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M&G Accelerates Growth with Asia as a Key Driver and Private Assets as the Engine of the Future

CC-BY-SA-2.0, FlickrAndrea Rossi, Chief Executive Officer of M&G plc, the parent company of M&G Investments.

M&G is experiencing one of the strongest periods in its recent history. After returning to a solid growth trajectory, the asset manager has once again posted strong net inflows while reinforcing its international expansion strategy, driven in particular by the partnership reached last year with Japanese insurer Dai-ichi Life, now one of its largest shareholders and a strategic partner for expanding its business across Asia.

Funds Society recently attended the Media Forum organized by M&G Investments at its London headquarters, where the firm’s senior executives shared their views on the evolution of the business and the key trends shaping the investment industry.

Organic Growth at Double-Digit Rates

“Growth is what defines us.” With that message, Andrea Rossi, CEO of M&G plc, summarized the firm’s roadmap, which is built around sustained growth supported by what he considers a differentiated business model.

“Our business model is our competitive advantage, and our focus is on continuing to grow,” Rossi emphasized.

Rossi explained that 2025 was an exceptional year for M&G, with €9.1 billion in net inflows, a trend that continued into 2026, with positive net inflows during the first quarter.

Today, M&G Group manages €430.5 billion in assets, of which €394.5 billion is managed by M&G Investments. While the firm remains predominantly invested in listed assets (€302 billion), it has significantly expanded its private assets business in recent years, which now totals €93 billion, according to company data.

Rossi highlighted the strong performance of M&G’s European private markets business, a market now approaching €90 trillion and growing at roughly 10% annually—a pace the firm has successfully matched. At the same time, its international business—primarily Continental Europe and Asia—is expanding at approximately 6% annually, while M&G itself is growing at double-digit rates across those regions.

The CEO stressed that organic growth remains the firm’s top priority, although he left the door open to selective acquisitions.

“We want small acquisitions that we can successfully scale within our private assets platform,” he said.

Asia: M&G’s International Growth Engine

International expansion was perhaps the most recurring theme throughout the event.

For Rossi, “international expansion is key,” with Japan occupying a central role in that strategy. Dai-ichi Life’s investment in M&G has strengthened a partnership that extends well beyond the shareholder relationship. In addition to distributing M&G’s products in Japan, the two firms also collaborate in asset management. M&G also maintains a strategic partnership with Mizuho, one of Japan’s largest banks.

Rossi explained that Japan presents an exceptional opportunity for both institutional and retail investors. An aging population, increasing life expectancy and a prolonged low-interest-rate environment have created substantial demand for long-term savings and investment solutions. Against that backdrop, M&G sees significant potential to capture part of the nearly $4 trillion currently held in Japanese bank deposits.

The partnership with Dai-ichi Life is also serving as a platform for accelerating growth across the rest of Asia.

M&G already has an institutional presence in Hong Kong, South Korea, Japan and Australia, while also distributing products in Taiwan. Today, the firm’s Asset Management division oversees approximately €17 billion in assets across Asia, a figure the company expects to grow as insurers, pension funds and sovereign wealth funds throughout the region increase their allocations.

“What has defined our growth has been a truly international effort. Once you decide to expand internationally, you need a very clear strategy and an equally strong ability to execute,” added Micaela Forelli, CEO of Europe Asset Management Operations at M&G Investments.

Forelli stressed that consistently delivering strong investment performance remains the firm’s first priority, but added that success also requires efficient operating models and effective use of available regulatory frameworks.

She highlighted the development of the UCITS industry over the past decade, describing it as one of Europe’s greatest financial exports.

“UCITS funds have become a global standard,” she said.

As an example, she noted that M&G’s Luxembourg fund structures are already distributed across 27 countries, although the potential is considerably greater, given that UCITS products are now marketed in 50 markets worldwide.

International growth opportunities, however, extend beyond geographic expansion.

Joseph Pinto, CEO of Asset Management at M&G Investments, argued that the transformation of pension systems represents one of the industry’s most significant long-term structural drivers.

Across Europe, many countries are introducing reforms to encourage defined contribution pension plans, following the path pioneered by the United Kingdom. Germany is expected to be one of the next examples.

“An increasing number of countries need to strengthen their retirement savings systems, creating a tremendous opportunity for our industry,” Pinto said.

He added that Asia offers even greater long-term potential. Unlike Europe or the United States, many Asian markets remain at a relatively early stage of development, with a growing number of individual investors beginning to seek long-term savings and investment products.

From an investment perspective, Pinto argued that Europe has once again become highly attractive for international investors.

The need to finance infrastructure, defense and new industrial capacity is creating opportunities across both public and private markets.

“We don’t aspire to be everything to everyone, but we do want to become a leading investment manager in Europe,” he said.

Private Assets, Diversification and Structural Megatrends

The third major theme of the event centered on the structural shifts reshaping institutional portfolios—changes that M&G believes strongly favor its positioning.

Rossi argued that Europe continues to attract strong interest from global investors and that, within private markets, the region is currently even more attractive than the United States.

That growing appeal is reflected in rising demand from European institutions as well as Asian and North American investors for infrastructure, private credit and European real estate.

Rossi framed this evolution within several megatrends that will drive investment demand over the coming years.

The energy transition, infrastructure development, Europe’s push for greater energy independence, rising defense spending and the investments required to deploy artificial intelligence will all require enormous amounts of capital at a time when European governments are already carrying high debt burdens.

“Governments are highly indebted, which means private markets and capital markets will need to play a greater role in financing these investments. We have the opportunity to support infrastructure that enables the energy transition, and given our expertise, this represents a tremendous growth opportunity for us,” Rossi said.

In his view, investor interest will continue to grow because Europe is undergoing a fundamental transformation in how its economy is financed.

Historically, European companies have relied much more heavily on bank lending than their U.S. counterparts. However, banks are reducing certain types of lending on their balance sheets, creating expanding opportunities for private capital.

While Rossi acknowledged that Europe remains a complex market—with different regulatory frameworks and business practices across countries—he believes that complexity is no longer the obstacle it once was. Greater political stability and increasing international interest are helping drive a rebalancing of global portfolios toward the region.

Pinto confirmed that this trend is already evident in conversations with clients.

Since last year, he said, an increasing number of investors have been modestly reducing their exposure to the United States while increasing allocations to Europe and Asia.

“This doesn’t mean abandoning the United States, which remains a priority market. It means building more balanced and diversified portfolios,” he explained.

He added that diversification is taking place not only across regions but also across asset classes, with investors gradually shifting allocations from public to private markets.

“M&G is exceptionally well positioned to support that transition,” he said, citing the firm’s combination of active management expertise, innovation capabilities and access to permanent capital through the balance sheet of Prudential, the group’s parent company.

Finally, Kathryn McLeland, Chief Financial Officer of M&G plc, explained that the firm’s growth has also been supported by significant reinvestment.

After exceeding its cost-saving targets over the past three years, the company has been able to reinvest approximately €140 million into the business, allocating more than half of that amount to its asset management division, particularly toward strengthening its private assets capabilities.

LPs Increasingly Intend to Reduce the Number of Alternative Asset Managers in Their Portfolios

| By Marta Rodriguez | 0 Comentarios

At a time when geopolitical uncertainty has become an increasingly prominent concern for investors, a growing share of the LP community is looking to reduce the number of asset managers with which they maintain relationships. That is one of the key findings of the latest Global Private Capital Barometer from Coller Capital, published for the Northern Hemisphere summer, which shows an increasing proportion of investors planning to streamline their manager rosters.

According to the report, 23% of the limited partners surveyed said they intend to reduce the number of investment firms in their portfolios going forward. This represents a notable increase from the last time Coller included this question in its investor survey, in 2020, when only 16% of LPs planned to reduce the number of manager relationships.

Even so, more investors still intend to expand their manager lineup than reduce it. Thirty-eight percent of respondents expect to increase the number of managers in their portfolios.

With respect to asset classes, Coller noted that 57% of respondents do not anticipate making significant changes to their overall allocations. However, the survey does reveal cooling enthusiasm for private credit and infrastructure strategies.

Compared with the previous edition of the barometer, the proportion of investors planning to increase their allocation to private credit fell from 42% to 29% over the past six months. For infrastructure assets, the figure declined from 39% to 31% during the same period.

“This may simply represent a natural pause following periods of rapid growth for both asset classes, but the recent negative headlines surrounding private credit are also likely influencing LPs’ allocation plans,” the firm said in its report.

That does not mean investors are turning away from the asset class altogether. Coller emphasized that an “overwhelming majority” of respondents—87%—plan to either maintain or increase their private debt investments over the next 12 months.

What Is Driving Investment Decisions?

Global investors continue to allocate capital to alternative markets, with their long-term investment horizon providing some protection against short-term shocks.

“For that reason, it is not surprising that LPs continue deploying capital into private markets, even amid the unpredictable course of global events,” Coller Capital said in the report.

The survey found that one-third of limited partners expect to accelerate the pace of their commitments over the next two years, while 57% expect to maintain their current pace.

Moreover, 63% of respondents said the geopolitical environment has not altered its influence on their investment allocation decisions. The remaining respondents indicated that geopolitical considerations are playing a greater role in their decision-making process.

Coller noted, however, that the regional breakdown presents a more nuanced picture.

“Among our North American respondents, just under one-quarter (23%) said geopolitics plays a greater role than before. By contrast, investors in other regions appear considerably more concerned,” the report stated, with roughly half of investors in both Europe and Asia indicating that geopolitical developments have become a more significant factor in their investment decisions.

Equities: Leveraged ETFs and the Mechanics of Market Declines

| By Marta Rodriguez | 0 Comentarios

Hedge funds, which have maintained significant long positions in technology broadly—and in semiconductors and hardware in particular—are beginning to consider taking profits. On Tuesday, the Nasdaq posted one of the largest point declines in its history.

However, important technical factors also amplified the selloff in AI-related stocks. Assets invested in leveraged ETFs tied to technology or semiconductor indexes—such as TQQQ, SOXL, or MUU, the 2x leveraged ETF linked to Micron shares—have surged (+39% for the first, +261% for the second), with the category now approaching $190 billion in assets, an unthinkable figure just five years ago. The well-known 7709—the largest 2x leveraged ETF tracking SK Hynix, the memory chip manufacturer—has reached $16 billion in assets, while the Direxion Daily MU Bull 2X Shares ETF linked to Micron is approaching a market capitalization of $8 billion.

A 2x or 3x leveraged ETF must rebalance its exposure every day to maintain its leverage multiple. If the underlying index rises, the fund must buy additional exposure at the close; if it falls, it must sell. This daily rebalancing creates what is structurally a short gamma profile: buying into strength and selling into weakness. The more assets these products accumulate, the larger the mechanical trading flows generated by every market move.

This dynamic is amplified further because positioning is concentrated in only a handful of names. Memory and semiconductor stocks account for more than 10% of hedge funds’ long exposure, while roughly three-quarters of short gamma exposure is concentrated in semiconductors, the Nasdaq-100 (NDX) and related names. When the same hedging activity repeatedly impacts the same stocks, price movements become concentrated rather than dispersed.

The situation becomes even more complex when considering that the volatility of the stocks that have contributed most to the S&P 500’s appreciation is approaching the levels seen at the peak of the dot-com bubble. Given that those returns are concentrated in just a handful of stocks and sectors, portfolio risk management becomes significantly more challenging. At the same time, the risk of gamma-driven market effects increases if retail investors begin exiting leveraged products en masse. The resulting volatility drag could trigger a wave of investor dissatisfaction with these leveraged ETFs.

This mathematical effect, which is particularly pronounced in leveraged and inverse ETFs that must rebalance their exposure to the underlying asset on a daily basis, results in a gradual loss of value caused by day-to-day price fluctuations—even when the underlying asset ultimately returns to its original level.

Consider a simple example: an index falls by 10% and then rises by 10%. An unleveraged fund would decline from $100 to $90 and then recover to $99 after the rebound. A 3x leveraged ETF, however, would recover only to $91 following the same movement in the underlying index.

The recent volatility in semiconductor stocks—as reflected in the Philadelphia Semiconductor Index (SOX)—provides an ideal environment for this effect to materialize.

Micron’s earnings, released Wednesday evening, exceeded already ambitious expectations and could continue to support capital flows into leveraged products. However, this momentum is accompanied by increased market instability that should not be underestimated.

In addition, efforts to manage memory chip supply bottlenecks are beginning to spill over into consumer prices and inflation readings. Apple’s announcement of 15% to 25% price increases for Macs and iPads, beyond its implications for the company itself, suggests that the strategy of capitalizing on supply constraints may be reaching its limits.

Global Macro: PMIs Improve While Energy Prices Decline

The volatility in equity markets contrasts with the constructive economic data released this week. June flash PMI readings generally surprised to the upside, suggesting that the global economy continues to absorb the energy shock better than expected.

The U.S. composite PMI rose to 52.2 in June, its highest level since the onset of the conflict with Iran. In the eurozone, the composite PMI also exceeded expectations, coming in at 49.5 versus the 49.2 consensus forecast. Taken together, the data paint a constructive picture of the global economy as the second quarter draws to a close.

Markets also received another supportive tailwind in the form of lower energy prices. Brent crude fell to $73.80 per barrel, its lowest level in three months, reflecting the beginning of a normalization of maritime traffic through the Strait of Hormuz.

Dollar and the Fed: Enduring Dominance, but an Opportunity to Reduce Exposure

With the U.S. economy showing stronger momentum than Europe’s, the euro this week broke below its summer 2025 lows against the U.S. dollar.

The dollar’s dominance no longer appears to be under serious challenge. Neither the euro nor the renminbi represents a credible rival over the short to medium term. The euro continues to face unresolved questions in the absence of a genuine fiscal union—as illustrated by France’s budgetary difficulties in 2025. Meanwhile, the Chinese renminbi (CNY) would require a fully open capital account and much deeper, more liquid financial markets before becoming a meaningful alternative, a process that could take decades.

In reality, central banks have not been selling dollars; rather, they have been diversifying their reserves into other currencies. That diversification, concentrated in smaller currencies such as the Canadian and Australian dollars, has risen from 2% to 11% since 2000—a shift that remains far too small to undermine global demand for the U.S. dollar.

The global savings surplus generated by China, the eurozone, Japan and the Gulf countries continues to be structurally recycled into U.S. assets because only the United States offers financial markets with sufficient depth and liquidity to absorb those flows. Net foreign capital inflows into U.S. assets have returned to record highs, and that trend is likely to persist as long as artificial intelligence continues to drive the S&P 500 and Nasdaq as leaders of global equity markets.

Structurally, the dollar remains an expensive currency, and with concerns over the end of U.S. exceptionalism having largely subsided for now, its valuation will depend primarily on inflation-adjusted interest rate differentials.

The yield curve still implies one additional rate hike between October and December. Lower oil prices will reduce inflation expectations while supporting corporate profit margins. However, accumulated supply shocks—including tariffs and higher energy costs—continue to feed through into inflation data. Indicators such as supply chain stress, order backlogs and delivery times suggest that core inflation may peak somewhat later than previously expected. Even so, conditions in the labor market appear to be improving.

The Federal Reserve is likely to maintain a restrictive bias in the coming months, but the most probable scenario is that it remains on hold for the rest of the year—neither raising rates nor cutting them until 2027, when disinflation is expected to resume more forcefully.

There are four reasons why U.S. inflation could eventually surprise to the downside. First, the New York Fed’s inflation gauge suggests that the recent inflation rebound has been driven primarily by supply-side factors. Second, declining crude oil prices should pull inflation expectations lower. Third, distortions resulting from the government shutdown will gradually fade from the data. Finally, the adoption of artificial intelligence is boosting labor productivity at annual rates approaching 3%, while unit labor costs have fallen sharply.

For all of these reasons—and given the U.S. dollar’s tendency to exhibit momentum—it is plausible that the currency could appreciate somewhat further in the short term, as our model suggests. Nevertheless, all indications point to this being an attractive opportunity to reduce exposure to the dollar.

The U.S. Consolidates Its Position as the Global Epicenter of Private Equity Value Creation

| By Marta Rodriguez | 0 Comentarios

The U.S. venture capital market displayed a sharply divergent pattern during the first five months of 2026: investors completed slightly fewer transactions but deployed substantially more capital than during the same period a year earlier.

According to GlobalData, the total number of venture capital deals announced in the United States declined by 2% year over year between January and May 2026, while total funding value more than tripled.

“This divergence reflects a clear trend toward larger funding rounds and highly selective megadeals. It reinforces the United States as the undisputed epicenter of global venture capital value creation, even amid a modest slowdown in overall deal activity. It is also worth noting that much of this increase in funding value was driven by multibillion-dollar investments secured by a handful of artificial intelligence startups,” said Aurojyoti Bose, Lead Analyst at GlobalData.

Why the U.S. Remains the Global Leader

Among the most notable U.S. financing rounds during the January–May 2026 period were OpenAI’s $122 billion fundraising, Anthropic’s consecutive funding rounds of $65 billion and $30 billion, and xAI’s $20 billion capital raise, among others.

Analysis of GlobalData’s financial deals database shows that despite the decline in transaction volume, the United States maintained its global leadership, accounting for approximately 30% of all venture capital deals announced worldwide between January and May 2026.

At the same time, the sharp increase in deal value propelled the U.S. to capture an overwhelming 81% of global venture capital investment, underscoring the country’s outsized influence in shaping international capital allocation trends.

According to Bose, “the substantial gap between the U.S. share of deal volume and its share of funding value highlights a market characterized by larger average check sizes and a high concentration of capital in high-conviction investment opportunities.”

Other Venture Capital Hotspots

Compared with other major markets, the United States continues to outperform its competitors by a wide margin.

China, the world’s second-largest venture capital market, experienced a strong rebound. The number of transactions increased by approximately 41% year over year, while total deal value surged by around 220%. As a result, China accounted for 23% of global venture capital deal volume and 7% of global funding value. Although these figures point to renewed momentum, China’s share of total investment value remains only a fraction of that of the United States.

The United Kingdom accounted for 7% of global deal volume and 3% of total funding value, while India represented 8% of global transactions but just 1% of worldwide funding value.

“Compared with the U.S., venture capital activity in these markets points to considerably more cautious investor sentiment and a lower frequency of large-scale financing rounds during the period,” GlobalData noted.

Five Months of Record Highs and Historic Flows for Active ETFs Worldwide

| By Marta Rodriguez | 0 Comentarios

Assets in active ETFs reached a new all-time high of $2.49 trillion at the end of May, driven by a record $412 billion in year-to-date net inflows. According to ETFGI’s latest monthly report, the global active ETF industry attracted $100.08 billion in net inflows during May alone, bringing total inflows for the first five months of 2026 to $411.75 billion.

According to the report, assets have increased 28.8% year to date, up from the $1.93 trillion recorded at the end of 2025, reflecting the increasingly strong and accelerating adoption of active investment strategies in the ETF format.

“Year-to-date net inflows through May—$411.75 billion—are the highest ever recorded, shattering the previous record of $220.53 billion during the same period in 2025. With this performance, the industry has now posted 74 consecutive months of net inflows, reinforcing a sustained structural shift toward these investment solutions worldwide,” ETFGI noted.

A breakdown of the flows shows that active equity ETFs led subscriptions, attracting $60.97 billion in net inflows during May. Year to date, they have gathered $242.18 billion, significantly higher than the $124.28 billion recorded during the same period in 2025.

Meanwhile, active fixed income ETFs posted $26.12 billion in net inflows in May. Total year-to-date inflows reached $136.73 billion, compared with $82.09 billion through May 2025, underscoring investors’ continued appetite for income generation and portfolio diversification.

Leading Asset Managers

Dimensional remains the world’s largest active ETF provider by assets under management, with $296.82 billion and an 11.9% market share. It is followed closely by J.P. Morgan Asset Management, with $291.38 billion in assets (11.7% market share), while iShares ranks third with $168.64 billion (6.8% market share).

According to ETFGI, these three firms—out of 717 providers operating in the market—collectively account for 30.4% of global active ETF assets, while none of the remaining 714 providers individually holds a market share of more than 6%.

The Geopolitics of Football: Why Major Corporations Are Competing to Sponsor the World Cup

| By Marta Rodriguez | 0 Comentarios

For decades, sports sponsorship was viewed primarily as a marketing tool. That has long ceased to be the case when it comes to the FIFA World Cup. Today, the tournament has become a platform for corporate geopolitics, where energy, technology, financial, aviation and consumer companies compete for something far more valuable than visibility: global influence.

The reason is simple. No other sporting event combines such a vast audience, geographic diversity and cultural reach. FIFA’s figures are compelling: the 2022 Qatar World Cup generated engagement with approximately 5 billion people across television, digital platforms and social media, while the final between Argentina and France attracted an estimated 1.42 billion viewers worldwide—the largest audience in the tournament’s history.

With the 2026 FIFA World Cup, hosted by Mexico, the United States and Canada, the phenomenon will become even larger. The tournament has expanded from 32 to 48 teams, increased from 64 to 104 matches, and will be played in North America—the world’s most lucrative advertising market.

The World Cup has become a $13 billion business, and the tournament’s expansion is reshaping FIFA’s own finances. The organization projects $11 billion in revenue for the 2023–2026 cycle, a 70% increase over the previous cycle, driven primarily by the commercialization of the North American World Cup.

The expected revenue breakdown illustrates the scale of the event: $4.264 billion from broadcasting rights, $3.097 billion from hospitality and ticket sales, $2.693 billion from marketing and sponsorship rights, $669 million from licensing, and $277 million from other revenue streams, according to FIFA. However, several estimates place the tournament’s total economic impact at $13 billion, making it the most profitable sporting event in history.

Energy: From oil to corporate diplomacy

The presence of energy companies in football is no longer coincidental. Oil and gas producers increasingly seek to associate their brands with innovation, sustainability and global connectivity, particularly as the energy transition reshapes the industry. Sports sponsorship has become a form of corporate and national soft power.

The clearest example was Qatar’s strategy during the 2022 World Cup, where international exposure helped reinforce both the country’s geopolitical position and that of its energy companies in Western markets. For hydrocarbon producers and state-owned energy firms, football offers something traditional advertising cannot buy: global legitimacy and emotional connections with consumers and investors.

Technology: Competing for the digital ecosystem

For technology companies, the World Cup represents the ultimate showcase for their data ecosystems, artificial intelligence capabilities and digital services.

The opportunities extend far beyond stadium advertising, encompassing AI-enhanced broadcasting, cloud infrastructure for data processing, real-time analytics, programmatic advertising, cybersecurity, immersive experiences, augmented reality and e-commerce linked to sports broadcasts, among many other applications.

According to FIFA’s post-tournament report, the Qatar World Cup generated 2.7 billion digital and streaming interactions, along with 2.2 billion social media engagements—figures that surpassed those recorded during Russia 2018 and were validated by many of the world’s leading technology companies.

For major technology firms, the tournament is arguably the only event capable of simultaneously delivering global scale and highly sophisticated digital audience segmentation.

Payments: The World Cup as a financial laboratory

The payments industry is arguably the sector that derives the greatest strategic value from these partnerships.

Every fan represents a potential cardholder, digital wallet user, cross-border consumer and future retail investor.

Sponsorship allows companies to transform a sporting event into a platform for accelerating the adoption of digital payments and financial services. It is no coincidence that global payments giants invest hundreds of millions of dollars in sponsorship agreements before committing even larger sums to activation campaigns across dozens of countries.

Some estimates suggest that top-tier global sponsors may spend more than $100 million solely for association rights with the tournament, excluding additional expenditures on marketing campaigns and brand activations.

Aviation: Capturing the growth of global tourism

Airlines use football for far more than selling tickets.

Air connectivity has become strategic infrastructure for international trade and tourism. For airlines, the World Cup represents opportunities to expand route networks, strengthen international hub positioning, enhance loyalty programs, increase premium passenger traffic and attract corporate travelers.

The 2026 edition will span 16 host cities across three countries, generating tens of millions of passenger journeys during just over one month of competition.

Consumer goods: The final frontier of mass marketing

Few industries understand the value of the World Cup better than consumer goods companies.

The tournament remains the only event capable of simultaneously driving impulse purchases, family consumption, higher spending on food and beverages, official merchandise sales and e-commerce growth.

The Qatar World Cup generated more than 15 billion social media impressions and over 3.6 billion video views, extraordinary levels of engagement for consumer-facing brands.

What does this mean for investors?

From the perspective of financial markets and investment funds, the World Cup acts as a catalyst for multiple sectors.

Historically, major sporting events generate temporary spikes in revenue and brand visibility. However, the real value for investors lies in companies’ ability to convert that exposure into long-term customer growth and geographic expansion.

The World Cup has evolved from a competition among national teams into a contest among economic models, global brands and national strategies of influence.

Companies no longer sponsor football simply to sell more soft drinks, airline tickets or credit cards.

They do so because, for one month, the World Cup commands the attention of a large share of the world’s population and offers something extraordinarily scarce in today’s digital economy: a truly global, simultaneous and emotionally engaged audience.

From a geopolitical and financial perspective, few investments provide such significant potential returns in terms of global visibility and strategic positioning.

SEC Appoints Kathleen Hutchinson as Director of the Office of International Affairs

| By Marta Rodriguez | 0 Comentarios

LinkedIn / Kathleen M. Hutchinson, Director of the SEC Office of International Affairs.

The U.S. Securities and Exchange Commission (SEC) has announced the appointment of Kathleen M. Hutchinson as the new Director of the Office of International Affairs (OIA). The OIA is the department responsible for advising the Commission on international policy, coordinating with regulatory authorities around the world to facilitate cross-border oversight and enforcement, and providing technical assistance.

Hutchinson had served as Acting Director of the OIA since January 2025. Her career at the SEC began in 2003 as a staff attorney in the Office of Compliance Inspections and Examinations (now the Division of Examinations), before joining the OIA in 2008. Within the office, she has held several leadership positions, including Associate Director and Deputy Director, and has served twice as the office’s Acting Director.

“Kathleen has demonstrated a deep commitment to public service and to our mission for more than two decades. I greatly appreciate her willingness to take on the permanent leadership of the Office of International Affairs. She has successfully led numerous international initiatives alongside our counterparts abroad, and I have complete confidence in her continued leadership and guidance on international policy and cooperation,” said Paul S. Atkins, Chairman of the SEC.

For her part, Kathleen Hutchinson said: “The extraordinary talent of the team in the Office of International Affairs makes it a true privilege to work every day in service of investors and our markets. Advancing the SEC’s international priorities through collaboration with foreign counterparts—on policy and supervisory matters, as well as enforcement and technical assistance—is essential to enabling the SEC to fulfill its mission. I am grateful to Chairman Atkins for this opportunity and look forward to continuing to work with the Commission, my colleagues at the SEC, and international authorities to address the regulatory challenges facing global markets today.”

Hutchinson holds a Juris Doctor and a master’s degree in International Relations from the Washington College of Law and the School of International Service at American University, as well as a bachelor’s degree from Binghamton University. She began her legal career in private practice at law firms in Washington, D.C., and New York.

With a New Office, CFA Society Brasil Seeks to Strengthen Its Local Influence and Expand Its Operations in the Country

| By Marta Rodriguez | 0 Comentarios

After years of operating without a physical headquarters, CFA Society Brasil has entered a new phase of expansion. The association, which brings together professionals in the country certified by the CFA Institute, reopened its office in São Paulo this year. The goal is to use the new facilities as a base for expanding its influence in the financial market, strengthening its presence beyond the Rio–São Paulo corridor, and increasing the number of events and educational initiatives it offers.

“The Society remained active over the past few years, but we believe we can do much more with the return of the office,” says Lucas Dolabela Barcellos Correa, President of CFA Society Brasil, in an interview with Funds Society conducted at the institution’s new headquarters. The office opened on May 27 on Fidêncio Ramos Street, in the Vila Olímpia neighborhood. “We want to attract new candidates, create value for our members, and positively influence the market,” he says.

The decision to close the previous office was made during the pandemic. Because the CFA exams required in-person attendance and there was uncertainty about how long the health crisis would last, both the CFA Institute and local societies implemented cost-cutting measures. The Brazilian headquarters, located in the Faria Lima district, closed in 2020.

According to the president, the lack of a physical headquarters somewhat limited the organization’s ability to coordinate and integrate its activities, even though the Society continued promoting events and initiatives throughout that period.

“When you dismantle an office, it may seem like you’re only losing a physical space, but it involves much more than that. It’s about having the team together and having a central location for activities. We lost some of that,” he says. CFA Society Brasil currently has 1,822 members and plans to use the new office to expand its role in discussions on the development of Brazil’s capital markets.

“We remain very focused on broadening the reach of our initiatives and strengthening our presence among the market’s key players,” Correa says.

Part of this strategy involves strengthening ties with higher education institutions and training new professionals. The organization continues to run initiatives such as the Research Challenge—a global equity research competition for university students—and seeks to expand its presence at educational institutions outside the traditional hubs for training financial market professionals.

“We need to have a stronger presence at universities,” he says. According to Correa, the idea is to introduce students to the profession early in their careers and present the CFA designation as an option for professional development.

The expansion also includes an institutional engagement agenda. The Society regularly participates in public consultations organized by the Brazilian Securities and Exchange Commission (CVM), maintains dialogue with organizations such as Anbima and Previc, and seeks to contribute to discussions on financial market regulation and best practices.

“We try to be present and express our views in ways that help guide the market in the right direction,” he says.

Another initiative to broaden the organization’s reach is the introduction of specialized certifications developed by the CFA Institute. In addition to the traditional CFA Program, the Institute has been creating credentials aimed at specific market niches, such as ESG, private markets, and Investment Foundations.

A key development is that some of these certifications are expected to be translated into Portuguese over the next few years, reducing one of the main barriers to entry for Brazilian professionals.

“Translating these certifications into Portuguese will be very beneficial in attracting more people to our community,” Correa says.

However, the change has sparked internal discussions among CFA societies worldwide. Since these programs do not require candidates to complete the full CFA Program, it has not yet been decided whether professionals who earn these new credentials will be eligible for membership in local societies.

“For now, it’s an open question. We’re seeing a different audience profile from the traditional CFA Charterholder, and we’re still discussing how this fits within the Society,” he says.

According to Correa, this is a strategic issue for the organization. On the one hand, these certifications could significantly broaden the reach of the CFA brand; on the other, they introduce a new type of professional into the organization’s ecosystem.

Expansion Beyond São Paulo

Although nearly 80% of its members are concentrated in São Paulo, the organization aims to expand its regional reach. Plans include holding events in state capitals such as Belo Horizonte, Porto Alegre, Brasília, and Curitiba, as well as fostering closer ties with universities and professionals in other parts of the country.

“We need to have more influence outside this region as well. It makes sense to have a stronger presence beyond the traditional financial hub,” the executive says.

In addition to geographic expansion, the Society aims to increase the prominence of its events and strengthen relationships with members throughout the country. The plan is to use the new office as a meeting place for discussions on investments, regulation, financial education, and the development of the capital markets.

Attracting New Professionals

The growth strategy also includes training new CFA candidates. The organization runs university programs—such as the Research Challenge, a global equity research competition—and initiatives aimed at integrating women into the financial sector.

One highlight is the Women in Investment Management (YouWIM) program, which selects female university students for an immersive experience in the financial market and seeks to connect them with internship opportunities at banks, asset managers, and other financial institutions.

“We want to bring more women into the financial market,” Correa says.

According to him, the initiative seeks to increase female representation in a sector historically dominated by men while introducing future professionals to the CFA ecosystem during their university years.

Correa emphasizes that the goal is to expand the reach of the certification without compromising the technical rigor that defines the program. Today, only a small fraction of Brazilian financial market professionals hold the designation.

“We’re talking about roughly 1,800 people in a market that may have between 500,000 and 700,000 professionals. It’s an extremely powerful differentiator,” he says.

He also notes that the CFA Program requires approximately 900 hours of study spread across three exam levels, and only a portion of candidates complete the entire process without failing an exam.

Ethics as a Core Value

Although the market often associates the certification with technical investment expertise, Correa says the organization’s primary mission remains promoting the highest ethical standards of the profession.

“Here we’ve talked a lot about valuation, discounted cash flow, and technical skills. But the CFA was founded, to a large extent, on ethics. It’s a recurring subject in every exam and one we reaffirm every year,” he says.

In his view, the Society’s role extends beyond professional education; it also involves participating in public consultations, regulatory debates, and discussions about the future of Brazil’s financial market.

“We want to be the industry’s benchmark and the gold standard for ethics,” he concludes.

Who Is Lucas Dolabela Barcellos Correa?

The current President of CFA Society Brasil, Lucas Dolabela Barcellos Correa, built his career in the financial market before moving into the corporate sector. A graduate of IBMEC, he began his career at Itaú BBA, where he spent several years working in product- and client-related roles. He earned the CFA charter in 2015 and soon afterward joined the organization’s board of directors.

After completing an MBA abroad, he returned to Brazil to launch Horizonte Capital, an investment vehicle focused on acquiring small and medium-sized businesses. He later transitioned to the real economy and currently serves as Chief Financial Officer (CFO) of Dome Serviços Integrados, a logistics company associated with the Port of Açu that specializes in supporting offshore operations for the oil and gas industry.

Correa’s own professional trajectory reflects one of the changes that CFA Society Brasil seeks to communicate to the market: the certification is no longer limited exclusively to investment managers and analysts.

According to him, an increasing number of professionals in the real economy—such as CFOs, corporate finance executives, and specialists in mergers and acquisitions (M&A) and financial planning—are pursuing the program to deepen their technical knowledge and advance their careers.

“More and more people within companies are seeking this knowledge to set themselves apart. Today I’m a CFO, and I still see tremendous value in the CFA,” he says.

The Sentence Without Trial: The Day Three Mexican Financial Institutions Ceased to Exist

| By Marta Rodriguez | 0 Comentarios

On the morning of June 25, 2025, the Mexican financial system discovered that, in certain circumstances, the difference between an accusation and a sentence can be nothing more than a press release. Unbeknownst to anyone at the time, that day would be etched into the history of the country and of finance in the region, while CI Banco, Vector Casa de Bolsa, and Intercam Banco would never again see another day without the shadow of suspicion hanging over them. It was the beginning of the end.

What happened that day was historic for two reasons:

It was the first time the United States used the powers granted under legislation stemming from the fight against fentanyl to act directly against Mexican financial institutions.
Although it was technically not a traditional sanction by the Office of Foreign Assets Control (OFAC), it did impose restrictions on certain transfers and transactions involving the U.S. financial system, which in practice triggered a severe erosion of market confidence.

The fate of the accused institutions had been sealed. There were no handcuffs, raids, or court orders. Nor was there a final ruling from Mexican or U.S. courts. A document issued in Washington by the Financial Crimes Enforcement Network (FinCEN) of the United States Department of the Treasury was enough for three Mexican financial institutions—CI Banco, Intercam, and Vector Casa de Bolsa—to begin the path toward their disappearance as participants in the national financial system.

The accusation was devastating: facilitating money laundering operations linked to fentanyl trafficking and Mexican criminal organizations. The tool used was equally significant. For the first time, Washington invoked powers granted under legislation specifically designed to combat the financing of the synthetic opioid trade.

From that moment on, it no longer mattered whether judicial proceedings had been initiated, whether additional evidence would emerge, or whether the institutions would be able to defend themselves. In financial markets, the presumption of innocence rarely survives the loss of access to the U.S. financial system.

Clients began withdrawing funds, international correspondent banks reviewed business relationships, and counterparties, trustees, investment funds, and service providers activated contingency protocols. The question was no longer whether the three institutions could prove their innocence, but how long they could continue operating under suspicion.

The Mexican government responded by demanding evidence and defending the strength of the national financial system. Authorities insisted there was insufficient evidence to substantiate illicit activities and opted for temporary interventions aimed at preserving stability and protecting clients. But the market had already delivered its own verdict.

Because in global finance, there are institutions too big to fail, but there are also institutions too heavily accused to survive.

One year later, the cases of Vector, Intercam, and CI Banco left an uncomfortable lesson for Mexico and for any economy integrated into the international financial system: the U.S. dollar is not only the world’s reserve currency; it is also a foreign policy instrument and a mechanism of financial discipline capable of crossing borders without the need for judicial rulings.

This story is not merely about three Mexican institutions. It is about the immense power the United States continues to wield over the global financial infrastructure and how, under certain circumstances, an accusation issued from Washington can have deeper and faster consequences than any judicial decision handed down in another country. One year ago, the Department of the Treasury made the accusation, while the market, clients, and counterparties did the rest.

Financial Death

On June 25, 2025, the United States Department of the Treasury reminded the world of a truth that financial markets have known for decades but that is rarely seen so starkly: in global finance, it is possible to survive a bad investment, a liquidity crisis, or even a recession, but it is virtually impossible to survive being shut out of the U.S. financial system.

With the designation by the Financial Crimes Enforcement Network (FinCEN) of Mexico’s CI Banco, Intercam, and Vector Casa de Bolsa as institutions of “primary money laundering concern” in connection with fentanyl trafficking and Mexican criminal organizations, the new powers derived from U.S. legislation specifically designed to combat the financing of the fentanyl trade were officially deployed against financial-sector companies in a partner country.

Formally, it was not a judicial sentence. In practice, it was. Because within the international financial system there exists an unwritten but unmistakable concept: financial death. With the Department of the Treasury’s announcement alone, the fate of CI Banco, Vector, and Intercam had been sealed, and their disappearance became only a matter of time.

Financial death does not mean the immediate closure of offices or the automatic revocation of a banking license. Nor does it require a liquidation order or a final judicial ruling. Instead, it occurs when counterparties stop returning calls, correspondent banks terminate relationships, clients begin withdrawing funds, and the rest of the market decides that the reputational cost of continuing to do business has become too high.

That is exactly what happened. Within hours, questions began coming from institutional clients, trust settlors, exporting companies, fund managers, and corporate treasuries. The issue was not whether the allegations were true or false. The issue was much simpler: what happens if tomorrow this institution loses access to U.S. dollars?

In a globalized financial system, that question alone is enough to trigger a stampede. Mexican authorities responded by defending the strength of the national financial system and demanding that Washington provide concrete evidence supporting its allegations. The official response was clear: if crimes had been committed, Mexico would act, but the accusations had to be supported by verifiable evidence.

However, financial markets rarely wait for the courts. The financial business operates on an extremely scarce commodity: trust.

Trust has one uncomfortable characteristic: it takes decades to build and only hours to disappear. The administrative intervention of the three institutions by Mexican authorities sought to contain systemic risk and protect depositors and investors, while confirming something many market participants understood from the very first day: the problem was no longer legal, but reputational and operational.

Over the following months, there was a slow but steady migration of clients, assets, and business from the accused institutions to other firms in the sector. Deposits declined, business relationships deteriorated, and the dismantling of much of the business the three entities had built over decades began.

The question that remains one year later is an uncomfortable one for Mexico: Can a foreign government effectively destroy Mexican financial institutions without a judgment issued by the country’s own courts? The answer over the past year appears to be yes.

Not because the United States has jurisdiction over Mexico, but because it possesses something arguably even more powerful: control over the world’s reserve currency, the international payments system, and access to the U.S. dollar. For many institutions, being shut out of the U.S. financial system is equivalent to losing access to oxygen.

The paradox is evident. For decades, financial globalization was described as a process of integration and efficiency. The cases of Vector, Intercam, and CI Banco revealed the other side of the phenomenon: the concentration of global financial power in a handful of critical infrastructures controlled directly or indirectly by the United States.

SWIFT, correspondent banking, dollar clearing, and international markets form a network whose main gateway remains in Washington and New York. And whoever controls the gateway largely controls who gets in and who stays out. That is why this case will likely be studied for years in schools of economics, law, and international relations.

Not only because of the money laundering allegations, and not only because of the fight against fentanyl, but because it demonstrated in practical terms the geopolitical reach of the U.S. dollar in the twenty-first century. One year ago, the Department of the Treasury issued an accusation, but the market delivered the sentence—and that may well be the most important lesson of the entire story.

Vanguard Expands Juan Hernández’s Leadership Role Across the Americas

| By Marta Rodriguez | 0 Comentarios

Photo courtesyJuan Hernández, Head of the Americas (Ex-U.S.) at Vanguard

Five years after taking charge of Vanguard’s Latin American operations, Juan Hernández continues to strengthen his profile within the firm. Vanguard has now announced an expansion of his leadership responsibilities, elevating him from Head of Latin America to Head of the Americas (Ex-U.S.).

In this role, the firm said in a statement, Hernández will oversee operations in both Canada and Latin America, continuing to cover the region from Vanguard’s offices in Mexico City.

According to the company, the appointment builds on a career that has steadily gained prominence within the organization. Hernández joined Vanguard in 2017 to lead the firm’s business in Mexico and went on to assume responsibility for the broader Latin American business in 2021. During this period, Vanguard noted, he has strengthened the firm’s presence and relationships with institutional investors, intermediaries and clients across the region.

In addition, earlier this year Hernández took on responsibilities related to the distribution of UCITS products, assuming the role of Head of Global Distribution Outside Europe for these vehicles. “The confidence placed in him is nothing new,” Vanguard emphasized, noting that UCITS represent “one of the asset manager’s key global growth initiatives.”

Now, with the Canadian market also under his supervision, Hernández becomes one of the most influential figures within Vanguard’s international leadership structure. The move reflects the growing importance of the Americas to the asset manager, one of the largest investment firms in the world.

“It remains to be seen whether this commitment to an integrated continental vision will be accompanied by new expansion plans and a deeper engagement with investors across the region,” Vanguard added in its press release.