During the last week of March, high-quality credit continued to attract money, but it was the inflows into government bonds that really stood out. According to Bank of America (BofA), the good news on the macroeconomic front is that the rotation into European equities has continued, although at a slower pace.
However, the BofA report clarifies that the recent price action in credit in recent days points to a market that is seeking hedges rather than taking advantage of declines to buy. “We are watching closely for any emerging signs of outflows in high-quality credit, which would be a clear catalyst for a more negative price trend across the corporate bond market. With volatility on the rise, we highlight that fixed income investors are starting to show a preference for buying government debt again,” they indicate.
Main Trends
The BofA report shows that high-quality funds recorded significant inflows, with short-term investment-grade funds continuing to attract flows. Specifically, medium-term funds registered outflows, while long-term funds also recorded some inflows. “We continue to highlight our preference for the short end of the credit market. High-yield funds have now suffered four consecutive weeks of outflows after seven weeks of inflows,” the report states.
Similarly, high-yield ETFs also posted outflows last week, marking four consecutive weeks. Regionally, globally focused funds underperformed significantly for the second consecutive week, recording the majority of outflows, while U.S.- and Europe-focused high-yield funds saw similar levels of outflows.
Another interesting point is that government bond funds recorded another week of notable inflows after two weeks of outflows—the largest since June of last year. In addition, money market funds also saw inflows during the past week, and global emerging markets (EM) debt funds also attracted inflows. “Overall, fixed income funds recorded inflows over the past week, driven by inflows into government bonds and investment-grade funds,” BofA notes.
Finally, equity funds posted another inflow, making it eight consecutive weeks of inflows. “However, it is worth noting that, for the second consecutive week, the pace of inflows has slowed to nearly half compared to the previous week,” the experts at the firm conclude.
Facing continued market uncertainty, wealth advisors are increasingly shifting toward private market strategies to protect and grow client portfolios.
In response, PPB Capital Partners has expanded its offerings by 50% over the past year, introducing access to high-demand asset classes such as litigation finance, energy infrastructure, venture technology and digital assets.
This expansion comes as traditional portfolios face mounting challenges – from elevated public equity valuations to rising geopolitical tensions. Advisors are seeking more resilient, uncorrelated investments and PPB is stepping in with curated, institutional-grade solutions tailored to evolving client goals.
“By working closely with our network, we curate high-conviction strategies that help advisors build resilient, future-ready portfolios,” said Frank Burke, CFA at PPB.
The firm’s rebranded platform, Capital Markets Solutions, is built not as a product shelf but as a problem-solving model. It provides access to exclusive strategies, robust diligence, and outsourced investment consulting, giving advisors tools to manage risk and generate PPB.
“We deliver more access to elite, distinguished managers for uncorrelated, differentiated returns with the ability to generate alpha,” said Evan Deussing, CIMA’s head of Distribution.
Strategies are now available through platforms like CMS span Hedge Funds, Private Credit and Multi-Family Real Estate.
By transforming direct feedback into actionable investment solutions, the firm remains committed to helping advisors navigate today’s complex market envirnonemtn while positioning portfolios for long-term success.
Aiva 2025 Conference in Punta del Este | Funds Society
Aiva, a Wealth Management solutions platform with over 30 years of experience in Latin America, and Zest, a firm specialized in financial advisory and wealth planning, have formalized a strategic alliance aimed at redefining access to and the quality of financial services in the region, as announced in a joint statement.
“This agreement consolidates Aiva’s regional expertise, distribution network, and institutional backing with Zest’s technological proposition, digital focus, and direct-to-client model. The result is a comprehensive, modern, and highly competitive offering tailored to individual clients, independent financial advisors, and family offices across Latin America,” the statement adds.
Through this partnership, Aiva’s clients and strategic partners will gain access to XP International’s platform—one of the leading financial groups in Brazil and Latin America—as well as Addepar, the global solution for portfolio consolidation and wealth analysis. At the same time, Zest will incorporate into its portfolio a range of structured savings solutions, international life and health insurance, and advanced wealth planning services for high-net-worth individuals.
“This alliance marks a key strategic step in strengthening our value proposition and expanding our regional reach. By combining our strengths with Zest’s agility and digital vision, we are now positioned to offer a more efficient, comprehensive, and investor-oriented platform tailored to the needs of the modern investor,” said Elizabeth Rey, Managing Partner at Aiva.
Arthur Silva, CEO and Founder of Zest, added: “Partnering with Aiva means incorporating decades of experience, institutional prestige, and a consolidated regional network. This synergy allows us to enhance our offering with top-tier solutions while preserving our technological and independent essence. It is a solid step toward our regional expansion.”
Both firms emphasized that with more than USD 4 billion in assets under advisory, this agreement lays the groundwork for a new chapter in the development of Wealth Management in Latin America—one defined by innovation, scalability, independence, and access to world-class solutions under the backing of the XP Group.
J.P. Morgan Private Bank has added Francisco Baixauli to its Miami team as a banker, according to an announcement by Simon Levine, Managing Director and Head of the Southeast Region of the U.S., on his personal LinkedIn profile.
“We’re pleased to welcome Francisco Baixauli to J.P. Morgan Private Bank as Vice President and Banker in our Miami office,” Levine wrote. “Throughout his more than decade-long career, Francisco has been dedicated to helping high-net-worth clients preserve generational wealth so they can enjoy a secure and rewarding future,” he added.
According to the post, Baixauli has long-standing ties to the Miami area and works closely with business owners, entrepreneurs, executives, and multigenerational, global families.
He joins from Bernstein Private Wealth Management, where he worked for five years. Previously, he was an Associate Relationship Manager at Fortune Partners for three years, and before that, he held the position of Asset Management Analyst at J.P. Morgan.
Baixauli holds a Bachelor’s degree in International Trade from the University of Valencia and earned a Bachelor of Science in Business Administration from the University of North Carolina Wilmington. According to his professional profile, he holds FINRA Series 66 and Series 7 licenses.
The day has finally arrived; speculation has come to an end. In a move that surprised the market, the Argentine government announced that on Monday, April 14, currency controls will be lifted. The South American country will implement a new managed floating exchange rate regime, with a band ranging from 1,000 to 1,400 pesos per dollar, expanding by 1% monthly.
The Central Bank will only intervene if the official dollar rate moves beyond those limits. In practice, this means the peso could depreciate by up to nearly 30% without direct state intervention, should the U.S. dollar approach the upper band limit of 1,400 pesos. On Friday, April 11, the official dollar closed at around 1,100 pesos.
Due to the restrictions, Argentina has long operated with multiple exchange rates. On one hand, there’s the parallel, illegal or “blue” dollar, which has risen in recent weeks. On April 11, it closed at approximately 1,370 pesos, widening the “gap” with the official dollar to nearly 30%. There are also the legal financial exchange rates—MEP and CCL (Contado con Liquidación)—which involve the buying and selling of Argentine bonds. As of April 11, both were trading close to the blue dollar at around 1,350 pesos.
A Long History
Currency controls have been in place in Argentina for many years. The so-called “cepo cambiario” was introduced during the presidency of Cristina Fernández de Kirchner in October 2011. Though her ideological opponent, former President Mauricio Macri, lifted it, the relief was short-lived: he was forced to reimpose controls in September 2019. His successor, Alberto Fernández, tightened restrictions further, with regulations that increasingly limited access to the dollar for both businesses and individuals.
Over the weekend, the so-called “crypto dollar”—which trades 24/7—served as a sort of market thermometer ahead of Monday’s opening, with quotes hovering around 1,330 pesos. This value, close to the top of the new exchange rate band, signals the volatility many economists expect at the start of the trading day.
President Javier Milei spoke in a nationwide address on Friday night, accompanied by his entire Cabinet. In a pre-recorded message, he announced that the exchange rate controls will be “eliminated forever,” that Argentina will receive a total of $32 billion, and that the Central Bank’s reserves will reach $50 billion.
“With this level of reserves, we can back every peso in our economy, providing greater monetary security to our citizens,” he stated.
That afternoon, Economy Minister Luis Caputo held a press conference following the Central Bank’s unveiling of phase 3 of the economic program: the long-awaited end to exchange rate controls.
The measures were announced on Friday after markets closed, in the context of a new agreement with the International Monetary Fund (IMF) for $20 billion, of which $12 billion will arrive immediately on Tuesday, April 15, according to Caputo. The figure cited by Milei also includes loans from private banks to the Central Bank and from international organizations.
According to Caputo, exchange controls have caused damage and “have affected the normal functioning of the economy.”
Regarding the IMF agreement, it includes quantitative and structural targets covering fiscal performance, accumulation of international reserves, GDP behavior, and inflation trajectory.
In terms of the primary surplus, the agreement with the IMF sets an accumulated target of 6.07 trillion pesos by May 31, 2025 (equivalent to 0.5% of GDP), and 10.52 trillion pesos by year-end (1.3% of GDP). In his speech, Milei raised the target to 1.6%.
On the reserves side, the goal is for the Central Bank to end 2025 with $4 billion in net positive reserves. This target is cumulative from December 2024 onward.
The Central Bank also announced a differentiated regime between “flows and stocks” for legal entities. Companies will be able to freely access the official exchange rate to pay interest on debt and dividends to parent companies, as long as these are accrued after January 1.
Market Expectations
There is high anticipation in Argentina regarding where the dollar will land on Monday, April 14, when markets open at 11 a.m. local time. While the market has welcomed Milei’s austerity policy, it has kept a close eye on the Central Bank’s dollar reserves.
According to analysts at Puente, “The government made concessions (to the IMF) to secure greater financing. The liberalization of the exchange market is stronger than expected, and we expect the exchange market to be virtually unified starting Monday.”
However, several questions linger. One is what level the unified or official exchange rate will stabilize at. “We expect it to remain within the bands and between the current official and financial dollar rates, perhaps after an initial overshooting,” they added.
“On Monday, the official dollar should open between the April ROFEX dollar (1,200 pesos) and Friday’s CCL (1,350 pesos). We expect it to open high, closer to the CCL (as happened in December 2015), and then settle around the ROFEX level of 1,200 pesos,” said a report by FMyA, the consultancy led by economist Fernando Marull.
Banco Galicia’s research team published a special report titled “Super Monday,” analyzing the government’s recent measures. According to the report, the exchange rate bands are “much wider than in the cases of Israel, Chile, Colombia, among others we’ve studied.” The bank says this “more closely resembles Peru’s dirty float, though the IMF Staff Report states there are no planned interventions within the bands.” The institution expects “some initial jump” in the exchange rate on Monday but believes that supply “should respond quickly” after recent weeks of uncertainty.
Earlier, in a frenetic Friday for market participants, March inflation was released and came in higher than expected: 3.7%. Looking ahead, a further rise in the consumer price index appears inevitable. FMyA estimates that April and May inflation will hover around 5% monthly before falling to below 2%, ending 2025 at 35%.
There is another important factor: legislative elections are scheduled in Argentina this year. The market is wondering how competitive Javier Milei will be, considering the likely impact that lifting exchange controls will have on poverty, inflation, and economic growth.
With Karim Aryeh, Board Member of CAIA Florida, as the main organizer, the Florida chapter of the Chartered Alternative Investment Analyst Association will host the Spring 2025 networking event for Miami’s industry to meet and build networks in South Florida. It will be next Tuesday, April 15, starting at 5 PM, at Hutong Miami, the Northern Chinese cuisine restaurant located at 600 Brickell Avenue.
The association invites industry professionals to make new connections within the investment community at a “night of drinks, appetizers, and good company.” The event is sponsored by CORPAG and Funds Society will be the media partner.
CAIA Florida, founded in 2016, has the mission to grow, strengthen, and promote education in alternative investments and network creation among local investment communities throughout the state of Florida.
Global financial provider Apex Group has announced the acquisition of FTS Tech, Inc., a move that reinforces its commitment to digital transformation in fund management.
The acquisition brings $17 billion in assets under administration to Apex Group and adds 15 new employees. Flow’s technology will be integrated into Apex’s suite of services, offering an all-in-one digital solution for market clients.
“This acquisition furthers our mission to drive innovation in the private markets,” said Peter Hughes, Founder and CEO of Apex Group. “We’re delivering a superior, digital-first experience and strengthening our leadership in fund services.”
Clients will gain a range of benefits including:
End-to-end private markets infrastructure that streamlines investor onboarding, data management, entity administration and compliance.
Enhanced efficiency and transparency through real-time insights, automation and improved reporting tools.
Scalability for fund managers, offering a frictionless operating environment that allows GPs, LPs and platforms to scale faster with administrative burdens.
Founded in 2018, Flow provides infrastructure software that promotes transparency and communication among fund managers and stakeholders. The acquisition builds on the firms’ existing partnership, which launched Apex Ventures.
Brendan Marshall, Co-Founder and CEO of Flow said, “Joining Apex Group allows us to scale our vision faster and bring greater innovation to our clients.”
Flow’s clients will now gain access to Apex’s full range of services, including fund administration, ESG solutions, and capital markets support. Legal advisors included Goodwin for Flow and Kirkland & Ellis for Apex Group.
One week after April 2—dubbed “Liberation Day” by Donald Trump—the stream of reports from asset managers and investment houses continues, analyzing shifts in the global trade landscape, retaliatory measures by various countries against widespread tariffs, falling stock markets, and the likelihood of a U.S. recession. At the same time, webinars are multiplying in an attempt to explain this new phenomenon sweeping across the world and its possible consequences.
Nothing is more adverse for markets and investors than uncertainty—and uncertainty keeps growing. In this context, investors are wondering whether they should unwind positions, buy on dips, and which assets to turn to for shelter or hedging.
Amundi believes that unless significant progress is made in negotiations and a new trade framework is established, volatility will continue to dominate markets in the coming weeks. As a result, they’ve reduced their equity exposure.
“We continue to believe it is key to maintain equity hedges and exposure to gold. Regarding U.S. equities, we believe the impact will be more pronounced on mega-cap stocks, while the small- and mid-cap segment could benefit. As for equity allocation, we continue to favor a diversified approach that includes selective emerging markets. On duration, we remain active, with a positive stance in Europe and a nearly neutral position in the U.S.,” they wrote in a report published on April 3.
According to Román Gutiérrez, Portfolio Manager at Baltico Investments—an asset management firm licensed in the U.S. with clients across Latin America—Trump has staked all his political capital, and if the current market turmoil turns out to be temporary, resolved with quick country-by-country deals, “it’s possible we’ll be out of this maze in a few months.” But if no agreements arise and the strongest players opt for confrontation, “it will be a lose-lose situation for the global economy,” he noted.
“It’s very difficult to estimate the medium- and long-term outcomes of this economic reshuffle,” he reflected. Gutiérrez explained that the firm is looking at gold, U.S. Treasury bonds, healthcare stocks, utilities, and the domestic defensive sector with “great interest” as a way to diversify portfolios and hedge equity exposure.
However, he added that the drop in U.S. equities has been so “violent” that “soon the risk-return profile of stocks will start to support a return to risk assets.” On another note, he said that U.S. companies’ technological edge, sound management, and high productivity will help them quickly adapt to this new landscape.
For investors with a medium- to long-term horizon, Baltico suggests “understanding that history is full of corrections and bear markets, and Wall Street has always recovered from them.”
From UBS Global Wealth Management, Solita Marcelli, CIO Americas, shared on her LinkedIn profile a note signed by Global CIO Mark Haefele, answering some of the top questions raised by clients.
To the question “Should I sell equities now?”, UBS Global WM responded with a firm “no.” Their reasoning: since 1945, on the 12 occasions when the S&P 500 dropped 20%, the index delivered positive returns 67% of the time in the following year. To hedge portfolios, UBS also recommends U.S. Treasuries, gold, and hedge funds.
Meanwhile, asset manager MFS released its Market Insight on tariffs, stating that fixed income remains well positioned in the near term as an attractive asset class for reducing risk. The firm also said the case for long duration has strengthened significantly over the past week, reflecting downside risks to growth and rising expectations that global central banks may accelerate policy easing in response to a growth shock.
Within fixed income, MFS believes that lower-beta, longer-duration asset classes appear best positioned amid current market turbulence. These include securitized assets, municipal bonds, and higher-rated segments of fixed income.
For non-U.S. investors, currency exposure should be considered carefully given the negative outlook for the dollar, they added. As for equities, the global rotation away from the U.S. could continue until the U.S. is clearly seen as a buying opportunity. “That moment could come. It’s understandable that we currently favor a quality bias in asset selection, as well as exposure to lower-beta sectors,” they concluded.
Amid the turbulent behavior of most assets due to the impact of the Trump Administration’s tariff policy, the shadow of a potential recession in the U.S. is emerging amid the doubts of investors, international asset managers, and economists.
Ronald Temple, Chief Market Strategist at Lazard, acknowledges that he had long expected the U.S. administration to raise tariffs more aggressively than markets had anticipated. As a result, he now foresees more severe economic damage. “Initially, it’s reasonable to expect an uptick in purchases of certain goods, as consumers and businesses try to get ahead of the tariffs and take advantage of lower prices. However, once the tariffs come into effect and filter through the supply chain, I expect demand for discretionary items to fall significantly, as consumers will redirect income toward necessities that have risen in price,” he says.
Still, Temple does not yet consider a recession his base-case scenario for the U.S., but he notes that the likelihood has increased to the point where it could be a “coin toss” whether growth falls below zero in 2026. For now, he leans toward growth below 1%—but still positive—with unemployment rising to 5% in 2025 and core Consumer Price Index (CPI) inflation ending the year above 4%.
“There is broad negative consensus among economists about tariffs, as they are expected to hinder global trade and negatively impact GDP growth. The short-term risk of a U.S. recession has increased, pushing investors toward safer assets. The S&P 500 dropped 4.28% in the first quarter, while the Bloomberg U.S. Aggregate Bond Index rose 2.78%,” adds Mike Mullaney, Director of Market Research at Boston Partners – Robeco.
In contrast, Xavier Chapard, strategist at LBP AM and shareholder of LFDE, believes that “if tariffs remain broadly at current levels, we expect the U.S. economy to enter a recession by mid-year, which would significantly weigh on the rest of the world. In that case, a sustainable market rebound in the short term seems unlikely. Of course, markets would rebound sharply if tariffs are substantially reduced, although not fully, given the lingering uncertainty.”
The Inflation Question
According to Gilles Moëc, Chief Economist at AXA Investment Managers, tariffs will push consumer prices up by more than 2%, since roughly 10% of the U.S. consumption basket is directly or indirectly imported, according to the Boston Federal Reserve. “Part of the impact on imported goods will be absorbed by margin compression among exporters, wholesalers, or retailers. But even so, domestic producers may be tempted to raise their own prices, thanks to the protection from foreign competition that tariffs provide,” explains Moëc.
Accordingly, AXA has raised its preliminary U.S. inflation forecasts by a cumulative 1.2% over 2025 and 2026 compared to its base case, reaching 3.6% and 3.8%, respectively. However, this also feeds back into a slower U.S. economy. “By 2026, the U.S. economy will still be feeling the effects of a second-round shock, though it may benefit from fiscal stimulus—if the administration can get Congress’s approval. That, however, is uncertain, as early signs of dissent on the tariff issue are emerging among Senate Republicans. An even more fundamental question will be the timing and extent of support the Fed will be willing to provide,” he adds.
On that note, Mark Haefele, Chief Investment Officer at UBS Global Wealth Management, argues that the Fed faces constraints in its ability to manage slowing growth due to the inflationary impact of tariffs. Nevertheless, he expects that ultimately the Fed will prioritize growth and financial stability if the labor market or the functioning of financial markets weakens significantly.
“Although tariffs will initially drive up U.S. consumer prices, much weaker domestic demand acts as a deflationary force, which could more than offset the impact of tariffs in the medium term. Moreover, long-term market-implied inflation expectations have declined over the past two weeks, which could reinforce the Fed’s likely inclination to focus on supporting growth rather than fighting inflation. We expect the Fed to implement interest rate cuts of between 75 and 100 basis points during the remainder of 2025,” says Haefele.
Despite the growing risk of cybercrime, most consumers remain hesitant to purchase personal cyber insurance. A new report from the Insurance Information Institute (Triple-I) and HSB revealed that three-quarters of consumers have had their personal information lost or stolen, yet 56% of insurance agents say their clients don’t value cyber insurance.
While 84% of agents see personal cyber coverage as essential, only 43% believe their clients understand its importance. These findings are troubling, after the survey revealed that 28% of consumers have had their social media accounts hacked, 23% experienced data breaches and 14% have been targeted by online attacks.
The most common cyber threats reported by customers include:
Identity theft and fraud
Online fraud and scams
Computer malware and device attacks
Exrtotion
Online harassment
However even though 77% of agents have offered cyber policies in the past month, price and coverage concerns continue to deter consumers. Further findings revealed more than half of agents believe customers would be willing to pay up to $100 for coverage, but many remain skeptical of its necessity.
“The disconnect between the alarming rate of cybercrimes and the low adoption rate of personal cyber insurance is striking,” said CEO of Triple-I, Sean Kevelighan.
As cyber threats continue to intensify, bridging the awareness gap is crucial. Insurance professionals must emphasize the growing risks and benefits of cyber coverage before consumers find themselves victim to digital attacks.
