UBS has bolstered its international banking operations in New York with the addition of Juliana Herrmann, an executive with over two decades of experience in financial services and a track record closely tied to high-net-worth Latin American clients.
The appointment was announced by Fabian Ochsner, Market Director at UBS in New York, who reported that Herrmann is joining UBS International within the New York International Market, under the leadership of Market Executive Michael Sarlanis and the institution’s executive team.
Herrmann’s arrival strengthens UBS’s international platform in one of the world’s primary financial centers and, in particular, its ability to serve clients with international wealth—a segment where the relationship between the United States and Latin America continues to grow in importance.
Herrmann joins from J.P. Morgan, where she served as Executive Director in the International Private Bank, advising ultra-high-net-worth Brazilian clients. Her private banking background is complemented by an extensive history in Latin American investment banking.
Prior to joining J.P. Morgan’s private banking business, she worked for over a decade in its Latin America Investment Banking division, participating in M&A transactions, capital markets, and various strategic initiatives.
During that period, she advised on operations across sectors such as agribusiness, technology, media, energy, and industrials, participating in several significant transactions for Latin American companies.
The combination of both disciplines—investment banking and ultra-high-net-worth management—is particularly relevant to the international wealth management business, where client needs extend beyond traditional portfolio management.
For Latin American ultra-high-net-worth individuals, wealth management is typically linked to international structures, estate planning, geographical diversification, alternative investments, and access to global markets. Consequently, the expertise of professionals who understand both corporate and private wealth needs can prove to be a key asset for major financial institutions.
From Investment Banking to Wealth Management
Herrmann began her professional career in corporate finance at Ernst & Young in São Paulo before joining J.P. Morgan. Over a career spanning more than 20 years, she seamlessly transitioned between investment banking and directly advising ultra-high-net-worth clients.
Her profile also reflects the international scope of the role. She is fluent in Portuguese and English, with working knowledge of Spanish and German—a combination particularly suited for a platform like UBS International, which serves clients with global needs.
Herrmann earned her degree in Political Science and Economics, with honors, from Fundação Armando Álvares Penteado in São Paulo. The move comes at a time when major international banks are competing not only to manage assets, but also to attract and retain professionals capable of building long-term relationships with business families and prominent investors.
In this market, New York retains a strategic position as a platform for Latin American capital seeking international diversification, access to U.S. markets, and sophisticated wealth planning services.
Herrmann’s appointment at UBS joins a broader competition for specialized talent in wealth management and international private banking, particularly among professionals who combine deep knowledge of Latin American markets with expertise in managing ultra-high-net-worth wealth.
More than an individual career move, the transition underscores the ongoing importance of specialized Latin American market expertise within major global wealth management platforms.
The world’s 300 largest pension funds reached a record $27.7 trillion in assets under management at the end of 2025, representing a 13.4% growth compared to the previous year and the largest annual increase recorded since 2017, according to the Global Top 300 Pension Funds report prepared by WTW’s Thinking Ahead Institute in collaboration with Pensions & Investments.
According to the report, the increase was particularly significant among the largest funds. “The 20 largest expanded their assets by 14.7%—above the average—reaching $11.9 trillion and now accounting for 42.8% of the assets managed by the world’s 300 largest funds,” they explain. Growth was uneven across different regions. North America remains the largest region in the Top 300, although it lost market share, holding 44.7% of assets in 2025 compared to 47.2% the previous year. However, over the past five years, it registered the highest annualized growth among the major regions at 6.4%.
In Europe, assets managed by the world’s major funds increased their share to 24.6%, highlighted by Norway’s sovereign wealth fund, which surpassed $2 trillion for the first time and consolidated its position as the world’s largest pension fund—12.7% ahead of the second-largest. The United Kingdom and the Netherlands were the only markets to record negative asset growth over the last five years, both in local currency and U.S. dollars, though they remain the two largest pension markets in Europe, with mature systems and a significant presence of defined benefit plans. Europe also continues to hold the lowest proportion of defined contribution assets at 13.2%, compared to 30.7% in Asia-Pacific and 31.6% in North America.
Notably, Asia-Pacific saw its share of assets rise to 26.6%. The region maintains high exposure to equities at 51.4% of its assets—the highest percentage among the primary regions—compared to 36.4% allocated to fixed income and 10.5% to alternative assets. Technology, and especially artificial intelligence, is becoming increasingly relevant for pension funds. Fifty-six percent of study participants expect AI to generate significant benefits for the sector as a whole over the next five to ten years, though ambition outpaces readiness: many funds are still building the necessary processes and infrastructure to harness its full potential. Eighty-one percent identify data quality and standardization as one of the primary barriers to achieving this.
Greater Scale and New Capabilities
The pursuit of scale remains a primary trend in the sector. Major funds are not only increasing their asset volumes, but are also seeking new ways to expand capabilities through strategic alliances and collaborations. In this context, the report introduces the concept of hyperscaling—borrowed from the tech sector—to describe how organizations can leverage scale, data, capabilities, relationships, and governance systems to improve outcomes.
“Large pension funds are growing while simultaneously seeking new ways to enhance their capabilities. Scale remains key, as does the ability to combine knowledge, technology, data, and good governance to make better investment decisions and respond to an increasingly complex environment. Spain needs to continue promoting the development of solid, efficient complementary social welfare pillars that reinforce the sustainability of future retirement income,” explains Oriol Ramírez-Monsonis, Director of Investments at WTW Spain.
The global trends highlighted by the study also point to significant challenges for pension systems, such as the need to improve investment diversification, adapt management to the evolving needs of savers, and leverage new technological capabilities to enhance decision-making.
Photo courtesyPaul Lacroix, Head of Products de Ossiam (Natixis).
Before discussing investment ideas and products, Paul Lacroix, Head of Products at Ossiam (Natixis), pauses briefly to explain the benefits of quantitative strategies, through which “we avoid human biases.” Throughout our interview, he emphasizes the product innovation offered by the firm and highlights the advantages brought by being part of Natixis’ multi-boutique environment. In the current market climate, their equity portfolios favor the communications services, healthcare, consumer discretionary, and consumer staples sectors, while remaining cautious regarding technology and energy due to the elevated prices of their constituents.
What are the advantages of being a specialist in such a competitive environment?
We founded Ossiam in 2009, after the crisis. The objective was to have an asset manager focused on quantitative strategies. We create models and then follow them rigorously across our strategies. The advantage of a quantitative strategy is that it allows risk management and all liquidity tools to be implemented directly within the strategy itself, avoiding human biases that can sometimes lead to buying or selling stocks based on a portfolio manager’s opinion—which can be either positive or negative. Thanks to the work done prior to launching a product, we know precisely what type of risk we anticipate. Furthermore, we reduce human biases to a certain extent once the product is launched. So, yes, the environment is highly competitive for everyone, as well as very demanding. The majority of our assets are currently in equity products.
And what does working within Natixis’ multi-boutique structure provide you?
It is very useful for us. When we founded the firm, we decided to focus on quantitative investments and ETFs—a sector that we know is not yet as widespread in Spain as in other countries. Due to this setup, we needed a large firm to raise capital and distribute our products across different countries. Natixis helps us with global distribution. Having a specialist is very helpful for us. When we travel to Latin America, we have someone there who knows our products as well as the client, which is important, giving us a specialist worldwide.
Are you present in Latin America?
Yes, we visit sometimes. We regularly visit Peru, Chile, and Colombia, in addition to Mexico, where there are large institutional investors who buy UCITS funds, especially ETFs. It is an important country for us.
And what feedback do you receive from Latin American investors regarding UCITS products?
They appreciate the security and the regulatory framework backing them. They know exactly what to expect from a UCITS product. They are already familiar with the diversification limits, as well as the risk management. The global reputation of UCITS is very strong. For them, investing in UCITS funds represents, in a way, a safety net.
How does your flagship strategy, the Ossiam Shiller Barclays CAPE US Sector Value, operate?
It all starts with Professor Robert J. Shiller, winner of the Nobel Prize in Economics in 2013. In 2012, right before receiving the award, Shiller created an index alongside Barclays called the Shiller Barclays CAPE US Sector Value Index. Its goal was to utilize part of the research Professor Shiller conducted in the 1980s on the CAPE ratio. The CAPE is like a price-to-earnings ratio, but applied over a 10-year period instead of just one year. It allows for evaluating the valuation of a benchmark index, such as the S&P 500, but also functions at a sector level. That is what we use in the strategy. In short, it selects four U.S. sectors every month based on their valuation and momentum that are undervalued relative to their long-term average. The core idea is mean reversion, meaning that a very cheap sector will become more expensive as prices rise, and vice versa. It is a systematic strategy that repeats every month.
And which are currently the cheapest sectors?
In August, the U.S. Shiller portfolio included materials, healthcare, consumer discretionary, and consumer staples. The communications services sector was the cheapest in the U.S. market in August, so theoretically we could have included it, but we excluded it due to its weak momentum. As for the most expensive sectors, the leaders in this category were industrials and technology. We have not invested in technology since mid-2023, which turned out to be a bit premature. However, in the past we held positions in the tech sector and benefited from it for a long time, until it became too expensive for the model. We will continue to rotate across sectors over time following our systematic model. One of the main differences compared to traditional value investing is that we rely on relative valuation: we start by comparing a sector’s current valuation against its own long-term valuation, which allows us to compare different sectors against one another.
Why did you launch an ETF version?
There are several reasons. First, we launched the ETF in 2015, just over 10 years ago. This vehicle offers many advantages, including transparency and liquidity. Since it is a quantitative strategy, we did not want it to be a black box that we could alter. We wanted it to be fully quantitative, so it tracks an index, and fully transparent. This means that with the ETF, we publish the fund’s holdings daily. Thus, our clients know exactly what we are going to invest in and have complete transparency. Additionally, they have liquidity, as they can sell their ETF position even within the same day if they wish.
So is it an active ETF?
The distinction between active and passive ETFs is always a good question. Clients find it difficult to grasp. By law, if you are replicating an index—even an extremely complex one—it is a passive ETF. Regulation defines this ETF as passive because it tracks an index. However, the benchmark in question is quite different from the S&P 500. Consequently, tracking error exists: sometimes it outperforms the index, and sometimes it does not. So, in a sense, it acts like an active fund. Therefore, a gap exists between regulatory definitions (defining them as passive) and client perceptions (viewing them as somewhat more active, with the goal of beating the S&P 500).
Another of your flagship products is Serenity Ossiam. What does it consist of?
It is a strategy similar to a money market fund that aims to offer returns above money market rates without the credit and duration risks inherent in many traditional money market solutions. To achieve this, the fund uses synthetic replication and enters into total return swaps with leading banking counterparties. The fund holds a portfolio of assets, generally U.S. equities, but has no economic exposure to them, as their total return (positive or negative) is transferred daily to the investment bank via the swap. In exchange, the bank pays the fund the money market rate plus a spread. For corporations and large institutional investors, this represents a new way to generate yield on cash. Another advantage of these funds is their complete liquidity, with no entry or exit fees.
And do you plan to launch more ETFs?
Yes. We intend to launch many exchange-traded funds and mutual funds. We like to be innovative.
How have investors reacted to these types of products? Do they like ETFs in general?
At the end of the day, an ETF is still an investment fund. It is a fund where, beyond traditional investing, you can also buy or sell on an exchange. Therefore, for investors, there are only advantages. Provided there is no tax disadvantage—which we know differs slightly in Spain, though in other countries it is the same or even easier to access via online platforms. For instance, in Italy and Germany, ETFs are growing at a rapid pace. Instead of launching new investment funds, managers are issuing new ETFs.
And what is your take on the new account set to be approved in the European Union to encourage savers to become investors?
I see it as a good step in the right direction, but there remains a major need for financial education in general, depending on the country. How we manage retirement in Europe is very different from the United States. In the U.S., almost everyone has their own brokerage account, invests in equities, and understands how they work. In Europe, that is true in some countries, but not in others. Therefore, a significant need for education exists, and that role belongs not only to regulators, but also to asset managers, who must provide guidance and ensure that everyone understands the product.
Photo courtesySimón Toros, Market Head for Central America and the Southern Cone at UBS Global Wealth Management
An attractive dynamic. A growth opportunity. A business hub with growing momentum. There are many compelling aspects that UBS Global Wealth Management (UBS GWM), one of the world’s largest wealth management firms, sees in Latin America. The firm is bolstering its operations in the region, leveraging wealth that is becoming increasingly international and looking to diversify its investments beyond the dollar and the United States.
“The last few years, in general, have been very dynamic around the world and, in particular, in Latin America, due to the macroeconomic situation and the growth of our primary clients,” stresses Simón Toros, Market Head for Central America and the Southern Cone at the Swiss-parent company, in an interview with Funds Society.
Driven by the tailwinds of a commodity boom—given the region’s exposure to raw materials, energy, and agriculture—and technology, thanks to the AI boom, family fortunes have been growing across most of the region’s major markets, according to the executive.
This dynamic underscores UBS’s intentions for the Latin American bloc. Its integration with Credit Suisse nearly doubled its assets in the region, establishing it as a dominant player in the business. “It has positioned us as number one in Latin America,” asserts Toros, adding that this has allowed them to place greater focus on various countries across the region.
It is against this backdrop that the Swiss group decided to enhance its Latin American branch by designating it as a Business Unit last year, under the leadership of Marcelo Chilov as Head of the unit. This creation makes it the fourth regional business unit for UBS GWM, alongside the United States, Europe and Middle East, and Asia.
The Latin American Business Unit is, in turn, structured around four markets: Brazil, Argentina, Mexico, and the remaining markets—specifically, Central America and the Southern Cone (CAS). All told, they maintain a local presence with offices in Brazil, Mexico, Chile, Colombia, Uruguay, and Panama, which serves as their regional hub.
“The simple fact that we now have a dedicated unit within Global Wealth Management for LatAm gives you an idea of the importance of the region and the potential growth we see,” notes Toros.
Diversifying Beyond the Dollar
Toros describes an environment where discussions with individuals, MFOs, and institutions are becoming more dynamic, particularly when looking at sectors attracting the most attention. “The source of economic growth is not evenly distributed. There is a very strong impact from commodities and technology. That naturally captures investors’ attention as they look for where to allocate,” he explains, which has pushed them toward spaces such as semiconductors and gold.
Furthermore, the trajectory of U.S. interest rates has enhanced the appeal of investment-grade fixed income, while alternative assets have been gaining greater prominence in portfolios for years.
Beyond portfolio allocations, however, UBS GWM sees a universe of Latin American fortunes that are increasingly interested in diversifying, both in terms of currencies and asset domiciles.
“Speaking specifically about Latin America, everything happening in the U.S. and all the geopolitical issues on the agenda bring up many questions regarding the dollar,” explains the CAS region Head, adding that the northern country’s public debt and interest rates have highlighted the importance of varying currency exposures.
New Domiciles for Wealth
Regarding jurisdictions, Toros confirms that they see greater interest in looking outside the U.S.—the traditional destination for Latin American offshore investments—due to the political climate and narrative surrounding the country. “We have had numerous conversations and seen capital movements toward alternative jurisdictions,” he explains, though he emphasizes that “it does not always entail a shift in asset allocation.”
Where are they looking? The executive points to Europe and Asia as areas of rising interest.
In Europe’s case, Toros highlights Switzerland—UBS’s central hub—and the booking center they opened in Germany. In the case of more sophisticated Latin American markets, some are turning toward Luxembourg, he notes.
In Asia, Latin American interest stems from commercial ties that are growing closer between both regions. The main appeal, he explains, lies in gaining easier access to Asian markets. In that regard, South Korea and Taiwan stand out on the global stage due to their role in the semiconductor market.
Business Opportunities in the Neighborhood
According to UBS GWM, another area Latin American investors are examining closely is their own region. “There is an intra-Latin American capital flow that we have never seen before,” indicates Toros, with private banking clients highly active in investing across various businesses in the neighborhood.
The executive sees two parallel phenomena heading in that direction. On one hand, family-owned businesses are expanding beyond their home country’s borders; on the other, family fortunes are increasingly interested in investing in Latin American ventures.
The wealth management giant views this trend as a business opportunity. Following the implementation of this philosophy at the group level, they established a Client Connectivity team in the region.
Previously, Toros recounts, UBS GWM teams focused solely on the local markets where they were based, but they realized there is an ongoing search for investment opportunities. Clients are requesting advice and connections for different business ventures across various countries, and UBS is capitalizing on its extensive regional network.
“We try to connect clients with one another so they can talk,” the professional explains, leveraging their strong regional presence serving clients across 20 countries. “Latin American economies have opened up significantly to foreign capital,” he adds.
Photo courtesyKaren Knight (left), Managing Director and Head of Latin America; and Nicolás Fonseca (right), Senior Product Manager and Director of Latin American Product at VanEck
With the goal of strengthening ties with investors and finance professionals in Latin America, VanEck announced this Friday an expansion of its leadership in the region. This strengthening, noted in a press release, includes plans to increase its dedicated distribution team and continue investing in product access and market support.
The firm has been expanding its business and capabilities in the region—where it has been active since 2008—increasing access to its investment strategies through local exchanges, brokerage platforms, and cross-border accounts.
As part of this latest expansion, the company named Karen Knight as Managing Director and Head of Latin America. In her new role, which she assumed on August 1, the executive is responsible for leading regional strategy and distribution. This, they noted, aims to strengthen VanEck’s relationships with clients and partners across key Latin American markets, while also supporting select initiatives in the U.S. Offshore market.
Knight has been with the firm since January 2022 and has played an active role in its expansion across the region, working closely with distribution and product teams.
“Latin America’s investment landscape has evolved significantly, as has the opportunity to serve investors and investment professionals across the region,” said the executive in the press release, highlighting the “strong foundation” they have built.
Alongside Knight, VanEck also promoted Nicolás Fonseca, who was named Senior Product Manager and Director of Latin American Product.
The executive, the company highlighted, has also contributed to the firm’s growth in the region by broadening the array of strategies available to Latin American investors.
In his new capacity, they added, he will work to expand the availability of ETFs and UCITS vehicles on local exchanges, collaborating with Knight to align product initiatives with the needs of investors and investment professionals.
Added to this is the announcement that, in this new phase, VanEck plans to expand its dedicated distribution team in the region. Along those lines, Eduardo Escario, who previously held regional leadership, will continue to support the team during this transition period while expanding his role within the company’s European business.
“Latin America has been an important market for VanEck for nearly two decades, and we see significant opportunities to continue strengthening our service to investors across the region,” commented the firm’s CEO, Jack van Eck, in the release.
Worldwide corporate dividend payouts reached a record $827.3 billion in the second quarter of 2026, marking a 7.9% increase compared to the previous year, according to the latest “Dividend Watch” report, which is part of the “Capital Group Global Equity Study.” Underlying growth, adjusted for exchange rates, extraordinary dividends, and other technical factors, was 7.5%, exceeding forecasts.
The second quarter is the peak of the global dividend season, and in 2026, dividends paid during this period surpassed the annual totals of previous years, an occurrence last seen in 2011. Growth was also broad-based: 88% of companies worldwide increased their dividends or kept them stable, with an average growth rate of 6%.
In the view of Alexandra Haggard, Head of Product for Europe and Asia-Pacific at Capital Group, global dividends accelerated in the second quarter of 2026, with solid growth across most regions and sectors, as well as strong increases from some of the world’s largest companies. “The boom in artificial intelligence is no longer just driving markets and stock prices; it is also contributing to generating record levels of cash returns for shareholders on a global scale. Active managers like Capital Group are well-positioned to identify companies across different sectors and regions that benefit from higher earnings growth, translating into record dividend payouts. In an environment of uncertainty, active management can help detect resilient companies that distribute dividends and offer investors a reliable source of income, while allowing participation in long-term corporate growth,” she explained.
Sector Trends
The fastest growth in dividend payouts occurred in the technology sector, where the underlying rate increased by 26.3% year-on-year in the second quarter. The artificial intelligence boom is driving strong earnings growth across the global semiconductor supply chain, translating into higher payouts to shareholders; half of the sector’s increase came from the global leader, based in the U.S. Technology is on track to become, for the first time, the second-largest dividend-paying sector behind financials in 2026.
The financial sector remains, for now and by a wide margin, the largest dividend payer. Dividend payouts from its entities increased by $26 billion USD (+10.1%) and were the largest contributors to the record registered in the second quarter. On the other hand, the mining recovery accelerated, helping its dividend payouts increase by 15.1%.
Regional Trends
Geographically, Japan and the broader Pacific region posted the highest dividend growth worldwide, thanks to improved corporate profitability, governance reforms, and constant attention paid to shareholders by publicly traded companies.
The second quarter marks the seasonal peak for dividends in Europe, representing 36% of total dividends paid during that period (compared to 21% for the full year). Underlying growth, at 3.6%, was constrained by cuts in the automotive sector, although solid payouts from banks and financial institutions helped offset this weakness, backed by the sector’s strong recovery and its growing contribution to European shareholder income. And the United States recorded good growth, with an underlying rate increase reaching 8.7%, while emerging markets lagged behind at 4.7%, mainly due to reductions recorded in the Middle East.
For their part, Spanish dividends delivered an excellent performance in the second quarter of 2026, with total payouts reaching $19.4 billion / €16.6 billion, representing an increase of 16.6% in underlying terms (51.7% in nominal terms). Overall, the figure was in line with the 16.1% underlying growth recorded for the first half of 2026 as a whole. As in many other European countries, the financial sector was the main driver of this growth. All companies in our index increased their dividends or kept them stable year-on-year.
Outlook
The outlook remains positive. Capital Group has revised its global dividend forecast for 2026 upward to $2.23 trillion USD (from $2.20 trillion), representing total growth of 6.4% and an underlying increase of 6% (up from the previous 4.7%). Key factors driving this upward revision include higher-than-expected extraordinary dividends, the depreciation of the U.S. dollar, and a shift in dividend policy by a major U.S. semiconductor company.
BBVA Global Wealth Advisors (BBVA GWA), a registered investment advisor managing approximately $1.7 billion in client assets, recently announced the selection of SS&C Black Diamond Wealth Solutions as its primary platform to support its next phase of growth and further enhance the client experience, according to a press release.
Based in Miami, BBVA GWA serves a global client base, focusing on non-U.S. individuals investing in the United States. The firm offers investment management and advisory solutions in a dynamic and highly regulated financial market. The firm’s approach centers on a personalized investment process that guides clients through each stage of the investment cycle, from goal setting and strategy design to portfolio implementation and ongoing monitoring.
The choice of Black Diamond supports BBVA GWA’s ongoing expansion initiatives following the divestment of its parent company’s retail banking operations in the U.S. The firm plans to add approximately 10 advisors by the end of the year.
Black Diamond provides an integrated suite of capabilities, including portfolio performance reporting, a client portal, rebalancing and trading, CRM, and document management. BBVA GWA uses Black Diamond to unify workflows and deliver a more connected, high-touch client experience.
“Everything we do starts with understanding our clients—their goals, their ambitions, and the path they want to take,” said Humberto García, CEO of BBVA GWA. “As we continue to grow, we need technology that supports that level of personalization while allowing us to scale efficiently. Black Diamond provides us with the flexibility to offer a more tailored experience rather than a standardized one,” he concluded in the press release.
Steve Leivent, Senior Vice President and Co-General Manager of SS&C Wealth & Investment Technologies, noted: “Today’s clients expect a seamless experience that reflects both the sophistication of global markets and the personal nature of their financial goals.” He added, “Our integrated platform enables firms like BBVA GWA to quickly deliver more refined, tailored solutions that meet the unique needs of each client, all while maintaining high standards of transparency and service.”
Buying a luxury residence in Miami and receiving, alongside the apartment, a deeded private office that can be used, rented, or held as an independent asset is ceasing to be a real estate anomaly and becoming a new development formula.
This proposal alters the traditional logic of the luxury condominium. It is no longer merely about acquiring a home with a business center, a boardroom, or a coworking space as part of the amenities. In this new model, the buyer acquires two properties within a single transaction, and the office comes with its own title deed.
The distinction may seem subtle, but from an investor’s perspective, it is significant: an amenity is consumed; a real estate asset can retain value, be sold, or generate income.
The concept began gaining traction in Brickell, Miami’s primary financial district, precisely when prime office rents recorded extraordinary increases and corporate demand concentrated increasingly in well-located, premium buildings with high-level services.
The most representative case is One Twenty Brickell Residences, developed by Property Markets Group (PMG). The project features a 40-story tower with 467 fully finished and furnished residences, each paired with its own deeded office.
The offices feature private access, boardrooms, and concierge services. Above all, they are not part of a shared business center: they are independent real estate spaces linked to the buyer.
The new equation, therefore, is not simply “living and working in the same building.” It is living in one property while simultaneously owning another property capable of producing income.
The Price of Owning an Office in Brickell
The emergence of this product coincides with a transformation in Miami’s corporate market. According to CBRE data for the fourth quarter of 2025, Class A office rents in Brickell had increased approximately 74% since 2021, reaching around $102 per square foot annually.
The surge becomes even more pronounced when examining the most exclusive segment. In top-tier buildings, rents can reach $225 per square foot, compared to approximately $60 in 2021.
Cushman & Wakefield similarly identifies a sharp rise in occupier costs. Companies that renewed contracts at $40 or $50 per square foot before the pandemic may now face renewal proposals ranging between $120 and $130 per square foot.
As a result, occupancy costs for prime offices in Miami are beginning to rival even those of Manhattan. This comparison is relevant in understanding why an office included in a residential purchase can hold a far greater economic value than that of a simple amenity.
However, the market is not growing uniformly. CBRE reported a 14.9% vacancy rate across the entire Miami office market for the second quarter of 2026, with an average asking rent of $68.60 per square foot.
Even so, during that quarter, the city recorded a positive net absorption of 344,000 square feet, accompanied by rising asking rents.
Colliers, for its part, reported an office vacancy rate of 10.8% in Miami-Dade during the second quarter of 2026 and a record asking rent of $73.37 per square foot for Class A properties.
The conclusion that emerges from all the data is that there is not necessarily a generalized shortage of offices. What exists is a growing differentiation between lower-quality spaces and those with the location, services, and features required to attract high-net-worth tenants.
Savills identifies a similar trend, highlighting the role of technology firms, family offices, and financial institutions in driving demand for prime office space. It is precisely at this intersection of luxury housing, business activity, and a relative scarcity of high-quality corporate space where this new real estate product emerges.
From Amenity to Second Asset
For years, luxury condominium developers competed by incorporating private restaurants, gyms, spas, libraries, boardrooms, and coworking spaces. While all of these enhanced a property’s appeal, none could be sold separately.
By contrast, a deeded office changes the equation: the owner can use it for their own business, convert it into an extension of their residence, lease it to a third party, or—depending on condominium rules and applicable legislation—eventually sell it independently.
This turns what would traditionally have been an amenity into a real estate asset capable of generating cash flow. One Twenty Brickell implements the formula on a particularly significant scale: 467 residences and 467 deeded private offices.
In wealth management terms, a single residential transaction incorporates a second asset. For an investor, the question shifts from how much the apartment is worth to how much the office is worth and how much income it can generate.
The New Equation: Live, Work, and Rent
The concept is evolving beyond its original premise. At Twenty Sixth & 2nd in Wynwood, developed by PMG and LNDMRK Development, the project includes 233 residences and 122 deeded offices.
This development marks a new phase in expanding the model into one of the neighborhoods that has transformed most significantly in Miami over the past decade. The underlying logic differs markedly from the traditional home office: I live here, I work here, and I own an additional asset that I can monetize.
Under certain circumstances, an owner could occupy the apartment and lease the office. Alternatively, they could use the office for their business and lease the residence when not in use, provided building rules and local regulations permit.
The possibility of generating additional income is precisely one of the primary commercial selling points of the new model. Information provided by developers indicates that an office can represent an additional value of up to $80,000 annually, over and above any return generated by the apartment.
However, that figure should be interpreted as potential gross income rather than net yield. The true return will depend on the purchase price of the office, its size, location, demand, effective rent, vacancy periods, maintenance, property taxes, insurance, management, and other operational costs.
The relevant financial question, therefore, is not how much an office can be rented for, but how much actually remains in the owner’s hands after all expenses are accounted for.
That calculation will be decisive in establishing whether the deeded office represents a genuine real estate innovation or simply functions as a new sales hook for high-end condominiums.
The Model Expands
The formula no longer appears confined to Brickell.
Wynwood is among the first markets where it is being replicated, while Downtown Miami is also incorporating high-end projects with private offices into its real estate offerings.
This geographic expansion is important because it will show whether structural demand exists for this product or if its appeal depends primarily on the extraordinary conditions of Brickell’s financial district.
It also suggests a broader possibility: that integrating housing and office space may become a distinct category within the luxury market. The concept is particularly attractive in an environment where hybrid work has not eliminated the need for corporate spaces, but has reshaped their requirements.
Companies may require fewer square feet than before, but they are willing to pay more for representative, well-located spaces with quality services. In this context, a small, private, strategically located office can find a natural target market among entrepreneurs, independent professionals, family offices, and small firms that do not need large floor plates but require a prestigious address and corporate space.
The Latin American Component
The model also finds a natural market among international buyers, particularly Latin Americans.
Data regarding the new construction market indicates that Latin American buyers represent 86% of new construction purchasers in Miami—a proportion that helps explain why developers are designing products that address not only residential needs, but wealth planning and business requirements as well.
This metric aligns with figures from MIAMI REALTORS, which illustrate the significant role of international capital in South Florida’s real estate market. During 2025, foreign buyers purchased residential properties valued at approximately $4.4 billion in South Florida, up from $3.1 billion in 2024.
In terms of volume, foreign buyers acquired roughly 5,300 properties, compared to about 4,000 the previous year. International participation is particularly prominent in new housing. A study by MIAMI REALTORS covering 9,115 units across 37 developments found that international buyers accounted for 49% of sales in new construction, pre-sales, and condominium conversions over the 18 months ending in June 2025.
While measuring different subsets, both metrics point in the same direction: international buyers are a core component of Miami’s new construction real estate market. For a Latin American entrepreneur, the proposition of purchasing a residence and simultaneously obtaining a deeded office offers utility that extends well beyond convenience.
It can serve as a U.S. residence, a meeting space for clients, a headquarters for specific corporate activities, or an asset capable of generating a secondary income stream denominated in U.S. dollars. For an investor, adding an income-producing asset to a residential purchase introduces a new variable into return calculations.
From Residence to Wealth Platform
The true innovation of the model lies not necessarily in the office itself, but in converting a portion of a residential property into a wealth management platform with two distinct assets. For decades, the added value of luxury condominiums was tied to amenities, but a different question has emerged: Can an amenity become an asset?
For instance, a swimming pool cannot be rented independently, a gym cannot be sold, and a lounge does not have its own title deed. A deeded office, by contrast, possesses these characteristics, allowing it to acquire an economic value potentially independent of the residence.
This phenomenon aligns with a broader shift in the U.S. office market. Demand recovery has been uneven: high-quality properties located in core business corridors capable of offering a premium corporate experience are performing very differently from secondary spaces.
Cushman & Wakefield reported that office leasing activity in Miami totaled approximately 830,500 square feet during the first half of 2026, though volume was 28.5% lower than that recorded during the same period the previous year.
However, second-quarter activity increased 44.4% compared to the prior quarter. This suggests that while the market continues to adjust, indicators demonstrate that demand for quality space remains a significant part of the equation.
Risks exist, however. One challenge is that innovation may eventually become the industry standard. Furthermore, the model’s appeal does not eliminate underlying risks, the first of which is liquidity.
A small, specialized office may have a much narrower secondary market than a residential unit. Its value will depend on location, dimensions, layout, condominium regulations, permitted uses, and the depth of commercial demand.
Another risk is the cost of ownership. Florida has tightened financial and maintenance requirements for condominiums following the Surfside collapse. An academic study published this year found that higher future costs related to new regulatory demands are already reflected in the state’s condominium prices.
A third risk is future competition. If more developers begin including deeded offices in their developments, the concept may lose part of its differentiation, as real estate innovations command a premium while scarce, but see that premium compress once they become a standard feature.
Consequently, the real value of a deeded office will not be determined solely by holding an independent title deed, but will depend on sustained demand for those specific spaces.
A New Category for Investors
For now, deeded offices represent a niche within Miami’s luxury condominium market. However, the concept is noteworthy because it bridges three markets that were traditionally analyzed separately: high-end residential, corporate offices, and real estate investment.
In this context, Brickell functioned as a testing ground, while Wynwood and Downtown Miami demonstrate the potential to replicate the model. Meanwhile, the substantial presence of international buyers provides a natural market for a product that offers more than a residence.
This evolution could lead to the establishment of a distinct real estate category: properties designed not only for living, but for working and generating income. For developers, the advantage lies in differentiating projects and increasing the perceived value of each transaction.
For buyers, the equation is more nuanced. An office can serve as an additional dollar-denominated income stream, but only if rental income exceeds carrying costs and sufficient occupier demand exists. For private wealth investors, particularly those using Miami as a platform to diversify international capital, the fundamental question remains: Are they purchasing a luxury amenity, or acquiring a second, cash-flow-generating real estate asset?
The answer will determine whether deeded offices are simply the latest differentiation strategy for luxury condominium developers or the beginning of a new approach to structuring real estate assets in Miami.
The world changes at terrifying speeds, and financial markets do too; today there is a reason why every quarter investors await the financial results of Nvidia, Microsoft, Apple, Alphabet, Amazon, Meta, and Tesla as if they were a leading indicator for the financial markets. No, it is not merely because they are seven of the most valuable companies in the world, but because a growing portion of global portfolios is exposed to them, directly or indirectly. Today, the Magnificent 7 are a genuine dilemma for asset managers, but there are dilemmas and then there are dilemmas; this one might not be entirely negative, but it has its own distinct peculiarities.
Nvidia, Microsoft, Apple, Alphabet, Amazon, Meta, and Tesla—the Magnificent 7—do not only concentrate an extraordinary portion of U.S. market capitalization; the real impact is that because their results, artificial intelligence investments, and growth expectations determine the behavior of indices, ETFs, and investment funds.
Therefore, for managers, the challenge is no longer deciding whether to have exposure to the Magnificent Seven, but how much to hold, how to diversify it, and what to do if market leadership begins to broaden. An investor may have never purchased a single share of Nvidia, yet that does not mean they do not hold it within an S&P 500 ETF, a U.S. growth fund, a global equity strategy, a pension plan, or a portfolio managed by a wealth manager.
This is the true financial dimension of the phenomenon. The so-called Magnificent 7 have become one of the primary transmission mechanisms between the artificial intelligence economy and investment markets. In this sense, their most recent financial results—now that we are in earnings season—show that the story is entering a new phase: it is no longer just about how fast their revenues are growing, but how much money they are forced to invest to sustain that growth and who will ultimately capture the benefits of the AI revolution.
Too Big to Be Ignored
According to Vanguard data, the seven companies combined generated approximately $2.2 trillion in revenue during 2025—a scale that helps explain why they ceased being a mere group of tech companies to become a macroeconomic and market factor. Concentration has also altered the nature of diversification; a fund tracking a market-cap-weighted index may hold hundreds of stocks, yet a significant proportion of its risk and return can end up depending on a relatively small group of companies.
This phenomenon concerns even major asset management firms. BlackRock, for instance, acknowledges that the U.S. market is at historically elevated levels of concentration and posits that the challenge for investors is finding exposure to AI growth without remaining excessively concentrated in today’s mega winners.
T. Rowe Price, for its part, has directly addressed the concentration problem created by the Magnificent Seven and its implications for portfolio construction. That is, the question is no longer whether the Magnificent Seven are good companies, but how much additional risk holding all of them introduces. Nevertheless, all seven are companies that cannot go unnoticed under any circumstances; together or apart, they are simply too big to ignore. Below is a brief summary of why that is the case.
Nvidia: The Company That Turned AI into Financial Results
If one company had to be chosen to represent the transformation of the stock market phenomenon into a financial reality, it would be Nvidia. On August 26, the company reported results for its fiscal 2027 second quarter. The numbers are extraordinary: revenues of $96.2 billion, up 106% year-over-year; Data Center revenues of $89.0 billion, up 117% year-over-year; GAAP net income of $59.7 billion, up 126% year-over-year; and a gross margin of 75%. The company expects revenues of approximately $108.0 billion for its fiscal third quarter.
For asset managers, however, there is an even more important figure: Nvidia is not merely selling chips; it is becoming the primary financial beneficiary of the massive capital expenditure cycle in artificial intelligence infrastructure. The company noted that AI infrastructure buildouts continue to accelerate and anticipated revenue growth of approximately 70% for fiscal year 2028, though it pointed out that its outlook remains supply-constrained. That shifts the conversation within investment funds: Nvidia is no longer just a technology play, but a bet on the capital expenditure of the entire technology industry.
Microsoft: The Other Side of the Boom
Microsoft represents the second major component of the equation: enterprise monetization of AI. In its fiscal year 2026, the company recorded the following figures: $331.8 billion in revenue, up 18% year-over-year; $155.2 billion in operating income, up 21%; and $133.7 billion in net income, a 31% increase. Azure and other cloud services grew 43% during the fourth quarter, according to company data. Meanwhile, Microsoft Cloud reached $214.4 billion in revenue for the fiscal year.
A figure of particular importance to an asset manager is that Microsoft closed the fiscal year with $678.0 billion in commercial remaining performance obligations—a signal of the tremendous visibility it holds over future revenues. But another factor is at play: the company is deploying massive amounts of capital into AI infrastructure, and its margins are beginning to feel the shift in business mix. For investors, a fundamental question emerges: How much of current AI capital expenditure will translate into profitable growth, and how much will weigh on cash flow?
Amazon and Alphabet: When AI Begins to Consume Cash
That same question emerges even more clearly at Alphabet and Amazon. Alphabet raised its 2026 capital expenditure guidance to a range between $195.0 billion and $205.0 billion, up from a previous guidance range of $180.0 billion to $190.0 billion. The company explained that the increase stems from the need to accelerate capacity to meet demand, but it also cautioned that technical infrastructure investments will drive up depreciation and data center operating costs while keeping cash flow under pressure.
This has a direct consequence for asset managers. Until now, the narrative could be summarized as: more AI investment = more growth. Now it is shifting toward: more AI investment = more growth, but also higher capital intensity and cash flow pressure. Amazon exhibits the same phenomenon. In the second quarter of 2026, its sales grew 20% to $200.6 billion, while AWS surged 37% to $42.2 billion. Operating income increased 43% to $27.5 billion.
However, its trailing 12-month free cash flow turned negative to -$7.6 billion, primarily driven by a $66.1 billion increase in purchases of property and equipment, fueled mainly by artificial intelligence investments. For a fund manager, this is a crucial distinction: revenue growth can remain extraordinary while free cash flow temporarily deteriorates due to capex. The question is when that spending will begin generating sufficient returns.
Meta Shows the Cost of the Race
Meta provides another example. In the second quarter, its revenues grew 28% to $60.8 billion, but its costs and expenses rose 55%. The result was a 14% decline in net income to $15.8 billion. The company spent $31.1 billion on capex during the quarter, while generating just $784 million in free cash flow.
For fund managers, this introduces a new variable: the market can no longer evaluate the Magnificent Seven solely through valuation multiples; additional factors must be scrutinized, including capex, depreciation, free cash flow, return on invested capital (ROIC), top-line growth, operating margins, energy consumption, data center demand, and, increasingly, the capacity to monetize AI models.
Apple and Tesla Break Group Uniformity
Signs indicate that the Magnificent Seven no longer behave as a homogeneous block. Apple reported record third-quarter fiscal 2026 revenues of $109.4 billion, up 16% year-over-year, driven by double-digit growth across iPhone, Mac, and Services. Tesla, by contrast, presented a far more complex picture. In the second quarter, it generated $28.2 billion in revenue, up 26% year-over-year, but its operating income fell 57% to $398 million, with its operating margin narrowing to 1.4%. Its capex surged 142% to $5.8 billion, resulting in a negative free cash flow of -$1.1 billion.
This highlights something important: the seven companies are no longer a single trade. Apple represents ecosystems, devices, and services; Microsoft and Amazon represent cloud and enterprise software; Alphabet represents search, advertising, and cloud; Meta represents advertising and social platforms; Nvidia represents AI hardware infrastructure; and Tesla represents electric vehicles, energy storage, autonomy, and robotics. That is why Vanguard cautions that the “Magnificent Seven” label can obscure critical differences among their underlying business models.
The Dilemma for Funds: To Hold or Not to Hold
The influx of figures and business models creates a genuine dilemma for asset managers. An active manager who drastically reduces exposure to the Magnificent Seven risks lagging their benchmark if Nvidia, Microsoft, or the others lead market rallies once again. Conversely, a manager maintaining elevated exposure risks significant relative underperformance if market breadth expands toward small-cap equities, traditional sectors, or international markets. Concentration has become a core risk management issue, not merely a stock selection decision.
BlackRock points out that while the U.S. market is at historical concentration levels, earnings growth prospects are beginning to broaden beyond the Magnificent Seven. The firm notes that the rest of the S&P 500 could narrow the EPS growth gap relative to the mega caps during 2026. As a result, market participants are asking whether it is time for asset managers to seek out the “Magnificent 8, 9, 10…”, as capital may begin migrating from the initial winners to their direct suppliers—a broadening of the investment universe that BlackRock is already highlighting.
In its outlook for the third quarter of 2026, the asset management firm notes that investors are seeking opportunities in the infrastructure, energy, and industrial layers supporting the expansion of AI beyond first-order beneficiaries, which could mark a major transformation for active management. If the first phase of the boom was about buying the mega-cap tech winners, the second phase may focus on identifying the supplier ecosystem capturing the next dollar of capital expenditure—a transition that is already reshaping portfolio construction.
The impact reaches directly into ETFs and index funds. A market-cap-weighted S&P 500 ETF automatically increases its exposure to companies as their market valuations rise. That means an extraordinary rally in Nvidia does not merely benefit direct shareholders; it also increases its weight within numerous index products. Thus, concentration can turn into a self-reinforcing loop: the stock rises → its market capitalization grows → its index weight increases → funds tracking the index must buy more exposure → capital continues to concentrate. This does not necessarily mean an automatic mechanism continues to push the stock higher, but rather that market capitalization dictates how passive capital is allocated. This phenomenon has reached the point where Nvidia accounts for roughly 8% of the S&P 500, according to data recently cited by MarketWatch.
For asset managers, this makes true diversification a far more complex concept. A fund may hold 500 constituents and still remain heavily exposed to the same underlying narratives: AI, cloud computing, semiconductors, digital advertising, and U.S. mega-cap equities.
The Big Question for 2027: What Is AI Really Worth?
Today, the issue is not that the Magnificent Seven are producing weak operational results; on the contrary, their figures remain extraordinary: Nvidia has doubled its revenues, Microsoft grows at a double-digit pace, Amazon is accelerating AWS, Alphabet is ramping up infrastructure investments, Meta is driving strong top-line growth, Apple posts record quarterly revenues, and Tesla is committing growing amounts of capital to AI, autonomous driving, and robotics. However, expectations are now so elevated that the market demands these investments produce increasingly higher returns.
BlackRock summarized this in its 2026 outlook, warning that AI-related capital expenditure has reached a scale large enough to carry macroeconomic implications, while the revenues derived from those investments will arrive with a lag. For fund managers and wealth administrators, the Magnificent Seven represent both an opportunity and a concentration risk.
The opportunity lies in participating in one of the largest technology investment cycles in history; the risk is that much of the market is already fully positioned in it. The next phase of asset management may not center on whether the Magnificent Seven will continue to win, but on discovering which companies will profit as the capital currently flowing into the Magnificent Seven spreads across the rest of the economy.
Photo courtesyAlberto D’Avenia, Head of Americas Distribution at BNP Paribas Asset Management
After more than a decade working across various firms between Italy and Miami, executive Alberto D’Avenia has returned to BNP Paribas Asset Management. The professional announced his appointment via LinkedIn after assuming the role of Head of Americas Distribution at the asset manager.
In his new capacity as Head of Americas Distribution, he will be responsible for the entire Americas region, covering the full scope of LATAM, U.S. Institutional, and U.S. Offshore. However, according to sources familiar with the matter, D’Avenia oversees BNP Paribas AM’s liquid asset strategies. For alternative assets, the executive in charge is Álvaro Correas, who serves as Head of Business Development and Investor Relations for Iberia and Latin America at CAPZA—the firm serving as BNP’s private equity and private debt arm.
The asset manager’s regional distribution team, which D’Avenia now joins, includes John Barletta and Rafael Tovar. John Barletta currently serves as Head of Wholesale Distribution for BNPP AM, while Rafael Tovar serves as Head of U.S. Offshore and Wholesale Distribution for Latin America at the former AXA Investment Managers, which is now fully integrated into BNPP AM.
It is worth noting that AXA IM was incorporated into BNP Paribas AM in July of last year. Within the group’s structure, the firm operates under the Investment & Protection Services division, which specializes in investments, savings, protection, and real estate services. BNP Paribas Asset Management maintains a local presence with offices in Brazil and Mexico, and has a Head of LatAm (excluding Brazil) supporting product sales across the region: Pedro Pablo Montero, who is based in Chile. In Brazil, operations are led by Aquiles Mosca, CEO of Brazil and Head of Sales for the country, who will now report to Alberto D’Avenia.
In addition to AXA’s agreement with AMCS—a Miami-based group dedicated to distributing third-party strategies across Latin American and U.S. Offshore markets—BNP Paribas Asset Management maintains a local footprint with offices in Brazil and Mexico.
Extensive Industry Experience
Prior to returning to the group, D’Avenia served for three and a half years as Head of U.S. Offshore at Voya Investment Management. Before that, he spent a decade at Allianz Global Investors, where he rose to the position of Head of U.S. Non-Resident Business and LatAm Retail.
A major stretch of the professional’s career—spanning 13 years across various positions—was spent precisely at BNP Paribas AM. He first joined as a Senior Client Relationship Manager in 2000 and advanced within the firm to become Head of External Distribution Sales for Italy and the Mediterranean region between 2011 and 2013. Additionally, he has held positions at Epta Fund SGR, Deutsche Bank Italia, Azimut, and Prime Consult SIM
