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 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.
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).”
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.
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.
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 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.
Photo courtesyPedro Fernandes, Associate Director of Janus Henderson’s U.S. Offshore Team.
Janus Henderson has announced the appointment of Pedro Fernandes as Associate Director within its U.S. Offshore Client Group. Fernandes joined the firm on June 1, 2026, and is based in Florida, reporting to Paul Brito, Executive Director of the Client Group North America Offshore.
In this newly created role, Fernandes will be responsible for strengthening Janus Henderson’s existing relationships with wholesale intermediary clients while also developing new partnerships across the Northeastern and Southeastern United States.
He joins the firm from Citi, where he spent four years in various positions, most recently as Assistant Vice President, building extensive experience in the U.S. offshore market. He holds a bachelor’s degree in Business Administration with concentrations in Finance and Business Technology from the University of Miami, and is fluent in English, Spanish, and Portuguese.
“We are very pleased to welcome Pedro to Janus Henderson. He combines deep expertise in the U.S. offshore market with a strong track record of building lasting client relationships. As we continue investing in high-quality talent, his client-focused approach will help us better meet the evolving needs of investors, strengthen partnerships across the region, and support the next phase of our growth in this key market,” said Paul Brito, Executive Director of the Client Group North America Offshore at Janus Henderson.
According to the asset manager, Pedro’s appointment is the latest addition to Janus Henderson’s U.S. Offshore Client Group, following the hiring of Franco Cassoni in April 2026.
The evolution of family offices toward increasingly professionalized management models is transforming the way these structures make decisions regarding investments, governance, and wealth planning. This is the conclusion of a new global study conducted by Ocorian, an international provider of services to asset managers and asset owners, including private clients, fund administration, capital markets, and corporate and regulatory solutions.
The research, based on responses from members of entrepreneurial families and senior family office executives responsible for a combined $119.37 billion in assets, reveals a significant shift in internal leadership models.
Today, nearly half (47%) report that an investment committee has the final say on major investment decisions or wealth structures, compared with just 6% who still leave this responsibility to the family founder. In addition, 39% say decision-making authority rests with members of the next generation, while 6% delegate this role to external advisors and 3% to family councils or boards of directors.
The report also reveals a unanimous consensus: all surveyed family offices believe their organizations have become more professional over the past year and have implemented significant changes to achieve that goal.
Among the most common initiatives is the development of a more diversified and professionally managed investment portfolio (54%), as well as greater use of specialized external advisors (51%).
Meanwhile, 46% report having strengthened their compliance, tax, and legal infrastructure, while the same percentage have advanced the development of more robust succession plans.
Other measures aimed at strengthening these organizations include the creation of more cohesive philanthropic programs (42%) and the enhancement of management teams responsible for overseeing the family office (41%).
In terms of governance, the study shows a clear consolidation of formal mechanisms. Sixty-five percent of family offices now have an investment committee that includes independent members, while 60% have established an advisory board for the next generation.
More than half (56%) have created a formal risk committee, and 54% have independent external trustees or a board of directors. In addition, 35% have established a family council, and 18% have adopted a formal family constitution or charter.
Despite these advances, the sector continues to face significant challenges, particularly in relation to the increasingly complex international regulatory environment.
Only 8% of respondents believe they are very well advised and fully prepared to meet current regulatory requirements. Most (74%) consider themselves to be in a reasonably strong position, while 18% rate their preparedness as average.
According to Dion Yee, Chief Commercial Officer at Ocorian, “Family office operations and management are undergoing an increasingly rapid process of professionalization, and many organizations have already introduced substantial changes to their governance structures and the way they make investment decisions.”
“Many are looking ahead and preparing for succession, and investment committees are progressively replacing founders in decision-making rather than automatically transferring that responsibility to the next generation. However, there is still work to be done, particularly given global regulatory requirements that continue to evolve and become more complex,” he adds.
Ocorian’s specialized family office division offers a comprehensive approach to helping families navigate the challenges and opportunities associated with wealth management. Its model is based on long-term personal relationships and a deep understanding of clients’ priorities.
Its core services include family office formation and administration, human resources support, luxury asset and lifestyle management, family governance advisory, residency and relocation services, as well as specialized support in immigration, visas, payroll, maritime and aviation crew management, and financial reporting.
Global Citizen Solutions, a residency and citizenship planning consultancy, has published its report, Best Destinations for Owning a Vacation Home as an HNWI: The Lifestyle Perspective. The study ranks 20 global markets and concludes that seven of the top ten destinations for HNWIs (high-net-worth individuals) are located in Europe.
The analysis examines 20 established global markets, represented by their flagship luxury vacation home destinations, and evaluates them based on three criteria: real estate market quality, quality of life and lifestyle, and destination accessibility.
The study’s main conclusion is that the highest-ranked destinations are not those that excel in a single category, but rather those that perform strongly across all three simultaneously.
The fact that seven of the top ten destinations are European is due, according to Global Citizen Solutions (GCS), to a combination that is difficult to find in other regions: favorable weather, high-quality infrastructure, political stability, and accessible rules for foreign buyers. In the words of Patricia Casaburi, CEO of Global Citizen Solutions: “Europe’s leadership here is structural, not accidental. The leading markets share a rare alignment of climate, luxury infrastructure, security, and ease of purchase that continues to make the continent attractive to lifestyle-oriented buyers.”
Spain stands out for its balance between strong property appreciation and the highest quality-of-life score in the study. Portugal, meanwhile, recorded the highest appreciation in the ranking (a 17.7% increase in median bank appraisal values through October 2025), a strong safety index, and relatively accessible entry prices—factors that support rental yield potential in markets such as the Algarve and Comporta.
France and Italy, meanwhile, attract HNWIs through long-term demand and prestige, even with more moderate growth or higher entry prices. Austria and Switzerland offer near-maximum levels of security and a limited supply of properties. The United States leads in air connectivity, while Greece ranks highest for climate, with the greatest number of sunshine hours in the study. Niseko, Japan, and Queenstown, New Zealand, are also attractive from a portfolio perspective, offering diversification and high levels of safety.
The analysis also identifies a clear divide between two types of markets. Southern European destinations—Spain, Portugal, France, and Italy—appeal to buyers seeking lifestyle, capital appreciation, and a property they will use throughout the season. Alpine markets, by contrast, are favored by those seeking intergenerational value: limited supply and buyers who tend to hold properties for generations. Austria and Switzerland achieved the highest safety scores in the study. Austria is the more accessible of the two for foreign buyers, with less restrictive purchasing rules.
Liana Simonyan, researcher at the Global Intelligence Unit of GCS, adds: “Using a three-pillar framework, this index ranks twenty established luxury markets, with deliberately greater weight assigned to lifestyle and destination appeal than to real estate fundamentals—a methodological decision based on how high-net-worth individuals actually experience their vacation homes.”
