DWS has expanded its Xtrackers product range, enabling investment in a broadly diversified selection of bonds with similar maturities, by adjusting the investment objectives and names of two existing fixed-income ETFs. The new Xtrackers II Rolling Target Maturity Sept 2027 EUR High Yield UCITS ETF invests for the first time in high-yield corporate bonds with a specific maturity.
According to the asset manager, since the bonds remain in the ETF portfolio until maturity, price fluctuations are reduced for investors who stay invested until September 2027. To achieve this, the ETF now tracks the iBoxx EUR Liquid High Yield 2027 3-Year Rolling Index. This index includes around 80 liquid high-yield corporate bonds denominated in euros, with credit ratings below Investment Grade, according to major rating agencies. As a result, investors bear a higher credit and default risk compared to investing in Investment Grade bonds. In return, according to the firm, “there is an opportunity to achieve a significantly higher aggregate yield at maturity, estimated at around 5.3% as of February 17, 2025, for the ETF’s portfolio.”
They also state that all bonds in the index have an initial maturity date between October 1, 2026, and September 30, 2027. Additionally, to provide greater flexibility, the ETF’s target maturity will be “extended” in the future. This means that the ETF will not be liquidated at the end of its term in September 2027, and the fund’s assets will be paid out to shareholders. Instead, the assets will be reinvested in bonds with a maturity of approximately three years.
“By expanding our current range of target maturity ETFs with an innovative product in the high-yield bond segment, we aim to offer investors the opportunity to generate attractive mid-term returns in the current environment of declining interest rates,” says Simon Klein, Global Head of Sales for Xtrackers at DWS.
The asset manager also highlights that they offer the Xtrackers II Target Maturity Sept 2029 Italy and Spain Government Bond UCITS ETF. In this case, the underlying index has also been modified for this ETF. “It now provides access to Italian and Spanish government bonds maturing between October 2028 and September 2029. Like all Xtrackers target maturity ETFs, these new products combine the advantages of fixed-income securities—predictable redemption at maturity—with the benefits of ETFs, such as broad diversification, liquidity, and ease of trading,” they state.
President Donald Trump signed an executive order this week declaring English as the official language of the United States. While English has always been the dominant language, the country had never had an official language at the federal level—until now. This decision, aimed at promoting national unity while saving federal funds, could have far-reaching effects, especially in Hispanic marketing, digital content production, and Spanish-language SEO.
With the potential reduction or elimination of Spanish-language content on government websites, businesses that serve Spanish-speaking consumers must prepare for a shift in the digital landscape.
The Hispanic marketing agency Hispanic Market Advisors analyzes the impact of this measure and the opportunities it creates for brands looking to connect with the Latino community.
Will the Government Remove Spanish-Language Content?
Currently, government agencies such as the Social Security Administration (SSA), the Internal Revenue Service (IRS), and U.S. Citizenship and Immigration Services (USCIS) provide resources in Spanish. However, with the officialization of English as the primary language, the government may stop translating and maintaining Spanish-language versions of its websites. This would make it harder for millions of Spanish speakers to access critical information about taxes, immigration, social benefits, and other essential services.
An Opportunity for Businesses
If Spanish-language government websites disappear from search results, businesses and nonprofit organizations have the opportunity to fill that gap. The absence of government pages in Spanish search engine results pages (SERPs) will allow businesses that invest in Spanish SEO and content marketing to gain greater visibility.
“Companies that offer legal, financial, and healthcare services can now position themselves as key sources of information in Spanish,” said Sebastian Aroca, MIB, president of Hispanic Market Advisors.
Key Strategies to Reach the Hispanic Audience
To attract and retain Spanish-speaking audiences in this new digital landscape, Hispanic Market Advisors recommends:
Investing in Spanish SEO – Businesses should optimize their content with relevant keywords such as immigration lawyer, health insurance for Hispanics, and how to file taxes in the U.S. to attract high-quality traffic.
Creating Spanish-language content – Publishing blogs, guides, and videos in Spanish will help brands establish themselves as industry leaders.
Having a bilingual website – Ensuring that a website is available in both English and Spanish enhances the user experience for Spanish speakers and increases customer conversions.
Leveraging Spanish-language social media – Platforms like Facebook, Instagram, and TikTok have a large Latino community. Companies can boost engagement with Spanish-language posts, ads, and videos.
Using paid advertising for Spanish speakers – With fewer free government resources in Spanish, Hispanic consumers will turn to commercial services. Businesses that invest in Google Ads and Facebook Ads in Spanish can effectively capture this audience.
A New Era for Hispanic Marketing
Trump’s executive order could present challenges for the Hispanic community, but it also opens new opportunities for businesses that know how to adapt.
Alaris Acquisition has unveiled The Alaris Lens Application, a technology-driven platform designed to streamline mergers and acquisitions for RIAs. By integrating AI, Lens delivers precise matches between buyers and sellers, transforming traditional M&A processes.
Traditionally, RIA M&A transactions have relied on blind financial auctions, often prioritizing price over long-term compatibility. Alaris aims to change this with Lens by introducing an AI-driven algorithm that evaluates hundreds of data points, factoring in financial alignment and cultural fit.
“We saw the opportunity to combine today’s technology with our knowledge of the buyers, accrued and compiled over years and thousands of hours,” said Allen Darby, founder and CEO of Alaris Acquisitions.
Rather than inviting dozens of bidders into a high-pressure auction, Lens selectively identifies the most suitable buyers, allowing sellers to focus on meaningful engagement. This targeted approach enhances deal success rates by ensuring stronger post-transaction alignment.
As RIA firms increasingly turn to M&A for growth and succession planning, tools like Lens offer a scalable, efficient, cost-effective alternative to outdated methods.
“The wealth management industry has historically lacked efficient tools and resources to support the M&A process,” added Darby.
Artificial intelligence (AI), Small and Mid-cap companies, and the role of emotions in investing were key topics at the V Funds Society Investment Summit in Houston, an event that brought together professional investors from Texas and California on Thursday, March 6.
International asset managers M&G, State Street Global Advisors, and Vanguard presented investment opportunities in AI-related companies as an emerging technology. They noted that, based on historical data, small and mid-cap stocks are positioned to offer greater value. A speaker from Vanguard emphasized the importance of maintaining calm and discipline, especially during market turbulence, through behavioral coaching.
The event also featured asset managers Thornburg Investment Management and Muzinich & Co, who focused on fixed income. To access the full report, click here.
AI: An Innovation Set to Keep Growing
“Do we believe this is a good time to invest in AI? The answer is absolutely yes,” said Jeffrey Lin, Head of Thematic Equities at M&G, at the start of his presentation. He introduced the M&G Global Artificial Intelligence Themes Fund, a thematic global equity fund launched in November 2023.
Lin approached the topic from a historical perspective, explaining that in the 1950s and 1960s, computer scientists began considering the possibility of artificial intelligence—essentially, a computer capable of making decisions that humans typically make.
With a background in Electrical Engineering, Lin stated, “We do not see this innovation stopping in the future. As processing power increases, the potential processing market continues to expand.” He also affirmed that “as long as technology continues improving its performance, there will be demand for it.”
According to Lin, AI’s technological development is currently focused on generative AI, with the next phase being AI with agents. “In other words, these systems will truly begin to reason and engage in much deeper conversations with humans,” he described, noting that this evolution “can significantly enhance the user experience.” He also mentioned autonomous vehicles, “which are getting closer to becoming a reality.”
M&G believes AI is still in its early stages compared to previous innovation cycles, such as the rise of microprocessors and PCs, or the advent of the internet and mobile phones. This underscores the long-term investment opportunity.
The fund categorizes AI investment opportunities into three main groups: enablers (companies providing the underlying core technology for AI), providers (companies leveraging enabling technology to create AI-enhanced products or services), and beneficiaries (not necessarily tech companies in the traditional sense, but businesses that can use AI to drive revenue growth and/or improve profitability).
The target weighting for each category ranges from 25% to 40%. However, while managing the strategy, they found that these broad categories do not move in sync. “We have a vast universe of companies to analyze, and at any given time, we can dynamically shift between these groups. For investors, we believe the long-term growth opportunity remains very strong,” Lin asserted.
Cautious Optimism and a Diversified Portfolio
Keith Medlock, Senior Vice President and ETF Investment Strategist at State Street Global Advisors, presented in Houston the first U.S.-listed ETF, the SPY, highlighting its democratic, cost-effective, and liquid nature.
As an introduction, Medlock recalled that the ETF has existed since 1993, having survived the dot-com bubble, the 2008 financial crisis, and the COVID crisis. “When you look at how the SPY ETF has traded over time, you see that the ETF structure holds up quite well,” he affirmed.
A Mathematics and Economics graduate from the University of Arkansas, Medlock stated that State Street’s base scenario is a soft landing. They are “cautiously optimistic” and plan to add risk assets gradually, assuming investors still hold many cash management tools in their portfolios.
Medlock expects GDP growth above the average, which should benefit risk assets. State Street anticipates that the U.S. will maintain its fundamental economic and earnings advantages over other developed markets, driven by AI development and Trump’s new political agenda. The latter could particularly benefit U.S. cyclical and small-cap companies, according to the firm.
Regarding inflation, their most likely scenario projects 2.5%. “Our preference would be to buy dips in stocks. That would be our overweight position,” he noted, explaining that cyclical stocks perform well when both growth and inflation are above average.
The current high uncertainty and potential for increased volatility necessitate an allocation beyond the traditional 60-40 model. Medlock believes that as growth and inflation reaccelerate, portfolios overweight in small and mid-cap stocks and cyclical equities will gain an advantage based on historical trends.
Cyclical exposures to domestically focused companies, including U.S. small caps and regional banks, may be less affected by potential trade conflicts and could benefit more from rising investment and domestic consumption while trading at economic valuations.
When considering “high-quality, low-volatility” exposures, Medlock pointed to technology and biotech stocks, as well as European growth sectors.
Medlock proposed a diversified portfolio consisting of equities, actively managed fixed income (high-quality bonds with a maximum duration of six years), and alternative assets such as gold. “There is no need to rush into fully reinvesting in an equity portfolio,” he emphasized.
Regarding gold, he noted that they do not expect “a major bullish performance, but gold’s defensive characteristics remain intact, which is why I want it in the portfolio. If stocks decline and there’s a general risk-off environment with a bond selloff, it could be a double hit, as rising rates would also widen bond spreads.”
The ETFs comprising Medlock’s proposed portfolio include SPSM (SPDR® Portfolio S&P 600™ Small Cap ETF), KRE (SPDR® S&P® Regional Banking ETF), XNTK (SPDR® NYSE Technology ETF), TEKX (SPDR® Galaxy Transformative Tech Accelerators ETF), and XBI (SPDR® S&P® Biotech ETF) for equities.
The bond portfolio includes the SPDR® DoubleLine® Total Return Tactical ETF (TOTL), SPDR® Blackstone Senior Loan ETF (SRLN), and SPDR® Portfolio Intermediate Term Corporate Bond ETF (SPIB). Lastly, alternative diversification includes the ETFs GLD (SPDR® Gold Shares), GDML (SPDR® Gold MiniShares® Trust), CERY (SPDR® Bloomberg Enhanced Roll Yield Commodity Strategy No K-1 ETF), and SPIN (SPDR® SSGA US Equity Premium Income ETF).
Controlling Impulses and Staying in the Market
Ignacio Saralegui, Head of Portfolio Solutions for Latin America at Vanguard, focused on the most challenging aspect of investing: emotions and impulses that tend to emerge during market downturns. He addressed financial advisors in the audience, who often receive calls from clients during periods of financial turbulence.
His presentation, titled “Stay the Course,” outlined the philosophy of John Bogle, Vanguard’s founder. The core idea is that bear markets and corrections are part of investing, making a long-term approach essential. Since 1980, there have been 12 bear markets, with declines of around 20% or more. However, bull markets have been longer and stronger than the bear markets that preceded them, demonstrating the importance of resilience in times of panic.
“Clients lose control of their emotions and decision-making during such times, but staying in the market allows them to grow their portfolios,” he noted. He also cited one of Bogle’s key principles: “Impulse is your enemy; time is your friend.”
To manage these impulses, Saralegui proposed four principles, all within investors’ control: setting clear and appropriate investment goals, maintaining a balanced and diversified portfolio, minimizing costs, and keeping a long-term perspective and discipline.
He highlighted the value of financial advisors in three key areas: portfolio construction, financial expertise, and most importantly, emotional support.
In conclusion, Saralegui reiterated his key message: market volatility tempts investors to alter their portfolios, but abandoning a planned investment strategy can be costly. He emphasized the importance of maintaining investments, avoiding market timing, rebalancing periodically, and sticking to a long-term strategy. “Staying in the market long-term always pays off,” he concluded.
One word was repeated over and over again at the V Funds Society Investment Summit in Houston: uncertainty. Uncertainty regarding Donald Trump and his tariff policies, as well as geopolitical conflicts and persistent inflation, with its consequent impact on economic growth and interest rates.
However, investment managers Thornburg Investment Management and Muzinich & Co. presented global fixed income investment strategies and assured that there are significant opportunities, even in the current environment.
The event, held on Thursday, March 6, in Houston, and aimed at professional investors from Texas and California, brought together five international asset managers. On Wednesday, March 12, we published a second report summarizing the presentations from State Street Global Advisors, M&G, and Vanguard.
Flight to Quality in Fixed Income
Benjamin Keating, Client Portfolio Manager at Thornburg IM, expressed his astonishment at the latest market developments and remarked that there is significant uncertainty in Washington.
He referred to the dramatic rise in interest rates and the tightening of credit spreads, highlighting that U.S. corporate balance sheets are stronger today than before 2008.
However, when the Federal Reserve cut rates last fall, long-term bond yields rose. In his view, inflation is not collapsing in the U.S., unlike in other regions.
“What keeps us up at night at Thornburg is not SPACs, cryptocurrencies, or non-bank entities. What keeps us up at night is the possibility that Germany or the U.S. Treasury might struggle to issue debt.”
Keating also raised concerns about U.S. tariffs on Mexico and Canada, stating that this key issue is not yet priced into bonds. He warned of a potential tariff race between the two countries, which could lead to falling yields and a flight to quality.
Regarding the dollar, he projected a weaker trend in the next cycle, though maintaining its role as a store of value.
Comparing the current scenario to the 1990s, he pointed to U.S. fixed income as a valuable investment, particularly mortgages and 10-year Treasuries, predicting that Treasury yields will fall below 4% in the next 18 months.
Thornburg Strategic Income Fund: A Multisector Fixed Income Strategy
Keating presented the Thornburg Strategic Income Fund, which manages nearly $10 billion in AUM. The firm believes that higher coupons help hedge against rising rates while also supporting total return potential.
The portfolio focuses on higher-yielding segments of the fixed income market, investing in a mix of income-generating securities.
Actively Managing Short-Term Fixed Income
Ian Horn, co-Lead Portfolio Manager at Muzinich & Co., introduced the Muzinich Enhancedyield Short Term Fund, a global corporate credit fund with an average investment-grade rating and a duration below two years.
“This is our largest and most popular fund, managing $8 billion in AUM,” he noted. Launched in 2003, it has only seen two negative years: 2008 and 2022.
With a current yield of 5.25%, Horn anticipates yields around 6% this year, thanks to active strategy management.
He emphasized that now is not the time for excessive risk-taking but rather an opportunity to capture yield.
The fund’s global strategy currently allocates 54% to the U.S. and 36% to Europe, rotating quickly to reinvest weekly and monthly cash flows.
Europe has been offering a spread premium over the U.S., largely influenced by the Russia-Ukraine conflict. This has led the fund to increase European allocations, as the firm sees no major default risks in the region.
Regarding emerging markets, Muzinich remains cautious, selectively investing in short-term bonds with conservative risk management.
Photo courtesyDani Diaz (center) alongside his team members, Darling Solís and José Trujillo.
Morgan Stanley Private Wealth Management continues to expand its presence in Miami with the addition of Dani Diaz Torroba, a prominent figure in the private banking industry, along with his international team. From his new position, Diaz will serve high-net-worth private clients across Latin America, the United States, and Europe, as well as institutions and foundations, according to information obtained by Funds Society.
With a career spanning over 25 years in the sector, Dani Diaz is recognized as one of the industry’s leading financial advisors. Before joining Morgan Stanley, he was one of UBS’s top producers in Miami, where he had served as Managing Director since 2015. His professional excellence has been endorsed by the Forbes Best-In-State Wealth Advisors distinction, an award he has received consecutively from 2019 to 2024. The banker moves to Morgan Stanley alongside his team members, Darling Solís and José Trujillo.
Over the course of his career, he has held key positions at some of the most prestigious global banking firms, including Citi (2005-2007), J.P. Morgan (2010-2014), and Credit Suisse (2014-2015), working in both private and investment banking in Miami and New York.
Diaz Torroba holds a degree in Business Administration and Management from the University of Navarra and an MBA from the Darden Graduate School of Business (University of Virginia), credentials that reinforce his strong academic background and ability to provide high-level strategic advisory services.
The international fintech company Dominion, founded in Uruguay, has announced the opening of a new office in Dubai.
“This strategic expansion includes the establishment of a representative office in the prestigious Dubai International Financial Centre (DIFC), with George Skinner appointed as our representative office director,” the firm stated in a press release.
The decision aims to bring the company closer to its clients and partners in the Middle East, strengthening its investment platform: “This move is part of Dominion’s broader growth and expansion strategy, reflecting our commitment to providing innovative solutions and unparalleled service,” the statement added.
Since 2018, the Dominion Group has operated a fintech platform serving global clients through financial advisors, aiming to make investments more accessible to a broader audience through its investment vehicle.
With approximately 20,000 accounts created worldwide, the Guernsey-based firm is a strong investor in technology (50% of its employees work in IT). The company offers two types of investment solutions: a recurring contribution account starting at $250 per month for a fixed term and an investment account starting at $10,000, focused on flexibility and liquidity.
In 2023, Dominion signed a strategic partnership with Pacific Asset Management, a London-based asset manager founded in 2016 with over $11 billion in AUMs and part of the British group Pacific Investments.
Investment fund assets in Mexico started the year on the right foot, reaching a new historic figure along with double-digit annual growth.
According to data from the Mexican Association of Securities Intermediaries (AMIB), as of the end of January, the total net assets of investment funds in Mexico reached a value of 4.335 trillion pesos (210.372 billion dollars), based on an average exchange rate of 20.60 pesos per dollar. This represents a 1.87% increase compared to the end of December last year and an annual growth of 24.43%, meaning compared to January 2024.
The financial assets of investment funds now rank third among the largest in the Mexican financial system, equivalent to 12.62% of the country’s GDP. They are only behind the assets managed by Afores, which account for nearly 21%, and banks, whose total assets represent 48% of the country’s GDP.
Promotional efforts within Mexico’s investment fund industry by authorized asset managers, along with the strengthening of a retirement savings system, continue to yield results in the Mexican market and are a key factor explaining this market growth.
Exponential Increase in Clients
Perhaps the most striking result is the number of clients in the system, which has skyrocketed exponentially over the past year.
According to AMIB figures, by the end of January, a total of 12.13 million clients were reported, reflecting a monthly increase of 4.35% and an annual growth of 78.92%. Since recordkeeping began, there had never been such a significant increase in the number of clients within a 12-month period.
This exponential growth is also evident over the past decade, as demand for investment funds has surged. Comparing the number of clients registered at the end of 2019, there are now 4.81 times more than in that year. Some analysts consider the pandemic to be the turning point that sparked this exponential rise in clients in the Mexican funds market, reinforcing the idea that crises also create opportunities.
The Leadership of GBM and BBVA
Out of the total 12.13 million clients in Mexico’s investment fund market, GBM stands out as a key player, with 5.55 million clients. This means the firm accounts for 45.34% of all investment fund accounts in the country.
However, despite GBM‘s dominance in the number of clients investing in funds, the largest fund manager in terms of assets is not GBM, but rather the Mexican subsidiary of the Spanish bank BBVA.
According to official figures, BBVA México manages assets totaling 1.054 trillion pesos, equivalent to 51.165 billion dollars. These amounts, both in pesos and dollars, represent 24.32% of the total assets in the system—nearly a quarter of the market.
The Challenge of Diversification
Despite the rapid increase in demand, fund diversification remains a major challenge for financial intermediaries in the coming months and years. This is because Mexican funds remain highly concentrated in the debt segment.
AMIB figures show that of the 636 investment funds in Mexico, 255 (40%) are debt instrument funds. While they do not constitute the majority in terms of number, they hold a dominant 74.14% of the total net asset volume. The security of these investments—reflecting a highly conservative investor profile—is a key factor in the dominance of debt funds in the Mexican market.
The 21st century is nearing its first quarter, and Global X has already drawn key lessons from this period: the U.S. economy and markets tend to be resilient.
The firm highlights several examples—the dot-com bubble, the global financial crisis, and COVID-19—all of which occurred since the turn of the century, yet the S&P 500 has quadrupled in value. “We keep this lesson in mind as we enter 2025 with a mix of optimism and uncertainty,” says Global X, noting that investor confidence and consumer expectations are improving, even as questions persist about economic policy and GDP growth is expected to slow.
Just like last year, Global X believes economic growth may once again surprise to the upside, supporting further market gains. However, the key drivers of growth this time will likely be different. “Some market participants argue that broad equity valuations look stretched, but in our view, fund flows suggest that investors remain willing to embrace risk assets,” they state. They add that broader market participation, improving profit margins, and continued earnings growth “could further lift equity valuations.” Conversely, they see fixed income as potentially “stuck in limbo due to interest rate volatility, which may force investors to be more creative and seek differentiated strategies.”
The strength of the services sector and corporate investment from large tech firms helped drive stronger-than-expected economic growth in 2024. However, Global X warns that economic uncertainty is likely to remain high, given the trade-offs and net effects of lower taxes, higher tariffs, reduced immigration, increased stimulus, and lighter regulation. That said, a manufacturing sector recovery, combined with renewed investment in small and mid-cap companies, could extend the mid-cycle expansion, leading to broader market participation and higher valuation multiples.
As a result, Global X will focus in 2025 on growth themes tied to U.S. competitiveness that still appear reasonably priced.
Building Portfolio Resilience in 2025
Equities and risk assets may be poised for another strong year, according to Global X. However, “the unique set of economic and political circumstances will likely warrant a more targeted approach in 2025.” A portfolio strategy aligned with key themes related to U.S. competitiveness “can provide reasonable upside and a degree of insulation from potential volatility.” The firm’s top investment themes include:
1. Infrastructure Development
A core part of the U.S. competitiveness narrative is the ongoing infrastructure renaissance. Construction, equipment, and materials companies have benefited from infrastructure-related policies and are positioned to gain from approximately $700 billion in additional spending over the coming years. Despite strong performance in recent years, these companies still trade at valuation multiples below the S&P 500. Moreover, traditionally rigid industries are adopting new technologies and practices, which could help expand profit margins.
2. Defense and Global Security
A series of interconnected global conflicts is creating new challenges for the U.S. and its allies. These evolving threats are expected to be persistent and unconventional, driving demand for new tactics, techniques, and technologies. Global defense spending, which reached $2.24 trillion in 2022, is projected to grow 5% in 2025, while defense company revenues are expected to rise nearly 10%, with profit margins improving from 5.2% to 7.6%. Compared to traditional defense platforms—such as battleships and fighter jets—lower-cost solutions like AI-driven defense systems and drones are expected to boost profitability, alongside greater automation in production processes.
3. Energy Independence and Nuclear Power
Even before AI-driven growth, energy demand was expected to rise sharply—and those forecasts have only increased. Fossil fuels will remain an essential part of the energy mix, but cost-effective and environmentally friendly alternatives will be critical to meeting surging demand. The tech sector has turned its attention to nuclear power, with many major companies announcing plans to utilize existing facilities or build small modular reactors (SMRs). Beyond the U.S., Japan, Germany, and Australia are expected to expand nuclear capacity, driving strong demand for uranium.
Selective Income Strategies for 2025
Income-focused investors may need to adopt a more selective approach in 2025, according to Global X, “given political uncertainty and potential interest rate volatility.” Many fixed-income instruments may underperform in a volatile rate environment, particularly long-duration assets. To minimize interest rate risk, Global X suggests equity-based strategies that could provide income with less sensitivity to rate fluctuations:
1. Covered Options Strategies
Equity-based covered options strategies can generate stable income while limiting direct exposure to interest rate movements. While the underlying asset may still fluctuate with the overall market (and indirectly with rate volatility), these strategies are not directly impacted by interest rate risk like traditional fixed income. Additionally, when rate volatility increases equity market volatility, option premiums tend to rise, maximizing income potential.
2. Energy Infrastructure Investments
Master Limited Partnerships (MLPs)—which own energy infrastructure assets such as pipelines—can generate steady incomewithout direct exposure to interest rate movements. These assets typically pay consistent dividends and have long-term supply contracts that stabilize cash flows. While their values can fluctuate with oil prices, their correlation to commodities is generally modest, as they do not extract or own the raw materials—they simply transport them. Additionally, real assets like commodities and energy infrastructure are often viewed as inflation hedges.
3. Preferred Stocks
Preferred stocks sit above common equity but below fixed income in the capital structure. They trade at par value and pay fixed or floating dividends. While investors are not guaranteed payments, preferred shareholders receive dividends before common stockholders. Since they are issued at par with a predetermined payout structure, they can be sensitive to interest rates. However, because they carry more risk than bonds, they tend to offer higher yields.
Most preferred shares are issued by banks, which generate steady cash flows from net interest income. With potential financial sector deregulation and increased small-business lending, preferred stocks could become an attractive income option in 2025.
Becon Investment Management is starting 2025 with a lunch event in Miami, where Joe Mazzoli, from the investment team at Barings Private Credit Corporation (BPCC), and Kelly Burton, portfolio manager of Barings Global Senior Secured Bond Fund, will discuss market opportunities and the importance of risk mitigation in today’s environment, with a focus on Senior Secured Credit Opportunities.
The event will take place at Cipriani Brickell on Tuesday, February 25.
Barings Private Credit Corporation (BPCC) is a semi-liquid private credit fund that stands out for delivering the highest yield at 11.5% net, paid monthly. The fund is a leader in total returns, has historically been the least volatile, and is the only one to achieve substantial NAV growth.
Meanwhile, Barings Global Senior Secured Bond Fund is designed to provide security and diversification, offering an attractive yield within the corporate bond market. The bonds in the fund are directly collateralized by the issuer’s assets.
