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Janus Henderson to Develop New AI-Based Analytics and Client Engagement Tools

Photo courtesyAli Dibadj, CEO of Janus Henderson.

Janus Henderson has announced that it is developing a suite of AI-native tools to transform the way it invests and serves its clients. According to the firm, Percepta, a transformation company backed by General Catalyst, will be responsible for building the infrastructure, while Anthropic’s Claude will serve as the AI model layer.

The firm believes that cutting-edge AI delivers the greatest impact when it enhances human expertise, enabling an even more client-centric approach to both investing and client service. Building on Claude, Janus Henderson is putting this approach into practice in two ways that could shape the future use of artificial intelligence within the asset management industry.

Specifically, it is developing new AI-native tools for its investment and client service teams. On the one hand, the asset manager is working on Prism, a global client intelligence and engagement platform designed for Janus Henderson’s distribution teams. Powered by Claude, it helps sales teams prioritize the right outreach actions, leverage internal and third-party data to better understand what clients have and what they need, and prepare personalized communications. In this way, it provides a single, consistent tool for sales and marketing teams across all regions.

On the other hand, the firm is developing Libros, an AI-native research management tool for Janus Henderson’s investment teams. Also powered by Claude, it synthesizes the firm’s internal research alongside external research and public market data, helping analysts and portfolio managers identify relevant signals more quickly and devote more time to analysis and investment decision-making.

In addition, Janus Henderson is rolling out Claude across the organization. Its engineering teams will use Claude Code, while Cowork will be available to employees in investment, distribution, and corporate functions, further integrating AI into day-to-day work.

Meanwhile, Prism and Libros are being developed in collaboration with the technology teams at Janus Henderson and Percepta. Percepta helps large enterprises transform through AI by embedding specialized engineers, researchers, and product managers directly into organizations and leveraging the Percepta Mosaic platform to rapidly develop agent-based workflows and customized decision-support tools.

At Janus Henderson, Percepta’s teams work alongside the firm’s investment, distribution, and technology professionals to develop Prism and Libros on Claude, and to build the data and knowledge foundation that connects Claude to Janus Henderson’s proprietary research, client, and market data.

According to the asset manager, this integrated model addresses a challenge that has slowed AI adoption in asset management: generic tools rarely fit the way an active manager analyzes markets, manages portfolios, and serves clients. The value comes from connecting cutting-edge AI to proprietary data and rebuilding core workflows around it, which generally requires engineering embedded within the business rather than externally purchased software.

“We believe the AI transformation will fundamentally change the way asset managers serve their clients as it becomes integrated into the core of the business. This collaboration with Anthropic and Percepta, together with Janus Henderson’s partnership with Trian and General Catalyst, reinforces our leadership in AI and tokenization innovation and supports our ambition to be the most technologically sophisticated asset manager in the world. We believe it will improve the way we serve our clients—the 75 million people* around the world who trust us to help build a brighter future together,” said Ali Dibadj, CEO of Janus Henderson.

For his part, Peter Nolan, Head of Asset and Wealth Management at Anthropic, stated: “Asset management is a knowledge-intensive industry where reliable AI can help teams work faster and deliver better client service. Janus Henderson is putting Claude directly into the hands of the teams responsible for managing investments and client relationships—from purpose-built tools such as Prism and Libros to Claude Code and Cowork across the company.”

“Transforming industries with AI requires fundamentally rethinking how work gets done within organizations and designing engineering systems purpose-built for a new way of operating. Our work with Janus Henderson focuses on strengthening research and market intelligence while enhancing client engagement. We are proud to collaborate with Janus Henderson and Anthropic in transforming the asset management industry,” commented Hirsh Jain, CEO of Percepta.

Phil Orlando of Federated Hermes: “There Is Overvaluation, Not a Bubble; Technology Stocks Could Fall 20%”

| By Marta Rodriguez | 0 Comentarios

Phil Orlando, estratega jefe de mercados globales de Federated Hermes — Photo courtesy

Phil Orlando, Chief Market Strategist at Federated Hermes, opened his presentation at INSITE 2026 with a historical perspective: from Eugene Black in 1933 to Jerome Powell, there have been eleven leadership transitions at the U.S. Federal Reserve, and the market tested every new chair without exception. “The market hits a rough patch, tests the new leader, and then recovers. By the end of the year, the new chair gains credibility,” he said.

The current transition, however, has several unique features that distinguish it from previous ones. The confirmation of the new chair was the closest in recent history, with a vote of 54 in favor and 45 against. In addition, Jerome Powell chose to remain a member of the Board of Governors after his term as chair expired on May 15, something that had happened only once before, with Marriner Eccles in 1948. This creates an unprecedented dynamic, with the outgoing and incoming chairs sitting at the same table. Finally, the meeting at the end of April recorded four dissenting votes, the highest number since 1982. The dissenters’ argument: the Fed should neutralize its bias in light of its dual mandate—inflation and employment—given that the labor market remains strong while inflation continues to exert upward pressure.

Against this backdrop, Orlando highlighted the critical calendar for the coming months: meetings on June 17, July 29, and September 16, with the new Federal Reserve chair’s inaugural speech at Jackson Hole, Wyoming, on August 28 serving as a pivotal moment. “That will be the moment when he presents his vision. We do not know what he will say or do, but the market will be paying very close attention,” he warned. His conclusion: there is a real possibility of turbulence during the summer.

Despite monetary policy uncertainties, Orlando remained constructive on the state of the economy. Combined retail sales growth in March and April reached 4.5% year over year, a result he described as solid. He acknowledged the argument of a bifurcated economy but downplayed it with a straightforward arithmetic exercise: the wealthiest 10% of the population accounts for approximately 50% of consumer spending, while private consumption represents 70% of GDP. Therefore, that top decile accounts for roughly one-third of GDP. “Stock prices are at all-time highs and home values have risen 50% from COVID lows. Sixty percent of Americans own stocks and property. They are doing well, and they are spending,” he explained.

Among lower-income households, recently approved tax reforms generated savings of approximately 18% year over year, enough to offset the impact of higher energy prices for roughly six months.

On the corporate side, Orlando highlighted the full expensing of corporate capital expenditures as the most stimulative element of the recently approved tax legislation. The result: productivity grew 3% over the last four quarters, well above the historical average of nearly 2% over the past five decades. Taking all these factors into account, he projected U.S. GDP growth of around 3% in 2027, significantly above the market consensus of approximately 2%.

On monetary policy, Orlando was direct. The two-year Treasury yield rose from 3.40%—the level at which pressure was mounting on the Fed to cut rates—to 4.10% currently, reflecting the energy supply shock and inflation. Looking at the data objectively, the more likely move would be a rate hike rather than a cut. However, he noted that the Fed typically does not react to temporary supply shocks. “The most likely outcome is that the Fed does nothing and waits for the energy situation and inflation to normalize,” he said.

Overvaluation, Not a Bubble: The Diagnosis and Strategy

Orlando firmly rejected comparisons with the technology bubble of the late 1990s. “These are real companies, with real products, real revenues, real earnings, and real valuations,” he said. Nevertheless, he acknowledged that valuations are ahead of fundamentals: his estimate for the S&P 500 is 20 times expected corporate earnings over the next 12 months, while the current multiple is around 22.5 times, implying that the market is trading roughly 12% to 13% above where it should be.

“Could there be a 10% correction during the summer and early fall? Absolutely. But we are nowhere near the 85% collapse we saw in the Nasdaq between 2000 and 2003,” he added.

In terms of asset allocation, Federated Hermes maintains a six-percentage-point overweight in equities relative to its benchmark—66% in stocks and 34% in bonds and cash—but Orlando was specific about where that exposure should be concentrated. Not in mega-cap technology stocks, which trade at 30 to 40 times earnings, but in sectors trading closer to 14 or 15 times earnings: domestic large caps, small caps, and emerging markets. These sectors also offer dividend yields of between 3% and 5%.

“If technology falls 20% or 30%, those sectors might decline only 5%, partially offset by dividends. The key is to stay invested but remain focused on valuation,” he summarized. In fixed income, he noted that the bond market has reacted more clearly than equities to the rebound in inflation: the yield on the 10-year Treasury rose from around 4.33% to nearly 4.70%.

The Election Cycle: The Dip That Is Always an Opportunity

To conclude, Orlando placed the current environment in historical perspective. Over the last 80 years of S&P 500 history, the two middle quarters of the U.S. midterm election year have historically been the weakest, partly because the party in power typically loses seats. This year also combines a Fed leadership transition with a midterm election cycle, a combination that has occurred only six times in the last 93 years and has always been accompanied by a market pullback of roughly 10% during the middle of the year.

But that weakness has also consistently represented a buying opportunity: from the market bottom in those years, equities went on to post sustained gains over the following two and a half years. “If I am right and there is a dip over the next quarter or two, that will be the time to buy with conviction. I believe we will be back at all-time highs before year-end,” he concluded.

Latin America Gains Wealth, but Loses Relevance Compared with Asia and North America

| By Marta Rodriguez | 0 Comentarios

The economic recovery recorded in Latin America during 2025 allowed the wealth of high-net-worth individuals (HNWIs) to return to a positive trajectory, according to Capgemini’s World Wealth Report 2026, published by the French multinational and global leader in consulting, technology services, and digital transformation.

However, the region’s progress remained well below that seen in the world’s leading wealth-creation hubs, reflecting both the structural limitations of Latin American economies and the widening gap relative to technology- and artificial intelligence-driven markets.

According to the report, the wealth of Latin American HNWIs increased by 5.1% in 2025, outperforming only the Middle East, where wealth contracted by 1.5%.

A comparison with the leading regions highlights the distance that still separates Latin America from the world’s major engines of wealth creation. Asia-Pacific led growth with an increase of 10.5%, followed by North America at 9.9%, Europe at 8.0%, and Africa at 7.0%.

Even more revealing is the performance of the high-net-worth population itself. While Asia-Pacific and North America recorded increases of 9.4% and 9.1%, respectively, the number of HNWIs in Latin America rose by just 0.3%, suggesting that wealth growth was concentrated primarily among existing large fortunes rather than driven by the creation of new millionaires.

The report identifies several factors behind the improvement observed in the region. Moderating inflationary pressures, a gradual recovery in investment, stronger corporate earnings, and relative macroeconomic stability created a more favorable environment for financial assets.

Mexico was among the best-performing markets. The wealth of its HNWIs increased by 5.4%, while the number of HNWIs rose by 1.8%, supported by strong corporate profits and greater macroeconomic stability.

Brazil also delivered positive results. The wealth of the country’s affluent individuals increased by 6.0%, driven primarily by utilities and commodities companies. However, the number of HNWIs declined slightly by 0.2%, reflecting greater wealth concentration.

The Region Is Growing, but Losing Relative Importance

Although Latin America is participating in the global expansion of wealth, Capgemini’s report makes it clear that the region is losing relative weight within global wealth.

Between 2018 and 2025, the wealth of Latin American HNWIs increased from approximately $2.6 trillion to nearly $3.5 trillion, confirming a positive long-term trend. However, the pace of growth has been insufficient to keep up with North America and, especially, Asia-Pacific.

The difference is largely explained by structural factors. Capgemini identifies three persistent obstacles: low productivity, weak job creation, and trade uncertainty.

While the United States and several Asian countries benefited from the boom in artificial intelligence, semiconductors, and technology, Latin American economies remain more dependent on traditional sectors and commodities, a structure that limits their ability to generate new fortunes at the pace seen in other regions.

Implications for the Wealth Management Industry

From the perspective of private banking and wealth management, the report’s message is significant. Latin America continues to generate wealth and investable assets, but the nature of market growth appears to be changing.

Rather than expanding through the mass emergence of new clients, the industry may increasingly depend on deepening relationships with already established wealthy families and individuals.

This environment particularly favors the ultra-high-net-worth segment, which globally continues to demonstrate the strongest capacity for asset growth and concentration.

For private banks, multifamily offices, and wealth managers, this means competition for existing clients is likely to intensify, while differentiation through private market solutions, wealth planning, succession services, and highly customized offerings will become increasingly important.

Technology Gap, Wealth Gap

The report’s strategic conclusion is that Latin America is experiencing a period of recovery, but not one of leadership.

The region has moved beyond some of the volatility that characterized recent years and is benefiting from greater macroeconomic stability. However, structural constraints and limited exposure to the sectors currently driving global wealth creation are widening the gap with North America and Asia.

The result is a combination of reasonable wealth growth (5.1%) and virtually no growth in the number of new HNWIs (0.3%), a dynamic that points toward greater wealth concentration and a less dynamic wealth management market than those found in developed economies.

In other words, Latin America continues to generate wealth, but not at a pace sufficient to prevent a gradual loss of relevance within the global wealth landscape.

Vanguard Expands Its Offering with a High-Yield Corporate Bond ETF

| By Marta Rodriguez | 0 Comentarios

Vanguard has strengthened its fixed-income lineup with the launch of the Vanguard U.S. High-Yield Corporate Bond Index ETF (VCHY), a new ETF that provides indexed exposure to U.S. dollar-denominated corporate bonds rated below investment grade. It will trade on the Cboe BZX Exchange.

The vehicle will be managed by Vanguard Capital Management’s fixed-income team, one of the largest bond indexing platforms in the world, and joins the growing range of products designed to meet investors’ income-generation and diversification needs.

According to Sara Devereux, Chief Investment Officer of Vanguard Capital Management and Global Head of Fixed Income at the firm, the high-yield market has become increasingly important within strategic fixed-income allocations, although a significant portion of exposure remains concentrated in higher-cost structures. “The high-yield market is broad and increasingly important within fixed-income portfolios. With VCHY, we offer a low-cost, indexed approach that provides broad, rules-based exposure with a focus on liquidity and efficiency,” the executive stated.

The ETF seeks to replicate the performance of the Bloomberg U.S. Corporate High Yield 250MM 2% Issuer Capped Index, a market-capitalization-weighted benchmark that provides diversified exposure to the U.S. corporate debt universe rated below investment grade. In addition, it incorporates issuer concentration limits to reduce issuer-specific risks within the portfolio.

One of Vanguard’s main arguments for the launch is its cost structure. The ETF will debut with an annual expense ratio of 0.05%, placing it among the most competitive products in its category in terms of ongoing expenses.

Amma Boateng, Managing Director of Financial Advisor Services at Vanguard, noted that financial advisors are increasingly seeking tools that allow them to incorporate high-yield credit exposure into client portfolios in an efficient and transparent manner. “Investors need access to a broad range of high-quality, low-cost solutions to achieve their income-generation and diversification goals. VCHY reflects our commitment to continuing to expand our fixed-income offering with tools that enable exposure to the high-yield segment while taking risk in an intelligent way,” she said.

The launch also highlights Vanguard’s expertise in indexed fixed-income management. Vanguard Capital Management currently oversees more than $2.9 trillion in fixed-income assets globally and has four decades of experience in the segment, having launched the world’s first bond index fund in 1986.

Day-to-day management of the new ETF will be handled by Joshua Barrickman and Manuel Hayes, both of whom have more than twenty years of experience in overseeing and managing fixed-income portfolios.

With this launch, Vanguard continues to expand its presence in the fixed-income ETF market, a segment that continues to see strong demand from investors and financial advisors seeking efficient solutions to complement their traditional bond allocations.

MFS Launches Two Active ETFs Focused on International Equities and U.S. Small- and Mid-Caps

| By Marta Rodriguez | 0 Comentarios

MFS Investment Management has expanded its active ETF lineup with the launch of two new equity strategies: the MFS Active International Value ETF (MIVL) and the MFS Blended Research Small-Mid Cap ETF (BRSM). Both vehicles began trading on NYSE Arca, bringing the number of active ETFs available on the asset manager’s platform to eleven.

The firm is thus continuing to strengthen its commitment to the active ETF format, a business line that has gained prominence within the U.S. asset management industry and has become one of the main growth areas for many traditional asset managers.

The MFS Active International Value ETF is designed to invest in international companies following a value-oriented approach based on fundamental analysis. The strategy uses a flexible valuation process to identify opportunities in developed markets outside the United States and aims to outperform the MSCI EAFE Value Index over the long term.

Meanwhile, the MFS Blended Research Small-Mid Cap ETF combines fundamental research and quantitative analysis to build a diversified portfolio of U.S. small- and mid-cap companies. The fund seeks to generate returns above those of the Russell 2500 Index, while maintaining a target tracking error of 2% relative to its benchmark.

According to Emily Dupre, National Sales Manager at MFS, the launch reflects the goal of continuing to expand an active ETF lineup aligned with investors’ needs. “We are excited to expand our active ETF offering with these two equity strategies. In less than two years, we have launched nine active ETFs across equities, fixed income, and Blended Research strategies, and we believe these new additions will complement and strengthen the existing lineup,” she said.

The MFS Active International Value ETF will be managed by Steve Gorham, David Shindler, and Jed Stocks, professionals with extensive tenures at the firm and decades of international investment experience. In the case of the MFS Blended Research Small-Mid Cap ETF, the strategy will be co-managed by Jonathan Sage and Jenney Zhang, alongside Nathan Bryant and Jed Stocks, members of MFS’s Quantitative Solutions Team.

The expansion of the offering comes at a time of growth for the firm’s ETF business. As of the end of May 2026, assets under management on MFS’s active ETF platform exceeded $2.7 billion, reflecting growing interest among distributors and investors in these types of vehicles.

Dupre highlighted that demand for active ETFs has been particularly strong since the firm launched its first products in late 2024. According to her, the goal is to continue expanding collaboration with distribution platforms and facilitate investor access to the firm’s active management capabilities through the ETF format.

Robin Vince, CEO of BNY: “AI Is Not Going to Replace Human Magic—It’s Going to Give Us Superpowers”

| By Marta Rodriguez | 0 Comentarios

BNY Investments held INSITE26 in Denver, Colorado, its annual conference for Pershing clients, the most widely used custodian and clearing firm among broker-dealers and RIAs in the Americas and the undisputed leader in wealth management across Latin America and the U.S. offshore market. More than 1,100 people attended the event, 25% of whom were connected to the ecosystem of these regions. In this context, Robin Vince, CEO of the firm, offered his assessment of the global landscape: “We have wars, record levels of public and private debt, turbulence in commodities, all-time highs in equities, and uncertainty around inflation. And, on top of that, simultaneous technological revolutions: digital assets and artificial intelligence,” he emphasized.

From his unique vantage point—BNY safeguards $60 trillion in assets and settles $30 trillion in Treasury securities every day—Vince described clients who are no longer looking for specialized providers but rather partners capable of supporting multiple transformations at the same time.

Regarding distributed ledger technology (DLT), the system BNY uses to modernize the traditional financial system, Vince appealed to the historical perspective of a 242-year-old institution. “We are moving from the classic ledger to something much more multifaceted,” he said. However, he rejected a more extreme or exaggerated vision of blockchain: universal and immediate tokenization does not seem likely to him. “This is a generational evolution of five to ten years, moving at a different pace from AI,” he argued.

What BNY wants to be is the bridge between the traditional and digital worlds. The bank was the first among major institutions to offer native Bitcoin custody and today operates with stablecoins, tokenized deposits, and tokenized securities. “Someone has to bring all the threads back together. That’s our job,” he summarized. With an annual technology investment of $4 billion, scale is what makes that position possible.

Eliza: AI with a Name of Its Own

Just a few weeks after the launch of ChatGPT, BNY made an early decision: to invest before the industry had fully assessed the phenomenon. The result is Eliza—named after Elizabeth Schuyler Hamilton, the wife of the bank’s founder—a multi-agent platform connected to all the major models on the market, operating on three levels: individual productivity for nearly 50,000 employees, automation of complex operational processes, and AI solutions offered directly to clients. “You don’t need to build your own AI. We will build the right one for you within our platform,” Vince explained.

His warning about autonomy was equally explicit. “With the most advanced technologies, we’ve seen that they can develop a bit of a mind of their own. Handing full control of your assets over to an agent does not seem realistic to me for now,” he said.

In another part of his presentation, Vince flatly rejected comparisons with robo-advisors. “In the business all of you manage, three things need to converge: good advice, good technology, and the human magic that comes from relationships. Trust is a human concept. Will you trust AI in the same way you trust the person who has been looking after your wealth for years and knows your family?” he asked. What AI will do, he argued, is multiply advisors’ capabilities. “It’s going to give us superpowers to provide smarter advice and make things seem effortless because AI is working behind the scenes,” he noted.

The Clients’ Voice

Vince’s assessment resonated immediately among attendees at the Summit. Pershing clients with more than a decade-long relationship with the platform agreed that it has evolved from its role as a custodian into something closer to a technology integrator.

“I’ve been coming to INSITE for more than twenty years, and Pershing is the largest custodian we have. For offshore clients, there is no other custodian that can compare,” said Rocío Harb, Branch Manager in Miami at IPG, a firm currently growing with a focus on alternative products.

Sebastián Ballester Molina, Partner at Insigneo, described a relationship that began in 2013 and witnessed Pershing’s growth into an undisputed industry leader. “Today it is number one in LatAm, number one internationally. And what we are seeing now is that Pershing is also seeking to become a technology leader,” he stated. Ariel Kay, Managing Partner at Safebay Capital Partners, added the integration dimension: “It has established itself as an integrator of technologies and services. The undisputed leader in custody in Latin America, and globally as well,” he added.

Carlos Martín, CEO of Bci Securities, illustrated how that architecture enables the creation of new business opportunities: “We are scaling our relationships in SMAs (Separately Managed Accounts) through Canvas. The idea is to use the expertise we have in Chile to build customized products here for offshore clients,” he explained. Martín also noted that he is exploring a broader collaboration with BNY for local custody services in Chile and Peru: “It makes a lot of sense to partner with the oldest bank in the U.S. and the largest custodian in the world,” he said.

José Andrés Martínez, Global Wealth Advisor at BBVA in the United States, provided the institutional perspective: “Pershing BNY Mellon is our banking institution where our clients’ assets are held in custody. PAS is the broker-dealer that provides the platform so clients can view their positions and execute trades, always with our guidance as an RIA (Registered Investment Advisor).”

More ETFs Than Mutual Funds, and the First ETF to Reach $1 Trillion: State Street’s 13 Predictions

| By Marta Rodriguez | 0 Comentarios

The report “2026 Global ETF Outlook: From Wrapper to Backbone” by State Street includes its now-traditional list of “clear and testable” predictions regarding the likely evolution of ETF markets in 2026. These forecasts highlight where momentum is building, where inflection points are emerging, and where change may arrive sooner—or later—than consensus expectations.

In total, the report presents 13 predictions for the North American ETF market:

1. U.S. ETFs Will Attract $2.1 Trillion in Net Inflows During the year, the ETF industry is expected to attract $2.1 trillion in inflows into U.S.-listed ETFs, surpassing the $1.49 trillion recorded at the end of 2025, according to ETF.com data cited by State Street. Global ETF inflows reached $1.9 trillion last year.

2. There Will Be More U.S. ETFs Than Mutual Funds The number of U.S. ETFs will exceed the number of mutual funds (excluding money market funds and fund-of-funds products), continuing an already established trend. The report notes that ETFs have become one of the dominant investment vehicles in North America due to their lower costs, tax efficiency, liquidity, and ease of use. They are also particularly popular among younger investors: ETFs represent 30% of Millennials’ portfolios on average. 26% for Generation X. 21% for Baby Boomers. Surveys indicate portfolio allocations to ETFs could rise by 20% or more across all age groups, including a 31% increase among Generation X investors.

3. The Top 10 ETF Issuers Will Change Rankings The top 10 U.S. ETF issuers as of January 1 will not remain in the same order by December 31.

4. Multiple ETF Industry Acquisitions Will Take Place The report expects continued consolidation through acquisitions within the ETF industry.

5. The First $1 Trillion ETF Will Emerge The market is expected to see the launch or growth of the first ETF to surpass $1 trillion in assets.

6. Active ETFs Will Attract $750 Billion in Inflows Active ETFs in the United States are projected to attract $750 billion in net inflows, representing a 50% increase over year-end 2025 levels. Last year, 34% of ETF inflows were directed toward active products.

7. Active ETFs Will Account for 85% of New Launches Approximately 85% of ETF launches will be actively managed funds, roughly in line with last year’s figure of 84%.

8. Active Fixed-Income ETFs Will Outpace Passive Fixed-Income ETFs Inflows into active fixed-income ETFs are expected to exceed those of passive fixed-income ETFs. The report argues that ETFs are particularly well suited to fixed-income investing. Bond market characteristics and investor preferences naturally favor active management, which offers flexibility to adjust duration, credit quality, and sector exposure. “The ETF structure, which allows for daily in-kind, custom basket, or cash transactions, enables managers to operate efficiently in an investment universe where individual bonds have limited lifespans and liquidity, while trading and price discovery are not continuous,” the report explains.

9. Inflows Into Global and Emerging-Market Equities Will Double U.S. investment flows into global and emerging-market equity ETFs will double compared with 2025 levels.

10. At Least 12 Firms Will Add ETF Share Classes At least 12 firms will add an ETF share class to a mutual fund or a mutual fund share class to an ETF. The SEC approved ETF share classes in November of last year.

11. One Hundred Mutual Funds Will Convert to ETFs The report forecasts 100 mutual fund-to-ETF conversions during the year.

12. Canada Will Nearly Double ETF Subscriptions Canadian ETF subscriptions are expected to nearly double, rising from $109 billion in 2025 to more than $200 billion in 2026.

13. Active ETFs in Canada Will Surpass $200 Billion Assets in Canadian active ETFs are expected to exceed $200 billion during the first half of the year.

Three Perspectives on What SpaceX’s IPO Would Mean

| By Marta Rodriguez | 0 Comentarios

Investors remain focused on SpaceX’s IPO, as it is an unprecedented transaction in terms of both scale and structure. According to experts from international asset managers, its implications for markets, indices, and portfolios extend far beyond the transaction itself.

“A number of large-cap private companies are heading toward the public markets, and their arrival could reshape the equity landscape. SpaceX, Elon Musk’s aerospace, satellite communications, and artificial intelligence (AI) company, is the first. Its target valuation for the IPO is around $1.8 trillion, which could allow it to raise as much as $75 billion in the process,” note Shannon L. Saccocia, Chief Investment Officer of Wealth Management at Neuberger Berman, and Joe Amato, President and Chief Investment Officer of Equities at Neuberger Berman.

This will be a historic transaction, not only because of the company’s size and brand strength, but also because of the enthusiasm it is likely to generate among both institutional and retail investors.

“However, enthusiasm is not an investment discipline. The issue is not simply determining whether SpaceX is a great company, but assessing what expectations are already reflected in its price,” says Aymeric Gastaldi, International Equity Portfolio Manager at Edmond de Rothschild Asset Management.

According to Gastaldi, there is also a structural factor investors should consider: index inclusion.

“If a company like SpaceX were quickly added to the major Nasdaq indices following its IPO, passive funds and ETFs would become forced buyers. This could absorb a significant portion of the available free float and create additional upward pressure on the stock regardless of its valuation,” he explains.

Is There Enough Investor Demand?

Regarding the SpaceX IPO, Adam Berger, Multi-Asset Strategist, and Matthew Strzepka, Head of Equity Capital Markets at Wellington Management, believe the first lesson will be whether sufficient investor demand exists. In their view, the answer is yes.

“SpaceX enjoys enormous brand recognition and is likely to attract interest from a broad range of investors. We also expect retail investor participation to be significant, given the extensive media attention surrounding the offering and reports suggesting that the company may allocate a substantial portion of the shares to this group,” they note.

The Wellington Management experts also point out that inclusion in major indices would mean that many passive investment funds could be compelled to purchase shares within a short period, while active managers would need to consider SpaceX within their benchmark investment universe.

They also note that hedge funds and crossover funds, which can invest in both public and private companies, could further boost demand.

“Pricing and valuation will ultimately play a decisive role, although we expect the IPO to be priced at a level that is attractive to both retail and institutional investors,” they add.

For Clémence Rusek, Chief Investment Strategist at Vontobel, concerns about the market’s ability to absorb such offerings appear justified at first glance.

“The concentration of IPOs and capital increases from large-cap companies over a relatively short period raises fears that the supply of shares could significantly exceed demand,” she says.

However, she acknowledges that the underlying data suggest otherwise.

“The proposed IPO structures are likely to involve only 5% to 6% of total shares being offered initially, meaning the effective supply entering the market at the time of listing could be considerably smaller than overall valuations imply. Therefore, despite the record figures, the total share offering is expected to represent only around 1% of total stock market capitalization, a level that remains below long-term averages when measured relative to the overall size of equity markets,” she explains.

Nevertheless, Berger and Strzepka warn that this does not rule out periods of volatility in the stock, although they expect broader market volatility to remain contained.

“Historically, some large IPOs have created short-term market disruptions, but these movements generally do not have a significant or lasting impact on the market as a whole. While the new wave of large IPOs could exceed previous examples in size, it is worth remembering that total market capitalization is also much larger today than it was in the past: bigger fish, but also a bigger pond.”

SpaceX, One of Many

This leads to a second question raised by international asset managers: are we entering a new wave of IPOs?

According to Rusek, the answer is yes. He argues that a new wave of mega-listings is set to dominate equity markets in 2026, driven largely by artificial intelligence.

“Companies such as OpenAI, SpaceX, and Anthropic are preparing to go public at valuations measured in trillions of dollars, potentially creating one of the largest issuance cycles in market history,” Rusek notes.

History suggests that successful IPOs can create a “halo effect.” A successful offering paves the way for the next one, creating a virtuous cycle. Various reports indicate that several large companies are waiting for the right moment to go public. If the SpaceX IPO proves successful and its performance as a listed company is positive, it would be reasonable to expect other major offerings to follow.

“The rally in equity markets during 2025 and the first half of 2026 has boosted IPO activity, with implications for both private equity and public market investors. Two years ago, prices in public markets were below the levels at which private company owners were willing to sell. Following the strong gains since then—particularly in technology stocks—market prices and seller expectations are now more closely aligned,” explain Berger and Strzepka.

A Radical Shift for Passive Investing

For the experts at Neuberger Berman, it is crucial to analyze the implications of SpaceX and other mega-IPOs for passive indices, considering that approximately $30 trillion in assets globally track such benchmarks.

Index providers are now making active decisions about when to include mega-cap companies, what weightings to assign them, and how to adjust their rules to accommodate the anticipated surge in demand.

“Importantly, at the time of inclusion it is difficult to calculate an exact weighting in the S&P 500. Under current plans, SpaceX would join the index in June of next year, at which point more shares would be outstanding and the index itself would have changed. But based on a current valuation of $1.75 trillion, and assuming 53% of the float is available by June 2027, we estimate SpaceX’s float-adjusted market value at roughly $930 billion. That would translate into approximately a 1.4% weighting relative to the index’s current market capitalization of $65 trillion.

However, the mechanical buying pressure is considerable: our base-case scenario suggests that index funds could absorb 24% of the outstanding shares by day 15. This means passive investors will own SpaceX stock without having made an active decision to buy it,” explain Saccocia and Amato.

Their conclusion is that index inclusion will also require proportional sales of existing holdings to rebalance portfolios, primarily among large-cap constituents of the index and especially technology stocks such as Apple, Microsoft, and Nvidia.

“Another factor to consider is that lock-up expirations begin periodically after the company reports its first earnings and well before its inclusion in the S&P 500. This is likely to add significant supply pressure,” they conclude.

Emerging Market Debt Remains Resilient Despite Global Turbulence

| By Marta Rodriguez | 0 Comentarios

Historically, global shocks have not been kind to emerging markets, given risk-off sentiment and their vulnerability to fluctuations in cross-border capital flows. However, despite the timeless warning from Sir John Templeton—who described “This time is different” as the four most dangerous words in investing—the turbulence caused by the global energy shock resulting from the war involving the United States, Israel, and Iran found emerging-market assets, as an asset class, in a stronger position. And the market is taking notice.

“Global fixed-income markets have experienced a sharp increase in volatility as the significant rise in energy prices and geopolitical uncertainty triggered a rapid repricing of inflation risks, leading to higher yields and a flattening of yield curves,” said Álvaro Peró, Chief Investment Officer for Fixed Income at Capital Group, in a recent market commentary.

Despite this environment, emerging market debt has remained relatively resilient. Even after the successive shocks of Liberation Day 2025—when President Donald Trump announced a sweeping package of tariff increases affecting all countries—and the ongoing conflict in the Middle East, emerging-market bonds have held up comparatively well.

From early April of last year through early May this year, Vontobel noted that local-currency emerging-market fixed income outperformed the Global Aggregate Index by more than 11% (all measured in U.S. dollars). At the same time, hard-currency sovereign bonds generated returns more than 9% above the global benchmark. These markets, the asset manager highlighted, “have demonstrated remarkable stability, with no dramatic capital outflows or free-falling local currencies.”

A Story of Resilience

According to Vontobel’s team—based on a report authored by Jean-Louis Nakamura, Thomas Schaffner, and Raphael Lüscher for equities, and Adrian Bender for fixed income—the traditional narrative surrounding emerging markets no longer reflects reality.

If the old view of weak markets vulnerable to capital flows and commodity cycles were still accurate, they argued, the asset class would have been severely impacted by recent events. Instead, what they see is “a level of structural resilience that would have been unimaginable” in the past.

“Many emerging markets have undergone a fundamental transformation over the past decade: fiscal positions have strengthened, monetary frameworks have become more credible, corporate governance has improved, and dependence on domestic demand and trade with other emerging-market partners has increased. At the same time, these economies have taken leadership positions in many of the winning themes of an increasingly bifurcated global economy,” the Vontobel professionals stated.

This transformation, they concluded, has laid the foundations for the current resilience and explains “the way these markets have weathered recent crises that would previously have been highly destabilizing.”

Strong Prospects for Emerging Market Debt

Looking ahead, investment firms generally see a favorable environment for emerging-market fixed income.

Against a global backdrop in which major central banks—the Federal Reserve, European Central Bank, Bank of England, and Bank of Japan—are adjusting their monetary policy approaches, Capital Group sees encouraging signs within the asset class.

“We identify selective value opportunities in high-quality local-currency emerging-market debt with solid fundamentals and attractive real yields,” said Peró, adding that the firm also sees appeal in “certain emerging-market currencies that benefit from favorable terms-of-trade dynamics.”

Meanwhile, the fixed-income team at Neuberger Berman noted that while short-term risks remain significant, the long-term opportunity is still compelling. “We believe the substantial upward adjustment in emerging-market debt yields, cheaper currencies, and generally strong starting fundamentals support a positive medium-term total return outlook, with particularly attractive upside potential once the current crisis begins to move toward resolution,” they commented.

That said, in a global environment where geopolitical risks have produced very different outcomes across countries, prospects within the emerging-market universe remain highly diverse.

The Latin American Case

According to the asset manager, as the conflict in the Middle East drags on, the primary downside risk comes from the indirect effects of the oil shock on inflation and growth. “For emerging markets, which have been growing at an annual pace of around 4%, the threshold for a truly negative scenario remains high, but performance dispersion could be significant,” the firm stated in a recent market commentary.

Given the current inflationary risk environment, Neuberger Berman views Latin American markets as relatively well protected compared with other emerging regions. This is due, they explained, “to their exposure to commodities and energy, as well as their geographic distance from the conflict.”

Brazil is of particular interest to the firm. “The combination of a monetary easing cycle, supportive commodity-price trends, and attractive valuations could create an asymmetric opportunity,” they noted.

This view is complemented by Mexico, given the benefits that the U.S.-driven nearshoring trend—accelerated by tensions with China—could bring to the Mexican economy.

Wellington Management Acquires Hartford Funds from The Hartford

| By Marta Rodriguez | 0 Comentarios

Wellington Management and The Hartford have announced the signing of a definitive agreement under which Wellington will acquire Hartford Funds, a provider of investment solutions for the wealth management market. Upon completion of the transaction, Hartford Funds will be integrated into Wellington’s U.S. wealth management business and will subsequently operate under the Wellington brand.

The transaction will enable Wellington to provide financial advisors and investors with broader access to investment capabilities, a stronger distribution platform, and more integrated support within the U.S. wealth management market. This will be achieved by combining Wellington’s global institutional investment expertise with Hartford Funds’ established relationships with financial advisors.

The acquisition transforms the companies’ long-standing strategic partnership into a single full-service organization capable of delivering better outcomes for financial advisors and investors over the coming decades. The combined organization will be a stronger independent investment manager, better positioned to compete in an industry that continues to evolve.

Jean Hynes, CEO and Managing Partner of Wellington Management, stated: “For more than 40 years, Wellington and Hartford Funds have worked together to support advisors and investors, and I am excited about what this combination means for the future of both organizations. Wellington’s nearly century-long investment track record is supported by a deep commitment to advisors, investors, and employees, and I know the Hartford Funds team shares that same commitment.

Together, we are building on the strengths that have defined our relationship to deepen our commitment to the U.S. wealth management market through expanded access to investment capabilities, broader distribution reach, and additional resources for advisors and investors. I look forward to continuing to build on the strengths that have defined our collaboration in the years ahead.”

From his part, Christopher Swift, Chairman and CEO of The Hartford, commented: “We are proud of the strong, advisor-focused asset management business we have built, supported for many years by Wellington’s outstanding investment capabilities. This transaction allows us to deliver immediate and sustained value to The Hartford’s shareholders while positioning the exceptional Hartford Funds team for continued success. This combination represents the ideal long-term home for Hartford Funds.”

A Four-Decade Strategic Partnership

Wellington and Hartford Funds have maintained a close relationship for more than four decades, built on a shared objective of delivering strong outcomes for financial advisors and investors.

The relationship began in 1978 and evolved formally in 1984 with the launch of a long-term mutual fund sub-advisory partnership. Since then, the collaboration has expanded to include new capabilities, such as ETFs and additional investment strategies, reflecting a shared commitment to innovation and growth.

Today, Wellington serves as sub-advisor for 83% of Hartford Funds’ approximately $160 billion in assets, supported by a sales and client service team of more than 160 professionals dedicated to representing Wellington’s investment platform.

Strategic and Operational Benefits of the Transaction

A single, fully integrated platform: The transaction will combine Wellington’s institutional expertise and nearly century-long investment track record with Hartford Funds’ extensive advisor distribution platform and deep relationships with financial intermediaries. The result will be a stronger and more strategically aligned U.S. wealth management platform encompassing investment management, distribution, and client service.
Expanded capabilities and solutions for advisors and investors: As an integrated platform, Wellington will provide advisors with broader access to investment strategies and solutions across mutual funds, ETFs, separately managed accounts (SMAs), model portfolios, and alternative investments. This offering will be supported by enhanced market insights, expanded capabilities, and improved service resources to help advisors address the evolving needs of their clients.
Positioned for long-term growth: By operating as a single full-service firm, Wellington will drive long-term growth in the wealth management market through expanded access to investment capabilities, a larger advisor distribution platform, and broader commercial reach.

The combined organization will have approximately 200 client-facing professionals, offering broader solutions, more coordinated support, and a simpler, more consistent experience for advisors and investors.

Christina Kopec Rooney, Head of U.S. Wealth at Wellington Management, commented: “This combination strengthens our competitive advantage and the value we deliver to advisors and clients by bringing together Wellington’s investment capabilities and global expertise across both the institutional and wealth management segments with Hartford Funds’ U.S. distribution scale and highly regarded team.

I am excited about our combined strengths and the potential to innovate and deliver best-in-class investment solutions, deeper insights, and expanded access to Wellington’s capabilities, including alternative investments. It is a highly compelling combination built on decades of close collaboration.”

Greg Frost, President of Hartford Funds, added: “The partnership between Hartford Funds and Wellington is built on shared values, organizational alignment, and a focus on delivering excellence in investment management for advisors and investors. We are delighted to become part of a single integrated Wellington platform and believe this combination represents not only continuity for our clients and teams, but also a reaffirmation of our shared investment philosophy. We look forward to working together to build on our history and create new opportunities for growth and innovation.”

Transaction Terms

The estimated net present value of the transaction is $1.9 billion. Under the terms of the agreement, The Hartford will receive $300 million in cash at closing, in addition to further payments linked to the after-tax available cash generated by the combination of the Hartford Funds business and Wellington’s activities related to Hartford Funds—including the sale of certain Wellington-sponsored products in the U.S. wealth management market—during the seven years following the completion of the transaction.

The transaction is expected to close in the first quarter of 2027, subject to the necessary regulatory and fund approvals.

Transaction Advisors

J.P. Morgan Securities is acting as financial advisor to Wellington, while Paul, Weiss, Rifkind, Wharton & Garrison is serving as legal advisor.

On behalf of The Hartford, Goldman Sachs is acting as financial advisor and Weil, Gotshal & Manges as legal advisor.