Insigneo announced the appointment of Mayobanex Martínez as senior relationship manager, who will be based in Houston, Texas, and will report to Alberto López, head of relationship management at the firm.
“We are excited to welcome Mayobanex to the Insigneo family as we continue strengthening our presence in this region and enhancing the experience we provide in Mexico,” said Mariela Arana, head of client experience at Insigneo.
The new member of the wealth management company joins the Client Experience team, and in his role will support investment professionals throughout Texas and other markets in the Northern Cone, Insigneo reported in a statement.
Martínez has more than 20 years of experience in national and international banking and has held executive positions at Citi, Wells Fargo, and SunTrust. He specializes in wealth management, investment services, and client onboarding processes. He holds FINRA licenses 24, 66, and 7.
In his new position at Insigneo, he will focus on strengthening client relationships, driving business growth, and ensuring a smooth onboarding experience aligned with the firm’s standards and best practices.
“I am excited to join Insigneo and work with a team committed to providing financial advisors with flexibility, tools, and support to excel. This is an opportunity to combine my passion for advisor success with an innovative, future-oriented platform, and I look forward to forging strong partnerships that drive sustainable growth and exceptional value for clients,” said Mayobanex Martínez.
WisdomTree has reached a definitive agreement to acquire Ceres Partners, a U.S.-based alternative asset manager specializing in farmland investments. They explain that this transaction marks its entry into private asset markets, starting with the real estate sector and, specifically, farmland. In addition, Ceres benefits from opportunities in adjacent strategic areas with demand for solar energy, artificial intelligence data infrastructure, and water, which are expected to drive faster growth.
According to WisdomTree, this acquisition provides immediate scale and a long-term advantage, bringing approximately 1.85 billion dollars in assets under management across about 545 U.S. farmland properties located in 12 states, mainly in the Midwest. “Ceres has a solid performance track record, with an average annual net total return of 10.3% since its inception in 2007, outperforming farmland benchmarks,” they state.
The manager believes that, as farmland is recognized as one of the largest and most underutilized real asset classes in the United States, there is significant growth potential. In their view, this asset class has historically delivered resilient, inflation-protected returns, and is uncorrelated with traditional equity and fixed income markets. As demand accelerates for private investments that generate income and offer inflation protection, they believe this transaction positions them well to provide differentiated access at an institutional scale. Farmland prices and asset values have increased in the United States in all but nine years since World War II, and Ceres represents a value-added platform in a category with the fundamentals for greater adoption by advisors and institutions.
“Farmland is one of the largest and most underutilized real asset classes in the United States, offering both scale and scarcity. This acquisition expands our leadership in innovative, income-generating investment solutions while strategically accelerating our entry into private asset markets with a scalable, high-quality platform. This reflects our commitment to offering differentiated exposures that deliver long-term value for both clients and shareholders. This strategic acquisition now positions WisdomTree to capitalize on the most significant structural growth opportunities in wealth and asset management today: ETPs, private markets, managed models, and tokenization,” added Jonathan Steinberg, founder and CEO of WisdomTree.
For his part, Perry Vieth, founder and CEO of Ceres Partners, stated: “We are proud of Ceres’ lasting partnerships and legacy with farmers. Joining forces with WisdomTree marks an exciting new chapter for Ceres. For nearly two decades, we have built a differentiated farmland investment platform, grounded in performance, operational expertise, and a deep understanding of U.S. agricultural markets. This partnership brings product innovation, scale, and distribution that will allow us to reach more investors seeking resilient, inflation-protected, income-generating real assets. Together, we are uniquely positioned to capitalize on the next wave of growth in farmland, including solar energy, artificial intelligence data infrastructure, and water, with a shared commitment to innovation and long-term value creation.”
Transaction objectives and details
As part of this transaction, WisdomTree’s goals for 2030 include raising over 750 million dollars in farmland assets by the end of 2030 with fee structures of approximately 1% base / 20% performance, doubling base fee revenue by the end of 2030, increasing performance fee revenue by 1.5 to 2 times—assuming historical performance levels are maintained—and accelerating WisdomTree’s global margin expansion trajectory.
According to the manager, the transaction involves an initial cash consideration of 275 million dollars payable at closing, subject to customary adjustments. “Consideration for future earnings of up to 225 million dollars payable in 2030, subject to a compound annual revenue growth rate of 12–22% measured over five years. Subject to customary approvals, financing, and closing conditions, the transaction is expected to close in the fourth quarter of 2025,” they note.
Finally, they add that this transaction establishes Ceres as a cornerstone of WisdomTree’s long-term strategy to build the next-generation asset management platform, combining structural growth sectors, an innovative offering, and a future-ready product range. “Alongside its current strengths in ETPs, managed models, and tokenization, WisdomTree will offer its clients institutional access to a highly differentiated set of exposures in public and private markets,” they conclude.
Technology is a consolidated theme in investors’ portfolios. In the first half of 2025, the so-called Magnificent 7 experienced a sharp correction at the beginning of the year, followed by an AI-driven rebound that mainly benefited Meta, Microsoft, and Nvidia. In the opinion of Madeleine Ronner, a DWS manager specializing in technology, the investors’ response has been clear: although we have not seen a widespread increase in sensitivity to valuations, investors have become more selective. We discussed how to approach technology investment in our latest interview.
Do you think the perception investors have when investing in technology has changed?
The focus is more on cost discipline, AI-driven efficiency improvement, and tangible growth, especially in areas such as infrastructure, automation, and computing. The market is also more critical of how large-scale AI investments will be monetized, particularly given the high investment-to-sales ratios across the sector. That said, speculative behavior remains present, especially in certain parts of the U.S. technology market, as reflected by the growing number of stocks trading at more than 10 times their market value. From our point of view, this reinforces the importance of focusing on critically important technologies with long-term structural relevance, and not only on short-term growth arguments.
Have investors adjusted their portfolios’ exposure to the technology sector?
There has been a slight shift. ETF flows show a rotation away from the U.S. and, therefore, from large U.S. technology companies, and toward European and diversified exposures. Investors are increasingly opting for broader sector allocation strategies that reduce reliance on a few dominant technology stocks, especially as geopolitical risks rise. However, gross exposure to large technology companies remains high.
Have you adjusted your expectations for this sector’s performance?
Our expectations are becoming increasingly differentiated. While the sector as a whole may no longer deliver the broad outperformance of previous years, certain specific segments—such as cutting-edge AI, custom semiconductors, and mission-critical software—still enjoy strong secular tailwinds. We are cautious in areas with inflated multiples and low visibility but continue to see long-term value in enablers of automation, digital resilience, and computing efficiency.
In today’s context of uncertainty, tariffs, and high valuations, what do you consider the best way to approach technology investment now—ETFs, active management, or thematic investing?
In this environment, active management and selective thematic investing present clear advantages. The macroeconomic and geopolitical context—especially tariffs, supply chain adjustments, and tighter regulation—creates dispersion in the market. An active approach can help avoid overpriced or geopolitically exposed names, while thematic strategies (for example, nearshoring, AI infrastructure, sovereignty) can target specific pockets of opportunity.
Over the past 24 months, investors seem to have focused on AI. Do you consider this an area saturated with investors and funds, or do you believe there is still room to launch new funds and channel investment into it?
AI investment is saturated, but not exhausted. While competition is intense and valuations are high, the underlying innovation cycle is still in its early stages. There is room for differentiated strategies, especially those targeting industrial AI, edge computing, and AI infrastructure. The AI hype is real, but the set of opportunities remains broad. While overall exposure to AI may seem saturated, there is still plenty of room for differentiated strategies focusing on vertical AI applications, AI infrastructure, energy efficiency, or AI governance and security. We believe new funds can succeed if they offer genuine specialization or exposure to undercapitalized segments of the AI stack.
What are the technologies of the future that investors should start considering?
In my opinion, several technology areas stand out as critical for evaluating future investments, especially in the context of national resilience and economic competitiveness. AI remains a dominant force, not only as an independent theme but as an enabling element across all sectors. It is worth highlighting that automation is beginning to extend into traditionally under-served sectors, such as pharmaceuticals and food and beverages, supported by AI-driven efficiencies.
Semiconductor manufacturing and equipment is another area of strategic importance. We are particularly focused on the long-term development of U.S. manufacturing capacity, which aims to reduce dependence on Taiwan and strengthen domestic supply chains. In our case, defense and dual-use technologies are a cornerstone of our strategy, as is cybersecurity, especially as nations prioritize digital sovereignty and the protection of critical infrastructure. The sector continues to evolve rapidly, with growing importance in both the public and private spheres.
We also see attractive opportunities in energy infrastructure and grid modernization, which are essential for energy security and the transition to more sustainable systems. In this area, battery technology is especially promising, with recent advances suggesting transformative potential in energy storage and distribution.
In the current context of uncertainty and tariff wars, which parts of the technology sector are most exposed?
Consumer electronics and automobiles, due to supply chain dependence and specific tariffs, as well as semiconductors, especially those reliant on Asian manufacturing or with significant sales to Asian markets.
What could this mean for investors, and how can they protect themselves against this risk?
To build a resilient and forward-looking portfolio, it is essential to diversify both geographically and across relevant subsectors. Priority should be given to companies that demonstrate strong local production capacity and robust, adaptable supply chains. Moreover, the use of active investment strategies can help avoid overexposure to specific securities or concentrated risks. We have a bottom-up fundamental approach, and in my selection I am currently placing great emphasis on pricing power, as well as strong management teams capable of navigating this volatile and changing environment and addressing supply chain challenges.
MFS Investment Management has just hired Natalie Ochoa, who joins the asset manager’s team in Miami as Sales Associate, according to sources from the firm confirmed to Funds Society.
In her role, Ochoa will cover the regions of the Southeastern U.S., Central America, the Caribbean, and Mexico, supporting Senior Regional Consultants Diana Rueda and Drew Chisholm for the Americas from the Miami office.
Ochoa previously worked at Morgan Stanley, where for three years and ten months she served as Branch Administrator and Service Associate, according to her LinkedIn profile.
The new member of the MFS team studied at Florida International University and holds several FINRA licenses.
Despite the radical change in U.S. trade policy under the presidency of Donald Trump, Mexico remains the main supplier to the world’s largest power and its trading partner within the USMCA.
In June, imports of goods from Mexico totaled 44.8 billion dollars, after a figure of 46.3 billion was reported in the previous month, representing 16.9% of total imports of the world’s largest economy, according to the Economic Report prepared by the Economic Studies Department of Banamex.
For its part, the share of U.S. imports from Canada totaled 11.2%, followed by China with 7.1%. The latter figure is the lowest since February 2001.
Cumulatively, during the first half of the current year, imports from Mexico to the United States amounted to 264.4 billion dollars, a figure 6.3% higher than that recorded in the same period of 2024.
As a result, Mexico’s share of U.S. imports averaged 15.0% in the first half of the year, equivalent to 0.9 percentage points below the share recorded in January–June 2024, while for China and Canada this share was 9.5% and 11.2% respectively, that is 3.2 points and 1.9 points lower than in 2024, respectively.
According to the Banamex report, considering the 12-month moving average of the share in total imports, the increases in March for Switzerland (gold) and Ireland (pharmaceuticals) have dissipated, while Vietnam and Taiwan continue to gain share at the expense of China and Canada, as Mexico has reversed the downward trend it had shown in recent months, thanks in large part to the benefits granted by the USMCA for tariff-free imports.
China, the Most Affected Country
The same report indicates that China is the most affected country by the tariffs. The monthly drop of 4.6% in total U.S. imports of goods in June, after declines of 19.9% in April and 0.1% in May, already includes the entry into force of practically all the tariffs announced by the Trump administration.
Thus, the average tariff actually paid during June was 8.9%, 0.1 points more than in May, or 6.6 points higher than before the imposition of customs duties. In contrast, for Mexico, the effective tariff paid was 4.0%, slightly lower than the 4.3% of the previous month. Meanwhile, China posted an average tariff of 37.4% in June, lower than the 45.6% in May but 26.4 points higher than the 10.9% prior to the tariffs.
Thus, Mexico sold 82.2% of its exports to the United States tariff-free during June. This represents approximately 6.0 points less than before the imposition of tariffs, but it undoubtedly remains by a wide margin the main supplier to this country.
Artificial Intelligence, with its promise of revolutionizing all fronts of the economy, has left an indelible mark on the dynamics of venture capital in the United States. However, although enthusiasm continues to drive venture capital investment to new heights, the gap between large deals – driven by megafunds – and smaller ones is widening, according to a report by Silicon Valley Bank (SVB).
“AI is still the engine of venture capital investment in the U.S., representing 58 cents of every dollar deployed in 2025,” the specialized firm stated in its “State of the Market” report, where it outlined its outlook for the second half of 2025.
In this regard, for professionals at the innovation-focused bank, the word of the moment for the VC fund segment is “bifurcation.”
“Capital raising in the U.S. is on track to reach 56 billion dollars this year, a 21% drop compared to 2024 and the lowest level since 2017. Even so, large funds continue to grow, stretching the very definition of venture investment as we know it,” SVB noted.
In this context, the bank highlighted that unprecedented financings – such as the 40-billion-dollar deal led by OpenAI – are pushing total VC investment amounts to higher levels, but this only benefits the largest businesses. “We see that investment numbers remain stubbornly low for deals under 100 million dollars,” the report stated.
Contrasting Dynamics
Figures compiled by SVB show that, over the last three years, more than 36% of funds raised from VC vehicles have gone to funds of at least 1 billion dollars. In contrast, the proportion was 22% in the 2016–2019 period.
Although megadeals by AI companies are taking total venture capital investment “to the stratosphere,” SVB warned that “you cannot measure the venture economy by the amount of VC being deployed.”
Currently, they point out, nearly two-thirds of VC dollars in the U.S. are allocated to deals over 500 million dollars. In contrast, at the peak of the venture capital boom in 2021, that proportion was only 18%.
On the other hand, SVB emphasized, looking at deals under 100 million dollars, VC levels are on par with the pre-pandemic period. A similar trend is seen in the number of deals, falling from its peak of 1,650 to the 1,150 recorded in this edition of the report.
This shifting dynamic has also affected how megafunds operate. Managers of large strategies – such as Andreessen Horowitz, General Catalyst, and Coatue – are “changing the rules (and the math) of venture capital investing.” Funds are becoming larger and are structured in dynamic ways.
“What is driving these mega-investments? Megafunds, of course,” the report’s authors underlined, adding that the six largest vehicles raising capital since 2021 have participated in deals equivalent to one-third of the VC raised in the last 12 months. This contrasts with the 10% seen at the end of 2024. “The increase is driven almost exclusively by massive AI deals,” they noted.
Funding Rounds
Another phenomenon observed in the fundraising process within the venture capital space is that startups are taking more time to “graduate” from one funding round to the next — at the slowest pace in history, according to SVB’s figures.
“The number of startups graduating to the next series in the past three years has dropped by half compared to 2020, and we don’t believe this will change soon,” the firm stated.
Faced with this particular financing scenario, companies are moving to cover that gap by cutting expenses and focusing on profitability on the one hand, or launching extension or bridge rounds between series on the other.
“With the current median time between rounds, it would take a company ten years to go from seed capital to Series D,” they indicated, which is 45% longer than in 2022. “If this trend continues, it will perpetuate the mass of companies that remain private for longer,” they added.
Another effect, they noted, is that the trend is pushing a variety of early-stage investors to sell their positions in later rounds, so they can return capital to LPs sooner.
One of the latest studies by Vanguard examines the risk of overconcentration in high-cap U.S. stocks and whether, as a result, ETF investors are adjusting the global allocation of their portfolios.
The report reveals that while the market shows a marked tilt toward selected Magnificent Seven companies, Vanguard indicates that advisors may have already adjusted their clients’ portfolios accordingly.
The firm conducted a survey of 1,747 clients, which shows that advisors are already tilting their portfolios toward small- and mid-cap stocks, moving away from large- and mega-cap growth stocks that have experienced a strong rally.
The median among respondents has been overweighting mid and small caps by approximately 10 percentage points above benchmark allocations, which are around 25%.
While advisors appear to be reducing their exposure to large-cap stocks, another critical factor they may be overlooking is the bias toward domestic markets.
Research by Vanguard shows that the median client portfolio has a 75% weighting in U.S. stocks, well above the 63% allocated to American stocks in global benchmark indexes.
That represents an overweight of 12 percentage points, and more than three-quarters of client portfolios show some level of home bias.
Market capitalization indexes risk a greater allocation to a handful of names, which can make exposure seem excessive. Such indexes are arguably the best strategy for holding a representative slice of the broader macroeconomy, but moving away from the highest-returning U.S. companies addresses only one part of a portfolio’s overconcentration source.
Adding more international equities can make portfolios more diversified—a benefit that, according to the study, could prove profitable “if the current valuation gap between U.S. and international stocks normalizes over the long term.”
Donald Trump continues to fulfill his campaign promises. On Thursday, the U.S. president signed an executive order to allow the inclusion of private equity, real estate, cryptocurrencies, and other alternative assets in 401(k) retirement accounts in order “to enable investors to access alternative assets for better returns and diversification,” according to the official statement released by the White House.
The order paves the way for private equity managers and other funds to access the trillions of dollars (American trillions) in Americans’ retirement savings.
“It could open a new and broad source of funding for managers of so-called alternative assets, outside of stocks, bonds, and cash, although critics claim it could also pose an excessive risk to retirement investments,” reported the Reuters agency.
According to Bloomberg, the order is “a big win for industries seeking to tap into some of the approximately $12.5 trillion (American trillions) held in those retirement accounts.”
“The order instructs the Securities and Exchange Commission (SEC) to facilitate access to alternative assets for participant-directed defined contribution retirement plans by reviewing applicable regulations and guidelines,” a White House official stated in the morning under condition of anonymity, according to the cited sources.
The document instructs the Secretary of Labor to reexamine the Department of Labor’s guidelines on fiduciary duties related to investments in alternative assets within 401(k) plans and other defined contribution plans regulated by ERISA. It also instructs the Secretary of Labor to clarify the Department’s stance on alternative assets and the proper fiduciary process associated with offering asset allocation funds that include investments in alternative assets.
Initial Reactions
The new investment options have less stringent disclosure requirements and are generally harder to sell quickly for cash compared to publicly traded stocks and bonds, which most retirement funds rely on. In addition, investing in them usually involves higher fees, Reuters noted.
Many private equity firms are eager for the new source of cash that retail investors could provide after three years in which high interest rates shook their traditional model of buying companies and selling them for profit.
“The entire market cap of the crypto market as a whole is nearly 4 trillion,” Iñaki Apezteguia, a Bitcoin specialist and co-founder of Crossing Capital, told Funds Society. “So the amount of money handled in crypto could triple with this availability of pension funds; it’s a huge advancement,” he added.
The expert clarified that this does not mean all the money would go into crypto. “But globally respected analysts, among them Ray Dalio,” he stated, “say that about 15% of a portfolio’s capacity should be allocated to investing in Bitcoin and cryptocurrencies. So we’re talking about a possible injection of massive institutional capital and allowing many people nearing retirement to access diversification of the money tied to their retirement. Bitcoin further legitimizes its place as a global store of value.”
“The approval of the Genius, Clarify, and anti-CBDC laws, the White House’s crypto report, the appointment of key figures in regulatory agencies who are sympathetic to the financial world and have a pro-crypto outlook, and even his own approach of accumulating cryptocurrencies through his companies, both Bitcoin and Ethereum — Trump’s new order is in line with all of this,” said Apezteguia, referencing his campaign announcements.
In fact, the final lines of the official statement announcing the executive order include references to Trump’s promise to make the United States the “world capital of cryptocurrencies,” emphasizing the need to embrace digital assets to boost economic growth and technological leadership.
Not an Immediate Effect
For plan sponsors, the order does not immediately change existing regulations. Jaret Seiberg, a financial services policy analyst at TD Cowen Washington Research Group, said in a note published by CNN that “agencies will still have to develop new rules. That could take until 2026.”
For their part, employers will have to conduct their own due diligence before offering new investment options. Lisa Gómez, former Assistant Secretary of Labor for Employee Benefits Security, told CNN: “It’s going to be more complicated.”
Private market assets have traditionally been excluded from 401(k) plans due to high fees, lack of transparency, and longer lock-up periods, CNBC noted.
After liberation day, we saw a sharp market correction and a wave of new ETFs with more balanced weighting and improved exposure to certain U.S. stocks and this is because, in the opinion of Sefian Kasem, Global Head of ETF & Indexing Investments Specialists at HSBC AM, the appeal of ETFs lies precisely in their dynamic nature—ideal for these times of uncertainty. We spoke with him about the role of these vehicles in portfolios and about the ETF phenomenon in our latest interview.
How is all this market instability and uncertainty affecting the creation of new ETF products and strategies?
They can be used to quickly increase or decrease risk by investors or to gain access to specific markets or strategies. There is now much more innovation. Active ETFs, for example, offer investors access to asset classes for those seeking the beta of a specific market with an additional alpha component and low tracking error. As markets become increasingly volatile and fragmented, we are more frequently seeing tactical adjustments within portfolios. The great flexibility they provide is precisely what is driving much of the current innovation in the sector, by incorporating new strategies that allow investors to access different sources of risk and return. In the realm of traditional ETFs, concern about concentration in certain stocks within U.S. benchmark indices has also driven innovation around capping methodologies (such as equal weighting) to mitigate concentration risk in the indices.
In this regard, where are ETFs and index strategies heading? How is innovation achieved in this part of the business?
The major shift has been the transition toward increasingly offering exposure to asset classes and access to specific investment strategies. Within the ETF space, you now have the opportunity to invest in strategies that use active stock selection from a bottom-up perspective, whether in a discretionary sense or in a quantitative and systematic sense, where a rule-based methodology is used for stock selection—as is the case with our active ETF range. We’ve spoken in terms of investment strategies, but we also need to consider the evolution of product features, as it is increasingly common for traditional index funds to provide access to strategies through the launch of ETF share classes that operate under the same umbrella. ETF issuers are showing dynamism in this regard, and we are increasingly seeing these hybrid structures in the market, which allow investors to access specific markets or strategies in the usual way through index funds, while also offering access to investors who wish to invest in ETFs, perhaps with a shorter time horizon. They can do this because there is a class that is an ETF, and it is available alongside the traditional non-listed share classes. In short, we are seeing ETF product providers increasingly offer market access to a broader range of asset classes and strategies through more innovative methods.
In the ETF market, we’re seeing strong growth in active ETFs in Europe, but in the U.S., this market is already more developed. What can the European industry learn from how the active ETF segment has grown in the U.S.?
I believe the key lesson from the U.S. experience is the innovation and infrastructure that have been developed there. Historically, they have been pioneers in the creation and growth of the ETF market, including the variety of asset classes offered and the strategies embedded within the structures. The U.S. has gone through a trial phase that proves active investment strategies can be successfully integrated within an ETF. This shows there is enormous potential for growth in Europe, but that doesn’t necessarily mean the same types of strategies will appeal to European investors in the same way they do to Americans. The needs of European investors are different, due to the nature of the investor base. Europe will naturally develop its own range of products demanded by clients, depending on their needs at any given time and tailored to the different jurisdictions.
Considering that active ETFs in the U.S. enjoy a number of advantages not present in Europe, what growth prospects do you see for the active ETF market in Europe? What opportunities could this offer asset managers and, in particular, your firm?
From the U.S. perspective, there are some advantages in that sense, such as a regulatory framework that is a bit more open to innovation, but I believe that mindset is changing in Europe. There is increasing innovation happening in Europe, so there is plenty of room for ETF issuers to develop products that are relevant to their target market. We fully understand that certain concepts are especially relevant to the European public, such as capital-protected solutions, sustainable investing, etc. The creation of products that meet the needs of European investors is something that will likely accelerate from now on, so there may be some divergence from the U.S. as more local innovation takes place. In many respects, I believe much of the innovation is transferable, so we will see many concepts that have taken root in the U.S.—for example, options-based ETFs, such as buffer ETFs, and other types of structured solutions—gradually become more prevalent in Europe.
In which other markets do you see growth potential for the ETF business, both traditional and active?
There is enormous potential for ETFs to become tools used for asset allocation across a wide variety of jurisdictions, in both developed and emerging markets, given how easily they can be used to build and manage portfolios. And this is not only for short-term investors looking for quick access to liquid markets, but also for long-term investors building strategic asset allocations with a 10- to 15-year investment horizon. ETFs can offer them access to different sources of risk premia in both public and private markets, as well as sectoral, factor-based, and thematic strategies. ETFs are becoming a much more important part of portfolios not only in the U.S. and Europe, but also in other jurisdictions—emerging markets, the Far East, the Middle East, Latin America, etc. They are highly relevant tools being used by virtually all types of investors.
HSBC Asset Management has strengthened its presence in the ETF business in recent years. What role do these vehicles play within the firm’s overall strategy?
They play a very important role, as our passive and quantitative equity business is under the same investment leadership (CIO), which greatly helps from an innovation standpoint. In that sense, there is a lot of collaboration and knowledge transfer between the two. The active ETF strategies we’ve launched in the market are considered a natural complement to the range of traditional ETF investment strategies we offer to investors. We will continue to innovate and explore how to use the ETF structure to provide investors with access to selected asset class exposures and strategies—and we have a few more surprises in store for them this year.
The new tariffs from the Trump Administration have come into effect, with a general minimum of 10%, amid renewed social media messages, threats, and moves that add noise to the current context of uncertainty. Markets are absorbing these fluctuations with relative calm, and European stock markets opened the day in positive territory—for example, futures on the STOXX Europe 50 index are pointing to an increase of approximately 0.3%, while in Asian markets, the main indices closed the session with gains.
What does the new “tariff map” look like? According to the summary from Banca March, three main groups can be identified. “On one hand, there are countries in a sort of truce with the U.S., such as Mexico and China, awaiting the outcome of negotiations. Secondly, we have countries like Japan, the United Kingdom, Vietnam, the EU, among others, that have already reached preliminary agreements with the American giant, although in many cases, key details of those pacts are unknown, and in cases like Japan or the EU, negotiations are ongoing. Lastly, there is the rest of the countries which, starting today, will face a tariff ranging from 10%—if they have a trade deficit with the U.S.—up to levels of 50%, in cases like Brazil and India,” they explain.
In this new tariff environment, central banks have become more cautious. “Both the Fed and the ECB have kept official interest rates unchanged. The apparent stability of labor markets and the potential inflationary pressures caused by U.S. tariffs are leading central banks to act with caution. In July, the U.S. administration concluded several tariff agreements with key trading partners (Japan, Eurozone). Although not all details have been negotiated, tariffs around 15% are lower than feared, which has supported risk assets. In the process, equities have once again outperformed fixed income,” highlights Alex Rohner, Fixed Income Strategist at J. Safra Sarasin Sustainable AM.
Chips and Semiconductors
In the past 48 hours, several announcements have come from Trump, adding more percentages and tension to the tariffs that are now in force. In particular, he has announced that he will impose a 100% tariff on chip and semiconductor imports to force their production within the country. “We are going to apply a very high tariff on chips and semiconductors. But the good news for companies like Apple is that if they manufacture in the United States or are fully committed to manufacturing in the United States, no charges will apply to them,” the president stated during an event in the Oval Office.
The Republican, who this week indicated his intention to announce tariffs on these high-tech components, said that “a 100% tariff will be applied to all chips and semiconductors entering the United States.”
According to the analysis by Amadeo Alentorn, Head of Investments in the Systematic Equity area at Jupiter AM, “U.S. technology continues to rely heavily on international supply chains,” as “most advanced semiconductor manufacturing is concentrated in East Asia, especially in Taiwan and South Korea.” Alentorn explains that major U.S. companies like Apple and Nvidia rely heavily on Taiwan for chip manufacturing, even though they design them domestically.
For some experts, this is a clear message to China. U.S. and Chinese delegations concluded a third round of negotiations in Stockholm at the end of July without reaching a definitive agreement, but with a joint intention to extend the tariff truce set to expire on August 12. “Tensions between the U.S. and China are escalating into a full-scale trade war, with technology at its core. President Trump demands that all chips used in critical industries be Made in America. In response to Washington’s tightening of export controls and domestic origin requirements, China is intensifying audits, fines, and new data localization rules. It is suspending licensing and slowing down customs clearance for goods related to semiconductors. Supply chain bottlenecks are multiplying,” adds the expert from Jupiter AM.
Meanwhile, according to experts, the Asian giant is designing a new trade map to diversify its exports within Asia. Its main targets are Southeast Asian countries with friendlier ties to the U.S., such as Vietnam, Thailand, and Indonesia, where results are already visible.
In fact, according to analysis by Crédito y Caución, Chinese exports to the U.S. plummeted in April, when the American tariffs came into effect, with a drop of $9.3 billion in goods exports compared to the previous year. At the same time, Chinese exports to Asia increased by $14.8 billion. This is a trade strategy that aims not only to minimize the impact of tariffs. As Bert Burger, economist at Atradius, explains, “Chinese manufacturers are also setting up production facilities in Southeast Asia to take advantage of local benefits.” These advantages include lower wages and tax incentives.
Pharmaceutical Sector
“We will initially impose a small tariff on pharmaceutical products, but within a year—a year and a half at most—it will rise to 150%, and then to 250%, because we want pharmaceutical products to be made in our country,” stated Trump just 48 hours ago. According to experts, companies in this sector face dual pressure: on one hand, tariffs; on the other, the restructuring of the healthcare system in their largest and most profitable market, the United States. “Pharmaceuticals are included in the trade agreement between the EU and the U.S., which has mitigated some concerns in the sector. However, they were excluded from the recent 39% tariff imposed by the U.S. on Swiss imports. A specific update on pharmaceutical product tariffs is still pending,” say Alexandra Ralli and Simon Lutier, Equity Analysts for the Healthcare Sector at Lombard Odier.
According to Lombard Odier experts, it is important to put this into context: the U.S. healthcare system is undergoing a phase of political reform, with expected changes in production, regulation, and pricing. Furthermore, President Trump has urged major pharmaceutical companies to lower prices, adding pressure to an already strained sector. “Global pharmaceutical giants are trading at a discount compared to their historical averages, reflecting investor caution amid regulatory and political uncertainty.
While the healthcare sector is not among our top picks, we see potential in certain pharmaceutical or biotech companies with strong product pipelines. Swiss pharmaceutical companies could rebound if the tariff framework becomes clearer. In the view of Marie de Mestier, Head of Large-Cap Equity Fund Management at Crédit Mutuel AM, this sector—traditionally considered a safe haven in times of instability—is now in a volatile situation and clearly exposed to political risk. “Donald Trump’s policies will have cross-border repercussions. Possible changes in pricing, regulation, and supply chains, along with increased competition, will force European companies to adapt in order to remain competitive despite U.S. policies. In fact, European pharmaceutical companies generate nearly 50% of their sales in the United States, but not all the drugs they sell are manufactured there. With rising protectionism, the challenge will be to produce more locally, which is why many European pharmaceutical firms have already announced massive investments in the United States,” they emphasize.
India: Energy and Geopolitics
The other major announcement from Trump was the imposition of additional 25% tariffs on India in retaliation for its purchase of Russian oil, bringing the total tariff on Indian imports to 50%. According to analysts, India, the third-largest oil importer in the world, has taken a neutral and pragmatic stance on the war in Ukraine, shifting from importing less than 2% of its oil from Russia to more than one-third, making Moscow its main supplier.
“One of the additional factors negatively impacting the market was President Donald Trump’s decision to impose a 25% tariff on products from India. The measure responds to accusations that the Asian country continues to buy Russian oil, sparking new trade tensions amid an already fragile international relationship,” point out the Financial Markets Analysts for LATAM at XS.com.
In their opinion, despite downward pressures, physical market data offered a bullish signal. “The market is closely watching details on the implementation of U.S. sanctions. Traders are looking to understand which sectors will be affected and whether the measures will have a real effect on global oil supply. At the same time, there is growing concern over a potential production increase by the OPEC+ alliance—which includes Russia—which could offset any supply loss caused by the sanctions,” they add.
