Pension Funds and RPPS Drive Demand for Franklin Templeton’s “Building Blocks”

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Photo courtesyDaniel Popovich, portfolio manager in the Investment Solutions division at Franklin Templeton

Foundations and public pension regimes have been moving in search of a sophisticated multi-asset allocation, according to Franklin Templeton. In Brazil, the “Building Blocks” product, developed by the firm’s Investment Solutions division, has seen demand, according to Daniel Popovich, portfolio manager in the Investment Solutions area. “Today, the debate is how to invest offshore, no longer whether I should invest. We discuss need, functionality, and benefit: should there be more or less equity exposure? If the interest is solely fixed income, we sometimes challenge that: wouldn’t it make sense to complement it with equities or alternatives to improve the risk/return ratio?” the executive said in an interview with Funds Society.

He explains that, in response to those questions, the solution presented by Franklin Templeton was the development of a sophisticated product that allows allocators easy access to a personalized, multi-asset approach. These are the building blocks. “The idea is to allow the investor to make an international allocation tailored to their risk and return needs, by combining three funds,” he says. In this case, the funds (or “blocks”) are FIFs (funds of funds), each accessing a category of investments: global equities, global fixed income, and international liquid alternatives (equivalent to liquid hedge funds). All of them carry currency exposure.

According to the portfolio manager, the customization occurs through the combination of the three blocks: the fund for each block is the same for everyone, and the investor chooses the weights according to their profile and objectives (e.g., 40/30/30). As Popovich summarizes: “The client can choose the percentage they want to allocate to each of the three funds, and the fund is the same for everyone.” For those who wish to consolidate everything into a single line, the asset manager can structure a “wrapper” FIC that allocates across the three building blocks. Typical liquidity is up to 10 calendar days for redemptions (which may be longer for strategies like credit).

“For example: in the traditional 60-40 portfolio (60% equities, 40% fixed income), it’s possible to allocate 60% to the equity building block and 40% to the fixed income block and immediately access a broad, well-diversified portfolio across regions, styles, asset classes, and managers — all efficiently packaged and aligned with major regulations,” explains the manager, also discussing the cost reduction for allocators.

“This structure reduces the aggregate cost because it combines active funds — where we access cheaper share classes thanks to volume and negotiation power — and ETFs, which are more efficient in terms of fees. The local management fee was designed so that, in aggregate, we are competitive with the market’s feeder funds,” he notes. “We’re bringing the kind of work that was previously done only in a tailored way for large pension funds, now to several smaller foundations and RPPS, with a very similar offering.”

Goal of 500 Million Reais in the Medium Term


Launched last year, the product currently has about 100 million reais ($18.8 million) in assets, with roughly 70% coming from EFPCs and 28% from RPPS (Regime Próprio de Previdência Social). “The goal is to increase that to 500 million reais ($94.3 million) within the next 6 to 9 months,” says Popovich.

To unlock larger volumes, the manager cites “a closing in Brazil’s interest rate curves” as the main trigger. Although the focus is institutional, a small portion of retail investors is also entering the funds, which are currently distributed on the Mirae platform.

CNO Financial Group Enters VPC, Partly Owned by Janus Henderson

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Víctor Matarranz HSBC International Wealth
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Janus Henderson Group and Victory Park Capital Advisors (VPC), a firm specializing in private credit and majority-owned by Janus Henderson, have announced that CNO Financial Group, a U.S. life and health insurer and financial services provider, will acquire a minority stake in VPC. In addition, CNO will provide a minimum of $600 million in capital commitments to new and existing VPC investment strategies.

Founded in 2007 and headquartered in Chicago, VPC has a track record of nearly two decades providing tailored private credit solutions to both established and emerging companies. The firm was acquired by Janus Henderson in 2024, expanding Janus Henderson’s institutional and private credit capabilities. VPC has specialized in asset-backed private lending since 2010, in consumer credit, small business financing, real estate, litigation finance, and physical assets. Its set of investment capabilities also includes sourcing and managing customized investments for insurance companies. Since its inception, VPC has invested over $11 billion across more than 235 investments.

Headquartered in Carmel, Indiana, CNO offers life and health insurance, annuities, financial services, and workplace benefit solutions through its family of brands, including Bankers Life, Colonial Penn, Optavise, and Washington National. CNO manages 3.2 million policies and $37.3 billion in total assets to help protect its clients’ health, income, and retirement needs.

Transaction Commentary


“We are very pleased to welcome CNO as a strategic partner in our investment in VPC. This collaboration reinforces our shared belief in the long-term potential of asset-backed private credit markets and further deepens Janus Henderson and VPC’s insurance presence. By partnering with like-minded institutions, we continue to enhance our ability to deliver client-led solutions aligned with our strategy to amplify our strengths,” said Ali Dibadj, CEO of Janus Henderson.

“We are excited to partner with CNO to further accelerate VPC’s growth and expand and scale our investment capabilities for the benefit of our clients. CNO’s investment demonstrates VPC’s strong track record of delivering private credit solutions across sectors, our differentiated expertise, and our highly developed sourcing channels, as well as the significant value we bring to our investors and portfolio companies,” said Richard Levy, CEO and founder of Victory Park Capital.

Gary C. Bhojwani, CEO of CNO Financial Group, added: “Our investment alongside Janus Henderson in VPC underscores CNO’s strategic focus on partnering with firms that complement our investment capabilities. This partnership enables us to benefit from VPC’s unique and differentiated expertise in asset-backed credit, both as an investor and a strategic partner, while supporting our ROE objectives. We look forward to working with their highly experienced and respected management teams.”

According to the asset manager, this transaction adds to Janus Henderson’s recent momentum in the insurance space with the previously announced multifaceted strategic partnership with Guardian. Upon completion of this transaction, Janus Henderson Group will remain the majority owner of VPC.

Are Active ETFs Really Active?

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Pixabay CC0 Public Domain2021: A Year of Strong Growth in Net Sales and Assets for the Fund Sector

Active ETFs have rapidly gained ground in portfolios, but their existence is still relatively new, and investors continue to raise questions about them. Nick King, Head of Exchange Traded Funds at Robeco, addresses one of the most common concerns: are active ETFs truly active?

“A common concern about active ETFs is whether their approach is genuinely active or if they are simply restructured versions of passive strategies. Thanks to the evolution in ETF design, the line between active and passive is becoming increasingly blurred. Semi-transparent ETFs, rules-based strategies, or highly customized indices can blur traditional definitions, actually offering more opportunities for investors,” says Nick King.

Do active ETFs inherently carry greater risk simply because they deviate from an index?

“While active ETFs diverge from index-based strategies, this divergence does not automatically translate into greater risk. In fact, they often offer greater diversification and better risk management compared to certain passive strategies, especially when benchmark indices are heavily concentrated in just a few mega-cap stocks,” the expert points out.

King offers an example: indices like the S&P 500 can expose investors disproportionately to the Magnificent Seven. Active ETFs employ comprehensive risk management frameworks and sophisticated analytical tools to mitigate these concentration risks.

Can active ETFs really outperform after fees?

“Active ETFs offer greater transparency regarding costs compared to traditional investment funds, which makes it easier for investors to clearly understand what they are paying for: namely, the intellectual property and strategic insights of the underlying investment approach—not the ETF wrapper itself. In other words, investors are primarily paying for the quality and effectiveness of the investment strategy built into the ETF. As a result, active ETFs provide investors with cost-effective access to sophisticated active management insights,” says the Head of Exchange Traded Funds at Robeco.

Are active ETFs less liquid than passive ones?

The expert notes that “ETFs benefit from two levels of liquidity. First, liquidity comes from the ETF’s underlying investments: stocks, bonds, or other assets it holds. Second, the ETFs themselves are tradable securities on secondary markets. Even when an ETF shows a low daily trading volume, authorized market participants (such as institutional trading desks) continually facilitate liquidity by creating and redeeming ETF shares according to investor demand, allowing them to trade instantly at quoted prices.”

As a result, the liquidity of an ETF is primarily determined by the liquidity of its underlying assets. This mechanism ensures that active ETFs maintain the same liquidity as their underlying investments, regardless of their trading volume on exchanges.

Citi Sells 25% of Banamex to Businessman Chico Pardo

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The sale of Banamex, Mexico’s oldest bank, by Citigroup continues to unfold in ways that surprise the market. The U.S. banking group has announced the unexpected sale of 25% of Banamex to local businessman Fernando Chico Pardo.

Chico Pardo will acquire the 25% stake through the purchase of 520 million common shares of Banamex, at a fixed price of 0.80 times their book value, as determined under Mexican accounting standards at the closing date.

At the time of signing, this implies a price at tangible book value (common equity capital, as established under the standards, minus impairment and identifiable intangible assets, including internally developed software) of 0.95 times, resulting in a total estimated consideration of 42 billion pesos (around 2.3 billion dollars).

The transaction is subject to customary closing conditions, including regulatory approvals in Mexico, and is expected to be completed in the second half of 2026.

“We are very committed and pleased to be part of Banamex, which is an iconic institution in Mexico with a very promising future. We have great confidence in the team and will continue working closely on the transformation that has already begun, streamlining its end-to-end digitalization with an exceptional focus on customer satisfaction at every point of contact, accelerating even further the growth that has already started,” said Fernando Chico Pardo in a statement.

He also emphasized: “We believe that Banamex’s historical mission is to support the country and its people, and that aligns with our firm conviction that investing in Mexico is the best option due to its potential. Our long-term commitment is to work together to achieve better positioning in all areas and thereby further boost sectors, businesses, and people across the country.”

For his part, Manuel Romo, CEO of Banamex, commented: “At Banamex we are very excited about the relationship beginning between Citi, Fernando Chico Pardo, and Banamex. Fernando combines strategic vision, operational excellence, and a forward-looking project centered on delivering excellence to our clients and based on our talent, as well as a deep commitment to Mexico and great confidence in its growth prospects.”

“Together with Fernando and Citi, we will remain highly focused on our strategy of growth, digital transformation, and expansion, always centered on delivering excellence to our clients,” said the head of the Mexican bank.

Citigroup, meanwhile, stated that the divestiture of Banamex remains a strategic priority and any related decision regarding the timing or structure of the proposed initial public offering will continue to be guided by various factors, including market conditions and obtaining regulatory approvals.

Indeed, the planned IPO process, scheduled for the end of this year, could see some changes with the incorporation of Fernando Chico Pardo into Banamex’s shareholding. Initial reactions from analysts in the sector suggest they expect further clarifications or related news soon.

Chico Pardo: Long Business Career in the Financial Sector

The new Banamex shareholder began his career on Wall Street before founding Acciones y Asesoría Bursátil, a brokerage firm where he was founding partner and CEO until 1992.

That year, the brokerage firm merged with Inbursa, and Fernando Chico Pardo assumed the role of CEO of Grupo Financiero Inbursa until 1997. In 1997, he founded Promecap, a leading private equity firm in Mexico managing assets worth 5 billion dollars, where he serves as chairman and CEO.

He is also a controlling shareholder in ASUR (airports), RLH Properties, and Tortuga (hospitality), and is the largest individual shareholder of Carrix (port operations). He also serves as chairman of the board at ASUR and sits on the board of directors of Carrix and various Mexican companies such as Grupo Carso, Grupo Industrial Saltillo, and GEPP.

Historic Endorsement From Trump and Bessent for Milei’s Argentina

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The government of Donald Trump continues to break the mold, carrying out unprecedented actions. The United States Secretary of the Treasury, Scott Bessent, reported this Wednesday, September 24, that he is negotiating a $20 billion swap line with the Central Bank of the Argentine Republic (BCRA). He also said that the U.S. administration is prepared to grant a “significant” stand-by loan through the Exchange Stabilization Fund and is willing to purchase Argentina’s dollar-denominated bonds, both on the primary and secondary markets. He clarified that this would be done “when conditions justify it.”

The official confirmation came one day after the meeting in New York between Donald Trump and the Argentine president, libertarian Javier Milei, in which Trump himself heaped praise on the Argentine leader. He later reiterated his stance on X, and Bessent commented on the post, adding: “We are willing to do whatever it takes to support Argentina and the Argentine people.”

Additionally, the Treasury Secretary stated that he has “contacted numerous U.S. companies that intend to make significant foreign direct investments in multiple sectors in Argentina if the election outcome is positive.” The official clarified that “immediately after the elections, we will begin working with the Argentine government on the repayment of its main debts.” He later emphasized to reporters that “the United States will not impose any new conditions or requirements” on Argentina.

At the same time, it was also announced the previous day that the World Bank and the Inter-American Development Bank (IDB) will accelerate their monetary assistance to the country, with a combined amount reaching $7.9 billion, with the goal of helping Javier Milei’s government navigate the crisis.

Key Elections

The explicit support and financial aid from the United States come two weeks after the defeat of Javier Milei’s party in the elections in the Province of Buenos Aires, which accounts for nearly 40% of the country’s electorate. No pollster came close to predicting the outcome, and the opposition had a 13-point lead over the ruling party. On Sunday, October 26, legislative elections will be held at the national level in Argentina. President Milei needs to expand his parliamentary representation in order to pass structural reforms, after having stabilized the macroeconomy and fiscal front.

The day after the defeat in Buenos Aires, Argentine assets collapsed, reviving the specter of the 2019 PASO (mandatory primary) elections, when the market plunged 50% following the large advantage the PJ had over former president Mauricio Macri.

On September 8, Argentine dollar bonds led losses among emerging markets, the Merval index dropped nearly 13%, and the Argentine peso lost 4% against the dollar. In the following days, the negative trend persisted: on Friday the 19th, the Central Bank intervened in the foreign exchange market with the largest daily dollar sale in six years ($678 million) to support the peso. Economy Minister Luis Caputo reiterated after the electoral defeat that the dollar would remain contained within the exchange rate band established on Monday, April 14, when Argentina unexpectedly lifted currency controls. Since that date, the South American country has implemented a new managed float regime, with a band ranging from 1,000 to 1,400 pesos per dollar, increasing monthly by 1%. The BCRA intervenes in the market if the bands are breached.

Much of the financial negativity stemmed from the government facing debt maturities of $12 billion in 2026, and the market closely monitoring the Central Bank’s reserves. After this week’s strong U.S. backing, optimism took hold in the market: dollar bonds rose as much as 12%, and the EMBI+ Argentina index — a benchmark for country risk prepared by JP Morgan — showed a drop of nearly 400 points, hitting an intraday low of 839 points and closing at around 900. Last Friday, this index reached a peak of 1,516 basis points, when the dollar touched the upper limit of the band, forcing the BCRA to intervene in the market.

Analysts’ Views

“The government seems to have managed to reverse a scenario where expectations had become unanchored,” said Eric Ritondale, chief economist at PUENTE, after the details of the U.S. economic support were revealed. In his view, the market’s reaction before and after the announcement indicates that the recent weeks’ volatility “was more about expectations than about fundamental elements of the economy.”

“After the elections, we expect the economic team to seek to rebuild reserves, advance a currency adjustment, and lower rates to reactivate the economy. If consolidated, that combination could lay the groundwork for a recovery,” he added.

Grupo IEB published a special report titled “Shift in Expectations”, in which it stated that “this trend change in expectations eases the exchange and monetary outlook, allowing for potential currency purchases by the Treasury, a possible rate cut via reserve requirement reductions and/or a decrease in the rate on remunerated liabilities.”

The report highlighted a central point, especially looking ahead to the upcoming elections. It is necessary that “the impact on the real economy be felt as quickly as possible. FX control and rate cuts will be a good starting point.” To curb inflation, the government implemented an unprecedented fiscal adjustment.

For its part, Delphos Investments reiterated on Wednesday its recommendation of caution to its investors until it is confirmed that the bottom for Argentine stocks has been reached. “The market reacts disproportionately to both positive and negative news, and while the weekend was dominated by favorable economic signals, the political catalysts — perhaps the most necessary — remain scarce and unpredictable.” The Research Department of Capital Markets Argentina wrote in a report that it expects high volatility in the Argentine market in the short term.

Reasons to Invest in Water Infrastructure Through ETFs

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The challenge of water and sanitation has been one of the United Nations Sustainable Development Goals since 2016. And within this niche, there are investment opportunities—also through ETFs. Water is a vital element, not only for sustaining life, but also for the development of new technologies and industries. In First Trust’s opinion, water infrastructure represents “an attractive investment opportunity,” driven by new catalysts and emerging trends such as water-intensive manufacturing, the shift to liquid cooling for AI data centers, and hydraulic fracturing in the energy sector.

The firm explains that the reindustrialization of the U.S. economy will lead to a drastic increase in water demand in the coming years, especially in sectors that are major water consumers, such as semiconductor manufacturing. As these and other projects expand, First Trust forecasts that “substantial investments” will be needed in water infrastructure.

In addition, advances in generative AI have captured global attention. To meet the growing performance demands of AI, global data center capacity is expected to grow by 52% between 2024 and 2027. In this context, keeping high-performance processors cool presents a significant challenge for traditional air-cooling systems, which has led the sector to adopt liquid cooling. Here, the firm cites JLL estimates, indicating that hybrid cooling—70% liquid and 30% air—“has become the standard thermal management strategy for new data centers.”

Hydraulic fracturing (“fracking”) also continues to be a key driver of demand for water infrastructure, according to First Trust. Fracking involves injecting high-pressure water, sand, and chemicals into underground rock formations to extract oil and gas. A single fractured well can consume between 1.5 and 16 million gallons of water.

Moreover, fracking produces “flowback water,” a toxic byproduct that requires treatment using technologies such as microfiltration and reverse osmosis. “From sourcing water to its treatment, transport, and control, fracking processes—which consume vast amounts of water—generate considerable demand for water resources,” the firm notes.

In light of these emerging trends, investing in U.S. water infrastructure becomes increasingly important. The 2025 report by the American Society of Civil Engineers (ASCE) on the state of U.S. infrastructure gave poor marks to water systems, including a low pass for drinking water, a solid pass for wastewater, and a failing grade for stormwater systems.

This reflects decades of underinvestment, as data from the Congressional Budget Office shows that spending on water infrastructure has grown only 0.3% over the past 20 years. The ASCE estimates that $1.65 trillion will be needed between 2024 and 2033 for drinking water, wastewater, and stormwater infrastructure. With only $655 billion funded, “the remaining $1 trillion funding gap is the largest of any infrastructure sector.”

Investors can benefit from these macro trends by including ETFs that focus on water-related industries in their portfolios. One such option is the First Trust Water ETF, listed on the NYSE. It tracks the ISE Clean Edge Water Index, composed of 36 stocks focused on the drinking water and wastewater sectors, including water distribution, infrastructure development, purification and filtration, as well as related services like consulting, construction, and metering.

Another option is BlackRock’s iShares Global Water UCITS ETF U.S. Dollar (Distributing), which tracks the S&P Global Water Index. This year, its valuation has increased by just over 15%, through investments in companies involved in the global water sector, across both developed and emerging markets. As a complement, Amundi offers the Amundi MSCI Water UCITS ETF Dist, which aims to replicate the performance of the MSCI ACWI IMI Water Filtered Index.

A further option is the Invesco Water Resources ETF, based on the Nasdaq OMX Global Water Index, which seeks to replicate the performance of companies listed on global exchanges that produce products designed to conserve and purify water for homes, businesses, and industries. This ETF is listed on the Nasdaq.

U.S. and European Equities: Two Titans in the Portfolio

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After ten years of U.S. equity dominance, asset managers emphasize that this year’s resurgence in European equities remains intact. In their view, the factors that make it attractive are still valid: more reasonable valuations, a favorable monetary policy from the European Central Bank (ECB), and unprecedented fiscal stimulus measures.

According to Aneeka Gupta, Director of Macroeconomic Research at WisdomTree, we’ve seen a paradoxical first half of the year. In her analysis, 2025 was the year in which U.S. stock markets underperformed their international rivals by the widest margin since 1993. “Suddenly, it became fashionable to talk about how the era of American exceptionalism was coming to an end, as uncertainty rose around Trump’s tariff policies, along with the growing fiscal deficit, a weakening U.S. dollar, and the unveiling of DeepSeek,” she notes.

As a result, Europe emerged as the region making a major comeback in 2025. “Eight of the most profitable stock markets in the world were European, thanks to lower energy costs and the loosening of fiscal rules in Germany. The U.S. had outperformed Europe over the past five years by nearly 23.5% (measured in dollars), due to stronger earnings growth,” Gupta points out.

With this context in mind, the WisdomTree expert believes that equity risk premiums now show a wide gap: “Approximately 2% in the United States, 6% in Europe, and 7% in Japan and the broader emerging markets universe. Over the next twelve months, asset allocation decisions will depend on these valuation cushions, policy divergences, and the evolution of trade alliances.”

Don’t Overlook Europe


“In our view, attractive valuations make a strong case for European equities: they are currently trading at a substantial discount compared to the U.S. market. The twelve-month forward price-to-earnings ratio of the MSCI Europe index is currently at 14.6, slightly above its average since 1980, which is 14. By contrast, in the United States, valuations are approaching historic highs, with an expected earnings ratio of 22 times. In addition, the average dividend yield in Europe is approaching 3.3%, which far exceeds the U.S. average of around 1.3%,” argues BNP Paribas AM.

Despite Europe’s greater prominence this year, Hywel Franklin, Head of European Equities at Mirabaud Asset Management, believes it remains “a forgotten opportunity” on a structural level. According to his analysis, for much of the past decade, investors have overlooked this market, distracted by the extraordinary momentum of high-growth U.S. stocks. “Today, the difference between the two is quite striking. A single large-cap U.S. company now carries more weight in global indices than the entire stock market of any individual European country. That imbalance in attention is precisely what makes Europe so interesting,” Franklin comments.

Even after its strong performance so far this year, the Mirabaud AM executive considers that valuations remain attractive, both in absolute terms and relative to the U.S., reflecting the extreme levels of skepticism that have already been priced into European equities. “And here’s the key point: in the small and mid-cap (SMID) market, one in three companies is still trading more than 60% below its historical high. That’s not a market that’s ‘gone too far’; it’s a market with enormous recovery potential,” he argues.

Not Ignoring the U.S.


That said, the S&P 500 index continues to reach new all-time highs almost daily, despite the macroeconomic slowdown. “The U.S. equity market is experiencing a strong upswing, driven primarily by its tech giants and supported by solid fundamentals, an upcoming easing cycle, and a resilient global economic outlook,” notes Yves Bonzon, CIO of Julius Baer.

In his view, the fundamentals of U.S. companies also showed a strong earnings season and, on the other hand, the AI boom is gaining momentum, with both startups and established giants making bold bets on the growth and reach of this revolutionary technology.

“In addition to earnings optimism, U.S. companies continue to be models in capital return to shareholders. Share buyback authorizations in the United States reached one trillion dollars by the end of August 2025, compared to less than 900 billion dollars at the same time last year,” Bonzon comments.

Equities: Unstoppable?


What is clear for asset managers is that equities continued to climb the “wall of worry” during what is usually a quiet summer period in the Northern Hemisphere, with most regional indices hitting all-time highs in local currencies. As explained by Mario Montagnani, Senior Investment Strategist at Vontobel, the bullish sentiment is based on a strong second-quarter earnings season, optimistic forecasts, relief from tariff uncertainty, rate cuts, anticipated leadership changes at the Fed, and expected 2026 stimulus measures that could boost earnings per share (EPS) as in 2018.

“The earnings season delivered solid surprises with minimal tariff effects, marking a turning point in momentum and suggesting that previous revisions may have been too pessimistic. Looking ahead, earnings surprises are likely to play a key role in stock performance, given high valuations,” adds Montagnani.

However, the Vontobel strategist acknowledges that inflation remains the main driver of equity market developments. “Billions in tariffs now impact the U.S. economy each month, but who really bears the cost? The pass-through to consumer prices is more nuanced than many assume. Tariffs do not automatically get passed on to consumers. Their impact depends on factors such as a company’s competitive position, demand elasticity, distribution model, time lags, and supply chain structure,” he notes.

In his view, this is evident in “the U.S. Producer Price Index (PPI28) data, where importers often absorb the initial impact through margin pressure, and the historical correlation between the PPI and the U.S. Consumer Price Index (CPI29) has been weak, suggesting that producer prices are not a reliable predictor of consumer inflation.”

Miami Tops Global Real Estate Bubble Risk Ranking

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Miami presents the highest real estate bubble risk among more than twenty major cities worldwide analyzed in the 2025 edition of the UBS Global Real Estate Bubble Index. Behind it are Tokyo and Zurich, also at high risk.

Over the past 15 years, Miami recorded the highest inflation-adjusted home price appreciation among all the cities in the study. However, the boom has cooled over the past four quarters, with a notable slowdown in home price growth, the report notes.

Over the past five years, Miami—along with Dubai—continued to decouple from fundamentals and led with an average real price growth of approximately 50%. They were followed by Tokyo and Zurich, with increases of 35% and nearly 25%, respectively.

Despite housing affordability for buyers being near historic lows, owner-occupied home prices have continued to diverge from rents. The current price-to-rent ratio has even surpassed the extremes of the 2006 housing bubble, indicating a high bubble risk, according to the UBS index.

Recently, housing inventory has recovered to levels close to those seen before the pandemic, as slightly lower mortgage rates and significant embedded equity levels have led some homeowners to put their properties up for sale.

Regulatory changes have forced many long-time owners of older condominiums to address decades of deferred maintenance, resulting in considerable costs. Along with rising insurance premiums due to increased environmental risks, this has further contributed to selling pressure, according to the report, which also points out that, historically, worsening affordability and growing gaps between prices and rents have been precursors to real estate crises.

While the Swiss bank expects price growth to turn negative in the coming quarters, a sharp correction “does not currently seem likely.” Miami’s coastal appeal and favorable tax environment continue to attract new residents from the western and northeastern United States, with property prices still well below those in New York and Los Angeles. International demand, especially from Latin America, remains strong, particularly in the luxury beachfront condominium segment, the report notes.

On average, global real estate markets continued to cool. Matthias Holzhey, Senior Real Estate Economist in the Chief Investment Office of UBS Global Wealth Management and lead author of the study, explained that “widespread exuberance has faded, as the average bubble risk in major cities has declined for the third consecutive year.”

UBS warns that the lack of housing affordability increases the risk of regulation and notes that “overall, financially accessible living space for a skilled worker is, on average, 30% smaller than in 2021.” Purchasing a 60-square-meter apartment, the report says, is beyond the budget of the average skilled worker in most global cities.

Ontier Appoints Michael Mena as Managing Partner of Its Miami Office

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Ontier appoints Michael Mena Miami
Photo courtesyMichael Mena, New Managing Partner, Together with Ontier’s International Director, Javier Muñoz

The international business law firm Ontier announced the appointment of Michael O. Mena as Managing Partner of its Miami office, from where he will lead the firm’s U.S. strategy and strengthen its ability to support clients in cross-border transactions and litigation between Europe, Latin America, and the United States, according to a statement.

The appointment supports Ontier’s commitment to its Miami office, which plays a key role in the firm’s growth plan for the Americas. The firm aims to accompany clients in their expansion across one of the most relevant global business areas, marked by strong investment activity and a growing volume of international litigation, the statement added.

With a solid background as a trial lawyer, Mena brings extensive experience in handling complex commercial litigation before U.S. federal and state courts, in areas including high-impact business disputes, corporate governance issues, insurance litigation, and cases of major corporate significance.

“It is an honor to join Ontier and lead the growth of our Miami office. With Ontier’s strong presence in Europe and Latin America, we are in a privileged position to help clients manage international opportunities and disputes. Miami is a unique and dynamic market that I know well, and I am excited to build a strong team and reinforce our strategic role in the region,” said Mena.

For his part, Bernardo Gutiérrez de la Roza, CEO of Ontier, stated: “Michael embodies the entrepreneurial spirit and client focus that define Ontier. His track record in complex litigation and his leadership in the Miami community make him the ideal person to lead our U.S. office and strengthen the ties between our clients in Europe and Latin America.”

Before joining Ontier, Mena was a partner at several firms, including Akerman LLP, where his litigation work was recognized by leading international legal directories.

In addition to his professional career, Mena has a distinguished record of public and community service, having served as Vice Mayor and Commissioner of the City of Coral Gables, as well as a member of the Orange Bowl Committee, with strong ties to the business and social community of South Florida. He earned his bachelor’s degree from the University of Miami and his Juris Doctor from Columbia Law School.

Ontier has strengthened its global presence over the past year with the launch of a Middle East Desk to pursue opportunities in the region, the integration of two specialized teams in Italy in the Litigation and Corporate M&A areas led by Simone Grassi and Stefano Zappalà, and the incorporation of the firm Matthei in Chile, doubling the size of its office in that country.

Just a few weeks ago, the firm also announced the appointment of Javier Muñoz Martínez as its new International Director.

They Save More, Invest Less, and Seek Guidance on Social Media

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Women are about to inherit a considerable share of the $124 trillion that makes up the so-called “great wealth transfer.” However, according to Capital Group in its latest report, many of them show reluctance to invest their inheritance. On average, women invest 26.4% of their inheritance compared to 36.2% of men.

The report reveals that four out of ten women wish they had allocated more to investment, versus three out of ten men. In addition, women save more—14.3% compared to 11.1% for men—and also spend a larger portion of what they receive, 15.4% compared to 11.3%. Another notable finding is the difference in the type of financial advice they seek. According to the report, 27% of women look for guidance on social media or from finfluencers, double the rate of men at 15%. Likewise, 68% of women trust that artificial intelligence and other technologies will improve financial advice through greater personalization and easier access, compared to 59% of men.

“In the next two decades, $124 trillion will change hands, and women will inherit a significant share of this wealth. Now is the time for them to take control of their financial future. Our study shows that although many save more and invest less, some later regret not having invested a larger portion of their inheritance. The good news is that it’s never too late to start,” said Alexandra Haggard, Head of Asset Class Services for Europe and Asia-Pacific at Capital Group.

Other Findings

The results also show that although women will play a central role in the redistribution of global wealth, barriers still persist in their relationship with investing. For Capital Group, this scenario presents a double perspective: a challenge for the financial sector and an opportunity for more women to take an active role in managing their wealth.

In Haggard’s view, many women turn to social media and financial influencers for financial guidance, but as their financial needs grow more complex, the role of professional advice becomes more important. “As the process of the ‘great wealth transfer’ moves forward, the wealth management sector must adapt to women’s growing influence over wealth. At Capital Group, we have partnered with wealth managers to provide thought leadership in investing, events, and training to help their female clients invest with confidence and build long-term wealth,” she explained.

This research is based on a survey of 600 high-net-worth individuals in Europe, Asia-Pacific, and the United States.