InCadense Bets on Accelerating Fee-Based Adoption in Latin America with BlackRock Alliance

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Photo courtesyA.J. Harper (left), Managing Partner and Co-Founder of inCadense; and Francisco Rosemberg (right), Managing Director and Head of Wealth and Family Capital for Latin America at BlackRock
Amid the evolution of the fee-based model in Latin American and US Offshore markets, wealth management technology company inCadense and American asset manager BlackRock announced a partnership aimed at accelerating the transition toward more scalable, transparent, and portfolio-centric advisory models in the region.
According to executives Francisco Rosemberg, Managing Director and Head of Wealth and Family Capital for Latin America at BlackRock, and A.J. Harper, Managing Partner and Co-Founder of inCadense, in an interview with Funds Society, the strategy consists of combining the global asset manager’s investment expertise with the technology company’s infrastructure.
In this partnership, inCadense brings its Unified Managed Account (UMA) structure—which enables bundling multiple investment strategies within a single account—along with its iTAMP, created to allow advisors and managers to deploy international managed accounts without needing to build the entire operational setup from scratch.
“The migration toward fee-based models, the growth of managed accounts, and the demand for more sophisticated investment solutions do not happen overnight. What we have observed is that the demand already exists, both in Latin America and in offshore markets,” says BlackRock’s Rosemberg. “What was missing was the infrastructure to connect advisors, solutions, and clients. That is exactly what this partnership seeks to do: bridge that gap and accelerate that transformation.”
The executives also highlighted the growth of fee-based models in Latin America, where penetration still hovers around 10% to 12% in domestic markets, compared to 53% in the United States and 42% in Europe (according to Cerulli data).
“The demand already exists. The challenge is eliminating complexity so that advisors can offer holistic solutions to their clients. That is precisely why we developed this infrastructure,” says Harper, from inCadense.
They also discussed the expansion of managed accounts in the United States, which currently manage $16.4 trillion in assets and continue to record strong growth, alongside the evolution of fee-based portfolios—moving beyond simple ETF allocations to incorporate mutual funds and alternative assets, such as private credit, private equity, and real estate.
For both executives, the primary barrier to this transformation was never investor demand, but rather the lack of a technological infrastructure capable of connecting advisors, custodians, and asset managers across different markets and jurisdictions.

Why did BlackRock and inCadense decide to form this partnership?

Francisco Rosemberg (BlackRock):
“We are observing wealth managers across Latin America and in offshore markets evolving toward fee-based advisory models. These models are more scalable, more transparent, and ultimately designed to deliver better outcomes for clients.
BlackRock’s role in this partnership is to provide investment capabilities, portfolio construction expertise, and support advisors in transitioning from a transactional model toward a long-term wealth consultancy model.
inCadense complements that effort by offering technological infrastructure. Its Unified Managed Account (UMA) and Separately Managed Account (SMA) capabilities simplify portfolio implementation across different jurisdictions, custodians, and currencies.
We believe this collaboration will help reduce much of the operational friction that historically hindered the adoption of fee-based models in the region. Ultimately, it is a model that offers greater cost transparency, strengthens advisor-client alignment, and transforms the role of the advisor—who stops acting as a product distributor to focus instead on financial planning, portfolio construction, wealth management, and long-term advice.”
A.J. Harper (inCadense):
“The biggest challenge was never demand. The challenge was always infrastructure. When the industry shifts away from distributing standardized products, such as mutual funds, toward delivering complete portfolio solutions, overall operational complexity increases significantly.
Investors want customization. They want a portfolio built specifically for them, not a one-size-fits-all product. Until today, many advisors simply lacked access to the technology required to deliver that experience.
It was precisely to solve that problem that we created the iTAMP (International Turnkey Asset Management Platform). Our platform connects advisors to multiple custodians, execution platforms, and operational workflows within a single infrastructure designed specifically for the international market.
Our goal is to remove day-to-day operational complexity for advisors so they can dedicate their time to client relationships rather than account reconciliations, rebalancing, trade execution, or administrative processes.”

What is a Unified Managed Account (UMA)?

A.J. Harper:
“A UMA allows the advisor to build a single, integrated portfolio using multiple investment strategies simultaneously. Within the same account, it is possible to combine ETFs, fixed income, equities, SMAs, private investments, and alternative strategies.
Each of those strategies can be managed by specialized teams, while the overall portfolio remains coordinated according to the client’s risk profile and goals. Instead of selling individual products, the advisor delivers a comprehensive investment solution.”

Why is this movement happening right now?

Francisco Rosemberg:
“We believe Latin America is reaching a pivotal inflection point.
Fee-based models are already well established in mature markets. Today, approximately 53% (according to Cerulli data) of assets managed in the United States follow this model. In Europe, market share hovers around 42%. In offshore markets, we estimate penetration close to 35%, up from nearly 20% just over five years ago.
In Latin America, however, we are still at an early stage. Across the entire region, we estimate penetration at around 20%, while in domestic markets that percentage still sits around 10% to 12%. That illustrates the size of the opportunity.
The demand is already there. Virtually every conversation we have with wealth managers trends in the same direction: they want to migrate toward portfolio-centric models and long-term advisory.
What was missing was the technological infrastructure to make that transition viable. That is precisely what this partnership intends to offer.”

How does Latin America differ from the United States in this regard?

A.J. Harper:
“The United States built an exceptional infrastructure for managed accounts. But it was designed specifically for the American domestic market.
The international advisor operates in a completely different reality. They handle multiple currencies, varying jurisdictions, numerous custodians, and very distinct regulatory environments.
Our role is to bring the US managed accounts experience to Latin America, but tailored to the specific needs of international markets. That is what makes our platform a genuinely international solution.”

Who will be able to use this platform?

A.J. Harper:
“There are different user profiles. The first group consists of advisors affiliated with large wealth management institutions. These firms can integrate their existing infrastructure with the iTAMP and deploy the platform to their advisors.
We also serve independent RIAs, external asset managers, family offices, and multi-family offices. These institutions typically already work with one or more custodians.
Our platform integrates directly into the operational environments they already use. We are not asking them to change their infrastructure; we connect directly to how they already operate.”

Which countries are leading the adoption of fee-based models?

Francisco Rosemberg:
“We are seeing progress across the entire region. Brazil and Mexico are among the markets accelerating this transformation the fastest, although adoption is growing across virtually all of Latin America.
Infrastructure remains one of the main hurdles. When we look at our own ETF franchise, we see this exact trend. Between 2018 and 2021, only 3% of flows into BlackRock’s iShares franchise came from model portfolios. Over the last two and a half years, that share has increased to approximately 15%.
When we expand that analysis to include model portfolios managed by wealth managers overall—not just BlackRock models—we estimate that roughly 30% of ETF utilization is now tied to model portfolios. That demonstrates how adoption accelerates once the proper infrastructure becomes available.”

How do you view the evolution of fee-based advisory in the region?

Francisco Rosemberg:
“Initially, much of the market focused on ETF-only models. But we believe that is only the first stage. Portfolios will evolve to incorporate a much broader range of solutions, including ETFs, mutual funds, SMAs, active ETFs, and alternative investments.
Today, nearly 70% of model portfolio providers already offer—or plan to offer—exposure to private markets, primarily private credit, private equity, and private real estate, typically through interval funds.
We believe Latin America will follow a similar trajectory as its infrastructure matures.”

Can the US market serve as a benchmark for this movement?

Francisco Rosemberg:
“Without a doubt. Today, the US managed accounts industry oversees approximately $16.4 trillion in assets. In 2025 alone, that market grew 19.1%, outperforming even the S&P 500 during that period, and attracted $1.08 trillion in net inflows.
In the first quarter of 2026, even as the S&P 500 declined by 4.3%, managed accounts continued to attract capital, gathering approximately $388 billion in net inflows. Projections indicate this market could reach around $21.8 trillion by 2028, growing at an annual rate close to 12%.
This shows that the transformation is driven not merely by market performance, but primarily by a structural shift in how advisors serve their clients.”
A.J. Harper:
“For many years, it was relatively easy for advisors to distribute financial products. Deploying customized portfolios, however, required an extremely complex operational setup.
Our goal is to make portfolio implementation as simple as selling a mutual fund used to be. Technology should sit in the background. Advisors should spend their time with clients; we take care of the infrastructure.”

Salaries in Sovereign Wealth Funds, Who Is Who?

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Sovereign wealth funds (SWFs) have become one of the most powerful and least visible employers in global finance. These state-owned vehicles collectively manage more than $12 trillion in assets, investing in equities, bonds, infrastructure, real estate, private equity, and private credit across every continent, while offering careers that combine institutional investing with a geopolitical dimension that is hard to find in the private sector.
The guide “Sovereign Wealth Fund Jobs 2026: Roles, Salaries & How to Get Hired” reveals a highly selective labor market where professionals with experience in investment banking, private equity, or institutional management can access compensation packages that reach up to $600,000 per year.

The Sovereign Wealth Fund Club

Sovereign wealth funds operate under low visibility, but that does not mean they lack relevance; quite the contrary. At the top of the sector sits Norway’s Government Pension Fund Global, the largest sovereign wealth fund in the world with over $2.1 trillion in assets and equity stakes in more than 9,000 companies across 70 countries. It is followed by giants such as China Investment Corporation, Abu Dhabi Investment Authority (ADIA), Kuwait Investment Authority, and Hong Kong’s Exchange Fund.
The ranking also includes major Gulf players like Mubadala Investment Company, ADQ, Investment Corporation of Dubai, and Dubai Investment Fund, as well as Asia-Pacific institutions like Korea Investment Corporation and Australia’s Future Fund.

How Much Does a Sovereign Wealth Fund Pay?

The main difference compared to other institutional investors lies in the combination of competitive salary, stability, and global exposure. According to the guide, investment positions are broken down into three main levels:
  • Analyst / Associate: Annual salary ranging between $120,000 and $250,000.
  • Investment Officer / Portfolio Manager: Annual salary ranging between $200,000 and $600,000.
  • Director / Senior Investment Professional: Annual salary of $500,000 or more.
The $200,000 to $600,000 range for an Investment Officer or Portfolio Manager represents the study’s most significant data point, placing sovereign wealth funds in direct competition for specialized talent against private equity firms and hedge funds.
These compensation packages have consolidated and increased to such an extent that they are now as competitive as those offered by major Wall Street firms—and in many cases superior—without factoring in additional perks provided by these funds, particularly regarding job security.

Who Pays the Most?

Although funds rarely publish full salary structures, the market identifies clear regional differences, summarized below based on key insights from the report:
  • Gulf Funds (ADIA, Mubadala, ADQ, ICD):
    • The most aggressive compensation packages in the market.
    • High salaries, competitive bonuses, and tax advantages in several jurisdictions.
    • A strong focus on direct investments and private markets.
  • Norway (Government Pension Fund Global):
    • Solid compensation, though generally less aggressive than Gulf funds.
    • Institutional prestige and exposure to one of the largest portfolios on the planet.
    • Strong emphasis on governance and long-term management.
  • Singapore (GIC and Temasek, though Temasek operates under a distinct corporate structure):
    • Competitive packages with a strong professional development component.
    • Greater openness to junior profiles compared to other sovereign funds.
    • Focus on training and international rotation.
The guide highlights that Gulf funds have intensified international hiring to reinforce teams in private equity, infrastructure, technology, and private credit, putting upward pressure on compensation.

The New Star Profile: Direct Investment

The traditional portfolio manager role is evolving. Today, sovereign wealth funds seek professionals capable of deal sourcing, leading co-investments, and executing direct investments, particularly in private assets.
Areas in highest demand include private equity, infrastructure, real estate, private credit, technology, artificial intelligence, and energy transition. This shift explains why many funds are recruiting talent directly from Blackstone, KKR, Apollo, Brookfield, and other alternative asset managers.
However, unlike major investment banks, most sovereign wealth funds do not engage in mass campus hiring for university graduates. The most common path involves building prior experience in investment banking, private equity, equity research, or asset management before transitioning into the sovereign sector.

Mergers & Inquisitions

The most notable exceptions are select graduate development programs at GIC and Temasek, which maintain training schemes for high-potential junior profiles.
Beyond salary, sovereign funds offer three advantages that are difficult to replicate:
  1. Long-Term Investment Horizon: They are not subject to quarterly public market pressures.
  2. Access to Large-Scale Deals: They participate in major acquisitions, strategic infrastructure, and national-level projects.
  3. Job Stability: State backing reduces the volatility characteristic of other financial segments.

The Key Takeaway for Latin America

For Latin American wealth management, asset management, and investment banking professionals, the message is clear: sovereign wealth funds are establishing themselves as direct competitors for specialized talent. The growth of private markets and the expansion of Gulf investment vehicles are creating opportunities for profiles with experience in deal structuring, sector analysis, and alternative asset management.
At a time when major global asset managers are also reinforcing their distribution and private markets teams, SWFs add an extra dimension: the ability to manage capital at a scale that transcends financial return and directly intersects with state economic strategy.
In other words, the appeal is no longer just how much they pay, but the magnitude of the decisions they enable you to make. In that domain, few employers in the financial world can compete with those who manage the savings of entire nations.

Liquidity Needs Make Continuation Funds Shine

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In a context where exits from private equity assets continue to show a complex landscape and appetite for the asset class remains bright, it is no surprise that continuation funds are establishing themselves as a popular liquidity solution in the market.
From being a fringe solution a decade ago, these vehicles have become a more everyday proposition, increasingly popular among asset managers and investors alike. And the figures reflect an expanding market.
Data from Preqin show that continuation funds went from 13 vehicles, with $9 billion in assets in 2018, to 123 closed vehicles globally last year, totaling $75 billion.
One of the ingredients behind this growing popularity is related to liquidity dynamics within the private equity market, which continue to evolve. “While exit activity has improved, driven by some large transactions, overall distribution remains below the historical norm and many investors continue to seek new ways to achieve liquidity solutions,” Schroders noted in a recent report.
Looking ahead, expectations are for momentum to continue, considering that this type of fund is becoming increasingly attractive to GPs.

Growing Interest

A survey conducted by Bain & Company earlier this year showed that 27% of the asset managers surveyed had initiated or completed a continuation vehicle transaction in the last 24 months.
Of this total, 22% involved a single-asset deal, 3% involved multi-asset strategies, and the remaining 2% used a mix of single-asset and multi-asset investments.
Projecting into the future, expectations are even more dynamic. Four out of ten GPs expect to explore one of these transactions within the next one to two years. 24% anticipate making single-asset investments, 5% multi-asset investments, and 11% both.
The drive behind this interest, as outlined in the Bain survey, lies in the search for liquidity. When asked about the strategic reasoning behind continuation deals—both executed and projected—53% pointed to providing liquidity for existing LPs.
The other priorities highlighted were acquiring more capital to use in add-on M&A (42% of respondents) and resetting investment horizons for assets that require a longer holding period (33%).
“It is clear that continuation vehicles are becoming an established part of the liquidity toolkit. Beyond delivering capital to LPs, many GPs are using them to refinance assets and fund mergers and acquisitions for ‘buy-and-build’ strategies,” the consulting firm concluded in its report.

The Importance of the Secondary Market

The boom in continuation vehicles has reinforced the importance of secondary markets. According to Schroders, both LP-driven portfolio sales and continuation investments continue to grow, to the point that 2026 is shaping up to be a new record year for capital raising.
“Continuation investments in particular are becoming an increasingly established feature of the private equity ecosystem. While they continue to benefit from cyclical liquidity needs, our analysis shows that their growth is largely structural, reflecting their ability to retain ownership of high-quality assets with greater upside potential while providing optional liquidity to existing investors,” the firm stated in its report.
All in all, this phenomenon has left its mark on the secondary market. Figures from specialized advisory firm Evercore Private Capital Advisory show that transaction volume in the first half of 2026 exceeded $120 billion.
This represents a 20% increase compared to June 2025 and positions it as the strongest first half on record. Furthermore, they emphasized that these data consolidate the strong results of last year, when annual volume grew by 40% to $226 billion.
It is worth noting that, of the total capital accumulated in secondary transactions this year, the largest share comes from GP-led activity, at $65 billion. In contrast, LP-driven transactions totaled $56 billion.
“Single-asset continuation vehicles represented the largest share of GP-driven activity, concentrated in high-quality assets,” Evercore emphasized in its report.

BlackRock To Offer Access To Select European UCITS Funds Via Tokenized Shares

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BlackRock has announced the launch of its first tokenized fund access offering in Europe through on-chain share classes for select money market funds within the BlackRock Institutional Cash Series (ICS) range. Through this initiative, the asset manager expands blockchain-based capabilities to Europe’s largest liquidity management platform, with the objective of enhancing efficiency, transparency, and accessibility.

To execute this, BlackRock will leverage J.P. Morgan’s Kinexys asset tokenization platform, enabling the new ICS fund share classes to issue digital tokens on the Ethereum blockchain. According to the manager, this framework will allow eligible investors to access tokenized versions of existing liquidity management strategies while preserving the institutional strength and regulatory oversight inherent to money market funds.

“The new tokenized share classes offer several key features, including access to a yield-generating money market fund backed by broad scale and high liquidity. Additional capabilities include the ability to transfer tokens between investors 24 hours a day, 7 days a week, alongside near-real-time visibility and movement of positions on the blockchain. Each token represents an underlying share of an ICS fund, while the official shareholder register will continue to be managed via the fund’s traditional transfer agent infrastructure,” the firm stated.

New Use Cases for Money Market Funds

BlackRock notes that tokenized share classes enable the direct transfer of fund holdings between authorized digital wallets using smart contracts—automated software programs that execute once predefined conditions are met. According to the firm, this technology will unlock new application layers for money market funds, including:

  • Corporate Treasury Optimization: Streamlining liquidity management and capital efficiency.

  • Digital Collateral Management: Facilitating real-time pledge and transfer mechanics.

  • Broadened Distribution Channels: Expanding delivery via banks, wealth management platforms, and digital networks.

  • Financial Ecosystem Integration: Seamlessly embedding liquidity into broader tokenized market structures.

Beccy Milchem, Global Head of Liquidity Distribution and International Cash Management at BlackRock, noted: “This launch represents a major step in the evolution of how investors access and manage their liquidity, while contributing to the modernization of capital markets infrastructure.”

Hannah Winter, Head of Digital Cash at BlackRock, emphasized: “Tokenized money market funds allow high-quality, short-term investments to transition into digital environments while maintaining the exact same standards of capital preservation, liquidity, and risk management.”

Kara Kennedy, Global Head of Market Development at Kinexys by J.P. Morgan, added that “tokenization has moved from concept to execution,” pointing out that tokenizing share classes brings native blockchain functionalities to established institutional products.

Partnership with Kinexys by J.P. Morgan

Kinexys serves as the dedicated blockchain business unit within J.P. Morgan Payments. Its tokenization platform plays a pivotal role in issuing and managing the lifecycle of the tokenized shares, handling critical operations such as token minting and burning.

Furthermore, Kinexys functions as the operational bridge between on-chain activity and the traditional transfer agent infrastructure, ensuring full alignment with existing operational workflows while introducing digital asset functionality.

Latin American Wealth Migration Triggers A “Wave Of Advisors” In US Offshore Business

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Historically, access to high-net-worth and ultra-high-net-worth clients (HNWIs/UHNWIs) in the US Offshore segment was monopolized by traditional private banking. Global institutions such as UBS, J.P. Morgan, Citi Private Bank, and Santander Private Banking controlled both custody and distribution through closed or guided architectures.

However, the ecosystem has shifted radically due to three primary drivers:

  • Proliferation of Independent Advisors (RIAs and Multi-Family Offices): Private banking professionals have migrated en masse toward independent firms in Miami or intermediary platforms (independent broker-dealers), demanding open architecture and products free from parent-company bias.

  • Demand for Private Markets and Liquid Alpha: Clients are no longer satisfied with traditional stock and bond portfolios; they are actively demanding private credit, real estate, infrastructure, and thematic strategies.

  • Fee Pressure: Investors seek to eliminate the double layers of fees associated with traditional private banks, preferring direct relationships or guidance from fee-only advisors.

In light of this landscape, asset managers have chosen not to rely solely on distribution through traditional private banks. In recent months, the deployment of senior sales teams and direct distribution agreements in hubs like Miami has intensified to service US Offshore platforms directly.

This evolution has heightened competition among asset managers, who no longer limit their offerings to traditional funds. The updated product suite incorporates UCITS vehicles, ETFs, private credit, private markets, global fixed income strategies, and solutions tailored specifically for high-net-worth investors with offshore structures.

Within this new paradigm, Miami consolidates its standing as the primary decision-making hub for Latin American wealth and the focal point where major international firms wage an escalating battle to capture the region’s assets.

Implications for Traditional Private Banking

This surge of asset managers poses a direct threat to the margins of the traditional private banking model. While institutions like UBS or Citi attempt to retain assets through their integrated custody and wealth management platforms, they face an increasingly sophisticated client base that is unbundling its services: custody remains with low-cost platforms or independent US custodians (such as Pershing, Charles Schwab, or Fidelity), while investment strategy design is delegated to specialized managers.

For the high-net-worth Latin American client, the result is a significantly broader and more competitive investment offering. Global asset managers compete head-to-head in markets like Miami to design tailored solutions for a capital base that shows no signs of returning to its home markets in the near term.

The ultimate consequence is a fundamental redefinition of the competitive model in the US Offshore business. The contest is no longer fought solely among private banks for asset custody, but between banks and global asset managers for control of the client relationship.

Japan’s Labyrinth: Higher Inflation, A Weak Yen, And Tighter Monetary Policy

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The market is seeing a reduction in overweight positions in 10-year Japanese Government Bonds (JGBs), reflecting rising domestic inflation, yen weakness, high energy prices, and the Bank of Japan’s (BoJ) trajectory of gradual monetary policy tightening.

During the first half of 2026, inflation in Japan has remained at moderate levels compared to previous years, hovering below the official 2% target set by the BoJ. In fact, the monetary institution revised its median core CPI estimate downward to 2.5%, compared to the 2.8% previously estimated. Furthermore, the BoJ projects that core inflation will hover around 2.4% in FY27 and 2.0% in FY28, suggesting a progressive anchoring around the official long-term target.

Inflation Management

According to experts, this downward revision is primarily attributed to the temporary effect of government energy subsidies during the summer months, among other measures. “Japan has announced plans to reduce the consumption tax on food from 8% to 1% starting in April 2027, aiming to address cost-of-living concerns amid low public approval regarding inflation management. Although fiscal risks persist, retail and food and beverage companies are the primary beneficiaries,” notes Louis Chua, Asia Equity Analyst at Julius Baer.

In a press conference held on the afternoon of July 27, 2026, Japanese Prime Minister Sanae Takaichi announced that a proposal to reduce the consumption tax will be presented later this week, lowering the tax on food products from 8% to 1%, effective April 2027. To provide context, Chua explains that reducing the food consumption tax is a key campaign promise of the ruling Liberal Democratic Party (LDP), with the cost of living being one of the top concerns among Japanese citizens.

“According to the latest Yomiuri poll, only 21% of respondents approve of the government’s response to high inflation, while 71% disapprove, which may have contributed to the recent downward trend in the government’s approval ratings. A bill to approve the tax cuts will be submitted to the Diet of Japan following the conclusion of bipartisan debates, despite the opposition having previously opposed these cuts,” the Julius Baer expert points out.

Monetary Policy

This concern over the standard of living in Japan leads directly to analyzing the BoJ’s recent moves. Although it kept its policy rate unchanged at its July 30–31 monetary policy meeting, the Outlook Report contained several hawkish elements, such as upward revisions to its real GDP growth forecasts for fiscal years 2026 and 2027. However, Japanese sovereign bond futures experienced a mild bounce following the release of the statement and report. “Overall, markets did not seem convinced that the report provided sufficient justification to price in additional rate hikes,” BofA analysts note.

Nevertheless, they believe that whether markets assign a higher probability to a September rate hike will largely depend on the extent to which the Takaichi administration shows support for further increases. In this regard, the next key catalyst will be the Summary of Opinions, scheduled for publication on August 10, specifically the comments from the Cabinet Office representative attending the meeting.

“Governor Ueda’s statements during the press conference carried a somewhat hawkish tone. His comments, noting that the risk of Japan returning to deflation has diminished and that clear signs of a significant rise in inflation expectations have recently emerged, suggested the possibility of a faster pace of rate hikes. As a result, the market-implied probability of a hike at the September meeting has increased,” stated Tomonobu Yamashita, Interest Rate Strategist at BofA.

Intervention to Curb Yen Weakness

For BofA experts, a key takeaway from this BoJ meeting was that while hawkish elements were present, they were not sufficient to exert renewed downward pressure on USD/JPY after the pair had already been pulled lower by suspected foreign exchange market interventions.

In the view of Shusuke Yamada, FX and Rates Strategist at BofA, the risk of further yen depreciation persists if left unchecked. “If authorities allow USD/JPY to rebound upward, their credibility could be eroded, raising the cost of future interventions down the road. In our view, this is precisely the moment when authorities should firmly push USD/JPY lower and prevent a rapid return to the yen weakness trend. We continue to believe that a consolidated break below ¥155 could alter market dynamics in USD/JPY. Such a move could trigger a broader shift in positioning and flow patterns that have long favored yen weakness. As we see it, authorities should now demonstrate clear resolve to defend the currency,” Yamada argues.

In fact, authorities have already taken action. As explained by Sree Kochugovindan, Senior Economist at Aberdeen Investments, coordinated foreign exchange market interventions were conducted by Japan and the United States to help stem yen weakness. This marks the first coordinated intervention since 2011, which was aimed at curbing yen appreciation following the Great East Japan Earthquake.

“On July 30, at a strategically chosen moment—after the Federal Reserve’s policy meeting and prior to the BoJ’s—Japan’s Ministry of Finance (MoF) carried out an estimated unilateral intervention of between 8.5 and 10 trillion yen, while the Federal Reserve Bank of New York conducted rate checks. This helped spur a sharp, albeit only partially sustained, rally in the yen from multi-decade lows,” she explains. Subsequently, on July 31, Japan sold USD/JPY again, while the New York Fed sold EUR/JPY on behalf of the US Treasury via two US dealers.

In her view, over the short term, the combination of intervention risk, US backing, and a more hawkish BoJ stance increases the likelihood of further short-covering trades in USD/JPY, especially given the high level of speculative short positions on the yen.

“Further appreciation could also ripple across other markets as carry trades are unwound. This was previously observed in the summer of 2024, when a surprise announcement from the BoJ triggered a sharp rise in the yen. For Japanese Government Bonds (JGBs), growing concerns over yen-driven inflation and rising expectations of further BoJ tightening measures should maintain upward pressure on yields, particularly if exchange rate weakness resumes and strengthens the case for an earlier rate hike. However, over the long term, intervention alone is unlikely to reverse the trend without further normalization by the BoJ and narrower rate differentials,” the Aberdeen Investments expert concludes.

The Great Transformation Of The Miami-Texas Corridor, Driven By Latin American Capital

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Historically, the outflow of Latin American capital to the United States was driven by defensive logic. Business owners and high-net-worth families transferred a portion of their wealth to safeguard it from devaluations, inflation, political uncertainty, or the financial crises that periodically hit the region. It was known as flight capital: money seeking refuge. Today, this phenomenon is undergoing a profound shift.

The flow of wealth originating from Latin America—and particularly from Mexico—is no longer driven solely by asset protection. According to the LATAM Family Office Society, business families are establishing permanent structures along the Miami-Texas corridor, turning it into a strategic hub from which they coordinate corporate governance, generational succession, international investments, private asset management, and co-investments alongside other high-net-worth families.

In other words, it is no longer about taking money out of the country, but rather about internationalizing the family business without abandoning its local operations. This shift represents one of the most significant transformations in the Americas’ wealth management and family office market over the past decade. The difference between the two models is substantial.

Whereas in the past a large portion of Latin American wealth arrived in the United States to remain relatively static—deposited in bank accounts, real estate, or financial instruments considered safe—the goal today is different.

Business families are establishing investment vehicles, international holdings, family offices, trusts, private foundations, and corporate governance structures that enable them to manage businesses spread across multiple countries, facilitate wealth succession, and involve new generations in decision-making.

Two US states are essential to these objectives: Texas has established itself as the operational hub for these structures, while Miami continues to serve as the financial and wealth gateway for Latin America.

The combination proves especially attractive to Mexican business owners due to geographic proximity, commercial integration under USMCA, the depth of the US financial system, and a growing ecosystem of specialized advisors catering to large fortunes—though, in reality, entrepreneurs and investors of many nationalities are making their way to these destinations.

The Figures Behind the Expansion and Model Shift

Capgemini’s World Wealth Report 2026 points out that the wealth of high-net-worth individuals (HNWIs) reached a record high of $98 trillion after growing 8.7% during 2025—the largest annual increase since 2018. The global population of HNWIs reached 25.3 million people, nearly two million more than the previous year.

North America once again concentrated a large portion of that expansion. The United States added 736,000 new millionaires during 2025, bringing its HNWI population to 8.7 million, while the segment’s total wealth grew by 9.2%. In contrast, Latin America showed much more modest growth.

Capgemini estimates that the wealth of Latin American high-net-worth individuals grew around 5.1%, while the HNWI population barely increased by 0.3%, reflecting that the region continues to face economic and political uncertainty. Mexico stood out within the regional context, posting a 5.4% increase in high-net-worth wealth and a 1.8% rise in the number of HNWIs.

Texas Is No Longer Just an Industrial Destination

For many years, Texas was viewed primarily as the state for manufacturing plants or US-Mexico trade-related companies; today, its role is quite different.

Houston, Dallas, and Austin have transformed into decision-making centers for Latin American family businesses, wealth planning firms, alternative investment managers, law firms, private banks, and tax advisors. Proximity to Mexico allows daily operations to run smoothly while strategic decisions regarding international investments, succession, or global expansion are made from the United States.

Furthermore, Texas offers an attractive environment due to its regulatory framework, lack of state personal income tax, lower operating costs relative to other US financial centers, and an increasing concentration of specialized talent.

Miami Retains Its Wealth Leadership

While Texas strengthens its corporate profile, Miami retains its position as the primary financial hub for Latin America’s largest fortunes.

The city hosts offices of virtually every major international bank specializing in private banking and wealth management, as well as legal, tax, and fiduciary firms tailored to Latin American clients.

According to the World’s Wealthiest Cities 2025 report by Henley & Partners and New World Wealth, Miami boasts around 38,800 millionaires, consolidating its standing as one of the world’s primary centers for mobile private wealth. The city continues to serve as a meeting point for investors, asset managers, and business families from Mexico, Brazil, Colombia, Argentina, Chile, and other Latin American markets.

Succession Becomes a Priority

One of the less visible drivers behind this transformation is the generational shift; thousands of Latin American family businesses will face wealth and corporate succession processes over the coming decade.

The challenge is no longer simply distributing assets, but preserving companies operating across multiple countries, managing private investments, coordinating different family branches, and preparing the rising generations.

In this context, family offices are evolving into comprehensive platforms capable of combining traditional investments with private assets, infrastructure, private equity, international real estate, and philanthropic strategies.

Wealth sophistication is also reshaping portfolio composition; according to Capgemini, 88% of high-net-worth individuals currently work with more than one wealth management firm, primarily to access opportunities in alternative investments, private markets, and specialized strategies.

This shift explains why Latin American family offices are demonstrating growing interest in private equity funds, private credit, infrastructure, technology, artificial intelligence, and international co-investments—they no longer seek merely to preserve wealth, but to participate directly in its creation.

The transformation of the Miami-Texas corridor reflects a far deeper shift than a simple geographic movement of capital. It represents the evolution of major Latin American fortunes toward an international model in which the family business ceases to be tied to a single country and begins operating through global investment, succession, and corporate governance platforms.

For Mexico, this trend is particularly meaningful. Growing economic integration with the United States, the nearshoring phenomenon, the consolidation of USMCA, and the expansion of business wealth are prompting an increasing number of families to professionalize the administration of their wealth through international structures. It is here that the old concept of flight capital loses its relevance.

In its place emerges a new era in which Latin American wealth does not abandon its home countries, but builds a second platform from the United States to compete in a global market.

M&G Names John Bruen As Head Of Infracapital

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Photo courtesyJohn Bruen, Infracapital

Infracapital, M&G’s infrastructure equity investment platform—integrated within its Private Markets division with £81 billion in assets under management—has appointed John Bruen as the firm’s new head. He will join on September 1 and report to Emmanuel Deblanc, Chief Investment Officer of Private Markets at M&G Investments.

According to the company, John brings over 25 years of international infrastructure investment experience. He joins from H.I.G. Capital where, as Managing Director and partner, he helped establish the firm’s infrastructure platform and raise its first value-add infrastructure fund, which reached $1.3 billion. He also possesses extensive experience investing in and managing portfolio companies across the infrastructure sector, having previously worked at Macquarie Asset Management and Ferrovial Airports.

He will succeed Martin Lennon, who is retiring after a career of more than 36 years in the industry. Since co-founding Infracapital in 2001, he led its growth into one of Europe’s leading middle-market infrastructure investors. Under his leadership, Infracapital raised over £9 billion across a series of dedicated funds investing in essential infrastructure across Europe, through public-private partnerships, brownfield infrastructure assets, and greenfield projects spanning energy, digital infrastructure, transport, and utilities.

Infracapital notes that at a time when Europe seeks to strengthen its energy security, accelerate decarbonization, drive digitalization, and foster economic growth, the company plays a prominent role in financing and developing the essential infrastructure on which communities and businesses rely.

Key Reactions

“John is a highly respected leader in the infrastructure sector, with an outstanding track record in investing and building businesses. His combination of investment expertise and leadership capabilities, alongside his strong industry relationships, position him exceptionally well to lead Infracapital into its next phase of growth at a time when demand for investment in essential infrastructure continues to rise across Europe. I would like to thank Martin for his extraordinary contribution to the business over the past 28 years. Under his leadership, Infracapital has established itself as a trusted partner for both investors and portfolio companies, while playing a pivotal role in developing the infrastructure investment sector in Europe. Martin will remain actively involved during the leadership transition process, working closely with the team to ensure a smooth handover and continuity for clients and stakeholders,” highlighted Emmanuel Deblanc, CIO of Private Markets at M&G Investments.

For his part, John Bruen stated: “As demand for infrastructure continues to grow, driven by the energy transition, digitalization, and the need to modernize critical assets, the market presents significant long-term investment opportunities. Infracapital’s investment approach, deep sector expertise, and strong track record place it in a privileged position to capitalize on these structural trends. I am excited to work alongside the team to build on these strong foundations and continue generating value for our investors and stakeholders.”

“I am proud of what we have built at Infracapital over the past 25 years. Our success has been made possible thanks to the contributions of numerous highly talented professionals, both past and present, and the trust our clients have placed in us. Together, we have helped transform infrastructure investing from a niche strategy into an established asset class for institutional investors, and it has been a privilege to experience that evolution firsthand. I retire with peace of mind knowing that the firm is in an exceptionally strong position for the future,” added Martin Lennon regarding his departure from the firm.