Álvaro Catao and Jaime De Bettio Join Safra in Aventura

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LinkedIn

Safra National Bank’s International Private Banking has added Álvaro Catao and Jaime Fernando De Bettio as Directors, the bank announced on its official LinkedIn profile. The office is located in Aventura, Florida.

Mr. Catao and Mr. De Bettio bring extensive private banking experience and will focus on serving the Brazilian market,” the entity added. Both professionals had joined StoneX together in May 2023 and were also Vice Presidents of Wealth Management at UBS, always in Miami.

“I am delighted to announce that I have joined the International Private Banking team at Safra National Bank of NY in Aventura, Florida, as a Director,” Catao wrote on his LinkedIn account. “We are excited about the opportunity to work at a first-class institution, truly global and with strong roots in Brazil,” he added.

For his part, De Bettio also wrote on his LinkedIn profile: “We are eager to take on new challenges and contribute to our clients, colleagues, and friends!”

Álvaro Catao has more than 35 years of experience: he worked at Lehman Brothers (1987-1992), Ibolsa (2000-2003), Pactual Capital Corporation (2003-2006), J.P. Morgan (2010-2015), and UBS (2016-2023), until he joined StoneX along with De Bettio, according to his Finra profile.

Jaime De Bettio first worked in Brazil and arrived in Miami in 2010 to join Morgan Stanley, where he served as Associate Director between 2013 and 2018. He later joined UBS, where he held the position of Vice President of Wealth Management until 2023, when he was recruited by StoneX.

Héctor Contreras Joins Morgan Stanley’s Century Club

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LinkedIn

Héctor Contreras, an international client advisor at Morgan Stanley, has joined the firm’s Century Club, as announced by Contreras, who is based in Houston, in a post on his LinkedIn profile.

“I am very proud to announce that I have been named a member of the prestigious Century Club of Morgan Stanley, an exclusive group of the firm’s financial advisors,” Contreras wrote on the professional networking platform. “I appreciate this recognition of my dedication to providing first-class service to my clients,” he added. Less than a month ago, he was promoted to Senior Vice President at the investment bank, where he has worked since 2014.

The Century Club of Morgan Stanley is an exclusive group of financial advisors. To become a member, advisors must meet certain criteria for performance, conduct, compliance, revenue, experience, and assets under supervision.

Before joining Morgan Stanley, Contreras—a graduate of the Instituto Tecnológico y de Estudios Superiores de Monterrey—worked as an advisor at Citi, Chase, and Merrill Lynch.

Houston to Host Five Investment Strategies at the V Funds Society Investment Summit

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On March 6, Funds Society will host the fifth edition of the Investment Summit in Houston.

During the event, which will take place at the Hyatt Regency Houston Galleria, asset managers Muzinich & Co, M&G Investments, State Street Global Advisors – SPDR, Thornburg Investment Management, and Vanguard will present their strategies.

Following the educational sessions, guests will head to the Houston’s Livestock Show and Rodeo, where they will enjoy a rodeo show from Funds Society‘s private suite, followed by a concert by AJR.

Spots are limited, so Funds Society requests that professional investors from the U.S. Offshore market in Texas and California who wish to attend complete their registration at the following link.

Arturo Montemayor Joins HSBC in Miami From Merrill Lynch

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LinkedIn

HSBC has added 30 years of experience to its wealth management business with the addition of Arturo Montemayor.

The advisor, who was registered in BrokerCheck on February 4, joins from Merrill Lynch, where he had been working since September 2021.

Montemayor, a well-known figure in Miami’s industry, has worked at major banks throughout his career.

He began his career at Citi in 1984 for the Mexico office, initially in corporate banking and real estate before moving into private banking. In 2005, he joined Deutsche Bank in Geneva and later in Miami, according to his LinkedIn profile.

He then held positions at the wirehouses Morgan Stanley and JP Morgan, alternating between Miami and New York while working with Latin American clients.

He is an industrial engineer and holds an MBA from the Instituto Tecnológico Autónomo de México.

Generative AI Will Boost Banks’ Financial Performance in 2025

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DeepSeek y su impacto en tecnológicas
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The adoption of generative artificial intelligence in the banking sector will experience exponential growth, according to the IBM Institute for Business Value 2025 Outlook for Banking and Financial Markets.

In 2024, 8% of banks systematically developed the technology, while 78% used it tactically. Additionally, the report indicates that more institutions are moving from pilot projects to broader execution strategies. This includes the implementation of agentic AI to improve operational efficiency and customer experience.

Furthermore, banking convergence continues to be a key factor in financial performance, the report adds. The restructuring of business models and processes will be crucial in distinguishing the most competitive banks from the rest.

In this context, 60% of surveyed CEOs believe that accepting a certain level of risk is necessary to leverage the benefits of automation and strengthen their market position.

Another key aspect highlighted in the report is the evolution of customer behavior. More than 16% of consumers globally are already comfortable with fully digital banks that have no physical branches. However, competition is shifting toward higher-value services, such as embedded finance and advisory services for high-net-worth clients and small and medium-sized enterprises (SMEs).

The report also includes an analysis of industry leaders’ sentiment, customer behavior, and economic data from eight key markets: the United States, Canada, the European Union, the United Kingdom, Japan, China, and India. The findings will help financial institutions and their ecosystem partners anticipate the trends shaping the future of the sector.

For more information and access to the full report, please visit the following link.

Artificial Intelligence to Be the Focus of M&G’s Presentation in Houston

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Photo courtesyJeffrey Lin, Head of Thematic Equities

M&G Investments will present a strategy focused on companies that enable, provide, or benefit from the development of artificial intelligence at the V Funds Society Investment Summit in Houston.

During the event, which will take place on March 6 at the Hyatt Regency Houston Galleria and is dedicated to professional investors from Texas and California engaged in the US Offshore business, Jeffrey Lin, Head of Thematic Equities, will introduce the M&G Global Artificial Intelligence Themes Fund.

The strategy is based on the firm’s “global network of investment professionals that connects top-tier research capabilities with the diverse experiences and viewpoints of experts across multiple asset classes,” which M&G refers to as “connected intelligence,” according to the company’s information.

Jeffrey Lin

Lin joined M&G Investments in January 2023 as Head of Thematic Technology Equities. Previously, he spent 16 years at TCW, where he co-managed multiple thematic strategies, including Global AI, Next Generation Mobility, and Entertainment Technology. He has also worked as an analyst covering computer hardware, software, IT services, and the automotive sector. Before joining TCW, Lin held positions at Provident Investment Counsel, Vulcan Ventures, and Montgomery Securities.

He holds a degree in Electrical Engineering and an MBA from the University of Southern California.

Private Equity Made Accessible to the Wealth Industry

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The rise of the open-ended private equity “PE” fund, colloquially referred to as evergreens, has allowed retail investors who meet certain wealth or income thresholds to access what used to be an asset class that was exclusively available for institutions or very wealthy families. Although the technology is rather new, so far the results have not disappointed. 

Most, if not all private equity and venture funds are structured as drawdown vehicles. These types of structures are very long-term oriented, their typical life is 10 to 15 years, and are only open to qualified purchasers (individuals with +$5 million in investable assets). Besides, they do not typically offer redemption or liquidity features whereas the penalties to withdraw from such -if at all contemplated- can be severe. 

For new PE investors, ramping up and reaching allocation targets with these types of vehicles is also complicated and takes extensive time as a typical PE fund calls in average about 20% of investor capital commitments on a yearly basis. Besides liquidity, the other great risk these vehicles pose is underperformance and/or poor management, which is a particularly concerning factor given investors are typically locked up for the duration of the partnership and can’t turn into cash like in a periodic liquidity fund. 

Drawdown structures however are the preferred vehicle for private equity partnerships and there are clear reasons as to why. Mainly, it takes time and resources for private equity funds to find the right targets to acquire and months to negotiate and close on a deal. Thus, investors are better off keeping the cash in their own accounts -and potentially invested in something else- while the GP finds good opportunities to buy into

Private Equity though has grown and evolved since its inception about 50 years ago. It is still a young industry that nowadays plays a very large role in the US economy and touches cash-flow positive companies of all shapes and sizes, from a business installing roofs in South Florida to those with global presence worth billions of dollars.

Today, even though PE funds universally employ the drawdown structure, two byproducts of the primary PE industry have grown into their own ecosystems: co-investments and secondaries. Co-investments supply pools of passive equity to top-off the capital needed to complete a fund acquisition. These opportunities exist because of hard-capped fund sizes and diversification rules. Secondaries on the other hand facilitate liquidity to fund partners, “LP’s”. For example, an investor with a portfolio of mature drawdown funds could seek to sell his partnership interests through a specialized secondaries broker, typically at a discount from NAV. 

The evolution of the perpetual fund.

Some of the first perpetual private equity funds actually experimented with committing into drawdown funds and keeping cash invested in money market instruments while capital was called on the commitments. However, the cash drag on these instruments was significant, diluting the returns that the underlying funds would have achieved on their own. 

The evolution and growth in volume of secondaries and co-investment opportunities has allowed institutional private equity allocators to buy into pools of PE-operated assets, making them suitable for perpetual fund of funds “FoFs” that are continuously raising capital and looking to deploy in parallel. Just for readers to have an idea of sizes, according to Evercore, the secondaries industry has gone from trading $26 Billion annually 10 years ago to a projected $140 billion in 2024. 

Setting up open-ended funds requires having relations with dozens if not hundreds of PE funds that may be offering co-investment opportunities and a solid network of secondary brokers to find LP interests at the best discounts possible. Only a limited number of allocators have built the network of providers to access a robust pipeline of “buy” opportunities into high quality assets without risking cash drag or being pushed into lesser quality ones due to a lack of better options.

The formula is also being employed by some of the largest private asset managers in the world. Such firms nowadays have developed multiple strategies that cover different regions (North America, Asia, Europe, Growth, etc) and sectors (Health, SAAS, etc) and their significant deal count on a yearly basis allows for their own proprietary perpetual funds to co-invest alongside the main drawdowns of the firm and grow AUM in unison. These initiatives are still in their early stages but so far have been successful at raising large amounts of capital, particularly from the domestic US RIA channel, in part because of the established names promoting them. 

Does retail mean lesser performance or quality?

The Private equity industry and its institutional allocators setting up FoFs seem to finally have “cracked the code” to the open-ended PE fund with the evolution of secondaries and co-investments and the diversification of strategies within the largest PE firms. The technology is here to stay and we will see wider implementation. 

Investors with no PE exposure can now tap into very diversified pools of high-quality assets through one single fund, whereas in the past, investors would have had to commit to drawdown vehicles on a fund by fund basis, running the risk of poor performance and no exit avenues. Besides, investors in open-ended funds become immediately invested and are beneficiaries on day one to the performance of underlying assets. 

That is not to say that sophisticated and large investors should avoid drawdowns funds altogether, particularly if given the opportunity to invest into a great manager with a top quartile or decile record. The Venture Capital “VC” industry, for instance, which is also exploring how to tap wealth management money, is way behind private equity in creating open-ended funds. Investors seeking to start an allocation to VC would mostly be limited to accessing drawdown vehicles. Having said this, combining the two types of funds may be a good fit for qualifying investors and a great way to achieve high performing private asset allocations on day one.

Economic Strength, Monetary Policy, and Disinflation: Three Arguments in Favor of Emerging Markets

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Mercados emergentes y fortalezas económicas

The new Donald Trump administration brings uncertainty to emerging markets. However, investment firms believe it is essential to look beyond this and remember that these regions have stronger markets and that the Federal Reserve‘s monetary policy continues to favor risk assets.

According to Kirstie Spence, portfolio manager at Capital Group, many of the major emerging markets can leverage various tools: higher reserve volumes, positive real interest rates with room to decline, fewer imbalances than developed markets, and exchange rates that are fairly valued or undervalued.

“They have policy flexibility to weather the storm if needed. Except for the less consolidated economies, external balances are solid. Additionally, inflation is trending downward in a restrictive monetary policy environment. Fiscal indicators are often a weak point for these markets, but most major emerging markets have extended their debt maturity profile and are now issuing more in local currency,” argues Spence.

She also notes that a Federal Reserve less inclined to cut rates could put pressure on central banks in less developed emerging economies, making it difficult for them to maintain higher interest rates, especially in countries concerned about inflation and financial stability risks. “In more developed emerging markets, particularly in the Asian region, central banks have shown greater confidence in getting ahead of the Federal Reserve, given the absence of systemic pressures on financial systems and the development of deeper, more liquid domestic markets,” she adds.

According to Claudia Calich, Global Head of Emerging Debt at M&G, it is interesting to analyze that the disinflation story in emerging markets is practically complete, with few exceptions in high-inflation countries such as Argentina, Turkey, Egypt, and Nigeria. “It is remarkable how poorly Latin America performed in 2024, affected by both currency depreciation and rising yields. There is much less room for rate cuts, given the expected inflation path in most inflation-targeting economies. However, there is potential for a yield rebound if country-specific concerns ease, such as improved fiscal prospects in Brazil or greater clarity on trade between the U.S. and Mexico, and if currencies stabilize or recover some of the depreciation seen in 2024,” says Calich.

Implications for Investors

Given this backdrop, asset managers are looking for investment opportunities in emerging markets, with debt being one of the most analyzed areas. According to M&G’s expert, local currency bonds in emerging markets remain underappreciated, which could be a good signal for contrarian investors willing to step in and endure some volatility. “However, high short-term interest rates in key markets like the U.S., U.K., and, to a lesser extent, the Eurozone, remain a hurdle for this asset class, and global macroeconomic uncertainty doesn’t help. Local currency bonds in emerging markets still face strong competition from high short-term rates in the U.S., U.K., and Eurozone. This could improve in the future as central banks continue easing, but the risk of ‘higher for longer’ rates remains, especially if U.S. inflation expectations deteriorate due to tariffs,” she explains.

Additionally, M&G acknowledges that they remain selectively constructive on emerging market currencies, as their valuations have become even more attractive after last year’s sell-off. “However, timing the right moment to act is complex, as the fate of the U.S. dollar will largely depend on the policy mix adopted by the new administration,” Calich notes.

The Heavyweights

When discussing investment opportunities, Chris Thomsen, portfolio manager at Capital Group, highlights two “heavyweights”: India and China. In his view, both emerging markets have followed very different trajectories over the past five years, with Indian equities significantly outperforming Chinese equities.

“Valuations reflect these differences. While both markets offer attractive opportunities, they come with their own risks and investment drivers. The increasing penetration of mobile phones among India’s young and vast population has benefited telecom companies like Bharti Airtel, but the high valuation levels make selectivity crucial,” explains Thomsen.

On the other hand, he points out that China’s massive domestic consumer market could be boosted by government stimulus measures, creating opportunities for well-positioned digital companies. “Some companies like Tencent and NetEase hold dominant positions, have strong cash flows, and high-quality management teams. However, investing in China remains risky due to ongoing tensions with the U.S. and the trade priorities of the new Trump administration,” says the Capital Group manager, adding that the reconfiguration of global supply chains presents opportunities in Brazil, Mexico, and Indonesia.

The Industry Will Increase Its allocation to Venture Capital, Private Multi-Asset Solutions and Infrastructure

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Inversión en capital de riesgo y activos privados
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The increasing allocation to private markets in response to market evolution by wealth managers and financial advisors is a clear trend in the industry. In fact, according to the Global Investor Insights Survey (GIIS) by Schroders, more than half of these professionals are currently investing in private markets, with an additional 20% expecting to do so within the next two years.

The survey, which includes 1,755 wealth managers and financial advisors globally—representing $12.1 trillion in assets—reveals that private equity (53%), private multi-asset solutions (47%), and renewable infrastructure equity (46%) are the top three private market asset classes where advisors and wealth managers expect their clients to increase allocations in the next 1-2 years.

Regarding how they expect client allocations to private market asset classes to change over the next 1-2 years, two-thirds of wealth managers and financial advisors highlight the potential for higher returns compared to public markets as the primary benefit of private market investing for their clients. This was closely followed by the ability to achieve diversification through different return drivers (62%). Additionally, on average, most investor allocations to private markets represent between 5%-10% or 1%-5% of their total portfolio exposure.

 

According to Carla Bergareche, Global Head of Wealth Management at Schroders’ Client Group, while many wealth managers and financial advisors are already investing in private markets on behalf of their clients, allocation sizes remain significantly lower than the 20% or more seen in family office and institutional investor portfolios.

“This gap represents a significant opportunity to strengthen client engagement with private markets. We therefore expect these markets to play an increasingly important role in wealth investment portfolios as investors become more aware of the potential for strong and diversified returns,” explains Bergareche.

Access to Private Market Investments

Another key finding is that just over half of surveyed wealth managers and advisors indicated that they access private market opportunities through exchange-traded funds, closely followed by semi-liquid or open-ended indefinite-duration funds (51%). Despite these opportunities, lack of liquidity is cited as the main challenge when discussing private markets with clients.

According to Schroders, 49% of respondents stated that greater financial education for clients would help drive demand, followed by better-suited product structures (42%) and lower investment minimums (42%).

“There is no doubt that private wealth will play a very significant role in private markets in the future. Until now, wealth managers and advisors have had limited options to access these markets compared to their institutional counterparts, which explains why, despite their intent, we still see relatively low allocations,” says Tim Boole, Head of Private Equity Product Management at Schroders Capital.

However, in his experience, the emergence of new vehicles, such as semi-liquid funds, has expanded available access points, representing a significant advancement in providing greater flexibility for investors to achieve their financial goals through private markets. “It’s no surprise that these structures are favored by this client segment,” Boole adds.

Wealth Transfer as a Key Priority

Additionally, the firm highlights that wealth transfer has been identified as a priority for 59% of wealth managers and financial advisors worldwide. In North America, 66% consider it a priority, compared to 57% in the UK, 57% in Asia-Pacific, and 58% in EMEA.

The report shows that wealth transfer discussions are more deeply embedded in the Americas. Specifically, Latin America has the highest level of engagement globally, with 58% of advisors stating they have addressed this topic with more than half of their clients. In EMEA and Asia-Pacific, participation is lower, with 43% and 46% of advisors engaging in these discussions, primarily due to cultural sensitivities.

Why Texas Continues to Attract New Residents and Businesses?

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Image Developed Using AI

Texas continues to be one of the fastest-growing states in the U.S., driven by migration, economic growth, and a vibrant housing market. Realtor.com’s new report displays why people and businesses are moving to Texas

Over one in four home shoppers in Texas are from out of state, with the largest groups coming in from California and international sources. The state’s economic expansion, specifically in technology, manufacturing, and construction, has created a strong job market that attracts newcomers seeking employment and lower living costs. 

“In the years since the COVID-19 pandemic, the Texas economy has boomed, especially in high-demand industries like technology, education, manufacturing, and construction,” said Danielle Hale, chief economist at Realtor.com

Texas has also become a leader in new home construction, accounting for 15% of the nation’s new housing permits in 2024. The state has focused on building smaller, more affordable homes, helping ease the housing shortage. While new homes in Texas are slightly smaller than a few years ago, the share of homes priced below $350,000 has risen, making homeownership more attainable. 

Despite rising prices, Texas remains more affordable than the national average. As of December 2024, the median listing price in Texas was $360,000 – about $40,000 lower than the national median. Nearly half of homes for sale in Texas were priced at $350,000 or less, compared to 40.1% nationwide. However, there is still a gap in affordability for lower-income households, with only 17% of homes affordable to those earning less than $75,000 annually. 

Texas also stands out for its affordable rental market. In 2024, Austin and San Antonio ranked among the top 10 rental markets, with Austin becoming a hotspot for recent college graduates due to its combination of affordable rents and job opportunities. 

“By showcasing solutions from states like Texas and calling attention to those that are falling behind, we can drive a national conversation that leads to real, meaningful change,” said Damian Eales, CEO at Realtor.com

While San Antonio has the highest share of homes priced under $350,000, Austin remains the least affordable major metro. Despite challenges, Texas offers a more affordable housing market than many other regions. 

The report highlights Texas’ ongoing growth and its challenges in balancing demand with affordability. As migration to the state continues, the housing market will likely evolve in response to these dynamics.