Fixed Income: Navigating Between Tailwinds and Geopolitical and Commercial Uncertainty

  |   For  |  0 Comentarios

fixed income geopolitical uncertainty
Pixabay CC0 Public Domain

“The excess return of 2024 as a whole shows the highest performance in high beta segments, meaning the riskiest market segments that offer greater return potential, and in euro markets,” explains the Amundi Investment Institute in its latest report.

According to the asset manager’s outlook for this year, corporate fundamentals remain strong, as companies have taken advantage of the post-pandemic period of ultra-low interest rates and economic recovery to improve their credit profiles, while technical conditions remain favorable.

“Structurally higher interest rates should support demand for corporate credit from investors seeking yields before central banks cut rates further. Official rate cuts could help support bond flows from money markets into longer-duration interest rate products to secure higher income. Net supply remains limited, as issuance is largely allocated to refinancing. Lastly, the buoyant dynamics of CLOs are also indirectly fueling demand for high-yield bonds, contributing to overall demand support in this market segment,” the report states.

Factors Driving the Fixed Income Market

According to Marco Giordano, Investment Director at Wellington Management, fixed income markets continue to rebound, while concerns about the potential negative impact on economic growth from global tariffs, turmoil in the U.S. federal government, and growing uncertainty are affecting overall sentiment.

“Credit spreads widened, with most sectors showing lower returns compared to equivalent government bonds,” Giordano highlights.

According to his analysis, four factors are currently moving the market: the Trump Administration’s tariff policy, Germany’s new political landscape, and European fiscal stimulus.

For the Wellington Management expert, one of the most significant implications of this scenario is that Europe is experiencing a major boost.

“Germany’s commitment to increasing its debt-to-GDP ratio to 20% has shaken markets, with bond yields surging across the eurozone. The 10-year German bund yield recorded its largest single-day increase since March 1990, rising 25 basis points. The spread between 10-year Italian bonds and German bunds fell below 100 basis points. Outside the eurozone, bond yields rose slightly in Australia, New Zealand, and Japan,” notes Giordano.

Meanwhile, in the U.S. fixed income market, yields continue to trend downward.

“At the end of February, long-term U.S. Treasury bonds with 7-10 year maturities had risen 3.5%, while the S&P 500 index had gained only 1.4%. In fact, so far this year, U.S. bonds have outperformed U.S. equities. As surprising as it may seem, there could be a perfectly valid reason for this relative performance. Naturally, recent U.S. economic data has tended to disappoint, which may explain why the 10-year U.S. Treasury yield has fallen from 4.57% to 4.11% year to date,” explains Yves Bonzon, Chief Investment Officer (CIO) at Swiss private bank Julius Baer.

IG, CoCos, Frontier Bonds, and Corporate Credit: Asset Managers’ Investment Proposals

According to Benoit Anne, Managing Director of the Strategy and Insights Group at MFS Investment Management, euro credit valuations appear attractive from a long-term perspective.

“Given the current appealing level of euro-denominated investment-grade bond yields, the expected return outlook has improved considerably. Historically, there has been a strong relationship between initial yields like the current ones and solid future returns,” explains Anne.

He supports this with a clear example:

“With an initial **3.40% yield for euro IG bonds, the average annualized return for the following five years (using a range of ±30 basis points) is 4.40%—a hypothetically attractive return, with a range of 3.09% to 5.88%. In comparison, the 20-year annualized return for euro IG bonds stands at 2.72%, suggesting that, given current yields, this asset class is well-positioned to potentially offer above-average returns in the coming years.”

Crédit Mutuel AM, on the other hand, is focusing on the subordinated debt market.

According to their assessment, this type of asset posted positive returns of 0.6% to 1%, with a particularly dynamic primary market in AT1 CoCos.

“European banks took advantage of favorable conditions to prefinance upcoming issuances, with sustained demand. Additionally, bank earnings were solid, balance sheets became increasingly robust, and there was ongoing interest in mergers and acquisitions,” say Paul Gurzal, Co-Head of Fixed Income, and Jérémie Boudinet, Head of Financial and Subordinated Debt at Crédit Mutuel AM.

According to their analysis, the market maintained the trend of previous months, with positive inflows, strong primary market dynamics, and continued risk appetite, despite more mixed signals at the end of the month.

“The primary market was particularly dynamic for AT1 CoCos, with €11.6 billion issued during the month, which we estimate will account for 25%-30% of all 2025 issuances, as European banks took advantage of favorable market conditions to prefinance their upcoming 2025 calls,” add Gurzal and Boudinet.

The third fixed income investment idea comes from Kevin Daly, Chief Investment Officer and Emerging Markets Debt Expert at Aberdeen.

“After a strong 2024, we remain cautiously optimistic about the outlook for frontier bonds. Overall, fundamentals have improved, and there is still ample upside potential in terms of returns. Duration risk is low, which could help mitigate the impact of rising U.S. Treasury yields. Additionally, default risk—by all indicators—has also declined over the past year, driven by debt restructurings and improved maturity profiles. Risks related to the new Trump 2.0 administration are valid, but we believe the situation is more nuanced than generally discussed,” says Daly.

Lastly, Amundi believes that investment opportunities will remain linked to the pursuit of yields, which will continue to be a priority for most investors.

“We believe credit spread compression may have reached its peak in this cycle. After two consecutive strong years, credit spreads for both investment-grade and high-yield bonds are undeniably tight, but yields remain attractive compared to long-term trends. For this reason, we believe corporate bonds should continue to be an attractive income-generating option in 2025,” the asset manager states in its latest report.

Santander Hires Peter Huber as New Global Head of Insurance

  |   For  |  0 Comentarios

Santander Peter Huber insurance
Photo courtesy

Banco Santander strengthens its insurance business with the appointment of Peter Huber as its new global head, replacing Armando Baquero, who has decided to leave the bank to pursue new professional projects. Huber, who has over 20 years of experience in the sector, joins from the insurtech Wefox, where he held the position of director of insurance.

In his new role at Santander, Huber will report to Javier García Carranza, global head of Wealth Management and Insurance. According to Bloomberg, he will also join Santander’s Board of Directors as vice chairman, while Jaime Rodríguez Andrade will be appointed CEO of the holding company.

According to the financial news agency, Santander has also announced that it will split its Insurance division into two: Life and Pensions, and Protection Insurance, with the former being led by Jaime Rodríguez Andrade, who will report to Huber.

Startups Led by a Solo Founder Have More Than Doubled, But Are Less Successful in Raising Venture Capital

  |   For  |  0 Comentarios

solo-founder startups venture capital
Pixabay CC0 Public Domain

Startups led by a solo founder have more than doubled in the past decade, while new companies with three, four, or five founders have become less common. However, solo founders are less likely to secure venture capital funding. At the same time, equal equity splits are becoming more common among founding teams, and founder ownership decreases more sharply in the early stages of financing.

These are the main takeaways from the Founder Ownership Report 2025 by Carta, a software and services platform for private equity firms. The report, based on the analysis of anonymized data from over 45,000 startups founded between 2015 and 2024, sheds new light on how startup ownership works across the U.S. entrepreneurial ecosystem.

“How should a company spend this valuable resource? We hope this data helps founding teams and their investors think through this question at every stage of the financing journey,” write the report’s authors, Peter Walker and Kevin Dowd, in its introduction.

Key Highlights

In recent years, the percentage of all Carta-tracked startups with a solo founder has been rising, with the trend accelerating in 2024. About 35% of all new startups last year had a single founder, compared to 29% in 2023 and 17% in 2017.

Conversely, larger founding teams are becoming less frequent. In 2024, only 16% of all new startups had three founders, 7% had four, and 4% had five—each representing the lowest levels in the past ten years.

These shifts in founding team sizes have continued steadily, even as the broader venture capital market has experienced considerable volatility, the report notes.

The report also highlights that solo founders are less likely to receive venture capital funding compared to larger founding teams. While solo founders made up 35% of all startups launched in 2024, they accounted for just 17% of those that also closed a VC round before the end of the year.

On the other hand, startups with three, four, or five founders tend to outperform expectations. Roughly 11% of startups founded last year that had already raised VC funding had five founders.

“While the data doesn’t show the exact reasons behind this observed preference for co-founders, we can speculate that investors seek both a safety net (in case a lead founder exits the company) and complementary skill sets (perhaps a commercial founder paired with a technical one) to reduce the risk of early-stage bets,” the report explains.

Another important point highlighted by Carta’s research is the growing trend toward equal equity splits. While most founding teams still choose to split equity unequally, an increasing number of co-founders are opting for equal division. The data shows that in 2024, 45.9% of two-person founding teams split their equity equally, up from 31.5% in 2015.

The report also underscores that founder ownership declines the most in the earliest stages: after raising an initial funding round, the average founding team collectively holds 56.2% of their startup’s equity. By Series A, that figure drops to 36.1%, and to 23% by Series B.

“In some cases, the founding team consists of just one person—a solo entrepreneur eager to do it all. In others, it includes multiple co-founders looking to leverage their complementary skills to win in the market,” the report states. “From the beginning, deciding how to split equity among co-founders, investors, employees, and other stakeholders is a strategic choice, and it remains critical as the company grows,” it adds.

The report also analyzes startups across different industries. One finding: in general, software-focused startups tend to have smaller founding teams compared to startups in research-intensive sectors that produce physical products.

Carta, with 12 years of experience in private equity and five offices across different continents, supports over 45,000 venture-backed companies and 2.4 million security holders, helping them manage more than $3 trillion in equity.

 

DWS, BlackRock, and Amundi Lead the European ETF Market

  |   For  |  0 Comentarios

DWS BlackRock Amundi ETF market
Pixabay CC0 Public Domain

DWS, BlackRock, Amundi, JP Morgan AM, and State Street Global dominate the top spots in the second edition of the ETF Issuer Power Rankings, compiled by ETF Stream. This study, covering asset managers with a total of $2.23 trillion in assets under management, employs a proprietary methodology based on the analysis of four key parameters over 12 months: asset flows, revenue, activity (number of ETP launches and firsts in Europe), and thematic presence.

As shown in the final ranking, DWS retained the top position, adopting a more measured approach to new launches while benefiting from $39 billion in inflows, up from $22.5 billion in 2023. Much of this momentum came from higher-fee, non-core exposures, including the Xtrackers S&P 500 Equal Weight UCITS ETF (XDEW).

BlackRock maintained second place after a prolific year of product launches, adding 76 new strategies. Meanwhile, Amundi, in third place, scored highest in “thematic presence,” ranking among the top three in several product categories and among the top five issuers with inflows across all categories except thematic, where it recorded $805 million in outflows. Notably, the study highlights that Amundi jumped from eighth to second place year-over-year in “activity” after launching 37 new products. It also improved its ranking in “asset flows”, with inflows more than doubling from $12.1 billion in 2023 to $30.4 billion in 2024.

The year 2024 was a turning point for active ETFs, with JP Morgan Asset Management taking center stage. By the end of the year, its market share in this $55.5 billion segment exceeded 56%. According to the study’s publisher, the emerging history of active ETFs in Europe has seen established asset managers such as Janus Henderson, Robeco, and American Century Investments enter the UCITS ETF space. With Jupiter Asset Management joining the market earlier this year—and Schroders, Nordea, and Dimensional Fund Advisors exploring distribution opportunities—the growth of active ETFs seems poised to drive further product innovation.

On the other end of the spectrum, Legal & General Investment Management and Ossiam dropped more than 10 places year-over-year, as both firms slowed their pace of new launches and experienced outflows exceeding $2 billion.

“Fund selectors tend to favor a few issuers with well-established brands that operate at a significant scale. The ETF Issuer Power Rankings is designed to highlight the dynamic nature of the European ETF market and the asset managers bringing timely product innovation,” said Jamie Gordon, editor of ETF Stream.

Meanwhile, Pawel Janus, co-founder and head of analysis at ETFbook, commented: “The European ETF market has grown significantly, with rising assets, new issuers entering the market, product launches, and increasing adoption from a diverse buy-side client base. In response to this expansion, ETF issuers must continuously evolve, specialize, and showcase their strongest capabilities. The ETF Issuer Power Rankings provides a valuable metric for the buy-side community in the ever-evolving European ETF market.”

Carlos Berastain Joins Allfunds as New Global Head of Investor Relations

  |   For  |  0 Comentarios

Carlos Berastain Allfunds
Photo courtesy

Allfunds has announced the appointment of Carlos Berastain as its new Global Head of Investor Relations, replacing Silvia Ríos, who is stepping down to pursue new opportunities.

Berastain, who brings over 25 years of experience in the industry, joins Allfunds from Santander, where he has served as Head of Investor Relations since 2017.

According to the company, Ríos will remain at Allfunds for a few months to ensure a smooth and orderly transition. During this period, she will work closely with Carlos Berastain, who will officially take on his new role at Allfunds on March 17, 2025.

“We are grateful for Silvia’s outstanding work, dedication, and contributions over the years, and we wish her success in her next career steps. We look forward to welcoming Carlos as he leads our investor relations initiatives and strengthens communication with our shareholders and the broader financial community,” said Álvaro Perera, CFO of Allfunds.

Allfunds highlighted Silvia Ríos’ pivotal role in the company, particularly in its IPO and strategic positioning within the financial community over the past four years. She was recently recognized as one of the top Investor Relations Directors at the Investor Relations Society Awards 2024.

The SEC Refocuses on Regulation of U.S. Treasury Markets and Sends a New Signal to the Crypto Industry

  |   For  |  0 Comentarios

SEC regulation crypto
Wikimedia Commons

Mark Uyeda, acting chairman of the SEC, centered his speech at the Annual Conference of the Institute of International Bankers on U.S. Treasury securities, amid market turbulence and investors seeking refuge in safe-haven assets. He also suggested that the regulator might withdraw the requirement for crypto companies to register as securities brokers.

«At a time when debt service costs are surpassing both national defense and healthcare spending, we cannot afford to rush into changes that might deter foreign investors from participating in U.S. Treasury markets. On the contrary, new regulations must be properly implemented, and any operational issues must be addressed,» Uyeda stated.

Uyeda revealed that he has instructed SEC staff to explore “options to abandon” parts of the proposed regulatory changes that would extend alternative trading system (ATS) regulations to include crypto companies. He recalled that the rule was originally designed in 2020, under former SEC chairman Jay Clayton, to establish clearer guidelines for alternative trading systems. However, the guidance was primarily intended to impact U.S. Treasury market participants.

Uyeda noted that when the rule’s implementation fell under former SEC chairman Gary Gensler, it took a “very different direction”, expanding beyond ATS platforms.

«Instead of focusing on specific issues related to ATSs for government securities, in 2022, a new version of the rule was proposed that would redefine the regulatory definition of a securities broker,» Uyeda remarked.

Following Gensler’s resignation, the SEC has taken a more relaxed approach toward the crypto industry.

«It was a mistake for the Commission to link the regulation of Treasury markets with a heavy-handed attempt to crack down on the cryptocurrency market,» he added.

With all this, in his speech, the acting chairman emphasized that the U.S. Treasury securities market is a “fundamental piece of the global financial system” and pointed out that foreign investors hold approximately one-third of the U.S. government’s marketable debt as of June 2023.

Uyeda noted that the United States uses these capital markets as an issuer of securities “to finance deficit spending,” and that being “the deepest and most liquid market in the world, U.S. Treasury securities serve as an investment, collateral, and safe haven in times of market turmoil.” He also emphasized that capital market regulation remains a priority and that he will continue working with foreign regulators to maintain global cooperation.

Concluding his speech, Uyeda reaffirmed that the SEC will continue engaging with international financial institutions as Treasury markets evolve.

More Than 72% of Financial Advisors Receive Compensation Through Fee-Based Models

  |   For  |  0 Comentarios

Financial advisors commission based on assets
Pixabay CC0 Public Domain

For financial advisors, the fee-based model remains the most popular structure, accounting for 72.4% of their compensation. By 2026, it is estimated that nearly 78% of the wealth management industry will operate under this model, representing an increase of more than five percentage points compared to 2024.

These figures come from the latest Cerulli Edge: The Americas Asset and Wealth Management Edition report. The shift toward fee-based services is primarily due to the transition from sales commissions to asset-based commissions in brokerage and distribution (B/D) channels, according to the latest report from the Boston-based global consulting firm.

In contrast, commission-based revenue has declined to just 23% of an advisor’s average earnings, and this trend is expected to continue in the coming years.

While many clients prefer commission-based pricing, advisors offer alternative structures to attract a broad range of clients across different investment asset levels, the report added.

In an interview with Funds Society in late January 2025, Aitor Jauregui, Head of Latin America at BlackRock, stated that this model was gaining traction in Latin America and the U.S. Offshore market, driven by technology.

“In the U.S. domestic market, the commission-based model accounts for 53% of managed assets; in Europe, 42%. In Latin America, it represents only 20%, but this percentage breaks down to 35% for U.S. Offshore and just around 12% for Latin America,” he noted.

According to Jauregui, the key takeaway is that “in a business growing at a double-digit rate, the fee-based segment is also expanding at a double-digit pace. In U.S. Offshore, this market has grown from 20% to the current 35%, and much of this transition from brokerage to the fee-based model can be attributed to the increasing role of model portfolios.

“While asset-based fees are on the rise, they are not suitable for every situation,” said Andrew Blake, associate director at Cerulli. “Alternative fee structures, such as annual or hourly fees, can provide greater flexibility in customer service and a competitive advantage for firms operating under this business model,” he added.

Alternative fee structures and the ability for clients to receive a variety of planning services in one place set advisors apart and appeal to investors, according to the report.

More than one in five advisors (21%) reported charging for financial plans and deriving a portion of their income from associated fees, making this the most common non-traditional fee arrangement. On the other hand, only 3% of brokerage firm advisors reported earning income from financial plan fees, but this figure rises to 38% in the insurance B/D channel and 35% in the independent B/D channel.

As demand for comprehensive financial planning grows, Cerulli recommends that advisory firms take the time to determine how they want to charge clients for the various services they offer, beyond investment management.

“There is a gap between advisory firms that include financial planning in their fees and those that charge separately,” Blake stated. “Advisors need to be clear and concise about pricing structures and options for engaging with this clientele, who may require clarification on what an advisory relationship entails. Open and honest conversations about service costs will build trust and strengthen relationships between clients and advisors while attracting prospective clients willing to pay for financial advice,” he concluded.

IMpower FundForum 2025: The Premier Gathering for Asset and Wealth Management

  |   For  |  0 Comentarios

Impower FundForum 2025
Pixabay CC0 Public Domain

Once again, Monaco will become the meeting hub for asset and wealth management leaders during IMpower FundForum, taking place from June 23 to 25, 2025. As the only specialized event dedicated to investment managers across active, passive, and private markets—with a focus on private wealth management—it is a must-attend for senior executives in the industry.

Join 1,400+ senior leaders, including 500+ asset managers, 400+ fund selectors, and asset owners, for three dynamic days of networking and collaboration. Year after year, the event is the preferred choice for CEOs, CIOs, COOs, and partners from leading asset managers and GPs worldwide. With a 35-year track record, it delivers unparalleled industry insights.

With the highest concentration of fund buyers and LPs from private banking and wealth management, this is the only event where you can connect with over 500 influential professionals. According to the event organizers, “One-third of attendees are fund selectors and asset owners.” Stay ahead in the asset and wealth management community at IMpower FundForum, the ultimate event for meaningful connections and valuable industry insights.

Fund selectors attend for free, while asset and wealth managers benefit from discounted rates. Register now and save 10% with code: FKN3972FUNDSOC.

For more information, visit the website or contact us at gf-registrations@informa.com or +44 (0) 20 8052 2013.

Bolton Global Adds Víctor Hernández as a Partner and Launches the NewEra Wealth Brand

  |   For  |  0 Comentarios

Victor Hernandez Newera Wealth
LinkedIn

Hernández, former executive director at J.P. Morgan Wealth Management, serves high-net-worth and ultra-high-net-worth families, as well as entrepreneurs, corporate executives, and institutional investors.

Through NewEra Wealth, Hernández is creating a highly personalized, family office-style experience that offers clients exclusive access to carefully selected private investment opportunities while leveraging cutting-edge technology to enhance outcomes, Bolton stated in a press release.

“NewEra Wealth is built on the principles of integrity, independence, and innovation. By partnering with Bolton Global Capital, we can provide our clients with top-tier resources and a truly independent platform that allows us to focus solely on their best interests,” said Hernández.

“Partnering with Bolton Global allows me to focus on gathering and managing assets without the high costs, risks, and operational complexities of running an RIA. They handle those responsibilities in a more cost-effective way,” he added.

As part of Bolton Global Capital‘s network of independent advisors, NewEra Wealth will offer comprehensive wealth strategies tailored to each client’s unique financial situation, according to the firm’s statement. The company’s offerings include investment management, corporate and retirement cash management, capital markets advisory, and sophisticated estate planning solutions.

“Víctor has an outstanding track record of delivering exceptional value to his clients. His leadership and expertise make him an ideal partner for Bolton Global Capital, and we are excited to support NewEra Wealth in redefining the client experience in independent advisory services,” said Steve Preskenis, CEO of Bolton Global Capital.

With a degree in finance from Bentley University, Hernández most recently ran his own registered investment advisory firm, has over 20 years of experience, and brings extensive knowledge in investment management. During his tenure at J.P. Morgan, he managed over $600 million in assets, according to Bolton. He also holds an international MBA from IE Business School in Madrid, Spain.

His achievements have been recognized by the industry, earning him multiple Forbes rankings as the top wealth advisor in the state, recognition as one of the best next-generation wealth advisors in the U.S., and features in Fortune magazine.

Insigneo Expands Its New York Team and Adds Jason Jimenez as Senior Associate

  |   For  |  0 Comentarios

Insigneo New York team expansion
LinkedIn

Insigneo continues expanding its New York team with the addition of Jason Jimenez as Senior Investment Portfolio Associate, as announced on LinkedIn by Alfredo Maldonado, managing director and market head of the firm in that city and the northeastern United States.

“Welcome, Jason Jimenez, to our expanding Insigneo team in NYC!” wrote Maldonado. He added that Jimenez will bring “his exceptional talent to our team. At Insigneo, our goal is to strengthen our franchise by welcoming top-tier professionals.”

Jimenez held the position of Senior Associate Director of Wealth Strategy at UBS for less than a year and previously spent nearly five years at J.P. Morgan Chase as a Client Service Associate. He is a graduate of the Tandon School of Engineering at New York University.