The 370-Billion-Euro Question: Why Do Women Invest Less and How Can It Be Changed?

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Across Europe, women are less likely than men to participate in financial markets, leading to what experts call the gender investment gap. The numbers are striking: on average, women own 30% to 40% less in investments and private pensions than men, putting them at a long-term financial disadvantage (OECD, 2023).

While structural factors such as the gender pay gap—which stands at 12.7% in the EU (European Commission, 2024)—and career interruptions due to caregiving responsibilities contribute to this disparity, another key factor is confidence and perception. Many women feel that investing “is not for them,” often due to financial jargon, a natural aversion to risk, and a lack of female role models in finance.

However, the reality is clear: without investing, women risk greater financial insecurity and accumulate less wealth over time. Beyond personal finances, the gender investment gap is an economic issue, costing Europe an estimated €370 billion* annually in lost potential.

Why Aren’t Women Investing Enough?

Despite increasing financial independence, women across Europe are less likely to invest in stocks, funds, and pensions than men. A 2024 ING survey found that only 18% of women invest regularly, compared to 31% of men. In Germany, the disparity is even more pronounced, with only 30% of women actively investing their savings, a significantly lower rate than their male counterparts (DWS, 2024).

In the UK alone, the gender investment gap is estimated at €687 billion (Portfolio Adviser, 2024), with a similar trend across the EU. Women are more likely to hold their savings in cash, missing out on the long-term growth potential of financial markets.

One of the main reasons? Fear of risk. The European Banking Authority (EBA) reports that women are far more likely to keep their money in cash savings accounts, even as inflation erodes their value, rather than investing in diversified portfolios that offer higher growth potential (EBA, 2023).

Another factor is the representation of finance in media and culture. A 2025 study from King’s Business School in London analyzed 12 finance-related movies and 4 television series and found that 71% of male protagonists held senior executive roles, while none of the female characters did (Baeckstrom et al., 2025). More often, women were portrayed as wives or assistants rather than investors or decision-makers.

From Monopoly to the Markets

The fight for women’s financial empowerment is not new. Consider Lizzie Magie, the often-overlooked inventor whose game later became Monopoly. In 1904, she designed The Landlord’s Game to highlight wealth inequality and promote economic education. Yet, years later, Charles Darrow adapted and commercialized her idea, taking full credit and reaping financial rewards (Women’s History Museum, 2024). Her story reflects a broader issue—women’s contributions in finance are often undervalued.

The Cost of Not Investing

Women’s reluctance to invest is not just a financial literacy issue—it is a direct threat to their long-term financial security. On average, women live five years longer than men (Eurostat, 2024), meaning they need larger retirement savings. However, they are more likely to invest in “safe” but low-yield products, such as low-interest savings accounts or government bonds, rather than diversified stock portfolios that generate long-term growth.

The risk of staying on the sidelines is clear: if a woman holds €50,000 in cash for 30 years, inflation could cut its purchasing power in half. Meanwhile, a diversified stock portfolio with an average annual return of 7% could grow to €380,000 over the same period.

Breaking the Cycle: How to Close the Gender Investment Gap

To ensure that women are better represented in financial markets, we need structural changes, cultural shifts, and targeted initiatives to make investing more accessible and inclusive. The financial education plays a crucial role, with programs that simplify investment strategies and address women’s specific concerns.

The representation in media is key: currently, only 18% of financial experts quoted in the press are women, reinforcing the outdated perception that investing is a male-dominated field (Baeckstrom et al., 2025). Normalizing women as financial experts and investors can help dismantle stereotypes and encourage participation.

Additionally, more financial institutions recognize the need for tailored investment products. An example is Female Invest in Denmark, which offers investment courses and community-based support (Female Invest, 2024).

The workplace pension policies must evolve to reflect the reality that women take more career breaks than men. Sweden, for example, has introduced state-matching pension contributions to help women save more for retirement (Pensions Europe, 2024).

By addressing these systemic barriers, we can create an environment where women have both the opportunity and the confidence to invest, ensuring their financial security and independence for future generations.

If history has taught us anything, it’s that when women take control of their finances, they change the game—just as Lizzie Magie did with Monopoly.

This time, let’s make sure they receive both the credit and the financial rewards. By breaking down barriers, increasing confidence, and making investing more accessible, we can help more women build a strong and lasting financial future.

On International Women’s Day, we envision a future where every woman feels empowered to invest, grow her wealth, and take control of her financial destiny. Because when women invest in themselves, they invest in a stronger and more prosperous society for all.

Opinion Piece by Britta Borneff, Chief Marketing Officer (CMO) of the Association of the Luxembourg Fund Industry (ALFI).

Note: The European Investment Bank (EIB) estimates that the gender investment gap results in an annual economic loss of approximately €370 billion, equivalent to 2.8% of the EU’s GDP (2016). This figure highlights the severe economic consequences of gender inequalities in the financial sector.

To Seek Financial Advice, Women Rely on Recommendations From Other Women

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72% of female clients of U.S. financial advisors specifically sought recommendations from other women, and 64% of advisors understand that their ability to provide personalized and tailored financial advice is one of the main reasons clients choose to work with them.

These findings come from a new survey of 405 financial advisors from the financial services firm Edward Jones, conducted in collaboration with Morning Consult between August 22 and September 6, 2024.

“Considering that two-thirds of American women see themselves as the Chief Financial Officers of their families, it’s clear that women are taking an increasingly important role in their financial future, and there is a growing opportunity for financial advisors to serve them,” the report states.

According to the Edward Jones study, when looking for a financial advisor, women turn to their networks. To establish a genuine connection with clients, financial advisors report that they focus primarily on being transparent and honest about outcomes, fees, and services (72%), actively listening to their needs and concerns (68%), and regularly following up to track progress and involve them in every step of the decision-making process (66%).

“Authenticity and transparency are essential for building meaningful client relationships. All investors value a financial advisor who takes the time to understand their unique financial needs,” said Jasmine Butler, a financial advisor at Edward Jones.

When it comes to converting women investors into clients, financial advisors highlight three key factors: providing clear communication and education (65%), being empathetic toward their financial situations (64%), and maintaining regular and transparent communication (63%).

According to the surveyed financial advisors, more than three-quarters of female clients prioritize long-term investing over short-term investing (77%). Their top financial goals include contributing to their retirement plan (63%), working toward financial independence (61%), and building personal retirement savings (56%).

Global Dividend Payouts Reach Record $1.75 Trillion in 2024

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Global dividend payouts reached a record $1.75 trillion in 2024, representing underlying growth of 6.6%, according to the latest Janus Henderson Global Dividend Index. The asset manager explains that, at a general rate, growth was 5.2%, driven by lower special dividends and the strength of the dollar.

The year’s results slightly exceeded Janus Henderson’s forecast of $1.73 trillion, mainly due to a better-than-expected fourth quarter in the U.S. and Japan. In Q4, dividend payouts increased by 7.3% on an underlying basis.

According to their assessment, overall growth was strong across Europe, the U.S., and Japan throughout the year. Some key emerging markets, such as India, and Asian markets like Singapore and South Korea, also recorded decent growth. In 17 of the 49 countries included in the index, dividend payouts hit record levels, including some of the largest distributing nations like the U.S., Canada, France, Japan, and China.

When analyzing the source of this growth, the Janus Henderson report highlights that several major companies distributing dividends for the first time had a disproportionate impact.

“The largest payouts came from Meta and Alphabet in the U.S. and Alibaba in China. Together, these three companies distributed $15.1 billion, representing 1.3% of total dividends or one-fifth of global dividend growth in 2024,” the report states.

Another key finding is that 88% of companies either increased or maintained their payouts globally, while the median dividend growth—or typical growth rate—stood at 6.7%.

By sector, nearly half of the dividend increase in 2024 came from the financial sector, primarily banks, which saw underlying dividend growth of 12.5%.

According to Janus Henderson, dividend growth in the media sector was also strong, doubling on an underlying basis, largely due to payouts from Meta and Alphabet. However, the increase was broad-based, with double-digit growth in telecommunications, construction, insurance, durable consumer goods, and leisure.

In contrast, mining and transportation were the worst-performing sectors, paying a combined $26 billion less than in 2023.

The report also highlights that, for the second consecutive year, Microsoft was by far the world’s largest dividend payer. Meanwhile, Exxon, which expanded its portfolio with the acquisition of Pioneer Resources, climbed to second place—a position it hadn’t held since 2016.

For the year ahead, Janus Henderson expects dividends to grow by 5% on a general basis, pushing total payouts to a record $1.83 trillion. Underlying growth is projected to be closer to 5.1% for the full year, as the strong U.S. dollar against multiple currencies is expected to slow overall growth.

Janus Henderson’s Assessment of the Index Data

Commenting on these figures, Jane Shoemake, portfolio manager at the Global Equity Income team of Janus Henderson, highlights that several of the world’s most valuable companies—particularly those rooted in the U.S. tech sector—are now starting to distribute dividends. This contradicts previous assumptions that these firms would avoid returning capital to shareholders through dividends.

“In doing so, they are following the path of other successful companies before them. As they mature, they start generating cash surpluses that can be returned to investors. These companies are currently providing a significant boost to global dividend growth,” says Shoemake.

2025: An Uncertain Year for the Global Economy

Overall, Shoemake sees 2025 as a potentially uncertain year for the global economy.

“The world economy is expected to continue growing at a reasonable pace, but the risk of tariffs and potential trade wars, along with high public debt levels in many major economies, could lead to greater market volatility in 2025. In fact, fixed-income yields in some markets have risen to levels not seen in years,” she explains.

She also points out that higher interest rates impact investment, slow long-term earnings growth, and increase financing costs, all of which affect corporate profitability.

“That said, the market still expects corporate earnings to increase this year, with consensus forecasts projecting growth above 10%. While this may seem overly optimistic given the current economic and geopolitical challenges, the good news for income-focused investors is that dividends tend to be more resilient than profits throughout the economic cycle.

Companies decide how much to distribute to shareholders, meaning dividend income streams are far less volatile than corporate earnings. For this reason, we expect dividends to reach a new record this year,” concludes Shoemake.

Mexican Financial Analysts Were Wrong: Tariffs Take Effect

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Mexican financial analysts lost their bet. Virtually all of them believed that tariffs would not be imposed. They expected a last-minute announcement from the White House that never came. The most “pessimistic” among them thought that, at worst, there would be selective tariffs lasting only a few weeks. The reality is that today, we have entered uncharted territory.

As of 11:01 PM (Central Mexico Time) and midnight in Washington, D.C., on March 4, 25% tariffs on Mexican and Canadian exports to the United States took effect.

The measure became imminent hours earlier when the White House announced that President Donald Trump would invoke the International Emergency Economic Powers Act (IEEPA) starting at 12:01 AM Tuesday to address what it called an extraordinary threat to U.S. national security, thereby imposing tariffs on its neighbors and trade partners.

Earlier that same Monday afternoon, Trump told reporters that there was “no room” to avoid tariffs on Mexico and Canada, which he had initially imposed on February 3 before pausing them for a month following phone calls with Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau.

Mexican markets have absorbed past periods of volatility linked to the possibility of tariffs, largely ignoring worst-case scenarios that warned of a recession if tariffs lasted beyond a quarter.

That skepticism persisted until the last moment, though expectations are now beginning to shift in line with Mexico’s currency performance. The peso has depreciated in a relatively orderly manner. On Monday, it started at 20.40 per dollar in the interbank market and ended the session at 20.65, a 1.22% drop. However, by midnight in Mexico City, as the tariffs took effect, the peso had fallen further to 20.76 per dollar, marking a 1.76% decline since the start of Monday’s trading.

“The economic impact of the tariffs will depend on their duration. If the 25% general tariffs on Mexican exports to the U.S. remain in place, Mexico’s GDP could contract by 4% in 2025, which would align with a severe recession,” said Gabriela Siller Pagaza, director of analysis at Banco Base.

Yet, Siller had previously dismissed the likelihood of broad tariffs on Mexico: “I don’t think the general tariffs will take effect. At the last minute, Trump will announce a delay. In the highly unlikely event that they do take effect, they won’t last long.”

This sentiment was nearly universal in the Mexican financial sector. A few weeks ago, at a Franklin Templeton conference, Luis Gonzali, co-chief investment officer, suggested that in an extreme scenario, the U.S. might impose selective tariffs on Mexico. However, he warned that if broad tariffs were enacted and lasted several months, the entire macroeconomic outlook for Mexico would need to be revised.

It wasn’t just financial experts who dismissed the possibility of tariffs. Jorge Gordillo Arias, from CI Banco, argued that the economic damage to both nations would be too great for the tariffs to be enforced.

Even a seasoned expert in Mexico-U.S. trade negotiations misjudged the situation. Ildefonso Guajardo, former Mexican Secretary of Economy under President Enrique Peña Nieto and lead negotiator for the USMCA, confidently stated in a television interview over the weekend that there would be no general tariffs on Mexico this Tuesday. Instead, he predicted “specific tariffs” on steel, aluminum, and vehicles outside of existing trade agreements. He, too, was wrong.

Similarly, in a weekend report for investors, BBVA México acknowledged that tariffs could negatively impact Mexico’s economy but deemed the probability of long-term enforcement low.

The reality is that broad 25% tariffs on Mexican and Canadian exports are now in effect. The expectations of Mexican financial analysts did not match reality. Now, the hope is that tariffs won’t last long, but confidence in that assumption is shaken. The biggest concern is that as weeks pass, they may have to revise Mexico’s growth outlook downward, which was already weak at an average of 0.8% for 2025, lower than the 1.3% recorded last year. In the worst-case scenario, Mexico could enter a recession in 2025.

The Peso Falls on the First Day of Tariffs

The Mexican peso immediately reflected heightened trade tensions between Mexico and the U.S.. The currency also reacted negatively to the announcement that President Sheinbaum would wait until Sunday to outline her administration’s response at a public rally in Mexico City’s Zócalo, the country’s main public square.

“The imposition of tariffs has put significant pressure on the Mexican peso, pushing it above 20.9 per dollar, a substantial depreciation in early 2025. This increase of up to 1.5% at the highest point of the trading session reflects the uncertainty surrounding Mexico’s economic and trade outlook—especially considering that more than 80% of Mexico’s exports go to the U.S. A deterioration in the trade relationship between the two countries could have profound consequences for Mexico’s economic development and financial stability,” said Quasar Elizundia, market research strategist at Pepperstone.

Mexico’s Response to Come Sunday

Canada responded immediately, imposing tariffs on U.S. goods worth $107 billion. Meanwhile, President Claudia Sheinbaum has scheduled a public rally on Sunday, March 9, to announce Mexico’s official response. However, she has already hinted that her government will take both tariff and non-tariff measures.

Analysts expect that volatility and uncertainty will persist in the coming days.

There are also rumors of a possible phone call between Sheinbaum and Trump on Thursday to discuss the issue directly, though nothing has been confirmed.

“With the measures imposed on Mexico and Canada, in practice, there is no free trade agreement between the three countries. This creates uncertainty about the future of Mexico’s trade relationship with its northern neighbors if tariffs remain in place for an extended period,” stated Banco Base in a report to investors on Tuesday.

Equities Outperformed Bonds, Treasury Bills, and Inflation in All Countries Over the Last 125 Years

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Financial markets and the industrial landscape have changed enormously since 1900, and these changes can be observed in the evolution of the composition of publicly traded companies in global markets. As depicted by UBS Global Investment in its report Global Investment Returns Yearbook, at the beginning of the 20th century, markets were dominated by railroads, which accounted for 63% of the stock market value in the U.S. and nearly 50% in the U.K.

In fact, nearly 80% of the total value of U.S. publicly traded companies in 1900 came from sectors that are now small or have even disappeared. This percentage stands at 65% in the case of the U.K. Additionally, a large proportion of companies currently listed on the stock market come from sectors that were either small or nonexistent in 1900, now representing 63% of market value in the U.S. and 44% in the U.K. “Some of the largest industries in 2025, such as energy (excluding coal), technology, and healthcare (including pharmaceuticals and biotechnology), were practically absent in 1900. Likewise, the telecommunications and media sectors, at least as we know them today, are also relatively new industries,” the report notes in its conclusions.

Among the key findings of this report, which analyzes historical data from the past 125 years, one standout conclusion is that long-term equity returns have been remarkable. According to the document, equities have outperformed bonds, Treasury bills, and inflation in all countries. An initial investment of 1 dollar in U.S. stocks in 1900 had grown to 107,409 dollars in nominal terms by the end of 2024.

Concentration, Synchronization, and Inflation: Three Clear Warnings

Throughout this historical evolution, the report’s authors have identified concentration as a growing concern. “Although the global equity market was relatively balanced in 1900, the United States now accounts for 64% of global market capitalization, largely due to the superior performance of major technology stocks. The concentration of the U.S. market is at its highest level in the past 92 years,” they warn.

In contrast, diversification has clearly helped manage this concentration and, more importantly, volatility. According to the report’s conclusions, while globalization has increased the degree of market synchronization, the potential benefits of international diversification in reducing risks remain significant. For investors in developed markets, emerging markets continue to offer better diversification prospects than other developed markets.

Finally, the conclusions emphasize that inflation is a key factor to consider in long-term returns. In this regard, the authors’ analysis shows that asset returns have been lower during periods of rising interest rates and higher during cycles of monetary easing. “Similarly, real returns have also been lower during periods of high inflation and higher during periods of low inflation. Gold and commodities stand out among the few effective hedges against inflation. Since 1972, gold price fluctuations have shown a positive correlation of 0.34 with inflation,” the report states.

Key Insights from the Report’s Authors

Following the release of this report, Dan Dowd, Head of Global Research at UBS Investment Bank, commented: “I am pleased to once again collaborate with professors Dimson, Marsh, and Staunton, as well as our colleagues from Global Wealth Management, in presenting the 2025 edition of the Global Investment Returns Yearbook. The 2025 edition marks an important milestone. With 125 years of data, it provides our clients across the firm with a valuable framework for addressing contemporary challenges through the lens of financial history.”

Meanwhile, Mark Haefele, Chief Investment Officer of UBS Global Wealth Management, highlights that the Global Investment Returns Yearbook can help us understand the long-term impacts of following principles such as diversification, asset allocation, and the relationship between return and risk. “Once again, it teaches us that having a long-term perspective is crucial and that we should not underestimate the value of a disciplined investment approach,” Haefele states.

Finally, Professor Paul Marsh of the London Business School notes that “equity returns in the 21st century have been lower than in the 20th century, while fixed income returns have been higher. However, equities continue to outperform inflation, fixed income, and cash. The global stock market has delivered an annualized real return of 3.5% and a 4.3% premium over cash. The ‘law’ of risk and return remains valid in the 21st century.”

FlexFunds Strengthens Its Securitization Program With the Addition of Morningstar

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In an environment where accurate and accessible information is key to decision-making, FlexFunds continues to strengthen its service offerings for asset managers through platforms recognized at the institutional level. Now, Morningstar joins a group of top-tier providers, further enhancing the visibility and reach of investment vehicles (ETPs) under FlexFunds’ securitization program, the firm announced in a statement.

Starting in March 2025, qualitative and quantitative data on ETPs will be available on Morningstar Direct, an essential tool for institutional investors, as well as on Morningstar’s public website. This integration increases the exposure of investment vehicles, strengthens transparency, and provides access to advanced analytics on one of the most trusted platforms in the industry.

The combination of pricing providers offered by the FlexFunds program, including Morningstar, Bloomberg, LSEG Refinitiv, and SIX Financial, provides a comprehensive market view and helps asset managers build a public track record, enabling informed and strategic decision-making.

DWS Launches Its First Euro-Denominated High-Yield Bond ETF With a Specific Maturity

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DWS has expanded its Xtrackers product range, enabling investment in a broadly diversified selection of bonds with similar maturities, by adjusting the investment objectives and names of two existing fixed-income ETFs. The new Xtrackers II Rolling Target Maturity Sept 2027 EUR High Yield UCITS ETF invests for the first time in high-yield corporate bonds with a specific maturity.

According to the asset manager, since the bonds remain in the ETF portfolio until maturity, price fluctuations are reduced for investors who stay invested until September 2027. To achieve this, the ETF now tracks the iBoxx EUR Liquid High Yield 2027 3-Year Rolling Index. This index includes around 80 liquid high-yield corporate bonds denominated in euros, with credit ratings below Investment Grade, according to major rating agencies. As a result, investors bear a higher credit and default risk compared to investing in Investment Grade bonds. In return, according to the firm, “there is an opportunity to achieve a significantly higher aggregate yield at maturity, estimated at around 5.3% as of February 17, 2025, for the ETF’s portfolio.”

They also state that all bonds in the index have an initial maturity date between October 1, 2026, and September 30, 2027. Additionally, to provide greater flexibility, the ETF’s target maturity will be “extended” in the future. This means that the ETF will not be liquidated at the end of its term in September 2027, and the fund’s assets will be paid out to shareholders. Instead, the assets will be reinvested in bonds with a maturity of approximately three years.

“By expanding our current range of target maturity ETFs with an innovative product in the high-yield bond segment, we aim to offer investors the opportunity to generate attractive mid-term returns in the current environment of declining interest rates,” says Simon Klein, Global Head of Sales for Xtrackers at DWS.

The asset manager also highlights that they offer the Xtrackers II Target Maturity Sept 2029 Italy and Spain Government Bond UCITS ETF. In this case, the underlying index has also been modified for this ETF. “It now provides access to Italian and Spanish government bonds maturing between October 2028 and September 2029. Like all Xtrackers target maturity ETFs, these new products combine the advantages of fixed-income securities—predictable redemption at maturity—with the benefits of ETFs, such as broad diversification, liquidity, and ease of trading,” they state.

Trump’s Order on English as the Official Language: What Does It Mean for Hispanic Marketing?

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President Donald Trump signed an executive order this week declaring English as the official language of the United States. While English has always been the dominant language, the country had never had an official language at the federal level—until now. This decision, aimed at promoting national unity while saving federal funds, could have far-reaching effects, especially in Hispanic marketing, digital content production, and Spanish-language SEO.

With the potential reduction or elimination of Spanish-language content on government websites, businesses that serve Spanish-speaking consumers must prepare for a shift in the digital landscape.

The Hispanic marketing agency Hispanic Market Advisors analyzes the impact of this measure and the opportunities it creates for brands looking to connect with the Latino community.

Will the Government Remove Spanish-Language Content?

Currently, government agencies such as the Social Security Administration (SSA), the Internal Revenue Service (IRS), and U.S. Citizenship and Immigration Services (USCIS) provide resources in Spanish. However, with the officialization of English as the primary language, the government may stop translating and maintaining Spanish-language versions of its websites. This would make it harder for millions of Spanish speakers to access critical information about taxes, immigration, social benefits, and other essential services.

An Opportunity for Businesses

If Spanish-language government websites disappear from search results, businesses and nonprofit organizations have the opportunity to fill that gap. The absence of government pages in Spanish search engine results pages (SERPs) will allow businesses that invest in Spanish SEO and content marketing to gain greater visibility.

“Companies that offer legal, financial, and healthcare services can now position themselves as key sources of information in Spanish,” said Sebastian Aroca, MIB, president of Hispanic Market Advisors.

Key Strategies to Reach the Hispanic Audience

To attract and retain Spanish-speaking audiences in this new digital landscape, Hispanic Market Advisors recommends:

  • Investing in Spanish SEO – Businesses should optimize their content with relevant keywords such as immigration lawyer, health insurance for Hispanics, and how to file taxes in the U.S. to attract high-quality traffic.
  • Creating Spanish-language content – Publishing blogs, guides, and videos in Spanish will help brands establish themselves as industry leaders.
  • Having a bilingual website – Ensuring that a website is available in both English and Spanish enhances the user experience for Spanish speakers and increases customer conversions.
  • Leveraging Spanish-language social media – Platforms like Facebook, Instagram, and TikTok have a large Latino community. Companies can boost engagement with Spanish-language posts, ads, and videos.
  • Using paid advertising for Spanish speakers – With fewer free government resources in Spanish, Hispanic consumers will turn to commercial services. Businesses that invest in Google Ads and Facebook Ads in Spanish can effectively capture this audience.

A New Era for Hispanic Marketing

Trump’s executive order could present challenges for the Hispanic community, but it also opens new opportunities for businesses that know how to adapt.

Alaris Acquisitions Unveils AI-Powered M&A Platform for RIAs

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Alaris Acquisition has unveiled The Alaris Lens Application, a technology-driven platform designed to streamline mergers and acquisitions for RIAs. By integrating AI, Lens delivers precise matches between buyers and sellers, transforming traditional M&A processes. 

Traditionally, RIA M&A transactions have relied on blind financial auctions, often prioritizing price over long-term compatibility. Alaris aims to change this with Lens by introducing an AI-driven algorithm that evaluates hundreds of data points, factoring in financial alignment and cultural fit. 

“We saw the opportunity to combine today’s technology with our knowledge of the buyers, accrued and compiled over years and thousands of hours,” said Allen Darby, founder and CEO of Alaris Acquisitions. 

Rather than inviting dozens of bidders into a high-pressure auction, Lens selectively identifies the most suitable buyers, allowing sellers to focus on meaningful engagement. This targeted approach enhances deal success rates by ensuring stronger post-transaction alignment. 

As RIA firms increasingly turn to M&A for growth and succession planning, tools like Lens offer a scalable, efficient, cost-effective alternative to outdated methods. 

“The wealth management industry has historically lacked efficient tools and resources to support the M&A process,” added Darby. 

AI, Small & Medium Caps, and Emotion Management Featured at the Funds Society Investment Summit in Houston

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Artificial intelligence (AI), Small and Mid-cap companies, and the role of emotions in investing were key topics at the V Funds Society Investment Summit in Houston, an event that brought together professional investors from Texas and California on Thursday, March 6.

International asset managers M&G, State Street Global Advisors, and Vanguard presented investment opportunities in AI-related companies as an emerging technology. They noted that, based on historical data, small and mid-cap stocks are positioned to offer greater value. A speaker from Vanguard emphasized the importance of maintaining calm and discipline, especially during market turbulence, through behavioral coaching.

The event also featured asset managers Thornburg Investment Management and Muzinich & Co, who focused on fixed income. To access the full report, click here.

AI: An Innovation Set to Keep Growing

“Do we believe this is a good time to invest in AI? The answer is absolutely yes,” said Jeffrey Lin, Head of Thematic Equities at M&G, at the start of his presentation. He introduced the M&G Global Artificial Intelligence Themes Fund, a thematic global equity fund launched in November 2023.

Lin approached the topic from a historical perspective, explaining that in the 1950s and 1960s, computer scientists began considering the possibility of artificial intelligence—essentially, a computer capable of making decisions that humans typically make.

With a background in Electrical Engineering, Lin stated, “We do not see this innovation stopping in the future. As processing power increases, the potential processing market continues to expand.” He also affirmed that “as long as technology continues improving its performance, there will be demand for it.”

According to Lin, AI’s technological development is currently focused on generative AI, with the next phase being AI with agents. “In other words, these systems will truly begin to reason and engage in much deeper conversations with humans,” he described, noting that this evolution “can significantly enhance the user experience.” He also mentioned autonomous vehicles, “which are getting closer to becoming a reality.”

M&G believes AI is still in its early stages compared to previous innovation cycles, such as the rise of microprocessors and PCs, or the advent of the internet and mobile phones. This underscores the long-term investment opportunity.

The fund categorizes AI investment opportunities into three main groups: enablers (companies providing the underlying core technology for AI), providers (companies leveraging enabling technology to create AI-enhanced products or services), and beneficiaries (not necessarily tech companies in the traditional sense, but businesses that can use AI to drive revenue growth and/or improve profitability).

The target weighting for each category ranges from 25% to 40%. However, while managing the strategy, they found that these broad categories do not move in sync. “We have a vast universe of companies to analyze, and at any given time, we can dynamically shift between these groups. For investors, we believe the long-term growth opportunity remains very strong,” Lin asserted.

Cautious Optimism and a Diversified Portfolio

Keith Medlock, Senior Vice President and ETF Investment Strategist at State Street Global Advisors, presented in Houston the first U.S.-listed ETF, the SPY, highlighting its democratic, cost-effective, and liquid nature.

As an introduction, Medlock recalled that the ETF has existed since 1993, having survived the dot-com bubble, the 2008 financial crisis, and the COVID crisis. “When you look at how the SPY ETF has traded over time, you see that the ETF structure holds up quite well,” he affirmed.

A Mathematics and Economics graduate from the University of Arkansas, Medlock stated that State Street’s base scenario is a soft landing. They are “cautiously optimistic” and plan to add risk assets gradually, assuming investors still hold many cash management tools in their portfolios.

Medlock expects GDP growth above the average, which should benefit risk assets. State Street anticipates that the U.S. will maintain its fundamental economic and earnings advantages over other developed markets, driven by AI development and Trump’s new political agenda. The latter could particularly benefit U.S. cyclical and small-cap companies, according to the firm.

Regarding inflation, their most likely scenario projects 2.5%. “Our preference would be to buy dips in stocks. That would be our overweight position,” he noted, explaining that cyclical stocks perform well when both growth and inflation are above average.

The current high uncertainty and potential for increased volatility necessitate an allocation beyond the traditional 60-40 model. Medlock believes that as growth and inflation reaccelerate, portfolios overweight in small and mid-cap stocks and cyclical equities will gain an advantage based on historical trends.

Cyclical exposures to domestically focused companies, including U.S. small caps and regional banks, may be less affected by potential trade conflicts and could benefit more from rising investment and domestic consumption while trading at economic valuations.

When considering “high-quality, low-volatility” exposures, Medlock pointed to technology and biotech stocks, as well as European growth sectors.

Medlock proposed a diversified portfolio consisting of equities, actively managed fixed income (high-quality bonds with a maximum duration of six years), and alternative assets such as gold. “There is no need to rush into fully reinvesting in an equity portfolio,” he emphasized.

Regarding gold, he noted that they do not expect “a major bullish performance, but gold’s defensive characteristics remain intact, which is why I want it in the portfolio. If stocks decline and there’s a general risk-off environment with a bond selloff, it could be a double hit, as rising rates would also widen bond spreads.”

The ETFs comprising Medlock’s proposed portfolio include SPSM (SPDR® Portfolio S&P 600™ Small Cap ETF), KRE (SPDR® S&P® Regional Banking ETF), XNTK (SPDR® NYSE Technology ETF), TEKX (SPDR® Galaxy Transformative Tech Accelerators ETF), and XBI (SPDR® S&P® Biotech ETF) for equities.

The bond portfolio includes the SPDR® DoubleLine® Total Return Tactical ETF (TOTL), SPDR® Blackstone Senior Loan ETF (SRLN), and SPDR® Portfolio Intermediate Term Corporate Bond ETF (SPIB). Lastly, alternative diversification includes the ETFs GLD (SPDR® Gold Shares), GDML (SPDR® Gold MiniShares® Trust), CERY (SPDR® Bloomberg Enhanced Roll Yield Commodity Strategy No K-1 ETF), and SPIN (SPDR® SSGA US Equity Premium Income ETF).

Controlling Impulses and Staying in the Market

Ignacio Saralegui, Head of Portfolio Solutions for Latin America at Vanguard, focused on the most challenging aspect of investing: emotions and impulses that tend to emerge during market downturns. He addressed financial advisors in the audience, who often receive calls from clients during periods of financial turbulence.

His presentation, titled “Stay the Course,” outlined the philosophy of John Bogle, Vanguard’s founder. The core idea is that bear markets and corrections are part of investing, making a long-term approach essential. Since 1980, there have been 12 bear markets, with declines of around 20% or more. However, bull markets have been longer and stronger than the bear markets that preceded them, demonstrating the importance of resilience in times of panic.

“Clients lose control of their emotions and decision-making during such times, but staying in the market allows them to grow their portfolios,” he noted. He also cited one of Bogle’s key principles: “Impulse is your enemy; time is your friend.”

To manage these impulses, Saralegui proposed four principles, all within investors’ control: setting clear and appropriate investment goals, maintaining a balanced and diversified portfolio, minimizing costs, and keeping a long-term perspective and discipline.

He highlighted the value of financial advisors in three key areas: portfolio construction, financial expertise, and most importantly, emotional support.

In conclusion, Saralegui reiterated his key message: market volatility tempts investors to alter their portfolios, but abandoning a planned investment strategy can be costly. He emphasized the importance of maintaining investments, avoiding market timing, rebalancing periodically, and sticking to a long-term strategy. “Staying in the market long-term always pays off,” he concluded.