Bitcoin Matures: Lower Liquid Supply and Growing Institutional Dominance Redefine Its Cycle

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Bitcoin has come a long way from the famous purchase of two pizzas for 10,000 BTC made by Laszlo Hanyecz in May 2010 to its current consolidation as a global asset. According to the latest Binance Research report, which analyzes its evolution over its 16-year history from a functional, behavioral, and structural perspective, the cryptocurrency is increasingly integrated into institutional portfolios.

The report highlights a structural contraction of the liquid supply. The proportion of Bitcoin held by long-term holders has risen from around 30% in 2013 to approximately 60% today, recording the largest increases during market bear periods, which points to a dynamic of accumulation rather than capitulation. In addition, nearly 25% of the Bitcoin supply has remained inactive for more than five years, suggesting that the volume actually available for trading is materially lower than what the circulating supply reflects.

Institutional participation has become one of the defining features of the current cycle. Institutional entities currently own around 3.88 million BTC, equivalent to 18.5% of Bitcoin’s fixed supply of 21 million, while public companies and ETFs each account for close to 6% of the total. Excluding positions linked to DeFi and other protocols, the estimated institutional holding stands at around 3.5 million BTC, equivalent to about 1 in every 6 BTC. This marks the first cycle in which the marginal buyer is increasingly institutional rather than retail. Furthermore, nearly half of corporate Bitcoin accumulation has occurred over the last 12 months.

Meanwhile, spot Bitcoin ETFs in the US already accumulate close to 1.62 million BTC, a figure higher than the remaining Bitcoin left to be mined, highlighting the growing weight of flows into ETFs, the adoption of Bitcoin as a corporate treasury asset, and the behavior of long-term holders compared to mining issuance.

Likewise, volatility trends reflect greater market maturity. The 90-day realized volatility dropped to approximately 29% by the end of 2025, its lowest level in nearly a decade, while the average volatility of the cycle has moderated to around 48%, compared to 74% and 76% recorded in the two previous cycles. Bitcoin’s market capitalization has also increased to represent approximately 5% of the total market capitalization of gold, compared to virtually zero levels in 2010, with particularly significant advances following the launch of spot Bitcoin ETFs in the US in January 2024.

The report also notes that emerging markets are driving the next phase of Bitcoin adoption. The APAC region recorded 31% year-on-year growth in the number of Binance users, followed by Latin America at 29%, and MENA at 26%. Collectively, the share of Binance users in emerging markets holding BTC reached 58% in 2026, a 29% year-on-year growth, well above the 18% growth observed in developed markets. Bitcoin’s sustained profitability against major emerging market currencies over the past 13 years has favored greater adoption in these regions.

According to Javier García de la Torre, Director of Binance for Spain and Portugal, “Bitcoin is entering a new stage of maturity, marked by a lower liquid supply, growing institutional participation, and an increasingly relevant role as a reserve asset. What a few years ago was perceived as an experimental asset is today consolidating as a strategic diversification tool for companies and institutional investors.”

Sports Enter the Portfolios: Blue Owl Acquires a Minority Stake in the Cleveland Cavaliers

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Blue Owl, one of the world’s largest alternative asset management and investment firms, announced the acquisition of a minority stake in the Cleveland Cavaliers through its HomeCourt Partners fund, a vehicle created specifically to invest in professional sports franchises.

The announced operation reflects a global trend: sports teams, previously considered only as entertainment businesses, are now seen by institutional investors as alternative assets with appreciation potential, recurring revenue, and low correlation with traditional markets.

For decades, investing in a sports team was practically a privilege reserved for billionaire businesspeople and family groups with a strong emotional connection to a franchise. Today, that logic is changing.

Major professional leagues have become a new territory for private equity funds, alternative managers, and family offices looking for exposure to scarce assets with global brands, diversified revenue streams, and long-term growth potential.

The transaction represents the sixth NBA franchise backed by HomeCourt Partners since its creation, consolidating a strategy that seeks to transform sports ownership into a formal alternative investment asset class. Cavaliers owner Dan Gilbert will maintain the majority stake in the franchise.

Beyond the Cleveland team, the operation reflects a broader trend: professional sports are moving away from being solely an entertainment business to become a financial asset within institutional portfolios.

The appeal of sports franchises for institutional investors stems from several characteristics that are highly valued in private markets today.

Unlike other traditional assets, sports teams combine:

  • Global brands that are difficult to replicate

  • Exclusive participation rights in closed leagues

  • Growing revenues from television and digital platforms

  • Long-term commercial contracts

  • Ability to expand internationally

  • Highly engaged fan communities

For many alternative asset managers, these characteristics turn sports franchises into assets with similarities to other private investment segments such as infrastructure, premium real estate, or intellectual property assets.

“Sports investments are a fast-growing alternative strategy due to the diversification and potential stream of stable income they can provide investors,” explained Michael Rees, co-president of Blue Owl, when announcing the operation.

The investment thesis is clear: while public markets face cycles of volatility, sports assets offer exposure to structural trends such as global consumption, entertainment, technology, and digital monetization.

The Shift from Individual Owners to Institutional Investors

The most significant change in recent years is the entry of institutional capital. The NBA was one of the first major US leagues to open the door to specialized institutional investors. In 2020, it created a framework that allowed approved funds to hold minority ownership stakes in teams.

Within this context, HomeCourt Partners was born as a strategic alliance between Blue Owl and the NBA to provide institutional capital to the league’s ecosystem.

The fund has a unique feature: it is the only pre-approved institutional investor that can acquire equity stakes in any of the 30 NBA franchises, allowing it to build a diversified portfolio within a single league. The strategy responds to a phenomenon already observed in other sports industries.

Firms like Arctos Partners, RedBird Capital Partners, Sixth Street, and CVC Capital Partners have developed specialized vehicles to invest in teams, leagues, commercial rights, and sports-related assets.

The logic is similar to that used by traditional private equity funds: acquire stakes in businesses with growth potential, professionalize operations, and benefit from the future appreciation of the asset.

Sports Valuations Break Records

The growing participation of institutional investors coincides with a period of strong appreciation in the value of sports franchises. According to Forbes estimates, the average value of an NBA franchise has multiplied significantly over the last decade, driven by higher commercial revenues, broadcasting contracts, and the global expansion of the league.

Currently, several franchises exceed valuations of over 5 billion dollars, while the most valuable teams in the sports world reach figures exceeding 10 billion dollars. The Golden State Warriors, the Los Angeles Lakers, and the New York Knicks are among the most valuable sports franchises in the world.

The phenomenon is not exclusive to basketball. In the NFL, the Dallas Cowboys have been valued by Forbes at more than 10 billion dollars, becoming one of the most valuable sports assets on the planet.

The growth responds to a transformation of the business model; previously, value was concentrated mainly in tickets and television, whereas now it includes international rights, streaming platforms, sports betting, e-commerce, digital content, VIP experiences, and fan data utilization, among others.

Blue Owl Bets on Long-Term Assets

The investment in the Cavaliers also fits within Blue Owl’s overall strategy. The firm, which trades on the New York Stock Exchange under the ticker OWL, has become one of the most important players in the alternative asset market.

With approximately 315 billion dollars in assets under management at the close of the first quarter of 2026, Blue Owl operates primarily across three major platforms: private credit, real assets, and GP Strategic Capital.

Its strategy has focused on offering institutional investors, insurers, and high-net-worth individuals access to private investments with long-term horizons. The foray into sports represents a natural extension of that philosophy: identifying assets with unique characteristics and the capacity to generate value over decades.

The growth of sports assets also has implications for large family fortunes. Now, sports are beginning to be incorporated as an emerging category within strategic asset allocation.

Although direct investment in franchises remains highly exclusive, specialized vehicles allow institutional investors to gain exposure without needing to acquire a majority stake.

For high-net-worth Latin American individuals, who have historically shown interest in international assets and global brands, this segment could gain relevance. The search for diversification, wealth protection, and exposure to global consumer trends is leading the world’s wealthiest families to explore new investment categories.

Blue Owl’s entry into the Cleveland Cavaliers confirms a structural shift in the financial industry: some of the most attractive assets of the future may not be found on traditional stock exchanges, but rather in businesses with global communities, intellectual property, and the capacity to generate income for generations.

Trump’s Tariffs Change the Global Trade Map; These Are the Winners According to BBVA Research

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With the return of Donald Trump to the United States presidency and the imposition of his aggressive tariff policy, the dominant scenario among analysts and investors was that the world’s largest economy would trigger a significant contraction in international trade. However, an analysis by BBVA Research proposes a different conclusion: global trade did not disappear or contract; it simply changed its origin.

The trade war between the United States and China is accelerating a transformation that was already underway since the pandemic: the search for more diversified supply chains that are less dependent on a single country and closer to the US market.

According to the BBVA Research study “What Impact Have Trump’s Tariffs Had on Imports?”, it is concluded that the new levies did have a direct effect on trade flows: for every one-percentage-point increase in tariffs applied to a country, US imports from that economy decreased by around 2%.

But the most relevant data point for markets and companies is that this drop did not necessarily mean a reduction in total trade. The United States simply began to substitute suppliers. The result is a redistribution of market share within global value chains.

“Tariffs are modifying trade patterns rather than reducing trade,” is the central conclusion drawn from the BBVA Research analysis. The question now for investors and companies is not only how much trade is lost due to trade barriers, but who occupies the space left behind by the affected suppliers.

China Loses Ground and Mexico Gains Share

The main shift is observed in the trade relationship between the United States and China. For decades, China was the primary manufacturing supplier for the US market. However, the combination of geopolitical tensions, technological restrictions, and new tariffs has forced US companies to look for alternatives.

In this scenario, Mexico emerges as one of the main beneficiaries of this process. The country was already the primary trading partner of the United States prior to this new phase of trade tensions. In 2023, it surpassed China as the main source of US imports, and in 2024, it consolidated that position.

Data from the U.S. Census Bureau show that bilateral trade between Mexico and the United States reached record levels last year, with an exchange exceeding 800 billion dollars annually, driven mainly by manufacturing sectors such as automotive, machinery, electronics, and industrial equipment.

The phenomenon responds to several structural advantages: geographic proximity to the United States; productive integration under the United States-Mexico-Canada Agreement (USMCA); competitive labor costs; a broad network of industrial suppliers; and installed capacity in advanced manufacturing, among others.

For BBVA Research, Mexico is not only capturing trade displaced from China, but is also acquiring a more strategic role within regional supply chains. So-called nearshoring has stopped being just an expectation of future investment and has begun to be reflected in trade patterns.

Latin America Seeks to Capitalize on the New Reconfiguration

The shift in global chains is not limited to Mexico. The trade fragmentation between the United States and China opens up opportunities for various Latin American economies, though with differing capacities to capture investment.

Mexico is the most obvious case due to its integration with the United States, but other countries can benefit in specific niches. For example:

  • Costa Rica: This country has developed a prominent position in medical and electronic manufacturing.

  • Dominican Republic: It has strengthened its export-oriented free trade zone sectors.

  • Brazil: It can take advantage of opportunities linked to manufacturing, energy, and strategic raw materials.

  • Chile and Peru: Countries that hold a relevant position in critical minerals needed for the energy transition and advanced technologies, such as copper and lithium.

However, BBVA Research has pointed out in various analyses on investment and nearshoring that the opportunity is not guaranteed, because the region needs to resolve historical obstacles such as insufficient logistical infrastructure, regulatory uncertainty, low regional integration, a deficit of specialized talent, and energy costs.

Additionally, the competition is no longer solely among emerging countries in the region, as Mexico competes against Vietnam, India, Malaysia, and other Asian economies that are also looking to capture the manufacturing shifting out of China.

AI Opens a New Window for Mexico and Asia

One of the most relevant elements of the BBVA Research analysis is that the commercial reorganization is not driven exclusively by tariffs. There is another structural factor: the new technological economy driven by artificial intelligence.

The explosion in global demand for AI-related infrastructure—such as semiconductors, servers, electronic components, and specialized equipment—is once again modifying trade flows. BBVA identifies that in some products linked to this new economy, the United States is reducing purchases from China and increasing acquisitions from economies like Taiwan and Mexico.

The reason is that technology companies are seeking suppliers considered more reliable from a geopolitical and logistical perspective. Mexico has a particularly relevant opportunity in sectors such as electronics manufacturing, advanced automotive components, data centers, electrical equipment, as well as semiconductors and specialized assembly.

Although Mexico does not yet compete directly with Taiwan in advanced chip production, it can capture important stages of the technology chain, especially manufacturing, integration, and logistics. For investors, this trend offers a different interpretation: nearshoring is no longer just about relocating traditional factories, but about building industrial ecosystems around strategic sectors.

Tariffs Are Unlikely to Resolve the US Trade Deficit

Despite the fact that US tariff policy seeks to reduce foreign dependence and decrease the trade deficit, BBVA Research warns that the outcome may be limited. The reason is that countries do not disappear as suppliers; they simply change.

The logic is compelling: if the United States reduces imports from China but increases purchases from Mexico, Vietnam, or other economies, the trade deficit may alter its geographic composition, but it will not necessarily disappear.

Furthermore, tariffs can generate secondary effects such as higher costs for US companies, pressure on consumer prices, lower efficiency in production chains, and potential trade retaliation—several of these effects are, in fact, already a reality today. That is why the final impact will depend on how much companies can absorb the higher costs and how quickly they manage to reorganize their supply chains.

The key point of the BBVA Research analysis lies in the fact that the global economy is not entering a phase of less trade, but rather a phase of more fragmented and strategic trade. In other words: globalization is not disappearing; it is just changing shape.

During recent decades, companies primarily sought efficiency and lower costs. Now, they also seek security, resilience, and lower geopolitical exposure. In this new scenario, Mexico and certain Latin American countries, to a lesser extent, start with a relevant advantage.

The combination of their location, the USMCA in the specific case of Mexico, their manufacturing base, and proximity to the world’s largest consumer market places them among the best-positioned countries to capture a portion of the new trade map. The true winner of the tariff war will not necessarily be the one who imposes the most barriers, but the one who manages to become the alternative supplier when companies decide to reroute.

Insigneo Strengthens Its Commitment to Wealthy Latin American Clients, Signs Juan C. Londoño and Felipe Quintero as Senior Vice Presidents

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Insigneo, a firm specializing in wealth management for international clients, announced the incorporation of Juan C. Londoño and Felipe Quintero as Senior Vice Presidents, a move through which it seeks to reinforce its presence in Latin America and expand its capacity to serve High Net Worth (HNW) and Ultra High Net Worth (UHNW) clients.

In a market where competition for high-net-worth clients is increasingly intense, the main asset is no longer solely investment capabilities or access to financial products, but talent capable of building long-term relationships with the wealthiest families. This is the context surrounding the executives’ arrival.

Juan C. Londoño and Felipe Quintero join from Merrill Lynch, where they built a joint career of more than 15 years advising business families and investors from Colombia, Mexico, Central America, and the United States. According to Insigneo, both bring experience in global investment strategy, private banking, and cross-border wealth management—a segment that has gained relevance as major Latin American fortunes increasingly diversify their assets outside their countries of origin.

The announcement reflects a structural shift in the wealth management industry. For decades, large international banks concentrated a good portion of the advisors who served Latin America’s wealthiest families. However, recent years have seen an intensifying migration toward independent firms that offer greater flexibility in investment architecture, access to multiple managers, and advisory models less tied to the placement of proprietary products. This transformation has sparked intense competition to attract consolidated teams, especially those managing long-term relationships with high-net-worth clients. In this context, the hiring of Londoño and Quintero represents much more than two individual additions; it means bringing in a team with regional experience and a portfolio of knowledge regarding the needs of investors operating across different jurisdictions.

Insigneo Seeks to Consolidate Its Regional Expansion

Based in Miami, Insigneo has consolidated its position as one of the independent wealth management platforms with the largest presence among Latin American clients with international assets. The firm offers wealth management services, investment advisory, financial planning, private banking, and family office solutions, relying on an open-architecture platform that provides access to strategies developed by various global asset managers.

Its business model has focused particularly on business families, executives, and Latin American investors who need to manage wealth distributed between the United States and other international markets—a need that has grown alongside the internationalization of wealth and the search for geographical diversification. In this context, strengthening coverage in markets such as Mexico, Colombia, and Central America constitutes a strategic priority for the firm.

The addition of specialists with regional experience occurs at a time of expansion for the wealth management industry. Various international studies, including those by UBS, Boston Consulting Group (BCG), and Capgemini, agree that Latin America continues to increase its number of wealthy individuals, driven by entrepreneurs, family businesses, and export sectors.

At the same time, the wealth of these clients has become more international. It is increasingly common for Latin American families to distribute their investments across several jurisdictions, incorporating assets in the United States, Europe, and Asia, as well as expanding their exposure to strategies such as private markets, private credit, infrastructure, and alternative funds. This phenomenon has raised the demand for advisors capable of coordinating cross-border investments, wealth planning, family succession, and risk management across multiple markets.

Insigneo highlights that Londoño and Quintero have worked together for over a decade and a half, advising international clients under an investor-centered approach. In a business where trust and personal relationships account for much of the value added, these types of teams usually represent a significant competitive advantage. Their onboarding also confirms a trend observed in recent years: the mobility of private bankers between large financial institutions and independent platforms has become a strategic tool to accelerate growth in specific markets.

The strengthening of specialized teams also responds to a change in the behavior of high-net-worth individuals in Latin America. The political and economic volatility recorded in various countries across the region over the last decade has led many business families to diversify not only their investments but also the location of their assets and wealth vehicles. As a result, the demand for international wealth management solutions continues to grow, especially among clients who require complex wealth structures and comprehensive advice to manage assets distributed across different jurisdictions.

The Million-Dollar Question in Peru: Will Fujimori Manage to Break the Streak of Political Instability?

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Photo courtesyKeiko Fujimori, president-elect of Peru (source: Fujimori's official website)

A new political cycle is brewing in Peru, with the various economic players taking a front-row seat to see how the incoming administration of Keiko Fujimori settles in. With a lead of just under 50,000 votes over candidate Roberto Sánchez—political heir to Pedro Castillo—the candidate considered pro-market prevailed in a razor-thin second round. Now, among the challenges for the president-elect are consolidating the improvement in expectations, establishing some degree of governability, and—after a decade of a revolving door at the Casa de Pizarro—completing her five-year term.

“The electoral result has significantly reduced the political uncertainty premium and reinforced an expectation of continuity for the economic model,” Roberto Montero, manager of Banbif’s Wealth Management Division, tells Funds Society. This, he explains, has been reflected in the exchange rate, risk premium, sovereign bonds, and the local stock market—markets that have absorbed the improved expectations.

“The market expects a gradual improvement in the economic environment due to the reduction of political risk rather than changes in macroeconomic fundamentals. The pro-market bias should favor business confidence, unlock investments, and reduce the country risk premium,” notes Blas Changana, Head of Research and Investment Strategy at Zest.

One of the variables where improvements are expected is in the reactivation of investment projects. Ten years of political instability have left their mark, slowing down investment decisions. “Now, with a government perceived as more favorable to private investment, a good portion of these decisions can be resumed, especially in sectors such as mining, infrastructure, construction, and agro-industry,” Montero adds.

The challenge of confidence

For now, the enthusiasm is already lifting spirits among the various actors of the local economy. In June, according to Scotia Wealth Management, all business expectation indicators rose, “driven by better expectations for the economy, investment, and employment following the presidential elections.” As the firm highlighted in a recent report, various metrics related to optimism about the economy, hiring plans in companies, and demand and sales outlooks improved.

“This improvement in the sentiment of the Peruvian business sector comes with an eye toward a more favorable scenario, especially for private investment, following the dissipation of political uncertainty,” they indicated.

Now, the key is to consolidate this good mood. To crystallize positive expectations, Montero indicates, the government must focus on executing and showing concrete actions. “The first few months will be decisive in demonstrating a capacity for dialogue, consistency between economic discourse and public policy decisions, as well as a clear agenda to recover productivity and attract private investment,” he comments.

Investors, he notes, will be paying close attention to the quality of the economic cabinet, fiscal discipline, the relationship with Congress, and the ability to unlock investments. “Those variables will determine whether the recovery of confidence manages to translate into a more sustainable growth cycle,” he points out.

The Velarde effect

For now, there are already signs that the market has liked. “The most relevant milestone for institutional investors occurred on Monday, July 6,” says Armando Herrera, general manager of Fynsa Peru. That was the day when, during a meeting at the headquarters of the Central Reserve Bank of Peru (BCRP), Fujimori formally requested economist Julio Velarde to remain at the helm of the institution. The professional accepted, staying at the rudder of the issuing entity for five more years.

Velarde is one of the most recognized faces in the technical sphere of the Andean country. In addition to his experience advising major international organizations—such as the IDB, the World Bank, and the ILO—the economist has established himself as the historical captain of the BCRP. He has served as president of the entity since September 2006.

In those two decades of monetary career, Velarde has won the approval of a variety of governments. Originally appointed by Alan García, the professional was reappointed to his position by Ollanta Humala in 2011, Pedro Pablo Kuczynski in 2016, and Pedro Castillo in 2021.

“The decision has been interpreted by global investment banks as the most significant sign of continuity in the transition, ensuring the Central Bank’s autonomy, maintaining a rigorous inflation-targeting policy, and safeguarding the solid management of Net International Reserves,” Herrera explained in a market note.

The governability dilemma

Going forward, one of the key challenges will be governability. Especially considering that Fujimori convinced only 50.1% of Peruvian voters. Indeed, the last ten years have seen nine people take the presidential bench, with several governing for less than a year.

“Governability will be the main determinant of the performance of Peruvian assets over the next few years. The market will closely follow the relationship between the Executive and Congress (and its new structure), the ability to implement reforms, and the stability of the rules of the game,” Changana highlights.

According to the executive, breaking the streak of incomplete mandates could strengthen the confidence of both local and foreign investors. “More than political orientation, markets value predictability to make long-term investment decisions, and we will see this as flows toward Peruvian assets are favored,” he indicates.

Added to this is a framework that favors the Andean country’s institutional structure. In the legislative arena, for example, this political cycle reintroduced bicameralism, which is expected to act as a counterweight. “The economic framework will maintain its predictability thanks to the existing counterweights in Congress, limiting the risk of abrupt changes to the current economic regime,” Herrera explains.

In addition, the executive highlights the speed with which the transition has been managed, together with the technical team of the BCRP, reaffirming the strength of Peru’s institutional structure. “For international portfolios, the country solidifies its position as a market that prioritizes monetary discipline and the stability of the rules of the game, indispensable elements to attract capital in the medium and long term,” the CEO of Fynsa indicates.

The ghost of instability

Although the economy has managed to navigate the swift waters of political instability with relative success, private banks warn that this decade of short-lived governments has left its mark on economic dynamics.

“Political instability reduced potential growth by affecting confidence and delaying private investment. Although Peru maintained solid macroeconomic fundamentals (growth with monetary stability and the lowest public debt in Latin America), political uncertainty postponed investment projects, limited growth, and maintained a higher perception of risk,” says Changana, from Zest.

Along those lines, Montero, from Banbif, asserts that although the country maintained key anchors for market confidence during the period—such as a credible BCRP, solid international reserves, low public debt, and a solvent financial system—it “lost continuity in public policies, quality of execution, and confidence to invest in the long term.” And the greatest impact was seen at the investment level.

Now, if this government stabilizes the situation more consistently, this could bring some flows back to domestic markets. Although local players already have international portfolios that have become structural parts of their holdings, new capital flows could once again look at Peruvian assets with interest.

My Investment Path Strengthens Its Wealth Management Team with a New Hire

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Photo courtesyTomás Ulloa, Financial Analyst and Wealth Management Assistant at My Investment Path

With the goal of strengthening its wealth management team, the Miami-based RIA My Investment Path hired Tomás Ulloa. There, the executive assumed the roles of Financial Analyst and Wealth Management Assistant.

According to what the company informed Funds Society, Ulloa will specialize in fundamental and technical market analysis through his dual role. His objective will be to develop personalized investment strategies for clients.

Originally from Argentina, the executive brings a bilingual and Latin American perspective to the financial sector, they highlighted. Thus, the professional will play a key role in expanding the company’s business in the region.

The hire strengthens My Investment Path’s advisory team as the RIA continues to execute its strategic plans.

This roadmap includes the expansion of the firm’s capabilities by becoming a broker-dealer. Currently, they detailed, they are working through the regulatory process.

The company offers a variety of wealth management and advisory services, including financial planning, tax strategy, and family office services.

Vanguard and Charles Schwab Crowned with the Lowest Fund Fees in the US

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Price competition is intense among the largest fund managers. That is one of the conclusions of the latest version of Morningstar’s US fund fee study, published recently. In a context where management fees continue to trend downward, two investment houses in particular are leading the list of the lowest charges.

According to the Morningstar Manager Research team, the figure that best represents the experience investors have with funds is the asset-weighted average fee. In this case, Vanguard and Charles Schwab boasted the lowest fee last year, at 0.07%.

Vanguard is the classic leader in low fees, but Charles Schwab has also been cutting fees over the years, catching up with the world’s second-largest asset manager. While the former reduced its adjusted average fee from 0.09% to 0.07% between 2020 and 2025, the latter cut it from 0.1% to 0.07% over that same period.

It is worth noting that both companies hold a clear advantage, as the third-ranked manager with the lowest average fee in its vehicles sits 3 basis points higher. State Street closed 2025 with a representative fee of 0.1%, managing to reduce it from 0.16% in 2020.

In fourth place, Morningstar highlighted, iShares recorded a figure of 0.15% last year, noting that “its expansive offering includes more expensive active and niche strategies alongside its flagship low-cost index funds.” In the case of this investment house, the fee dropped from 0.19% over five years.

“As companies compete on costs, investors win, benefiting from an increasingly broad menu of cheap funds that offer extensive market exposure,” the information provider emphasized in its report.

A Long-Standing Trend

The fee numbers in the US mutual fund and index fund industry are just another milestone in a long-term trend that has seen commissions shrink industry-wide.

The average cost ratio paid by investors in 2025 is better than half of what it cost two decades ago. “Between 2006 and 2025, the asset-weighted average fee fell to 0.32% from 0.8%. Investors have saved billions in management fees as a result,” the report emphasized.

The Manager Research team identifies three major drivers behind cost reduction in the industry. On one hand, investors are increasingly aware of the relevance of minimizing investment expenses, which has led them to favor low-cost vehicles. On the other hand, competition in the fund management industry has driven several players to cut fees.

The third pillar, they added, is related to the evolution of advisor dynamics. “The shift to fee-based models for financial advice has been a key factor in the shift toward low-cost funds, share classes, and fund types,” they explained, especially ETFs.

However, Morningstar stressed that these average figures derive from a heterogeneous landscape, where different areas of the mutual fund and index vehicle market are experiencing different phenomena.

At the less expensive end of the spectrum, index mutual funds and ETFs “are approaching a floor, with many already charging less than 0.05%,” they noted. Conversely, in the segment of more expensive strategies, the emergence of active ETFs and alternative strategies “contributes to the launch of higher-priced funds than what was seen before.”

Investor Approval

Beyond differing investor preferences, the study by Morningstar Manager Research shows that fees dictate the pace of fund flows.

Since 2000, they indicated, net flows have trended upward for funds and share classes with fees in the cheapest 20% of their respective categories. Last year, these funds received flows of 694 billion dollars.

In contrast, flows into the remaining 80% of funds were negative in 10 of the past 11 years. In the case of 2025, these vehicles collectively lost a net 244 billion dollars.

“This 939 billion dollar difference in flows is quite large, but it is slightly below the historic 1.2 trillion gap of 2024,” they pointed out.

Along those lines, the information provider emphasizes that its studies reflect that fees are a good predictor of future returns. “Low-cost funds generally have higher probabilities of surviving and outperforming their more expensive peers. It is encouraging to see investors prefer those funds,” they stated in their report.

Sovereign Wealth Funds Surpass 15 Trillion Dollars in Assets

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Sovereign wealth funds continue to consolidate their prominence in private markets. According to the Sovereign Wealth Funds Report 2026, prepared by the Center for the Governance of Change at IE University in collaboration with ICEX-Invest in Spain, these vehicles now manage 15.1 trillion dollars in assets globally, compared to 13.2 trillion recorded in the previous edition, representing a 14% increase.

The report, which analyzes the activity of these investors between July 2024 and December 2025, identifies a universe of 109 sovereign wealth funds, five more than in the previous edition. The growth reflects both portfolio revaluation and the creation of new vehicles, particularly in Asia, Europe, and the Middle East.

Beyond asset growth, the study reflects a shift in how these actors invest. During the analyzed period, they participated in 391 direct investment transactions, 17% fewer than in the preceding report. However, the aggregate volume rose to 404 billion dollars, a 91% increase, demonstrating a clear commitment to larger and more transformative operations. “The report shows more concentrated capital: fewer transactions, more impact. Sovereign funds lead most transactions valued at over 1 billion dollars, proving execution capacity,” noted Javier Capapé, editor of the report and director of Sovereign Wealth Research at IE University, during the presentation held at the ICEX headquarters in Madrid.

According to Capapé, the creation of twelve new funds confirms that these vehicles have become a tool for governments to face a more fragmented and less efficient global economy, reinforcing the resilience and strategic autonomy of their countries. The expert also highlighted that investments linked to artificial intelligence now represent one out of every three dollars of the total value of transactions in which sovereign funds participated during the analyzed period.

The CEO of ICEX, Elisa Carbonell, stressed during the presentation that sovereign wealth funds have consolidated themselves as “one of the great actors in international investment” and constitute a source of strategic capital for business growth. In her view, the report provides a better understanding of their investment strategies and facilitates the identification of capital raising opportunities, while confirming the growing interest of these investors in Spain.

Fewer Transactions, but Larger in Scale

The shift in strategy is also reflected in the main transactions closed during the study period. Notable among them are the support from Saudi Arabia’s Public Investment Fund (PIF) for the acquisition of Electronic Arts, valued at 55 billion dollars; the financing of Anthropic, led by QIA (Qatar) and GIC (Singapore), totaling 13 billion dollars; the reorganization of TikTok in the United States with the backing of the Emirati tech fund MGX, supported by Mubadala; and several investments in European energy infrastructure driven by funds from Norwary and Singapore.

The report concludes that sovereign wealth funds have moved from playing a secondary role in private markets to becoming the primary drivers behind many large international operations.

Private Markets Consolidate Sovereign Funds as Reference Investors

The study confirms that these vehicles act increasingly as strategic partners in global private markets. In more than half of transactions exceeding 1 billion dollars, they participate as lead investors, replacing the role they traditionally played as minority co-investors.

Another trend identified by the report is the growing commitment to artificial intelligence and technologies linked to digitalization. Gulf and Singaporean funds are leading this transformation, shifting their portfolios from traditional assets toward companies related to AI, data centers, digital networks, and energy infrastructure.

However, the report also shows that these investors’ ability to anticipate emerging tech companies remains limited. Just 3% of their investments go to companies before they reach unicorn status, reflecting that their function continues to be primarily to back and scale companies that have already proven their viability.

Asia and the Middle East Concentrate Nearly 80% of Global Sovereign Capital

The report highlights once again the high geographical concentration of this type of vehicle. Asia-Pacific and the Middle East pool approximately 79% of sovereign assets under management worldwide, while Europe accounts for 16% of the total. the Americas concentrate around 2% and Africa maintains a share below 1%.

Among the most active funds by number of transactions are Singapore’s Temasek and GIC, alongside Abu Dhabi’s Mubadala. If measured by the economic volume invested, the leadership belongs to GIC, followed by Saudi Arabia’s PIF and Qatar’s QIA. The report also highlights the emergence of new actors, including MGX, Abu Dhabi’s new technology fund, which has driven some of the largest international investments in artificial intelligence.

Europe Bets on Sovereign Funds with a Strategic Focus

The report dedicates a specific chapter to the role of Europe within the sovereign wealth fund ecosystem, where it identifies a clearly differentiated model compared to other regions. With the exception of Norway’s Government Pension Fund Global (GPFG)—which reached 2.1 trillion dollars in March 2026, a figure higher than Spain’s GDP—nearly 80% of European sovereign funds fit the strategic investment funds model; that is, vehicles designed to boost strategic sectors, mobilize private investment, and foster economic development.

Unlike many funds in the Middle East or Asia, the funding sources for these European vehicles do not come from commodity revenues, but rather from fiscal surpluses, stakes in state-owned enterprises, or resources from European Union programs.

In this regard, the study highlights the role played by the Next Generation EU program, whose transfers have served as seed capital for the creation of new sovereign funds in various European countries. The report also analyzes the differences between national models. While economies like France, Spain, or Italy manage multiple public investment structures with distinct functions, Ireland has chosen a unified model centered around the National Treasury Management Agency.

According to the authors of the study, the impact of Next Generation EU is already “solid and measurable.” As an example, they cite the FOCO fund, managed by Cofides, and the recently announced España Crece, which represent a new financing model based on transforming European recovery transfers into sovereign capital. In their view, this mechanism could favor a second wave of European sovereign fund creation between 2026 and 2030.

The Sovereign Wealth Fund Universe Continues to Grow

The Sovereign Wealth Funds Report 2026 expands its coverage this year to 109 sovereign wealth funds, which collectively managed 15.1 trillion dollars in April 2026, up from 104 vehicles and 13.2 trillion recorded in the previous edition. The aggregate increase, close to two trillion dollars, is due to two main factors. On one hand, approximately half of the growth comes from the organic performance of large financial portfolio funds. Norway’s Government Pension Fund Global increased its wealth by 18% to 2.1 trillion dollars; China Investment Corporation (CIC) also grew by 18% to 1.57 trillion; Abu Dhabi’s ADIA advanced 20% to 1.19 trillion; while Kuwait’s sovereign fund increased by 23% to 232 billion dollars. The other half of the growth is explained by the incorporation of new vehicles and methodological adjustments made in the study.

Funds created since 2024 contribute about 350 billion additional dollars to global assets. Notable among them are Danantara from Indonesia; MGX in Abu Dhabi, with an estimated initial wealth of 50 billion dollars; the National Wealth Fund (NWF) of the United Kingdom, with 37 billion; and the new Irish funds FIF and ICNF, which jointly add about 19 billion dollars. Additionally, the report incorporates methodological changes such as expanding the perimeter of the Turkey Wealth Fund (TWF), whose wealth goes from 26.6 billion dollars to 44.7 billion due to modified classification criteria.

New Funds and Greater Geographical Concentration

The study confirms that the geographical distribution of sovereign capital remains highly concentrated. Asia-Pacific and the Middle East bundle approximately 79% of the assets managed by the world’s sovereign wealth funds. Europe represents 16% of the total—although the Norwegian fund alone accounts for 85% of European sovereign assets—while the Americas barely reach 2% and Africa remains below 1%.

The authors also identify several countries preparing to launch new sovereign wealth funds. Portugal approved plans to create its national vehicle in June 2026. Similar initiatives are also advancing in Saint Kitts and Nevis, Kenya, and Canada, where the Canada Strong Fund was approved in April 2026. In contrast, the report notes that the executive order signed in the United States in February 2025 to promote a federal sovereign wealth fund seems to have lost momentum and, for the moment, has not recorded significant progress.

Spain Consolidates Its Appeal for Sovereign Capital

As in previous editions, the report includes a specific chapter dedicated to Spain, noting the growing interest of international sovereign funds in the domestic market. Between July 2024 and December 2025, 18 direct operations were recorded for a combined amount of 6.7 billion euros, equivalent to 7.6 billion dollars. Of these transactions, twelve were carried out by international sovereign wealth funds and six by Spanish vehicles, reflecting both the capacity of the Spanish market to attract long-term institutional capital and the consolidation of domestic public co-investment instruments.

For the second consecutive year, Spain ranks sixth worldwide by economic volume of transactions involving sovereign funds and stands as the second-highest country in the European Union, trailing only Germany. Investments were concentrated in sectors considered strategic for the Spanish economy, such as renewable energy, digital infrastructure, higher education, student housing, technology, and industry.

Among the main operations are investments by Mubadala and Masdar in renewable energy and education; GIC’s bet on infrastructure and student housing; the activity of the Temasek-Keppel ecosystem in data centers; and the first investments made by FOCO in Spanish companies and platforms.

The report also highlights the growing weight of Norway as an investor in Spain. At the close of 2025, the Government Pension Fund Global held positions exceeding 24 billion euros in sovereign and corporate debt, listed equities, and private market assets, particularly infrastructure linked to renewable energy. With this, the study concludes that Spain continues to consolidate itself as one of the main European destinations for international sovereign capital, while developing its own public investment architecture aimed at mobilizing private capital and strengthening strategic sectors.

HMC Capital Forms an Alliance with Neuberger to Expand Global Fund Distribution in Brazil

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HMC Capital announced a strategic alliance with the global asset manager Neuberger to expand the offering of international funds in the Brazilian market. Under the agreement, HMC will distribute the manager’s products in Brazil—which oversees nearly 567 billion dollars in assets under management—focusing on institutional and professional investors, according to a statement.

The distribution will span different segments and channels, including pension funds, family offices, wealth managers, asset managers, banks, and investment platforms. The offering will combine strategies across liquid assets and private markets, such as global credit, international equities, and private equity funds.

According to Leonardo Camozzato, Partner and CEO of HMC Capital in Brazil, the alliance seeks to address the evolving demand among local investors for international strategies.

“Brazilian institutional investors are becoming increasingly sophisticated and are looking for differentiated global strategies. Our alliance with Neuberger allows us to expand access to high-quality investment solutions, combining our regional expertise with the capabilities of one of the most respected asset managers in the global market, with a broad offering of liquid and illiquid assets,” he stated.

HMC reports that it has been distributing Neuberger’s funds in other Latin American countries since 2009. With the expansion of this alliance to Brazil, the company aims to make the manager’s entire product range available, including strategies that, according to the company, are seeing growing demand among Brazilian investors.

Carolina Collia, Relationship Manager at Neuberger, highlighted the potential of the Brazilian market and noted that the alliance broadens access to the manager’s solutions.

“Brazil represents one of the most dynamic wealth management markets in Latin America, and HMC Capital has built a solid platform that connects investors with premier global strategies. This agreement offers Brazilian clients access to Neuberger’s range of UCITS funds, covering equities, fixed income, and alternative assets, through a partner with deep local knowledge. This reflects our ongoing commitment to ensuring that clients worldwide can access the strategies best suited to their needs,” she said.

The initiative also plans for the development of local investment vehicles to meet the regulatory requirements for distribution in Brazil, the demand for currency-hedged products, and the specific rules applicable to closed entities for complementary welfare (EFPC) and dedicated social security regimes (RPPS).

About the Companies

  • HMC Capital: Founded in 2009, HMC operates in the structuring of investment vehicles and access solutions for international managers through its subsidiary Gama Investimentos. The company reports over 25 billion dollars in distributed assets and assets under management, with operations in Brazil, Argentina, Chile, Peru, Colombia, Mexico, the United States, and the United Kingdom.

  • Neuberger: Founded in 1939, Neuberger is an independent, employee-owned asset manager with approximately 3,000 employees across 26 countries and nearly 567 billion dollars in assets under management, as of March 31, 2026.

ARK Invest Europe Expands Its Alliance with Capital Strategies Partners

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ARK Invest Europe has expanded the scope of its distribution agreement with Capital Strategies Partners to incorporate Italy, France, Belgium, Andorra, Monaco, and the Swiss canton of Ticino. Until now, the firm was responsible for the distribution of the manager’s products in Spain, Portugal, and several Latin American markets, such as Chile, Colombia, Peru, and Brazil.

With this expansion, ARK Invest seeks to strengthen its presence in Europe and respond to the growing investor interest in strategies focused on disruptive innovation, relying on a partner with local knowledge of each market.

The extension of the agreement also coincides with the recent expansion of the registration of ARK’s actively managed UCITS ETFs in France and Portugal, as well as the launch of the ARK Private Innovation ELTIF, registered for commercialization in 17 European countries, including Spain, Italy, France, Germany, Belgium, Portugal, Sweden, and the Netherlands.

A Range Focused on Technological Innovation and Private Markets

ARK Invest’s European offering currently consists of four actively managed UCITS ETFs:

  • ARK Innovation UCITS ETF (ARKK): The firm’s flagship fund with over 11.2 billion dollars in assets globally.

  • ARK Artificial Intelligence & Robotics UCITS ETF (ARKI): Designed specifically for the European market.

  • ARK Genomic Revolution UCITS ETF (ARKG)

  • ARK Space & Defence Innovation UCITS ETF (ARKX)

Added to this offering is the ARK Private Innovation ELTIF, a fund that provides access to innovative private companies before their potential IPO and invests in the five major innovation platforms identified by the manager: artificial intelligence, robotics, multi-omic technologies, blockchain, and energy storage.

All ETFs are actively managed, hold an Article 8 classification under the European SFDR regulation, and carry a management fee (OCF) of 0.75%. In addition, the firm plans to expand the European registration of several funds from the RIZE by ARK Invest range, specialized in sustainable and impact thematic investing, before the end of the year.

Expansion Part of ARK’s Growth Strategy in Europe

The expansion of the agreement is part of ARK Invest Europe’s international growth strategy, which began with the launch of its UCITS ETFs in 2024 and has surpassed 1 billion dollars in assets under management in Europe this year. Globally, the firm manages nearly 30 billion dollars, of which around 1.2 billion corresponds to the European business and some 2.5 billion to private market strategies.

Stuart Forbes, Director of ARK Invest Europe and Global Head of Distribution, notes that the broader collaboration will provide European clients with greater access to both listed strategies and private market investments. “This expansion allows us to directly serve a much larger number of clients, with local on-the-ground support and access to our research and forward-looking products,” he states.

For his part, Daniel Rubio, founder and CEO of Capital Strategies Partners, highlights that ARK’s active and research-driven investment philosophy is being well received by investors. In his view, the expansion of the agreement will bring a differentiated offering of UCITS ETFs and the ARK Private Innovation ELTIF closer to clients in these new markets, reinforcing both entities’ commitment to distributing innovative, high-quality strategies.