The U.S. ETF sector has expanded significantly over recent decades, both in product variety and total volume. According to JPMorgan data, as of late August, there were more than 5,100 ETFs listed in the United States, representing approximately $16.4 trillion in assets under management. "New launches remain robust as providers address new investment themes, offer more granular exposures, expand investment universe coverage, diversify the range of structured outcomes, and continue transferring active management strategies into the ETF wrapper," the firm notes.
Against a backdrop of global growth in exchange-traded funds, JPMorgan highlights four prominent trends currently shaping the global ETF industry:
1. Active ETFs Continue Rapid Expansion
Active products have accounted for more than 60% of new ETF launches in each of the last six years. In the United States, active ETFs now outnumber passive ones, with year-over-year asset growth of around 80%, reaching $1.8 trillion. They are also a key driver for issuers and investors in international markets such as EMEA, where assets under management have roughly doubled year-over-year to $122 billion.
2. Option-Based ETFs Are Booming
Option-based ETFs utilize options contracts (calls and puts) to achieve specific objectives, most commonly income generation (yield) and downside risk mitigation (hedging). Assets in U.S. option-based ETF strategies grew approximately 50% year-over-year to roughly $280 billion (as of mid-May 2026). Covered call funds, which sell call options to generate income, remain the largest segment. However, the fastest growth is occurring in structured outcome ETFs, which aim to deliver payoff profiles similar to structured products.
3. Rise of Leveraged ETFs
Leveraged ETFs, which use debt and financial derivatives to amplify the daily returns of an underlying benchmark index, have also gained popularity. Over the past decade, assets under management (AUM) in U.S.-listed leveraged ETFs have increased nearly sixfold, reaching around $175 billion in equity strategies and over $190 billion across all asset classes (as of mid-May 2026). Growth has been increasingly concentrated in technology-linked exposures, including the Nasdaq, and single-stock leveraged products.
4. Resurgence of Thematic ETFs
Thematic ETFs experienced a major surge early in the pandemic as investor demand grew for exposures tied to innovation and digitalization. Many of these themes subsequently underperformed significantly in late 2021 and throughout 2022 due to market saturation and valuation compression, resulting in a prolonged demand slump. However, they have rebounded over the past year, with themes linked to artificial intelligence development and physical infrastructure buildout attracting substantial capital inflows.
Amerant Investments is bolstering its commitment to the Latin American wealth management market with a strategy that extends beyond expanding its product offerings: it is recruiting executives with extensive experience from top U.S. wealth management platforms into its ranks.
The firm, a subsidiary of Amerant Bank, announced the hiring of Jorge Morasso as Vice President and Wealth Management Advisor, following a career of more than 25 years serving high-net-worth international clients, particularly from Latin America. Morasso worked as a financial advisor at Citi and previously spent over a decade at Morgan Stanley.
Based in Coral Gables, Florida, his new responsibilities will focus on serving individuals, families, entrepreneurs, and business owners across Latin America, with specialized expertise in clients connected to Venezuela.
The move carries added significance when viewed alongside another recent key hire. In July, Amerant Investments appointed Ricardo Sucre, who also brings experience from Morgan Stanley, as Head of Business Development for International Wealth Management. Sucre joined with over two decades of experience serving international clients and an explicit mandate to expand the business and attract experienced financial advisors.
Rather than two isolated moves, these hires point toward a platform-building strategy: Amerant seeks to combine the investment capabilities of its broker-dealer with the banking and credit infrastructure of Amerant Bank to compete for a share of Latin American wealth managed from the United States.
The company itself has defined its platform as an integrated model to serve Latin American clients, while its corporate strategy includes selective investments in business development and wealth management talent.
A Florida Bank Focused on Latin American Wealth
The strategic push also has a clear quantitative dimension. Amerant Bancorp closed 2025 with approximately $3.3 billion in assets under management and custody. By the second quarter of 2026, that figure reached $3.37 billion, according to its financial results.
The bank also reported $10.3 billion in total assets and $8.4 billion in deposits at the end of June 2026, demonstrating that the wealth management platform is part of a larger-scale banking operation.
There is another particularly telling detail for the Latin American market: in the first quarter of 2026, Amerant reported approximately $2.006 billion in deposits from clients domiciled in Venezuela, compared to around $705 million from other foreign clients.
This figure explains why Venezuela explicitly features in the firm’s international strategy, even though Amerant’s stated target is regional, encompassing clients throughout Latin America.
Amerant’s move occurs in a market where U.S. financial institutions compete not only to capture assets, but also to recruit advisors who maintain long-standing relationships with Latin American families.
This logic is especially critical in the offshore business, where the advisor serves as the entry point for wealth requiring simultaneous investment, credit, banking, estate planning, and structures across multiple jurisdictions.
In this context, Amerant’s narrative places the integration of banking and investments at the center of its value proposition. The firm offers personalized wealth management and a platform that combines investments, banking, and financial planning, with access to products such as funds, ETFs, fixed income, structured products, and alternatives.
Morasso’s arrival thus reinforces a strategy aimed at more than organic growth; at its core, it seeks to integrate relationships, expertise, and deep understanding of the Latin American client to accelerate the expansion of its international wealth management business.
For Amerant, the challenge will be translating this platform and new talent from major global firms into greater Latin American wealth capture. For established competitors in Miami, the signal is distinct yet equally clear: the international business continues to attract capital—and with it, a renewed battle for the advisors capable of managing it.
State Street Investment Management has announced the launch of the State Street SPDR UC Investments 90/10 Endowment Strategy Index ETF, an asset allocation exchange-traded fund developed in collaboration with UC Investments, the investment division of the University of California and the provider of the fund’s index. The launch is backed by a $2.5 billion seed investment from UC Investments. The ETF has been trading on NYSE Arca since September 1.
The fund aims to track the UC Investments 90/10 Endowment Strategy Index, which combines broad exposure to U.S. equities with exposure to short-duration investment-grade corporate bonds. The index allocates 90% of its weight to the S&P 500 Index and the remaining 10% to the S&P U.S. Investment Grade Corporate Bond 1-3 Year Index, which includes U.S. dollar-denominated, investment-grade corporate bonds with maturities between one and three years.
UC Investments and S&P Dow Jones Indices custom-developed this index, inspired by the institution’s $7.9 billion “Blue and Gold Endowment Pool”—a long-term strategy in public markets that, since its inception seven years ago, has been the top-performing product within UC Investments’ portfolio. The strategy reflects UC Investments’ conviction that low-cost, liquid, and diversified public market exposure can generate attractive long-term returns while avoiding the complexity and illiquidity of traditional endowment models.
By embedding this philosophy into an ETF, UCBG offers long-term investors access to UC Investments’ approach, which was previously only available within the institution’s portfolio and directly to employees across its ten campuses and six medical centers through its retirement savings program—the second-largest public defined contribution program in the nation, behind only the federal government’s.
“At UC Investments, we are focused on building long-term, cost-effective portfolios to support our hundreds of thousands of students, faculty, staff, and alumni for generations to come,” said Jagdeep Singh Bachher, Chief Investment Officer of the University of California. “The launch of this ETF brings our institutional investment philosophy within reach of a broader investor community through the transparency, efficiency, and accessibility of the ETF structure, while staying true to the principles that have guided our investment approach,” he added.
The ETF builds on State Street’s longstanding relationship with UC Investments. State Street Investment Management currently provides asset management services to UC Investments’ portfolio of over $200 billion, spanning pensions, endowments, and other assets, while State Street Bank and Trust Company provides custody and other investment services.
“Our relationship with UC Investments spans more than two decades and has always been driven by innovation. With this launch, we are bringing an endowment-inspired strategy to a much broader range of investors with the low cost and transparency that make ETFs so powerful,” said Ronald O’Hanley, Chairman and CEO of State Street Corporation.
“This collaboration demonstrates what can be achieved when a leading asset owner and asset manager work together to turn a successful institutional investment strategy into an accessible solution for investors,” said Yie-Hsin Hung, President and CEO of State Street Investment Management. “It reflects our commitment to helping clients expand their investment priorities into new markets and investor communities.”
Photo courtesyRepresentatives of the ReachingU Foundation, from Left to Right: Gustavo Civetta, Director; Paula Mosera, Executive Director; Beatriz Ponce de León, Board Chair; Pía Sojo, Director; Nick Stanham, Director; Pablo Haberer, Director; and Ricardo Salmon, Director
Artificial intelligence and education may seem like distant worlds, but they were precisely the two ends of a single conversation during ReachingU’s 25th anniversary celebration dinner in Miami.
The Uruguayan foundation, dedicated to expanding educational opportunities for children and adolescents in the country, brought together members of its community and allies on Wednesday, September 16, at the EAST Miami Hotel for an evening that combined philanthropy, technology, and art.
One of the central themes of the night was the transformation being driven by artificial intelligence. Nicolás Loeff, co-founder and CTO of BrainLogic AI, shared a perspective on the global evolution of this technology and the changes it is generating across various fields.
Another perspective came directly from Uruguayan classrooms. Teacher Pablo Mollo brought a much more concrete reality to the table: the daily challenges of education and the impact of programs aimed at expanding opportunities for students.
The contrast between both perspectives ultimately gave the gathering a significance that extended beyond the anniversary itself. As technology redefines the tools and capabilities available to new generations, educational systems face the challenge of ensuring those opportunities effectively reach children and youth.
The program also featured an artistic component. During the evening, a live auction was held for works donated by artists connected to the foundation. Among the auctioned pieces was “Fuente de Luz,” a sculpture created by Pablo Atchugarry specifically to commemorate ReachingU’s 25 years, alongside a work by Guillermo García Cruz and two silkscreen prints by Daniel Supervielle.
The event featured UBS as the main sponsor and partner of the foundation, while EAST Miami Hotel hosted the evening. Vinos Santa Rosa and Chocolates Haas also participated as event supporters.
Beyond the celebration, fundraising remained the core focus. The resources raised during the night will go toward the educational programs ReachingU develops in Uruguay, which aim to expand opportunities for thousands of children and adolescents.
The anniversary arrives at a time when education faces a dual transformation: on one hand, the accelerated adoption of artificial intelligence tools; on the other, the persistence of gaps that determine who can truly access better educational opportunities.
For ReachingU, the commitment remains firmly at that intersection: turning education into a pathway to expand possibilities for future generations while mobilizing private resources toward that goal from Miami and other international communities.
Sandro Pierri, Chief Executive Officer of BNP Paribas Asset Management.
BNP Paribas Asset Management has implemented its new organization, an important step in integrating its expanded businesses and executing its 2030 strategic plan. As explained, this new organization is designed to take advantage of the scale and complementary capabilities of its combined platform, driving growth among institutional, insurance, individual, and wealth management clients.
Its objective is to “accelerate the execution of the 2030 strategic plan while enabling BNP Paribas Asset Management (BNP Paribas AM) to fully take advantage of the capabilities of the broader BNP Paribas Group ecosystem.” Consequently, the Alternative Assets business line, led by Isabelle Scemama, Deputy CEO of BNP Paribas AM and Head of BNP Paribas AM Alts, with the support of Deborah Shire, Deputy Head of BNP Paribas AM Alts, maintains its integrated model, which combines investment expertise with dedicated support for each client.
With more than thirty years of experience across various alternative asset classes, including real estate, infrastructure, alternative credit, and private equity, the asset manager considers the business well-positioned to accelerate the ambitions set out in the asset manager’s 2030 strategic plan. Among these are expanding its offer, increasing third-party capital raising, and facilitating greater access to alternative investment solutions.
The Investments business line, led by Rob Gambi, Global Chief Investment Officer, brings together BNP Paribas Asset Management’s capabilities in fixed income, fundamental active equities, multi-asset, and systematic and quantitative investments. As explained, the platform is structured around specialized teams while leveraging greater scale, a broader range of capabilities, and increased research resources. Its objective is to foster the development of solutions that respond to evolving client needs and contribute to achieving the goals set out in the manager’s 2030 strategic plan: expanding the scale of active management and accelerating the development of the company’s ETF and index fund business.
For its part, the Global Client Group Liquid Strategies, led by Steven Billiet, Head of Liquid Strategies at Global Client Group, aims to broaden and deepen relationships with clients investing in BNP Paribas AM’s liquid investment strategy platform. “Leveraging the organization’s greater commercial reach and capabilities, it seeks to strengthen commercial coordination across markets and product lines and accelerate growth in institutional, insurance, retail, and wealth management client segments,” they state.
The business lines are supported by a series of cross-functional support areas, with a stronger focus on Strategic Alliances and Transformation, as well as an evolution of the sustainability model: the Global COO Office, led by Philippe Boulenguiez, Global Chief Operating Officer; the General Secretariat, led by Jean Christophe Ménioux, General Secretary; Human Resources, led by Marion Azuelos, Global Head of Human Resources; Strategic Alliances Office, led by Justyna Dajka, Global Head of Strategic Alliances; and a dedicated Transformation Office, led by Patrick Simion, Head of Transformation, and Communication and Brand, led by Marie Bogataj, Head of Communication and Brand. As noted, the Sustainability organization will evolve and include a cross-functional Sustainability Center, led by Jane Ambachtsheer, Global Head of Sustainability. As part of this reorganization process, BNP Paribas Asset Management has to date formalized the appointment of 200 managers, and new appointments are expected over the coming months.
Executive Committee
Finally, and to “further enhance decision-making efficiency,” the manager is also creating an Executive Committee, responsible for driving strategic direction and priorities. Chaired by Sandro Pierri, it will consist of Isabelle Scemama, Rob Gambi, Steven Billiet, Jean Christophe Ménioux, Marion Azuelos, Philippe Boulenguiez, and Deborah Shire.
“Our strategic plan sets a clear ambition for BNP Paribas Asset Management and defines the areas in which we want to grow. Our new organizational model will allow us to go even further in bringing value to our clients and accelerating the execution of our strategic priorities. It provides us with the scale and capabilities needed to deepen our relationships, leverage the full strength of the BNP Paribas Group, and generate long-term value for our clients,” said Sandro Pierri, CEO of BNP Paribas Asset Management.
The advance August inflation figure delivered a negative surprise. Headline CPI came in as expected (+0.4% month-over-month) and remained flat year-over-year at +3.4%. However, core inflation breached the +0.2% mark to reach +0.3%, despite a modest slowdown in year-over-year growth (dropping from 2.5% to 2.4%).
This uptick—driven primarily by mobile phone and communication services, airfares, and lodging—could leak into the August core PCE readings due on the 30th, likely triggering a year-over-year increase of ~+0.3% (up from 0.2% in July).
The postponement of the expected summit between Iran and the Gulf nations—now pushed to Sunday to formulate an alternative transit route through the Strait of Hormuz—alongside new comments from Trump (“Iran is desperate to make a deal quickly”) convey urgency ahead of the upcoming November midterms and shift leverage to Tehran. Consequently, Brent crude rose to $109 per barrel, raising the odds of a prolonged monetary tightening cycle (markets are now pricing in nearly four Fed rate hikes between now and the summer of 2027).
Although the overall trajectory of inflation continues to move closer to the 2% target (as reflected by the average of trimmed-mean, supercore, and sticky inflation metrics), progress has not been as fast as the Federal Reserve’s FOMC would prefer. Adding to these concerns are the price and growth impacts of massive AI investments and strong nominal economic activity, with Atlanta Fed real final sales (which measure total output value adjusted for inflation excluding inventory shifts) holding at three-year highs.
Given this setup, the probability of a 25-basis-point hike (bringing rates to 4%) jumped toward ~90% over the weekend. This presented Kevin Warsh with an opportunity to build market credibility through an insurance hike—one unlikely to derail an economy expanding at nominal growth rates above 7%. Standing pat, by contrast, would have seemed contradictory following his hawkish tone at Jackson Hole.
Warsh entered the decision balancing two forces: accommodating a vocal president or delivering what the bond market was demanding to secure its confidence. While Trump holds immense executive authority, the bond market exerts its own formidable influence on policy.
Warsh opted to raise rates by 25 basis points in a unanimous decision—the first increase since 2023—aiming to guide inflation back toward the 2% target over a reasonable horizon. Statements and the updated dot plot (one additional hike in 2026 priced in for December, a pause through 2027, and cuts starting in 2028) frame this as a mini-cycle of preemptive hikes. The Fed’s upward revision to the terminal rate is supported both by AI-driven productivity gains—a view Warsh strongly champions—and by the continuation of pro-cyclical, expansionary fiscal policies dating back to Trump’s first administration.
Fixed Income Positioning and Key Drivers
Within fixed income, if current inflation forecasts hold, positive surprises are more likely moving forward. With the market having largely priced in the Fed’s stance, a neutral duration posture appears prudent. Close attention should be paid to labor market indicators that could shift the Fed’s path if momentum accelerates, including wage gains among job switchers, shifts in marginally attached workers, hiring demand within AI infrastructure, and jobless claims trends.
The Bank of Japan’s dovish 25-basis-point increase—taking its policy rate to a 30-year high—is another focal point. Higher Japanese yields and increased yen volatility could impact the carry trade, which historically provided funding flows into U.S. fixed income markets.
Energy price relief could offer another upside surprise, following news that the Saudi East-West pipeline can resume operation at half capacity immediately, with full repairs slated within six weeks. Meanwhile, central bank activity tracking indicates a clear inflection point away from global monetary easing, suggesting softer industrial momentum entering 2027.
Equities: Impact of the Hike Mini-Cycle on AI
For equity markets, elevated borrowing costs tied to this rate-hike mini-cycle may disproportionately pressure AI companies carrying leveraged balance sheets. Early-stage startups lacking credit ratings—such as specialized neocloud providers—may encounter higher hurdles securing funding for data center builds.
Compounding this are growing public objections to data center construction (Morgan Stanley research indicates 75% of Americans and 83% of Democrats oppose hosting such facilities locally; as a result, $156 billion in projects were delayed or canceled in 2025, followed by another $130 billion in Q1 2026). These constraints could limit total compute supply, benefiting early-moving hyperscalers.
Hyperscalers have secured significant long-term, fixed-rate financing at borrowing costs well below current 10-year Treasury yields, leveraging their investment-grade credit profiles.
Slower deployment of AI capital expenditures—which contributed ~0.6% and ~0.4% to GDP in Q1 and Q2, respectively—could also exert downward pressure on overall inflation readings.
From a historical perspective, analysis of the past six U.S. rate-tightening cycles indicates that while equities often experience short-term volatility following an initial rate hike, broad indexes generally post positive total returns 12 months later. The primary exception remains 2022, when the Fed fell significantly behind the curve.
Knighthead International seeks to deepen its presence in Latin America and the non-resident client (NRC) market with the hiring of Shane Cunningham, an executive with over two decades of experience in asset management and international distribution. Cunningham joins the firm to lead initiatives related to relationship management and business development in both markets, at a time when Knighthead is expanding its partnerships with distribution partners across the region.
His arrival brings to the company a track record particularly tied to the offshore business. Prior to joining Knighthead, Cunningham served as Managing Director and Head of US Offshore and Latin America at Axxes Capital. He previously spent a significant portion of his career at Franklin Templeton, where he remained for around 20 years and held, among other roles, the position of National Sales Manager for Offshore. From that position, he was involved for 15 years in international distribution operations, with responsibility for the non-resident client market, Canada, and the Caribbean Islands. He was also President and CEO of Templeton Franklin Investment Services (TFIS), Franklin Templeton’s broker-dealer entity.
For Knighthead, that precise knowledge of distribution channels and the international wealth management community represents one of the key assets brought by his appointment. “Shane brings to our team a combination of international distribution experience and deep market knowledge,” stated Tyler Bent, Co-Head and Chief Operating Officer at Knighthead. The executive highlighted that the addition will strengthen the firm’s collaboration with distribution partners in both Latin America and the non-resident client segment, while adding specialized expertise and insights to its international platform.
Latin America, a Key Component of the Offshore Strategy
The move also signals where Knighthead identifies part of its growth opportunities. Ed Massaro, CEO and CIO of Knighthead Insurance Group, noted that Latin America and the NRC market represent priority areas for the company. The strategy will rely not only on the firm’s offering, but also on the relationships Cunningham has built throughout his career in the international wealth management industry.
Massaro highlighted the combination of that contact network, Knighthead’s leadership team, and the organization’s operational capabilities as a foundation to expand engagement with business partners across different markets. This focus is particularly relevant for a segment where financial institutions and wealth managers seek to serve Latin American clients with structures and products designed for investors who maintain a portion of their wealth outside their countries of residence. In this context, offshore annuities represent one of the areas where Knighthead has concentrated its activity by offering products aimed at non-U.S. residents.
Cunningham will work in coordination with the firm’s senior leadership and international distribution teams to develop these initiatives and support global commercial expansion. Rather than a mere personnel change, the appointment represents a targeted move to strengthen distribution channels and relationships with intermediaries in two markets Knighthead considers strategic: Latin America and non-resident clients.
The legendary Warren Buffett recently turned 96 and, in accordance with the succession roadmap designed many years prior, has fully relinquished the reins of Berkshire Hathaway by assuming the duties of Chairman Emeritus. However, he did not miss the opportunity to leave one more lesson as part of his intangible—yet equally valuable—legacy.
Without a trace of defeat, Warren Buffett acknowledged the only opponent no investor can defeat. “Father Time always wins,” he wrote to Berkshire Hathaway shareholders as he explained his decision to become Chairman Emeritus. But in his case, he added something more: “he has been generous to me.”
The phrase summarizes far more than just a change in corporate title. In the letter accompanying Berkshire Hathaway’s announcement, Buffett does not write as someone abandoning a company after six decades, but as someone observing the passage from one generation to another, evaluating which part of his work should survive when he is no longer at the helm.
Since 1965, Buffett has been the central figure of Berkshire. Now he leaves the chairmanship of the Board, and Howard G. Buffett, his son, will assume that responsibility, while Greg Abel will continue at the operational helm as Chief Executive Officer. Warren Buffett will remain as a member of the Board.
The transition, therefore, does not represent a rupture. In fact, Buffett himself presents it as the logical conclusion of a process that had been in preparation for years. The novelty of his message lies elsewhere: in how he explains what he considers truly important to preserve at Berkshire.
And his answer is surprising because it is not a stock, an acquisition, a cash reserve, or any other financial asset—it is something he considers far more valuable: culture.
The True Asset Is Off the Balance Sheet
Buffett writes that Greg Abel manages the company, while Howard Buffett will bear the responsibility of protecting its culture and values. He immediately establishes an unusual hierarchy in business parlance: both elements possess, he says, a value superior to that of any asset recorded on Berkshire’s balance sheet.
The statement is especially meaningful coming from the man who built Berkshire into one of the largest business conglomerates in the world and who for decades was considered one of the primary benchmarks of long-term investing.
At the moment of handing over control, Buffett does not speak of maintaining a specific level of profitability, keeping a particular portfolio, or reaching a certain market capitalization; he speaks of preserving a way of doing business.
It is precisely there that one of the keys to his legacy emerges: Berkshire was not built solely around the investments that Buffett and Charlie Munger selected. It was also built around a philosophy—thinking in terms of decades, avoiding impulsive decisions, maintaining a unique relationship with shareholders, and granting managers of acquired companies a considerable degree of autonomy.
That is why succession does not simply consist of finding someone who can sit in Buffett’s chair; it consists of proving whether an organization can maintain its principles when the person who embodied them for more than six decades is no longer in command.
An Insurance Policy for Shareholders
Buffett leaves in his letter one of his customary metaphors to explain his son’s role: Howard Buffett, he says, should be viewed as “an insurance policy” owned by the shareholders—one that everyone hopes never to have to use. Coming from Buffett, this is telling.
Furthermore, Greg Abel is at the operational helm. Howard does not step in to manage Berkshire’s day-to-day operations, but rather to act as a custodian of what does not appear on the financial statements: culture and values. This division of responsibilities demonstrates the extent to which the succession was designed as an institutional process rather than merely replacing an individual.
Buffett points out that Howard has served as a director of Berkshire for 33 years—a period even longer than the time he himself had to learn before taking control of the company at age 34. In this sense, the message is clear: succession does not begin the day Buffett steps down from a role; in reality, it began decades earlier.
Time as an Enemy and as an Ally
There is an irony in all of this that says much about Warren Buffett: for decades, the investor turned time into one of Berkshire’s primary advantages. While much of the financial market moves to the rhythm of quarterly earnings, Buffett and Munger built their reputation on patience and the ability to think long term.
In his letter, Buffett recalls precisely that from the beginning they sought shareholders who thought “in terms of decades rather than quarters.” Now, however, time appears from a different perspective. Buffett has just turned 96, and after more than 60 years leading Berkshire, he acknowledges that the time has come to complete the transition.
Yet he does not present it as a tragedy or a crisis—quite the contrary. He says he still has “the best job in the world” and has never felt better about what lies ahead. This is likely one of the most interesting aspects of the letter: Buffett does not describe his departure as the end of an era to be mourned, but as a natural consequence of the very same principle he recommended to his shareholders for decades: thinking long term.
Time ultimately wins, but preparation can determine what happens next. Buffett is not leaving Berkshire; rather, Berkshire no longer needs him to run it. There is another important distinction: Buffett is not departing Berkshire entirely, as he continues as a director and shareholder. In his letter, he expresses his desire to remain a shareholder alongside the rest of the owners.
That changes the meaning of the transition. The man who for decades made the fundamental decisions will no longer occupy the position from which they are made, but he will continue to observe the company’s evolution from within and participate in it as an owner.
This aligns seamlessly with the relationship he always sought to build with shareholders: sitting on the same side of the table. That is why, rather than a farewell, the letter carries the tone of passing the baton. Buffett seems to be saying that Berkshire no longer needs him to serve as its operational core because key decisions can be made by others and because, at least in his view, the principles he considers essential are deeply rooted.
Greg Abel is proof of that trust. Buffett asserts that his expectations for him were very high from the start, and that Abel has exceeded them. He also states that Abel has been making the truly important decisions for some time, and that he has never had reason to doubt any of them.
The statement carries special weight: succession does not begin now simply because Abel has officially received power; it formalizes a dynamic that was already largely in place.
From Charlie Munger to Howard Buffett
The letter also has a generational dimension: throughout much of Berkshire’s modern history, Buffett and Charlie Munger were inseparable from the company’s identity. Munger passed away in November 2023, just days shy of his 100th birthday. Now Buffett steps back further, doing so by leaving behind an organization where continuity no longer depends on two historic figures at the helm.
That may represent one of Berkshire’s greatest challenges in the coming years: demonstrating that what worked extraordinarily well under Buffett and Munger can continue to work when both belong to the company’s history. Buffett appears confident that it will, not because he believes a replacement for himself exists, but because he believes the organization he built can prove more enduring than the man who built it.
Perhaps that is why the final section of his letter is more significant than the corporate announcement itself. Buffett thanks the shareholders for the trust they placed in him and calls serving as their chairman “the privilege of a lifetime.” He then returns to the concept of time: “Father Time always wins,” he writes.
Immediately, however, he refrains from framing the phrase as a tragedy, writing instead that time was generous to him because it allowed him to see Berkshire reach a point where he feels more confident than ever about its future. That is perhaps the true message and final lesson of his last letter as Chairman.
A company’s success consists not merely of how much capital it can accumulate while its founder is at the helm, but whether it can preserve what made it unique once the founder is no longer there. Buffett appears to have reached that conclusion after more than six decades.
The man who turned patience into an investment strategy ultimately faces his own ultimate long-term test: handing over control and trusting that time—which inevitably ends all individual leadership—will not also bring an end to the philosophy he built.
T. Rowe Price, a global investment management firm, has announced the addition of the T. Rowe Price Securitized Income ETF to its product suite. The new fully transparent, actively managed fixed income exchange-traded fund (ETF) has begun trading on the NYSE Arca.
The T. Rowe Price Securitized Income ETF is designed for investors seeking to enhance periodic portfolio returns while diversifying fixed income exposure beyond traditional corporate and government bonds. Actively managed and backed by the firm’s fundamental research capabilities, TSCZ seeks to generate high current income through a portfolio diversified across U.S. securitized credit sectors, such as asset-backed securities (ABS), commercial mortgage-backed securities (CMBS), collateralized loan obligations (CLO), and non-agency residential mortgage-backed securities (RMBS). TSCZ carries a total expense ratio of 0.20%.
TSCZ is actively co-managed by Jean-Marc Breaux, CFA®, and Ramón de Castro. Breaux is Head of Securitized Products in the Fixed Income division and brings 20 years of investment experience, eight of them at T. Rowe Price. De Castro is a sector portfolio manager in the Fixed Income division with over 30 years of experience, 14 at the firm. He also serves as portfolio manager for the T. Rowe Price GNMA Fund (Ticker: PRGMX) and oversees residential mortgage-backed securities (RMBS) allocations across several multisector fixed income portfolios.
With this addition, T. Rowe Price’s ETF lineup expands to 35 total funds, spanning fixed income, equity, multi-asset, digital assets, and thematic strategies. Each ETF solution brings key advantages such as tax efficiency, competitive expense ratios, and the flexibility to buy and sell shares throughout the trading day. All funds leverage the rigorous fundamental research of T. Rowe Price’s analysts and portfolio managers, focused on asking better questions to deliver better client outcomes.
Separately, T. Rowe Price recently announced an agreement to acquire F/m Investments LLC, a specialized fixed income and ETF asset manager. Expected to close in early 2027, the transaction will increase its fixed income assets under management by nearly 9%, more than double its volume in fixed income ETFs, and expand its separately managed accounts (SMA) business. Alongside today’s launch, this transaction reflects the firm’s ongoing commitment to expanding its fixed income ETF capabilities and diversifying the suite of solutions available to its clients.
Janus Henderson has announced the launch of the Janus Henderson International Core Alpha ETF, an actively managed exchange-traded fund designed to seek long-term capital growth by investing in international equities. The product will trade on the U.S. Nasdaq exchange.
JINT expands the same SystemActive investment framework used across Janus Henderson’s ETF suite—including U.S. small-cap (JSML), small/mid-cap (JSMD), and mid-cap (JMID)—into international markets. The strategy combines fundamental research with proprietary investment signals to systematically identify stocks with attractive expected return profiles while actively managing portfolio risk.
Managed by Benjamin Wang and Zoey Zhu, JINT broadens Janus Henderson’s active ETF offering, providing access to a core international equity strategy backed by the firm’s established expertise in quantitative investing.
For advisors and investors seeking international equity exposure, JINT is designed to serve as a core building block that combines systematic stock selection, active risk management, and the transparency inherent to the ETF structure.
“The launch of the Janus Henderson International Core Alpha ETF reflects our commitment to providing investors with innovative active ETF solutions,” stated Wang, adding that “by leveraging our systematic investing expertise and applying it to international equities, we seek to drive efficiency, enhance diversification, and deliver more alpha over time.”
“What sets this strategy apart is the combination of fundamental insights, proprietary alpha factors, and explicit risk management within a transparent, repeatable framework,” noted Zhu, who believes this approach “positions us to capture attractive opportunities across international markets while maintaining a consistent investment process.”
