Vanguard has announced the reduction of fees on seven of its fixed income exchange-traded funds (ETFs) available to European investors, effective July 1, 2025. According to the firm, this measure reinforces Vanguard’s commitment to making fixed income investing more accessible, especially in a context where bonds are playing an increasingly important role in investors’ portfolios.
“The bond market is currently twice the size of the equity market, but it remains opaque and costly. Investors deserve something better. At Vanguard, we believe that in investing, you get what you don’t pay for. Costs matter. By reducing fees, we are helping to make fixed income more accessible and transparent. We estimate that these changes will represent approximately 3.5 million dollars in annual savings for investors. We have already expanded, and will continue to expand, our fixed income offering throughout this year,” said Jon Cleborne, Head of Vanguard for Europe.
The following ETFs will have their fees reduced starting July 1.
Vanguard Positions Itself in Fixed Income Vanguard is the second largest asset manager in the world, with 10.5 trillion dollars in assets under management globally as of May 31, 2025. Its fixed income group, led by Sara Devereux, manages more than 2.47 trillion dollars globally, combining deep expertise to deliver precise index tracking, prudent risk management, and competitive performance.
Earlier this year, Vanguard expanded its range of European fixed income products with the launch of the Vanguard EUR Eurozone Government 1–3 Year Bond UCITS ETF, Vanguard EUR Corporate 1–3 Year Bond UCITS ETF, Vanguard Global Government Bond UCITS ETF, and Vanguard U.K. Short-Term Gilt Index Fund.
Following these changes, the weighted average asset fee of Vanguard’s European range of index and actively managed fixed income funds will be 0.11%. Currently, Vanguard offers 355 fixed income index products in Europe, and on average, its range of fixed income ETFs is the most cost-effective in the European market. Across its entire product offering in Europe, the weighted average asset fee will now be 0.14%.
Lisandro Chanlatte and Carlos Asilis, professionals with long experience in the financial market, became independent to create AC Global Investment Partners, an independent investment advisory and management platform prepared to “act as a trusted steward of the generational wealth” of ultra-high-net-worth families.
Both aim to be “long-term partners of sophisticated investors,” in their own words. They have set a goal of reaching 500 million dollars in AUMs within three years, working with between 20 and 40 families, both in the onshore and offshore markets.
In the founding documents of AC Global—reviewed by Funds Society—you can read the services the firm will offer, and also the way it will operate. Both partners will provide a comprehensive, customized solution for professional wealth oversight. It was designed exclusively to serve ultra-high-net-worth families with more than 25 million dollars in liquid assets under advisory.
Based in New York (Chanlatte) and Miami (Asilis), they promise to mediate between their clients and multiple financial providers, ensuring optimal asset management.
Above all, what will distinguish AC Global, Chanlatte assured Funds Society, is its independent perspective, which will avoid conflicts of interest in investment recommendations and biases in decision-making. The new firm will allow its clients to continue working with their preferred banks and providers, but “now optimized by professional oversight.”
For Chanlatte, “this will be more than a new company: it is a reinvented model to deliver institutional-quality investment management with the alignment, transparency, personalized service, and independence our clients deserve.”
The Chief Investment Officer of AC Global, Carlos Asilis, has managed institutional capital for pension funds, endowments, foundations, insurance companies, family offices, and U.S. private banking clients. “His multi-cycle track record reinforces our ability to deliver consistent, risk-adjusted returns in both stable market regimes and periods of stress,” states the firm’s founding document.
Different but Complementary Backgrounds The backgrounds of Chanlatte and Asilis are different but highly complementary, adding value to the firm. The former has broad experience, acquired mainly at Citi Private Bank, where he led investment advisory teams and strategies for institutional and ultra-high-net-worth clients. Meanwhile, the latter specializes in macro investing and portfolio risk management.
Lisandro Chanlatte is an executive in the private wealth management industry with extensive experience in investment strategy, portfolio construction, and comprehensive asset allocation solutions for ultra-high-net-worth individuals and institutions. At Citi, he was part of the leadership team of Global Private Bank, the area of Ida Liu, who resigned from her position at the end of last January.
With a professional track record of over two decades, his experience in global asset management and business strategy focused on leading the Investment Advisory department of Citi Private Bank in North America.
Previously, as Chief Investment Officer for Latin America at Citi, he managed a significant investment business and led a large team across multiple financial centers. His responsibilities included developing investment strategies and overseeing about 50 billion dollars in assets. Almost his entire professional career was linked to the U.S. bank. Before joining Citi, he worked as an equity research associate, also in New York, at J.P. Morgan, and was Managing Director & Investment Officer at BAP Capital, a real estate fund.
Chanlatte holds a Bachelor’s degree in Business Administration from Loyola University New Orleans (summa cum laude) and an MBA from Harvard Business School. He is also a Chartered Alternative Investment Analyst (CAIA) and holds FINRA Series 7, 24, 31, 63, and 65 licenses.
Carlos Asilis is an expert with 30 years of experience in global macroeconomic investing, economic analysis, and portfolio construction. Before co-founding AC Global, he was a portfolio manager at Graham Capital Management and co-founder and Chief Investment Officer at Glovista Investments, where he managed multi-asset and emerging market strategies with peak assets exceeding 1.1 billion dollars.
Earlier, he was Chief Investment Strategist at JPMorgan Chase, where he advised institutional clients worldwide and defined global asset allocation views. At the start of his career, he worked at some of the world’s most respected macro and proprietary trading platforms: VegaPlus Capital Partners, Santander Global Proprietary Trading, and Credit Suisse First Boston. These experiences deepened his understanding of market cycles and risk management, skills that remain central to his investment philosophy as Chief Investment Officer of AC Global Investment Partners.
Asilis also worked as a research economist at the International Monetary Fund (IMF), where he was involved in economic surveillance programs and structural reform in China and Russia. He holds a Ph.D. in Economics from the University of Chicago and a Bachelor’s degree in Economics and Finance from the Wharton School at the University of Pennsylvania. His market approach is based on data and global insight.
In this 2025, organizations face an increased risk of suffering acute supply chain failures as a result of growing global geopolitical tensions and protectionist trade strategies, according to a new report published by Marsh.
According to its analysis, in addition to the risks associated with the reconfiguration of global trade and geopolitics, the report concludes that changing market and policy dynamics present both challenges and opportunities for organizations in the energy transition, especially regarding carbon credit markets (CCMs) and debt-for-nature swaps (DFNSs).
One of the findings highlighted in the report is that organizations trading with connector countries to circumvent existing or anticipated trade controls, or that have suppliers doing so, may be more exposed to disruptions induced by trade policies in the months and years ahead. “As a result of deteriorating relations between major trading partners, governments may also impose trade barriers on goods coming from connector countries, especially those that include components from the originally targeted country, which could create significant volatility in the global supply chain,” it notes.
What Can Companies Do?
To improve their resilience to supply chain shocks arising from the current geopolitical landscape, the report recommends that organizations review China’s commitment to its trade strategy and the underlying objectives of U.S. trade policy, and consider to what extent the current connector model will persist in relation to their business models.
The Political Risk Report states that changing market and policy dynamics present both challenges and opportunities in the energy transition, echoing the findings of the World Economic Forum Global Risks Report 2025, in which environmental risks dominate the 10-year horizon.
While global CCMs made significant progress at COP29 and DFNSs have also gained momentum, challenges remain in both areas regarding political risk and the possibility of default. Additionally, the growing climate compliance obligations, especially those stemming from new European Union regulations, may present operational risk challenges for organizations.
“Increased risks around the economy, geopolitics, and climate change are creating an incredibly complex operating environment, unlike anything organizations have experienced in decades. Those who build their ability to understand, assess, and mitigate the risks facing their operations are likely to be better positioned to identify opportunities where others only see ambiguity and to gain a competitive advantage in these uncertain times,” said Robert Perry, Global Head of Political Risk and Structured Credit at Marsh Specialty, in light of these findings.
BBVA Global Wealth Advisors has named Juan Carlos De Sousa as its new Head of Wealth Planning. The first announced the leadership change as an effort to strengthen its commitment to serving ultra-high-net-worth families with cross-border financial needs.
With more than 20 years of experience in global wealth structuring and estate planning, De Sousa brings another perspective to the role. He previously held leadership positions at CISA Latam and Amerant Bank, where he focused on developing strategies for international families.
At BBVA GWA, De Sousa will oversee a Wealth Planning service designed to act as a central coordination hub for UHNW families.
“I am excited to join the BBVA GWA team”, said Juan Carlos De Sousa. “Modern global families face a complex web of financial considerations. Our primary goal is to serve as a central resource, helping clients coordinate with their advisors all the pieces of their financial lives to build a cohesive, multigenerational plan”, he added.
While BBVA GWA’s Wealth Planners provide educational guidance and facilitate collaboration, they do not offer tax or legal advice. Instead, the firm refers clients to a network of independent professionals, referred to as “BBVA’s Allies”, who deliver specialized services directly to clients.
De Sousa’s appointment emphasizes BBVA GWA’s continued focus on offering a structure, client-centered framework for navigating the challenges of global wealth management.
Latin American investors are battle-hardened. We come from a history marked by political and economic crises (the tequila effect in the 1990s, hyperinflation, the “corralito” and defaults in Argentina, the impeachment of Dilma Rousseff in Brazil, Chavismo in Venezuela, the banking crisis and dollarization in Ecuador…) that have led us to keep part of our savings abroad. Traditionally, Switzerland and the United States have been the preferred destinations for those seeking to protect their wealth from the volatility that has characterized many regional markets.
The Dollar and Stability: A Concept Deeply Rooted in the Collective Psyche
Regardless of where offshore accounts are held, the total asset composition of regional investors has followed an undeniable pattern: local currency and local assets in the domestic market, and hard currency in offshore accounts. The dollar has long been the safe-haven asset against decades of instability, and in the Latin psyche, it is the continent’s collective currency.
The dollar is the de facto currency for offshore investments, both for individuals and institutions. The rationale is clear: it is the hard currency tied to the world’s largest and most liquid market, both in equities and in debt. Additionally, during risk-off episodes, it has offered a refuge and low correlation with local assets.
According to data from J.P. Morgan, the dollar accounts for nearly 90% of global currency transactions, 66% of international debt, 58% of global reserves, and 48% of payments processed through SWIFT (Society for Worldwide Interbank Financial Telecommunication)[1].
The Problem: This Thesis May Be Tested in the Coming Years
The dollar’s overvaluation against a broad basket of developed and emerging currencies has been widely noted in recent years. However, under the shield of American exceptionalism, a correction seemed unlikely—until it wasn’t.
Currencies Can Defy Gravity for Long Periods
It is hard to pinpoint a single factor behind the correction now underway. Valuations matter, and by many expert accounts, the dollar was at levels of overvaluation not seen since 1985.
Combine this with an expansive fiscal policy, a growing deficit unlikely to be resolved, rising trade tensions, and declining confidence in U.S. institutional strength, and the market’s response becomes logical: “To lend to the United States—in other words, to finance its deficit—I now require a higher risk premium, and the same applies to the returns I expect from companies affected by tariffs.”
This same risk premium raises the risk-free rate used to discount future cash flows and value all financial assets. However, this premium is not global—it is specific to the United States due to its internal challenges. As a result, it should disproportionately affect U.S. debt and equity markets, as well as the dollar.
Additionally, the impact on sentiment, uncertainty, and the erosion of confidence in U.S. fiscal and trade policy may reduce investment inflows to the U.S., redirecting capital toward stronger economies with better growth potential.
What Does This Mean for the Latin American Investor?
The first takeaway is that, in the medium term, the dollar may no longer serve as the region’s safe haven. One can easily imagine a market correction—not as extreme as 2008—where local currency assets post negative returns while the dollar itself also weakens. In this scenario, portfolios heavily invested in offshore dollar assets could suffer a double loss: losses in local markets amplified by losses in dollar-denominated investments. The same would apply to the total net worth (domestic and offshore) of private investors.
For institutions in countries with high domestic interest rates—such as Brazil or Mexico—the situation is even more complex. These portfolios are often expected to deliver returns comparable to local rates, which leads to an overweight in equities, high-yield credit, and generally riskier assets. Historically, the thinking has been that a rising dollar would cushion declines in risk assets and local holdings.
It is important to note that a correction in the dollar toward long-term fair value does not negate its role as a safe haven in extreme risk-off scenarios. However, when the imbalances stem from the U.S. itself and uncertainty surrounds its policy direction, a drop from historically elevated levels seems reasonable.
No Magic Solutions, Only Sound Investment and Portfolio Principles
A logical response to today’s uncertainty is to seek diversification into other hard currencies and markets. At the individual level, several advisors and asset managers note that currently less than 5% of Latin American investors’ wealth is allocated outside the dollar. Institutions—central banks excluded—also show very low levels of currency diversification.
A good starting point for diversifying the assets of individuals and institutions in our region would be to reference the weight of the dollar and U.S. assets in global equity and bond indices.
The MSCI World is a global equity index representing large- and mid-cap companies in 23 developed countries (it does not include emerging markets). It is capitalization-weighted, with the United States accounting for around 70% as of the end of May 2025. Because it excludes emerging markets, this index complements portfolios already exposed to Latam.
In fixed income, the Bloomberg Global Aggregate Bond index is widely regarded as a reference for a diversified, high-quality debt portfolio. In it, the U.S. represents nearly 40%—meaning the investor has 60% exposure outside of the dollar and U.S. bond markets, with allocations to countries such as Japan, Germany, and Canada, among others.
Beginning to think in terms of global indices rather than the S&P 500 would be a first step toward building more resilient portfolios for the Latin American investor. In a recent note, J.P. Morgan Private Bank stated: “Given that dollar risks appear to be skewed to the downside, we believe investors (particularly those whose wealth is denominated in another currency) should review their currency allocations as part of a broader, goal-based plan.”
I couldn’t agree more. It’s time to review portfolios and consider the range of possible scenarios for the coming years—a task that many advisors and portfolio managers in the region have likely already begun.
Morningstar has launched a series of new features in its Direct Advisory Suite platform (the next phase of Advisor Workstation) to help financial advisors analyze and integrate private investments into their clients’ portfolios. This is a new service from the firm. These enhancements are now available and will be showcased at the Morningstar Investment Conference, taking place June 25–26 in Chicago, USA.
“Morningstar’s universal investment language has helped advisors and investors bring clarity to complexity for decades,” said Kunal Kapoor, the company’s CEO. “As private investments become part of more portfolios, we are expanding that language to provide the same level of comparison and confidence in private markets as we already offer in public markets,” he added.
The new features in Direct Advisory Suite are designed to help advisors evaluate, compare, and communicate the role of private investments within the broader context of a portfolio. Key features include:
Expanded Investment Research
Advisors now have access to a new universe of private equity funds to filter, compare, and monitor. Access to semi-liquid vehicles, such as interval funds and tender offer funds—has also been improved. Morningstar’s updated classification system integrates private equity vehicles alongside public market securities, allowing for comprehensive investment analysis.
Enhanced Risk Profiling
The Morningstar Risk Model now incorporates private equity funds. The Morningstar Portfolio Risk Score breaks down the percentage of risk driven by volatility and liquidity constraints.
Portfolio Transparency Tools
Advisors can now view what percentage of a portfolio is exposed to private investments.
Proposal-Ready Reports
The investment proposal summary report, reviewed by FINRA, now includes new indicators for risk and liquidity.
Alternative Investments Hub
A new themed page aggregates editorial content and research from Morningstar on alternative investments, supporting advisor education and client conversations.
“As private markets become more accessible, advisors need actionable data, standardized analytics, and unified workflows to evaluate the full spectrum of investment opportunities,” said James Rhodes, President of the Morningstar Direct platform.
“We’re leveraging our history as investor advocates and transparency champions to offer Direct Advisory Suite users the ability to analyze private investments with the same rigor expected in public markets—helping them achieve their clients’ desired outcomes,” he added.
Market Convergence
These new features arrive amid a growing array of investor choices and increased interest in private markets. Morningstar’s Voice of the Investor 2025 study found that 25% of retail investors already hold private equity investments, rising to 35% among those with $500,000 or more in investable assets.
To help investors make informed decisions with clarity and rigorous due diligence, Morningstar is leveraging PitchBook’s extensive private market database and expanding its independent analysis into the fastest-growing sectors of the private and semi-private investment universe. Next quarter, Morningstar analysts will begin publishing qualitative and forward-looking ratings (Medalist Ratings) for semi-liquid funds, including interval funds, tender offer funds, non-traded business development companies (BDCs), and non-traded real estate investment trusts (REITs).
The recently published State of Semiliquid Funds report emphasizes that while access to private markets is expanding, semi-liquid funds are not making these markets more affordable. Though these funds offer greater access and the potential for higher returns, they also carry significant risks, such as fees that average three times higher than traditional open-end funds, increased use of leverage, amplifying both gains and losses, and Potential liquidity restrictions.
Following approval by the Central Bank of Uruguay and the Montevideo Stock Exchange, Balanz announced in a statement the completion of the acquisition of 100% of the shares of Corporación de Inversiones Uruguay Sociedad de Bolsa S.A. (CIU). With this, the firm founded in Argentina marks a new milestone in 2025, the year in which it reached $10 billion in assets under management.
“This acquisition marks a milestone in Balanz’s expansion strategy in the country, establishing itself as a Full Investment House offering a comprehensive range of financial services,” the statement added.
With this integration, its operational capacity is expanded by incorporating the licenses of Securities Broker, Portfolio Manager, and Stockbroker. This structure enables the firm to provide comprehensive solutions in financial advisory, investment management, and brokerage operations, both locally and internationally.
Additionally, the firm has intensified its expansion in Uruguay through the enlargement of its offices and the hiring of local talent.
“It is a great pleasure and joy to share this news, which undoubtedly reflects the teamwork we’ve been doing in Uruguay,” said Juan José Varela, CEO of Balanz Uruguay.
Balanz is a company that, in recent years, has made significant investments in technology: “This focus has been key to democratizing access to investments and offering financial solutions tailored to each client’s needs. In Uruguay, its consolidation as a Full Investment House is expected to drive the full evolution of the investment market, through improvements in infrastructure and adaptability to user needs,” the company stated.
Balanz has over 20 years of experience in the capital markets, with a presence in Argentina, the United States, the United Kingdom, Panama, and Uruguay. It serves more than 1,000,000 clients and recently achieved a historic milestone by surpassing $10 billion in assets under management (AUM).
The Mattatuck Museum in Waterbury, CT, will host the premiere showing of The Body Imagined: Figurative Art in the Bank of America Collection from June 22 through September 28, 2025.
This curated exhibition features 97 artworks ranging from the late 1960s to the present, exploring diverse interpretations of the human figure by notable artists such as Milton Avery, Nick Cave, Andy Warhol, and Cindy Sherman.
On opening day, Sunday, June 22, the Museum will offer reduced $5 admission and celebrate with remarks at 1 PM.
Organized through Bank of America’s Art in our Communities program, the exhibition is divided into three thematic sections: Body Language, Changing Forms, and Framing the Figure.
Museum Director Bob Burns emphasized the significance of this collaboration, highlighting the shared commitment to making impactful art accessible to the public and fostering dialogue on cultural identity.
Complementing the exhibition, the Museum will offer diverse programs throughout the summer, including artist talks, film screenings, family activities, yoga sessions, and salsa nights, all curated to deepen engagement with the exhibition’s themes.
The Mattatuck Museum, recently expanded and renovated with a $9 million investment, holds over 8,000 objects representing American art and regional history. It is supported by state and federal arts agencies and is part of the Connecticut Art Trial network.
Bank of America credit and debit cardholders enjoy free general admissions the first full weekend of every month through the Museums on Us program.
For more information and a full calendar of events, visit mattmuseum.org.
On April 2, an exuberant Donald Trump announced that the United States was imposing tariffs on the entire world. That same month, Treasury bonds experienced weeks of historic volatility, and foreign investors sold a net total of $40.8 billion in U.S. bonds and notes with maturities longer than one year—the largest amount sold since December. The data comes from the latest Treasury report.
Part of that selloff was offset by $6.042 billion in purchases by foreign central banks, according to a Barron’s report. As a result, foreign holdings totaled over $9 trillion for the month, the second-highest amount ever recorded.
Treasury bonds went through a historic wave of selling in April, with the 30-year yield posting its biggest weekly gain since 1987, while the 10-year yield saw its largest weekly gain since the end of the 2001 recession, according to Dow Jones Market Data.
Recent estimates indicate that foreign investors hold about 30% of publicly held Treasury debt, down from nearly 50% in 2008. The U.S. public debt market is valued at $28.6 trillion. Foreign holdings have seen a near-constant increase since 2022. Japan and the United Kingdom are the largest holders, followed by China. The first two countries increased their holdings in April, while China reduced theirs.
“The safe-haven status of these assets is increasingly being questioned, and our data clearly reflects this trend,” said John Velis, macro strategist for the Americas at BNY, according to an article in Market Watch.
According to BNY data, foreign sales were recorded on eight of the last eleven trading days since April 4. The 10-year Treasury yield nearly reached 4.5% on April 11, when foreign investors exited the market, according to the same source.
Trump’s trade policy is joined by other factors explaining these movements in the U.S. bond market. According to Jay Barry, Global Rates Strategist at J.P. Morgan, hedge funds placed large leveraged bets early in the spring that were forced to unwind, which could be one reason for the wave of selling. Investors may also simply be rebalancing their portfolios, as market confidence in international assets, such as German government bonds, has improved.
The “Great Wealth Transfer” is underway, and inheritance patterns are changing, with significant implications for the distribution of wealth and financial markets. A study by Capital Group, a firm specialized in active investments with approximately $2.8 trillion in assets under management, indicates that high-net-worth (HNW) families around the world are accelerating the transfer of wealth to their heirs.
The study surveyed 600 high-net-worth individuals from Europe, Asia-Pacific, and the U.S. to understand their approach to inheritance and their own succession planning.
“It is estimated that in the coming decades, baby boomers in the United States, Europe, and developed countries in Asia will transfer trillions of dollars to younger generations. Millennials and Generation Z are receiving larger inheritances at a younger age and could benefit from a financial advisor’s market knowledge and long-term investment perspective. At Capital Group, we have built lasting partnerships with wealth managers based on the belief that expert financial advice and strong long-term investment performance drive better outcomes for asset holders and their beneficiaries,” says Guy Henriques, President of Distribution at Capital Group in Europe and Asia.
Attracting the Next Generation of High-Net-Worth Individuals According to the study, nearly half of all respondents (47%) inherited directly from their grandparents, and the majority (55%) received between $1 million and $25 million. Millennials are more likely to turn to social media and “finfluencers” for investment advice when inheriting (27%) than to financial advisors (18%). Furthermore, 65% of Generation X and Millennial heirs who participated in the study say they regret how they used their inheritance money, and nearly two in five wish they had invested more.
In the case of Spaniards, they are more likely to invest their inheritance: 37% compared to the 33% global average.
Maximizing the Potential of Inheritance According to a recent study, three quarters of respondents say they have difficulty communicating their inheritance plans, and the majority turn to lawyers (61%) or accountants (49%) to manage them, while only 20% turn to financial advisors.
Additionally, 79% do not specify how the inherited capital should be used, which contributes to much of that money remaining idle or underutilized: only 22% is invested in funds and just 11% is allocated to pension plans.
This lack of strategy is reflected in the dissatisfaction of asset holders: 60% are unhappy with how they used their inheritance, and one third regret not having invested enough. In Spain, 54% of high-net-worth individuals wish they had directed more of their inheritance toward investment.
“Our study reveals that most of these asset holders wish they had used their inheritance differently and invested more. At Capital Group, our mission is to improve people’s lives through successful investing. We believe that if they consider investing part of their newly acquired capital, individuals with substantial wealth could build long-term prosperity. As a company with 94 years of experience, we have partnered with clients to invest across multiple generations, and as markets rise and fall, it is important to remember the value of staying invested for the long term,” concludes Guy Henriques, President of Distribution at Capital Group in Europe and Asia.
