and thematic strategies.
Fee Pressure: Investors seek to eliminate the double layers of fees associated with traditional private banks, preferring direct relationships or guidance from fee-only advisors.
In light of this landscape, asset managers have chosen not to rely solely on distribution through traditional private banks. In recent months, the deployment of senior sales teams and direct distribution agreements in hubs like Miami has intensified to service US Offshore platforms directly.
This evolution has heightened competition among asset managers, who no longer limit their offerings to traditional funds. The updated product suite incorporates UCITS vehicles, ETFs, private credit, private markets, global fixed income strategies, and solutions tailored specifically for high-net-worth investors with offshore structures.
Within this new paradigm, Miami consolidates its standing as the primary decision-making hub for Latin American wealth and the focal point where major international firms wage an escalating battle to capture the region’s assets.
Implications for Traditional Private Banking
This surge of asset managers poses a direct threat to the margins of the traditional private banking model. While institutions like UBS or Citi attempt to retain assets through their integrated custody and wealth management platforms, they face an increasingly sophisticated client base that is unbundling its services: custody remains with low-cost platforms or independent US custodians (such as Pershing, Charles Schwab, or Fidelity), while investment strategy design is delegated to specialized managers.
For the high-net-worth Latin American client, the result is a significantly broader and more competitive investment offering. Global asset managers compete head-to-head in markets like Miami to design tailored solutions for a capital base that shows no signs of returning to its home markets in the near term.
The ultimate consequence is a fundamental redefinition of the competitive model in the US Offshore business. The contest is no longer fought solely among private banks for asset custody, but between banks and global asset managers for control of the client relationship.
Japan’s Labyrinth: Higher Inflation, A Weak Yen, And Tighter Monetary Policy
| By Amaya Uriarte | 0 Comentarios
The market is seeing a reduction in overweight positions in 10-year Japanese Government Bonds (JGBs), reflecting rising domestic inflation, yen weakness, high energy prices, and the Bank of Japan’s (BoJ) trajectory of gradual monetary policy tightening.
During the first half of 2026, inflation in Japan has remained at moderate levels compared to previous years, hovering below the official 2% target set by the BoJ. In fact, the monetary institution revised its median core CPI estimate downward to 2.5%, compared to the 2.8% previously estimated. Furthermore, the BoJ projects that core inflation will hover around 2.4% in FY27 and 2.0% in FY28, suggesting a progressive anchoring around the official long-term target.
Inflation Management
According to experts, this downward revision is primarily attributed to the temporary effect of government energy subsidies during the summer months, among other measures. “Japan has announced plans to reduce the consumption tax on food from 8% to 1% starting in April 2027, aiming to address cost-of-living concerns amid low public approval regarding inflation management. Although fiscal risks persist, retail and food and beverage companies are the primary beneficiaries,” notes Louis Chua, Asia Equity Analyst at Julius Baer.
In a press conference held on the afternoon of July 27, 2026, Japanese Prime Minister Sanae Takaichi announced that a proposal to reduce the consumption tax will be presented later this week, lowering the tax on food products from 8% to 1%, effective April 2027. To provide context, Chua explains that reducing the food consumption tax is a key campaign promise of the ruling Liberal Democratic Party (LDP), with the cost of living being one of the top concerns among Japanese citizens.
“According to the latest Yomiuri poll, only 21% of respondents approve of the government’s response to high inflation, while 71% disapprove, which may have contributed to the recent downward trend in the government’s approval ratings. A bill to approve the tax cuts will be submitted to the Diet of Japan following the conclusion of bipartisan debates, despite the opposition having previously opposed these cuts,” the Julius Baer expert points out.
Monetary Policy
This concern over the standard of living in Japan leads directly to analyzing the BoJ’s recent moves. Although it kept its policy rate unchanged at its July 30–31 monetary policy meeting, the Outlook Report contained several hawkish elements, such as upward revisions to its real GDP growth forecasts for fiscal years 2026 and 2027. However, Japanese sovereign bond futures experienced a mild bounce following the release of the statement and report. “Overall, markets did not seem convinced that the report provided sufficient justification to price in additional rate hikes,” BofA analysts note.
Nevertheless, they believe that whether markets assign a higher probability to a September rate hike will largely depend on the extent to which the Takaichi administration shows support for further increases. In this regard, the next key catalyst will be the Summary of Opinions, scheduled for publication on August 10, specifically the comments from the Cabinet Office representative attending the meeting.
“Governor Ueda’s statements during the press conference carried a somewhat hawkish tone. His comments, noting that the risk of Japan returning to deflation has diminished and that clear signs of a significant rise in inflation expectations have recently emerged, suggested the possibility of a faster pace of rate hikes. As a result, the market-implied probability of a hike at the September meeting has increased,” stated Tomonobu Yamashita, Interest Rate Strategist at BofA.
Intervention to Curb Yen Weakness
For BofA experts, a key takeaway from this BoJ meeting was that while hawkish elements were present, they were not sufficient to exert renewed downward pressure on USD/JPY after the pair had already been pulled lower by suspected foreign exchange market interventions.
In the view of Shusuke Yamada, FX and Rates Strategist at BofA, the risk of further yen depreciation persists if left unchecked. “If authorities allow USD/JPY to rebound upward, their credibility could be eroded, raising the cost of future interventions down the road. In our view, this is precisely the moment when authorities should firmly push USD/JPY lower and prevent a rapid return to the yen weakness trend. We continue to believe that a consolidated break below ¥155 could alter market dynamics in USD/JPY. Such a move could trigger a broader shift in positioning and flow patterns that have long favored yen weakness. As we see it, authorities should now demonstrate clear resolve to defend the currency,” Yamada argues.
In fact, authorities have already taken action. As explained by Sree Kochugovindan, Senior Economist at Aberdeen Investments, coordinated foreign exchange market interventions were conducted by Japan and the United States to help stem yen weakness. This marks the first coordinated intervention since 2011, which was aimed at curbing yen appreciation following the Great East Japan Earthquake.
“On July 30, at a strategically chosen moment—after the Federal Reserve’s policy meeting and prior to the BoJ’s—Japan’s Ministry of Finance (MoF) carried out an estimated unilateral intervention of between 8.5 and 10 trillion yen, while the Federal Reserve Bank of New York conducted rate checks. This helped spur a sharp, albeit only partially sustained, rally in the yen from multi-decade lows,” she explains. Subsequently, on July 31, Japan sold USD/JPY again, while the New York Fed sold EUR/JPY on behalf of the US Treasury via two US dealers.
In her view, over the short term, the combination of intervention risk, US backing, and a more hawkish BoJ stance increases the likelihood of further short-covering trades in USD/JPY, especially given the high level of speculative short positions on the yen.
“Further appreciation could also ripple across other markets as carry trades are unwound. This was previously observed in the summer of 2024, when a surprise announcement from the BoJ triggered a sharp rise in the yen. For Japanese Government Bonds (JGBs), growing concerns over yen-driven inflation and rising expectations of further BoJ tightening measures should maintain upward pressure on yields, particularly if exchange rate weakness resumes and strengthens the case for an earlier rate hike. However, over the long term, intervention alone is unlikely to reverse the trend without further normalization by the BoJ and narrower rate differentials,” the Aberdeen Investments expert concludes.
The Great Transformation Of The Miami-Texas Corridor, Driven By Latin American Capital
| By Amaya Uriarte | 0 Comentarios
Historically, the outflow of Latin American capital to the United States was driven by defensive logic. Business owners and high-net-worth families transferred a portion of their wealth to safeguard it from devaluations, inflation, political uncertainty, or the financial crises that periodically hit the region. It was known as flight capital: money seeking refuge. Today, this phenomenon is undergoing a profound shift.
The flow of wealth originating from Latin America—and particularly from Mexico—is no longer driven solely by asset protection. According to the LATAM Family Office Society, business families are establishing permanent structures along the Miami-Texas corridor, turning it into a strategic hub from which they coordinate corporate governance, generational succession, international investments, private asset management, and co-investments alongside other high-net-worth families.
In other words, it is no longer about taking money out of the country, but rather about internationalizing the family business without abandoning its local operations. This shift represents one of the most significant transformations in the Americas’ wealth management and family office market over the past decade. The difference between the two models is substantial.
Whereas in the past a large portion of Latin American wealth arrived in the United States to remain relatively static—deposited in bank accounts, real estate, or financial instruments considered safe—the goal today is different.
Business families are establishing investment vehicles, international holdings, family offices, trusts, private foundations, and corporate governance structures that enable them to manage businesses spread across multiple countries, facilitate wealth succession, and involve new generations in decision-making.
Two US states are essential to these objectives: Texas has established itself as the operational hub for these structures, while Miami continues to serve as the financial and wealth gateway for Latin America.
The combination proves especially attractive to Mexican business owners due to geographic proximity, commercial integration under USMCA, the depth of the US financial system, and a growing ecosystem of specialized advisors catering to large fortunes—though, in reality, entrepreneurs and investors of many nationalities are making their way to these destinations.
The Figures Behind the Expansion and Model Shift
Capgemini’s World Wealth Report 2026 points out that the wealth of high-net-worth individuals (HNWIs) reached a record high of $98 trillion after growing 8.7% during 2025—the largest annual increase since 2018. The global population of HNWIs reached 25.3 million people, nearly two million more than the previous year.
North America once again concentrated a large portion of that expansion. The United States added 736,000 new millionaires during 2025, bringing its HNWI population to 8.7 million, while the segment’s total wealth grew by 9.2%. In contrast, Latin America showed much more modest growth.
Capgemini estimates that the wealth of Latin American high-net-worth individuals grew around 5.1%, while the HNWI population barely increased by 0.3%, reflecting that the region continues to face economic and political uncertainty. Mexico stood out within the regional context, posting a 5.4% increase in high-net-worth wealth and a 1.8% rise in the number of HNWIs.
Texas Is No Longer Just an Industrial Destination
For many years, Texas was viewed primarily as the state for manufacturing plants or US-Mexico trade-related companies; today, its role is quite different.
Houston, Dallas, and Austin have transformed into decision-making centers for Latin American family businesses, wealth planning firms, alternative investment managers, law firms, private banks, and tax advisors. Proximity to Mexico allows daily operations to run smoothly while strategic decisions regarding international investments, succession, or global expansion are made from the United States.
Furthermore, Texas offers an attractive environment due to its regulatory framework, lack of state personal income tax, lower operating costs relative to other US financial centers, and an increasing concentration of specialized talent.
Miami Retains Its Wealth Leadership
While Texas strengthens its corporate profile, Miami retains its position as the primary financial hub for Latin America’s largest fortunes.
The city hosts offices of virtually every major international bank specializing in private banking and wealth management, as well as legal, tax, and fiduciary firms tailored to Latin American clients.
According to the World’s Wealthiest Cities 2025 report by Henley & Partners and New World Wealth, Miami boasts around 38,800 millionaires, consolidating its standing as one of the world’s primary centers for mobile private wealth. The city continues to serve as a meeting point for investors, asset managers, and business families from Mexico, Brazil, Colombia, Argentina, Chile, and other Latin American markets.
Succession Becomes a Priority
One of the less visible drivers behind this transformation is the generational shift; thousands of Latin American family businesses will face wealth and corporate succession processes over the coming decade.
The challenge is no longer simply distributing assets, but preserving companies operating across multiple countries, managing private investments, coordinating different family branches, and preparing the rising generations.
In this context, family offices are evolving into comprehensive platforms capable of combining traditional investments with private assets, infrastructure, private equity, international real estate, and philanthropic strategies.
Wealth sophistication is also reshaping portfolio composition; according to Capgemini, 88% of high-net-worth individuals currently work with more than one wealth management firm, primarily to access opportunities in alternative investments, private markets, and specialized strategies.
This shift explains why Latin American family offices are demonstrating growing interest in private equity funds, private credit, infrastructure, technology, artificial intelligence, and international co-investments—they no longer seek merely to preserve wealth, but to participate directly in its creation.
The transformation of the Miami-Texas corridor reflects a far deeper shift than a simple geographic movement of capital. It represents the evolution of major Latin American fortunes toward an international model in which the family business ceases to be tied to a single country and begins operating through global investment, succession, and corporate governance platforms.
For Mexico, this trend is particularly meaningful. Growing economic integration with the United States, the nearshoring phenomenon, the consolidation of USMCA, and the expansion of business wealth are prompting an increasing number of families to professionalize the administration of their wealth through international structures. It is here that the old concept of flight capital loses its relevance.
In its place emerges a new era in which Latin American wealth does not abandon its home countries, but builds a second platform from the United States to compete in a global market.
Quality Of Life, Salaries, And Housing: The New Map Of Global Metropolises
| By Amaya Uriarte | 0 Comentarios
M&G Names John Bruen As Head Of Infracapital
| By Amaya Uriarte | 0 Comentarios
Infracapital, M&G’s infrastructure equity investment platform—integrated within its Private Markets division with £81 billion in assets under management—has appointed John Bruen as the firm’s new head. He will join on September 1 and report to Emmanuel Deblanc, Chief Investment Officer of Private Markets at M&G Investments.
According to the company, John brings over 25 years of international infrastructure investment experience. He joins from H.I.G. Capital where, as Managing Director and partner, he helped establish the firm’s infrastructure platform and raise its first value-add infrastructure fund, which reached $1.3 billion. He also possesses extensive experience investing in and managing portfolio companies across the infrastructure sector, having previously worked at Macquarie Asset Management and Ferrovial Airports.
He will succeed Martin Lennon, who is retiring after a career of more than 36 years in the industry. Since co-founding Infracapital in 2001, he led its growth into one of Europe’s leading middle-market infrastructure investors. Under his leadership, Infracapital raised over £9 billion across a series of dedicated funds investing in essential infrastructure across Europe, through public-private partnerships, brownfield infrastructure assets, and greenfield projects spanning energy, digital infrastructure, transport, and utilities.
Infracapital notes that at a time when Europe seeks to strengthen its energy security, accelerate decarbonization, drive digitalization, and foster economic growth, the company plays a prominent role in financing and developing the essential infrastructure on which communities and businesses rely.
Key Reactions
“John is a highly respected leader in the infrastructure sector, with an outstanding track record in investing and building businesses. His combination of investment expertise and leadership capabilities, alongside his strong industry relationships, position him exceptionally well to lead Infracapital into its next phase of growth at a time when demand for investment in essential infrastructure continues to rise across Europe. I would like to thank Martin for his extraordinary contribution to the business over the past 28 years. Under his leadership, Infracapital has established itself as a trusted partner for both investors and portfolio companies, while playing a pivotal role in developing the infrastructure investment sector in Europe. Martin will remain actively involved during the leadership transition process, working closely with the team to ensure a smooth handover and continuity for clients and stakeholders,” highlighted Emmanuel Deblanc, CIO of Private Markets at M&G Investments.
For his part, John Bruen stated: “As demand for infrastructure continues to grow, driven by the energy transition, digitalization, and the need to modernize critical assets, the market presents significant long-term investment opportunities. Infracapital’s investment approach, deep sector expertise, and strong track record place it in a privileged position to capitalize on these structural trends. I am excited to work alongside the team to build on these strong foundations and continue generating value for our investors and stakeholders.”
“I am proud of what we have built at Infracapital over the past 25 years. Our success has been made possible thanks to the contributions of numerous highly talented professionals, both past and present, and the trust our clients have placed in us. Together, we have helped transform infrastructure investing from a niche strategy into an established asset class for institutional investors, and it has been a privilege to experience that evolution firsthand. I retire with peace of mind knowing that the firm is in an exceptionally strong position for the future,” added Martin Lennon regarding his departure from the firm.
My Stock Has Become A Meme: Who Is Really Moving The Stock Markets?
| By Amaya Uriarte | 0 Comentarios
The US stock market broke all its trading records on October 8, 2025: according to SEC data, volume reached 6.26 million orders in that single session, making it the highest-volume trading day in history since data collection began in January 2012. In 2026, we could be on track to break that record (the US regulator only provides data through December 31, 2025), driven by the sharp spike in volatility brought about by the war between Iran and the United States, which has triggered severe periodic corrections. However, who is actually moving the equity markets? Have stock market dynamics changed? And, most importantly, how are active management firms adapting to this new reality?
“Twenty years ago, it was big asset managers who could engage in price discovery; they were the ones moving the market. But the market has changed a lot, and now it is retail investors and hedge funds setting the rules of the game, and we should admit it,” reflects Huseyin Turan, portfolio manager of the J Safra Sarasin Tech Disruptors fund at J. Safra Sarasin Sustainable Asset Management (JSS SAM). Various data sources confirm this manager’s impression.
According to Reuters data, retail investor flows into US equities reached record levels in 2025, topping $308 billion. This represents a 14% increase over the “meme stock” craze seen in 2021, when flows of $270 billion were recorded.
Citadel confirms the continuation of this trend in its first-half 2026 report on market structure and flows, noting that during May and June it recorded an average daily cash equity trading volume 65% higher than in 2025, and more than double the 2024 average: “Nine of the ten highest-activity trading days ever recorded on our platform took place in the last two months, including seven in the month of June alone.” In fact, they point out that June 12 registered the largest single-day net volume of retail investor purchases ever observed on the platform, exceeding the previous record by 50%. It is worth noting that Citadel is the number one market maker for retail investors in the US, executing approximately 35% of all retail orders.
One of the keys to this spectacular increase in trading relates to expanded access for retail investors who did not previously invest in the market; according to Citadel, 50% of lower-income US households—traditionally the least active investing segment—today hold more than $615 billion in stocks and mutual funds, an all-time high. Since 2010, participation in stocks and mutual funds among the bottom 50% of US households by purchasing power has grown by more than 570%, outstripping any other income group.
“Buy the Dip,” “Meme Stocks,” and “Dumb Money”
In late 2020, video game retailer GameStop was one of the most heavily shorted stocks on the US market. Everything changed following a post on a Reddit forum by a user arguing that the company was undervalued. Soon, other forum users began investing in GameStop, driven partly by this user’s thesis—US investor Keith Gill, known on the forum as @RoaringKitty or @DeepFuckingValue—but also guided by a mix of emotions, ranging from nostalgia for bygone days to defying Wall Street elites.
GameStop became the first documented meme stock in history: users began buying shares en masse, eventually triggering a short squeeze (hedge funds that had taken short positions were forced to unwind them and buy back shares to cover losses, driving the stock price up and triggering further short covers). As a result, the stock rose from trading at $1.50 per share to hitting highs of $81.25 in a matter of weeks.
Five years later, the company continues to trade at nearly 15 times above its lows and recently submitted a takeover bid for eBay that was rejected by the company. According to SEC filings, GameStop holds a 10% stake in eBay, suggesting this chapter is not yet closed.
GameStop is not the only example, though it remains the most iconic instance of these sharp speculative movements centered on individual stocks that suddenly capture all the headlines for a brief period. This behavior has also been labeled “dumb money” by various media outlets. Another high-profile case, which resulted in a regulatory probe, involved Elon Musk’s tweets recommending investments in the cryptocurrency Dogecoin.
For Hartwig Kos, Head of Multi Asset Allocation at Allianz Global Investors, the recent IPO of SpaceX was the latest major meme. In an interview with Funds Society, Kos explained that his team has started working on identifying “meme themes”: “You position yourself from a fundamental standpoint, but you must also keep in mind what the trending topics are in the market, because the weight of the retail investor is very significant today. Currently, it is a market largely dominated by ‘animal spirits,'” he detailed.
Kos and his team also track whether retail investors buy during steep downturns, a behavior termed “buy the dip.” Citadel’s report confirms that retail investors purchased nearly 3.5 times the average daily volume on days when the S&P 500 closed lower during the first half of 2026.
For Fabiana Fedeli, CIO of Equities, Multi-Asset, and Sustainability at M&G Investments, one of the major shifts in equities since COVID has been the rise in dispersion across stocks, sectors, and countries. She cited as an example that in 2025, the materials sector “was fantastic in Asian emerging markets and very mediocre across the rest of the world.”
During a media presentation at the firm’s London office, Fedeli stated: “Investors are becoming increasingly specific and idiosyncratic,” while noting that retail investor participation in markets has virtually doubled since 2019 and that today’s retail investors are far better informed than in the past thanks to broader access to diverse information sources, including social media.
The expert defended M&G’s active management approach based on fundamental analysis, though without ignoring these trends: thus, if one of the stocks they hold or have on their radar becomes a meme stock, the protocol is to review the fundamental thesis: “If we believe it is truly worth buying, we wait for that ‘meme’ trend to cause its price to plunge, and then we enter; or, if we hold that stock and the ‘meme’ trend is pushing it to levels we believe completely overvalue future earnings, then we sell it.” Fedeli emphasized that the firm does not seek to actively participate, because “narratives change too quickly.”
At JSS SAM, manager Huseyin Turan notes that, in the case of mega-cap stocks, retail investor speculation “is not going to move share prices all that much.” Turan, who identifies as an X user (formerly Twitter) and a reader of several blogs, explains regarding comments from such accounts: “We have learned many good things from some Substack bloggers, but we are very selective. I don’t believe they have the capacity to move share prices, but they can move the narrative or the debate surrounding a stock.”
The Role of Passive Management
However, attributing stock market dynamics simply to the more or less irrational behavior of retail investors means taking the part for the whole. Citadel’s own report speaks of 2026 as witnessing “the structural transformation of equity markets” and draws conclusions regarding the primary forces currently moving markets: “Concentration, passive investing, retail investor participation, leverage, and volatility are no longer independent trends. Together, they increasingly determine how capital flows, how prices are set, and how risk is transferred.”
Among this set of interconnected trends, the growing role of passive management is worth highlighting. According to ETFGI data compiled in its Global ETFs Industry Landscape Insights report, the global ETF sector reached a record $23.09 trillion in the first half of the year, with net inflows hitting an all-time high of $1.33 trillion.
From M&G, Fabiana Fedeli warns that this changing dynamic is in turn altering how institutional investors allocate capital: “We have a number of clients who have asked us to start moving some money from passive to active management in areas where we believe we can generate greater returns actively.” The expert offered the example that year to date, returns for the Magnificent Seven have ranged between 6% and 7%, whereas investing in the 300 largest constituents of the S&P 500 “would have yielded more than double.” “Forget index investing. Real alpha can be achieved through stock picking,” she asserted flatly.
Fedeli added that more sophisticated asset owners are also shifting their asset allocation, moving from a strategic asset allocation to what she described as a “total portfolio allocation”: while a traditional strategic allocation involves a series of asset blocks assigned different static weights, allocations in this new model are far more dynamic and unanchored from indexes, instead establishing absolute return targets tailored to investor needs. “It is a harder way to invest, but many of us are adapting gradually. Today’s reality is that we have moved away from passive investing and there is greater capacity to be more granular,” she concluded.
The Weight of the Momentum Factor
“We are in a momentum market: the more something rises, the more it tends to rise afterward. These markets are very lucrative because they capture major long-term trends, especially when leverage is involved… and we are currently at peak leverage levels,” says Víctor de la Morena, CIO of Amundi Iberia, clarifying that he was referring primarily to institutional money.
During an outlook presentation for the second half of the year in Madrid, De la Morena explained that this combination of momentum and leverage is helping investors multiply their gains during uptrends, “but it generates tremendous volatility, because when those trends break, the pullbacks are brutal.”
De la Morena warns that investors seem already “accustomed to this type of market” where large swings can occur—in fact, unprecedented levels of volatility are being recorded in the Nasdaq—yet this combination of momentum and leverage is creating “a great deal of distortion.”
Kriti Gupta, Global Investment Strategist at J.P. Morgan Private Banking, and Nick Roberts, portfolio manager, point out the obvious: today it is AI capturing all the momentum. “Investors are not only buying shares in companies adopting this technology, but are also capitalizing on scarcities related to its development. This includes GPUs, memory, networking equipment, power generation, grid infrastructure, cooling, transformers, copper, gas turbines, and data center capacity. This trend has come at the expense of enterprise software and commercial services.”
Both experts note that the outperformance of this winning group has been historic so far this year, pointing out that internal dispersion within the momentum factor is at its highest level since 1990: “While a basket of large-cap US non-AI stocks is up 3.5% this year, a basket tied to AI data centers has generated a 47% return. The benchmark MSCI USA Momentum Index has risen 43% since the S&P 500’s trough on March 30, representing a rally more than double that of the broader index,” they note.
The latest test for this dynamic lies in the IPOs announced for this year. SpaceX’s successful debut has already brought an extra influx of demand, although De la Morena points out that “since the year 2000, no entity had demanded so much money from the market.” The expert stressed the need to monitor these “market tests” very closely to determine “to what extent that appetite reflects tangible investment rather than speculation.”
Regarding the IPOs announced for after the summer—Anthropic and OpenAI—De la Morena concludes with this warning: “What lies ahead could be an avalanche of capital, and that money has to come from somewhere: either it exits other assets, or it comes from liquidity and savings… or credit is extended to fund it.”
State Street to Expand Its Presence in Latin America with Santander CACEIS Latam Securities Services
| By Beltrán | 0 Comentarios
State Street Corporation announced today that it has signed an initial agreement to acquire the Santander CACEIS Latam Securities Services joint venture in Brazil, Mexico, and Colombia. The joint entity, owned by Banco Santander and CACEIS, holds approximately $470 billion in assets under custody (AUC) and around $225 billion in assets under administration (AUA). The transaction will reinforce State Street’s presence in Latin America and establish the firm as a leading provider of custody, foreign exchange, and other middle- and back-office solutions across the region’s three largest institutional investment markets.
Combining State Street’s global platform with an established local market presence, regulatory expertise, end-to-end service capabilities, and top talent in Latin America will significantly expand the company’s global asset servicing network and strengthen its ability to support institutional investors in some of the world’s fastest-growing investment markets.
“Our success in servicing the world’s largest and most sophisticated global investors is built on our deep local presence and expertise around the globe. Effectively serving global and regional clients in Brazil, Mexico, and Colombia requires that same formula of local presence and specialized knowledge,” said Ron O’Hanley, Chairman and CEO of State Street. “This transaction will enable us to better serve our global clients with cross-border and local investment needs in Latin America, while also strengthening our ability to support investors in accessing growth opportunities and managing global portfolios to deliver better outcomes,” he added.
Following the closing of the transaction, State Street expects to retain the business’s experienced local teams and continue operating the entities through their existing market licenses and regulatory frameworks.
Joerg Ambrosius, President of Investment Services at State Street, stated: “Our clients are looking for an essential partner capable of delivering seamlessly across all markets.” He concluded: “By combining State Street’s global platform, which serves clients in more than 100 markets, with established local capabilities in Latin America, we are creating a stronger, more connected service model. This expanded model will help clients navigate complexity, manage risk, and pursue growth in the region with complete confidence.”
State Street intends to enter into definitive acquisition documentation following the completion of consultation processes with relevant employee representatives. The transaction is subject to regulatory approvals and other customary closing conditions, and is not expected to close until sometime in 2027.
Goldman Sachs & Co. LLC is acting as financial advisor to State Street on the transaction, while Freshfields is serving as legal counsel.
UBS Delivers Another Record Quarter Driven by Wealth Management Business
| By Amaya Uriarte | 0 Comentarios
The largest banking integration carried out since the 2008 financial crisis is entering its final stretch. However, beyond the operational success of the Credit Suisse absorption, UBS’s second-quarter results conveyed another, far-reaching message for the global financial industry: the wealth management business continues to consolidate its position as the single most critical source of growth for major international banks.
According to its financial report, during the second quarter of 2026, UBS reported net profit of $2.8 billion and pre-tax profit of $3.6 billion, while underlying profit rose to $3.9 billion—a 45% increase compared to the prior-year period. Revenues grew by 13%, driven by solid performance across virtually all divisions.
Nevertheless, the metric observed most closely by the wealth management industry was altogether different. The Global Wealth Management division successfully attracted $36 billion in net new assets during the quarter, bringing the total to $73 billion for the first half of the year—a clear signal that the firm continues to capture wealth from high-net-worth clients even after integrating the vast majority of Credit Suisse’s legacy business.
As a result, total invested assets managed across the entire group reached a record high of $7.3 trillion, a figure that cements UBS’s position among the largest wealth managers globally.
The New Wealth Landscape
During the earnings call, executive management highlighted that growth was particularly robust in the Americas and Asia—regions where the high-net-worth population continues to expand and where demand for specialized financial advice maintains a structural upward trajectory.
In this context, client transaction revenues within the wealth management unit grew 23% year-over-year, reflecting heightened investment activity propelled by more dynamic financial markets and a renewed risk appetite throughout much of the quarter.
The combination of new inflows, higher advisory fees, and a favorable investment environment reinforces a trend recently mirrored by other financial titans such as BlackRock, Vanguard, Morgan Stanley, and JPMorgan: competition no longer centers merely on selling financial products, but on managing long-term relationships with increasingly wealthy and sophisticated clients.
Credit Suisse Fades from the Headlines
Just three years ago, UBS faced the formidable challenge of absorbing Credit Suisse following the latter’s collapse. Today, that process is virtually ceasing to be a source of uncertainty. The institution reported that over 90% of legacy technology applications have been decommissioned and nearly 70% completely decommissioned, while cumulative synergies have reached $12 billion in gross cost savings—nearing the target of $13.5 billion slated for year-end.
For investors, this signals that the bank can once again pivot toward growth rather than integration. The results also underscore how the business model of major international banks has evolved. While traditional lending activities face compressed margins and heightened regulatory burdens, wealth management offers recurring revenues, lower capital requirements, and client relationships that frequently span decades.
In UBS’s case, Global Wealth Management generated revenues of $7.1 billion—approximately half of the group’s total top-line revenue—consolidating its role as the bank’s primary growth engine.
Capital Return and Regulatory Outlook
Furthermore, this financial strength enabled UBS to announce a new $3 billion share buyback program, of which at least $1 billion is slated for execution over the coming months—though the pace of execution will also depend on forthcoming capital rules being discussed by Swiss regulators in the wake of Credit Suisse’s collapse.
For the global wealth management industry, UBS’s results yield an important conclusion. The Credit Suisse integration is fading as the central talking point. In its place emerges a structural reality: wealth creation continues to expand, high-net-worth individuals remain in pursuit of specialized advice, and institutions with global scale are the primary beneficiaries of this shift.
If a decade ago the race was to become the largest bank, today the competition appears concentrated on managing the largest possible pool of private wealth. And, for now, UBS is demonstrating that this strategy continues to pay off.