Pessimistic About the U.S., Financial Advisors Increase Allocation to Global Investments

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The survey reveals that 42% of the independent financial advisors surveyed are investing more in stocks outside the U.S., while a similar number (40%) are reducing clients’ exposure to U.S. stocks.

The Interactive Brokers 2025 Advisor Sentiment Survey shows that these decisions reflect growing market skepticism: 62% of advisors report a more bearish outlook than 12 months ago, while only 12% say they are more optimistic.

Recent increases in market volatility and economic uncertainty have caused advisors to temper their enthusiasm for the U.S.: 36% of respondents identify as bearish, while 31% consider themselves bullish.

In contrast, advisors have a more favorable outlook on global markets: 38% describe themselves as bullish on them, and only 11% consider themselves bearish.

Advisors cite tariffs and changes in U.S. policy as their main concerns regarding markets and the economy. More than half (52%) state that their clients are particularly worried about the impact of current market volatility on their portfolios, and one in five (20%) indicate that clients’ main fear is their retirement.

In addition to shifting clients’ equity exposure toward global markets, advisors are also reallocating assets in other ways:

  • 29% are increasing investments in fixed income

  • 28% are investing more in commodities

  • 27% are increasing exposure to foreign (non-U.S.) currencies

  • 37% are boosting their positions in cash (U.S. dollars)

Despite uncertainties, advisors remain highly optimistic about their business growth this year: 61% are confident their firm will grow, and of those, 17% feel extremely confident.

“Advisors are acting as strategic buffers for their clients right now, managing risk through global diversification,” said Steve Sanders, Executive Vice President of Marketing and Product Development at Interactive Brokers. “They are navigating market volatility and client anxiety while also handling increased business, as more investors tend to seek professional advice during unstable market cycles.”

Interactive Brokers surveyed its independent financial advisor clients to assess their outlook on their firms’ operations in the current market environment. The global email survey, conducted in April 2025, was completed by 113 fee-only financial advisors, who have an average of 19.4 years of experience. Respondents reported working at firms with an average of $120.2 million in assets under management.

The SEC Appoints New Leaders With Crypto Ties for Its Investment Management and Trading & Markets Divisions

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The SEC announced that Brian Daly will be the new Director of the Investment Management Division, effective July 8, and that Jamie Selway will serve as Director of the Trading & Markets Division, a role he will assume on June 17. The regulator also reported that Kurt Hohl was appointed Chief Accountant and that Erik Hotmire is returning to the SEC as Chief External Affairs Officer. All announcements were made on Friday, June 13.

Daly has advised on cryptocurrencies, and Selway briefly worked at Blockchain.com, so their appointments are seen as a more crypto-friendly approach by the regulator, driven by President Donald Trump.

Brian Daly brings decades of experience in senior roles at global law firms and investment management companies, advising fund managers and sponsors on regulatory compliance.

For the past four years, he has been a partner in the investment management practice at Akin Gump Strauss Hauer & Feld LLP in New York, where he advised investment advisers and other clients on legal and compliance programs, policies and procedures, and provided guidance on fund and management company formation, operational and business matters, enforcement issues, and management company transactions, the SEC said in a statement.

“Brian’s deep knowledge across all levels of the investment management industry will be of great value, and I look forward to working with him to achieve smart and effective oversight of the industry and its relationships with investors,” said SEC Chairman Paul Atkins. “I look forward to collaborating with Brian on common-sense regulation that does not impose unnecessary burdens and truly respects the public comment process,” he added.

Daly stated: “I have always respected and valued the SEC’s commitment to regulatory oversight while advising clients on compliance and providing public comments from the investment management perspective during the agency’s rulemaking process. I am optimistic about this new chapter at the SEC and eager to work with Chairman Atkins and my new colleagues to ensure regulatory compliance by investment advisers and fund managers, while tailoring regulation to our legal authority.”

Before joining Akin, Daly spent nearly a decade as a partner in the investment management group at Schulte Roth & Zabel LLP, advising investment advisers and fund managers on legal, compliance, and operational issues. He was also a founding partner at Kepos Capital, a quantitative investment management firm, where he served as General Counsel and Chief Compliance Officer. Among other past roles, he was General Counsel and Chief Compliance Officer at Millennium Partners (a liquid markets fund manager under the Carlyle Group) and at Raptor Capital Management. Additionally, he taught legal ethics at Yale Law School and served on the board of the Managed Funds Association.

Jamie Selway, for his part, is a prominent leader in financial markets. “I want to welcome Jamie to the SEC,” said Paul Atkins. “He brings decades of experience in market structure and across multiple asset classes, which is essential for this role. I look forward to working with him to protect our markets and ensure that the agency’s regulations strike the right balance between costs and benefits,” he added.

Selway most recently was a partner at Sophron Advisors, where he advised clients on capital markets issues. He was also a board member at Protego Holdings, board chair at AllofUs Financial and Skew, and an advisor to several fintech companies.

Previously, he was Managing Director and Head of Electronic Brokerage at Investment Technology Group, a global institutional brokerage firm. He co-founded institutional brokerage firm White Cap Trading, where he served as Managing Director and President. Early in his career, he was Chief Economist at Archipelago, worked in equity derivatives research at Goldman Sachs, and was Associate Director of Research at the National Association of Securities Dealers (NASD), which later became FINRA.

The appointments indicate that the SEC is shifting its stance on the digital space since Chairman Atkins took office in April. Under his leadership, the regulator has withdrawn or suspended several major lawsuits against cryptocurrency companies. The agency dropped cases against Coinbase, Cumberland DRW, and Richard Heart, founder of Hex, PulseChain, and PulseX. In March, the SEC held its inaugural roundtable of the crypto task force to discuss future regulation of digital assets, signaling what appears to be a new era under the Trump administration.

Open Outlook for Rate Cuts

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Photo courtesyJerome Powell, presidente de la Fed.

At its June meeting, the Fed kept interest rates unchanged—for the fourth time—and acknowledged that uncertainty has declined, although it still sees it as “elevated.” According to global asset managers, while the Fed’s actions were in line with expectations, its updated economic projections leave the door open for two rate cuts before the end of the year.

The case for placing two rate cuts on the radar is based on the Fed recognizing that economic uncertainty has “eased,” which could pave the way for rate cuts if inflation remains under control. “A more relaxed stance on economic uncertainty could signal greater openness to rate cuts in the second half of the year, as long as other macroeconomic indicators remain stable,” says Bret Kenwell, an analyst at eToro in the U.S.

“Powell emphasized the role of impending tariff hikes in worsening economic prospects and the importance of the Fed not acting prematurely before the full effects of trade policy are understood—in a meeting that was otherwise uneventful. However, for a growing number of members, ‘waiting’ now implies not cutting rates at all this year. Somewhat surprisingly—given the potentially negative long-term impact of tariffs on growth and employment—the Fed has revised down its forecast for rate cuts in 2026 from two to one,” adds Paolo Zanghieri, Senior Economist at Generali AM (part of Generali Investments).

Cuts in 2025?

Ray Sharma-Ong, Head of Multi-Asset Investment Solutions – Southeast Asia at abrdn Investments, points out that the dot plot from Federal Open Market Committee (FOMC) members still projects two rate cuts for 2025. However, he notes that projections for 2026 and 2027 have been revised, and only one cut is expected in each of those years. Moreover, Sharma-Ong believes that given current uncertainty around economic outlook and trade policy, the Fed might ultimately implement only one—or even no—cut this year, contrary to the two cuts indicated in the dot plot for 2025.

“This is due to a lack of clarity about the final form of tariffs, the evolution of tariff pauses, and trade negotiations. These developments remain uncertain and will impact economic, inflationary, monetary, and market sentiment outcomes,” notes the abrdn expert.

Simon Dangoor, Head of Fixed Income Macro Strategies at Goldman Sachs Asset Management, explains that FOMC members continue to expect short-term inflation to be largely transitory, and their tolerance for rising unemployment remains low. As a result, he states: “We expect the Fed to hold its stance at next month’s meeting, but believe a path could open up for the Fed to resume its easing cycle later this year if the labor market weakens.”

Dan Siluk, Global Head of Short Duration & Liquidity and Portfolio Manager at Janus Henderson, believes this moderate decision by the Fed indeed leaves the door open for rate cuts in the second half of 2025. “The Fed is clearly signaling it’s in no rush but is prepared to act if inflation continues to moderate and labor market weakness deepens. The upward revision in inflation forecasts may temper expectations for aggressive easing, but maintaining the rate path for 2025 reassures markets that the Fed remains flexible,” he explains.

He also adds that “markets will now look to Powell’s Q&A for greater clarity on the Fed’s reaction function, particularly how it weighs recent moderate inflation data against persistent geopolitical and tariff-related risks.”

Doubts Remain

However, other investment firms are less confident about future rate cuts. “We believe the Fed will remain on hold with no interest rate changes this year, but we foresee gradual rate cuts next year under the leadership of a new Chair.

The conflicting risks to growth and inflation make keeping rates steady the logical choice for the Fed this year. The August review of monetary policy could lead to some changes in the Fed’s operations, but we believe the impact will be limited. The appointment of Powell’s successor will carry greater importance. Under new leadership, we think the committee will use next year’s inflation moderation as an opportunity to start moving toward a more neutral policy,” says George Brown, Senior Economist at Schroders.

This view is echoed by Raphael Olszyna-Marzys, International Economist at J. Safra Sarasin Sustainable AM, who believes Powell’s repeated assertion that the economy remains strong carries significant weight, despite the uncertainty and tariff impact. “As Jerome Powell stated, ultimately the cost of tariffs must be paid, and some of it will fall on the end consumer. We know that’s coming, and we want to see these effects before making premature judgments. This implies it is unlikely the Fed will resume its rate-cutting cycle—unless the labor market suddenly weakens—at least until September,” notes Olszyna-Marzys.

Key Decision Drivers

Allison Boxer, Economist at PIMCO, highlights that revisions in the Fed’s economic projections point to a more uncertain outlook. “Fed officials made stagflationary revisions to their forecasts, with median forecasts for both inflation and unemployment rising, while growth projections fell. Their outlook implies that both sides of the Fed’s dual mandate—price stability and maximum employment—are moving in the wrong direction. Given this contradiction, the projections showed Fed officials split on rate outlooks, with most divided between holding rates steady or cutting by 50 basis points by year-end,” Boxer explains.

PIMCO’s view also sees diverging paths for the Fed: cutting gradually or minimally if the labor market proves resilient, and cutting more significantly if labor weakens. “Given recent labor data and rising uncertainty, our base case is for a return to a gradual rate-cutting pace later this year,” adds the economist.

Jean Boivin, Head of the BlackRock Investment Institute, explains that the Fed has long faced a delicate balancing act between supporting growth and containing inflation. “Powell stated that he expected tariffs to generate significant inflation in the coming months. And although the Fed’s base case seems to be that tariffs will have a one-off inflationary impact rather than a lasting one, it is clearly acknowledging the potential for more persistent inflation, depending on the size and duration of tariffs. It has slightly revised its inflation forecast upward for the coming years. Still, we believe the Fed is underestimating the magnitude of future inflationary pressures,” says Boivin.

Another factor some firms believe could come into play is the leadership change at the Fed, with Powell having 11 months left in his term. “Looking ahead to 2026, we expect leadership changes at the Federal Reserve to further shift the policy landscape. Jerome Powell’s term ends on May 15, 2026, and a new chair is expected to be appointed. Potential successors—such as Kevin Hassett, Kevin Warsh, and Scott Bessent—are viewed as more moderate and aligned with President Trump’s pro-growth, low-rate agenda. Moreover, four of the twelve voting FOMC members will also rotate next year. This shift could support the economy ahead of the midterm elections scheduled for November 3, 2026. Consequently, we expect the Fed’s projected rate cuts for 2026 and 2027 to evolve as we approach 2026,” says Sharma-Ong.

83 Trillion at Stake: How Securitization Can Help Capture the HNWI Heir

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In a financial environment marked by evolving generational preferences and constant technological innovation, asset securitization emerges as a strategic tool for the new generation of asset managers. As younger investors gain access to financial advice earlier—and with different demands—managers face the need to adapt products, operating models, and distribution channels. Securitization, traditionally associated with complex structures and institutional investors, is finding renewed relevance in service of this transformation, according to FlexFunds.

During 2024, the growth in wealth and the population of high-net-worth individuals (HNWI) worldwide was solid, with increases of 4.2 % and 2.6 %, respectively. However, the real inflection point for the sector is the imminent, massive wealth transfer to Generation X, Millennials, and Generation Z—collectively known as next‑generation HNWIs. It is estimated that by 2048, more than US $83.5 trillion will have been transferred to these cohorts, marking a structural shift in the wealth‑management landscape.

According to Capgemini’s World Report Series 2025: Wealth Management, this phenomenon is occurring alongside a strong stock‑market rebound which, despite macroeconomic volatility, drove sustained growth in HNWI wealth levels over the past year.

This new scenario also implies a profound shift in investment profiles. Bank of America’s 2024 study confirms that younger HNWIs are reshaping their portfolios with a more diversified, digital, and alternative mindset:

  • Only 47 % of their portfolios are in traditional equities and bonds, compared to 74% for those over 44 years.
  • 17% already invest in alternative assets—versus 5% in older generations—and 93% plan to increase that exposure.
  • 49% own cryptocurrencies, and another 38% are interested in acquiring them, making crypto the second-largest growth opportunity after real estate.
  • Physical gold also draws interest: 45% already hold it, and another 45% are considering adding it to their portfolio.

These figures reflect not just new preferences, but a structural transformation in wealth-building.

A new client, a new challenge for managers

Northwestern Mutual’s 2024 Planning and Progress study, cited by the CFA Institute, shows that younger generations in the U.S. seek financial advisors at an earlier age. The average Baby Boomer began that relationship at age 49, Generation X at 38, and Millennials at just 29 (see Figure 1).

 

Figure 1: Age at which clients begin working with a financial advisor

 

Source: Northwestern Mutual Planning and Progress Study 2024

 

The great wealth transfer demands new strategies

The imminent generational wealth transfer represents an unprecedented opportunity—but also a significant threat for traditional managers. Over 80% of next‑generation HNWIs say they would change firms within the first two years after inheriting if their values and expectations aren’t met.

Each HNWI generation has specific needs. Faced with this structural shift, managers must deeply review their engagement strategies, products, and services to effectively meet more sophisticated and segmented demand.

 

Additionally, young investors state that they prioritize products with environmental or social impact, while others lean towards digital and customizable solutions. This presents a dual challenge for emerging managers: meeting sophisticated expectations and building portfolios combining performance, purpose, and transparency.

In this context, new advisors must focus on building relationships and offering personalized, results-oriented services—understanding and delivering what new investors genuinely value and are willing to pay for.

This new approach implies rethinking the perception of financial advice to emphasize a connection-based approach, which will help attract younger investors.

Securitization: From technical instrument to enabling strategy

Securitization allows transforming liquid or illiquid assets into tradeable financial instruments. Traditionally used by banks or large managers to package mortgages, loans, or income streams, specialized platforms like FlexFunds are democratizing its use—enabling independent or boutique managers access to this financial engineering with greater agility.

“Securitization can be a pathway for asset managers and investment advisors to create customized investment vehicles that allow them to repackage investment strategies, and enhance global distribution by facilitating capital raising on international banking platforms—all without requiring costly structures or complex infrastructure,” says Emilio Veiga Gil, executive vice president of FlexFunds.

This flexible packaging capability allows managers to:

  • Convert personalized strategies into listed securities (ETPs).
  • Include alternative assets in structures tailored to different risk profiles.
  • Align investment vehicle time horizons with young clients’ goals.

Democratization and scalability

Securitization also supports scalability, a critical factor for new managers. Many operate from agile, non‑bank structures and seek efficient solutions to enter new markets. By using investment vehicles, they can scale distribution without sacrificing personalization.

According to the II Annual Report of the Securitization Sector 2024–2025 by FlexFunds and Funds Society, 56% of advisors surveyed have managed an investment vehicle—demonstrating solid expertise in the field—while 40% have yet to use this tool, highlighting a growth opportunity.

Transparency, traceability and trust

Another key advantage is the traceability provided by investment vehicles. In an environment where young people value transparency, audited structures with validated periodic information become a reputational asset.

New generations have more access to information—and greater skepticism. Offering products with clear structures and transparent return flows builds trust and loyalty.

Today, next generation HWNI seek investments aligned with their values (sustainability, technology, social impact). Through securitization, asset managers can repackage alternative assets—such as renewable energy, green loans, or digital assets—into accessible listed securities, meeting new investor preferences within the regulatory framework.

To adapt to this new client profile, managers should prioritize:

  • Customized, diversified investment portfolios
  • Promoting geographic diversification through offshore solutions
  • Developing value‑added services focused on wealth and tax planning
  • Implementing personalized concierge services; next‑generation HNWIs expect services beyond finance: health, education, cybersecurity, travel, etc.
  • Bridging the digital gap and modernizing communication channels
  • Educating heirs and strengthening their connection to the firm

A more open future, if managed with vision

The key for securitization to become a competitive advantage lies in its strategic use. It’s not just about bundling assets, but rethinking how these products can broaden access, enhance young investors’ experience, and build sustainable business models.

Mass personalization and digital integration will be key differentiators. Managers who can combine financial engineering with purpose and digital intelligence will have the edge in winning young clients.

Asset securitization has ceased to be an exclusive instrument for large institutional players—it is transforming into an enabler of innovation, scalability, and trust for the new generation of managers. In a context where young investors seek advice earlier and with higher expectations, this tool can bridge structural sophistication with the ease of use demanded by the future of asset management.

ZINK Solutions Adds José Ignacio García as Partner and Wealth Planner in Miami

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ZINK Solutions announced the appointment of José Ignacio García, who joins the firm as Partner and Wealth Planner as part of the expansion strategy launched by the wealth advisory and planning company, founded in 2021 and now operating offices in Miami, New York, and Madrid.

García’s addition supports the firm’s objective of further developing and specializing its alternative wealth planning offering, which delivers integrated solutions to the families it serves.

“We are very pleased to welcome José Ignacio to the team and with the potential he brings. With this hire, ZINK Solutions continues to successfully position itself as a relevant player in the market, offering comprehensive advisory services to major families across the Americas,” said Miguel Cebolla, Partner and CEO of the firm.

María Concepción Calderón and Manuel Sánchez-Castillo, also Partners at the firm and former colleagues of García, added: “Bringing on a professional of José’s caliber advances our vision for serving top-tier clients.”

García brings over three decades of experience in the financial sector, having held senior roles at major institutions. He began his career at Banco Santander Private Banking Internacional (PBI), where he was Country Manager; later served as Managing Director at Andbank, and General Manager America at Credit Andorra. His most recent role was Executive Director at Charles Monat, a global provider of wealth planning solutions based on insurance structures.

“After evaluating the professionalism and quality of services offered by ZINK Solutions, I made the decision to continue supporting my clients and relationships in the region from a platform that provides exceptional versatility, added value, and solidity—along with the human quality of a team I’ve known for more than 25 years,” said García.

He holds a degree in Business Administration from California State University. His profile combines strong technical training with strategic business insight, positioning him as a key asset in expanding the firm’s reach and depth of services. ZINK Solutions has experienced steady growth in the areas of Private Banking, Wealth Planning, and Corporate Solutions, including M&A, among other businesses.

The Resilience of Emerging Economies Creates Opportunities in India, China, and Brazil

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Despite showing resilience in the first quarter, investment firms remain alert to the potential impact of U.S. tariffs on emerging markets, with Asia seen as the most vulnerable region and Latin America the least. While keeping this risk on their radar, they acknowledge that emerging markets’ macroeconomic fundamentals remain solid and that central banks still have room to maneuver—opening up a wide range of opportunities.

“It is too early to accurately assess the impact on growth, given the risk of new retaliations or even the potential for negotiation during the 90-day truce. But it is clear that growth will adjust. Emerging market growth has always been reliant on global trade and, as in 2018/2019, a decline in global trade will hurt exports. Similarly, high uncertainty in the coming quarter will at least limit business sentiment and investment, as questions about supply chain positioning will prevail,” said Guillaume Tresca, Senior Emerging Markets Strategist at Generali AM, part of Generali Investments.

On the tariff impact, Tresca foresees increasing differentiation across emerging market regions, with Asia being the most affected. On average, Asia faces tariffs above 20% and sends over 15% of its exports to the U.S. However, Asian central banks have remained conservative and still have room to ease monetary policy.

He also expects countries in Central Europe, the Middle East, and Africa (CEEMEA) to benefit from their integration into the EU value chain and their relatively lower exposure to U.S. exports. “Latin American countries are more immune than European ones, as their tariffs are higher. Among them, Mexico benefits from the USMCA for certain exports, and Brazil’s exports to the U.S. are limited. That said, there is a risk of secondary impact on Chile and Peru‘s mineral exports to China if China slows significantly,” he added.

A Question of Resilience

Schroders’ Emerging Markets team notes that EM equities have outperformed the U.S. market this year, driven by political uncertainty in the U.S. (tariffs and dollar) and the launch of China’s DeepSeek AI investment model.

“The damage from tariffs appears to be very U.S.-centric, as they are not yet high enough to stop trade flows. The U.S. has large twin deficits and an overvalued currency. Once short-term volatility subsides, that’s a clear medium-term positive for emerging markets,” they argue.

Olivier D’Incan, Global Equity Fund Manager at Crédit Mutuel Asset Management, notes that emerging markets tend to grow faster than developed economies, driven by a rising middle class and expanding economic infrastructure. “In recent years, high U.S. interest rates have weighed on emerging market currencies, but the Fed’s expected rate cuts by year-end should ease that pressure,” he explained.

That said, he also acknowledges that recent geopolitical tensions surrounding global trade cannot be ignored and that companies with high U.S. exposure may face short-term volatility. “Several high-quality companies that are leaders in their domestic markets are capitalizing on these long-term trends, providing global investors an opportunity to diversify beyond the U.S. economy,” D’Incan added.

In Search of Opportunities

When discussing opportunities, D’Incan highlights India as the country with the strongest structural growth. “Its growing middle class is driving domestic consumption, while the government’s ambitious infrastructure spending plans continue to fuel economic momentum,” he stated.

He also points to China, where a shift in government tone has boosted confidence in its commitment to resolving the property market crisis and supporting GDP growth. According to D’Incan, although the market has begun to rebound, “we believe valuations remain quite attractive, and the prospects for fiscal and consumption stimulus make us increasingly optimistic.”

From Schroders’ perspective, in an economy as large and a stock market as deep as China’s, there will always be opportunities for active managers. “We focus on identifying well-managed companies with attractive long-term return profiles, as well as those we consider undervalued. Many of these firms have refined their business in highly competitive domestic markets and are now global leaders. On the aggregate level, Chinese equity valuations are reasonable, and low consumer confidence means there’s a lot of cash in bank accounts that could be invested in the equity market. In our view, further market appreciation will require new fiscal measures to improve property price prospects and boost consumer confidence,” they argue.

Finally, D’Incan also sees clear opportunity in Brazil, which went through a “perfect storm” in 2024. According to his analysis, political uncertainty over budgets, currency depreciation, and persistent inflation triggered several rate hikes. “We currently see valuations as potentially attractive, and we expect that rate cuts later in the year, combined with growing investor interest ahead of the 2026 presidential election, could draw capital back to the country,” he concluded.

Accessing Emerging Markets

In this context, Schroders emphasizes that the landscape of opportunities in emerging markets—i.e., the countries and companies in the MSCI Emerging Markets Index—has changed radically over the last 30 years, as developing countries opened their markets to foreign investors and improved regulatory and operational regimes. The biggest shift has been China, which has grown from zero to 30% of the index, while Latin America’s weight has declined by over 20%.

“Given the potential for future evolution, the ability of active investors to anticipate benchmark index changes and invest beyond them is valuable. It allows active fund managers to identify and seize attractive investment opportunities ahead of others,” Schroders stated.

According to the firm, in practice, this means active funds can enter a market before it is added to an index. Moreover, unlike index-tracking products, they typically have the flexibility to invest when they deem it attractive, rather than being bound to a specific date.

Demand for Agriculture-Linked Financial Instruments Soars in Brazil

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The first effects of tariff measures introduced by the U.S. government under Donald Trump are beginning to materialize in both the real and financial economies. In Brazil, Credit Rights Investment Funds linked to agriculture are growing rapidly, as the performance of the local agribusiness sector once again surprised in the first quarter of 2025 with a 12.2% expansion.

Year over year, Brazil’s GDP rose by 2.9%. A major driver of this acceleration came from the agricultural sector: China doubled its soybean purchases, making the Latin American giant its primary supplier and replacing the United States.

In Brazil, this growing relevance has reignited discussions on how to expand financing for the sector, and among the most promising instruments are Credit Rights Investment Funds (FIDCs), which are consolidating as a structured credit mechanism tailored to the specific needs of agriculture.

The FIDC market dedicated to agribusiness—particularly in the form of FIAGRO-FIDC—has experienced rapid growth. According to data from Anbima, FIAGROs’ net assets have increased by 204% since March 2023, reaching BRL 47.7 billion (approximately USD 8.6 billion) in 2025. Of that total, about 48% is allocated to FIDC structures, which acquire credit rights from the rural production chain such as invoices, supply contracts, and input receivables.

“FIDCs provide rural producers with more flexible credit access, often through structures adapted to their production cycle. For investors, they represent a safe and regulated alternative with the potential for higher returns than traditional fixed income,” said Marcelo Linhares, Superintendent of Agribusiness and Foreign Trade at FlowInvest.

FIDCs are directly supervised by the Brazilian Securities and Exchange Commission (CVM), which ensures greater transparency and strict governance. Resolution 175, recently enacted by the regulatory body, has simplified the fund regulatory framework, offering more clarity on risk classifications and manager responsibilities.

Beyond FIDCs, other instruments are also attracting investor interest in the agribusiness sector: Agribusiness Receivables Certificates (CRAs), which are exempt from income tax for individuals and have seen a 42% increase in issuance volume; Agribusiness Credit Bills (LCAs); and Green CPRs, which focus on sustainable farming practices.

According to experts, the advancement of receivables tokenization, the growing sophistication of investment platforms, and increased interest in real-economy-linked assets have enabled individual investors to engage with agriculture like never before.

“Today, it’s possible to invest in robust structures backed by agribusiness without leaving home, with sector diversification and exposure to one of the most resilient segments of the Brazilian economy,” said Linhares.

Although agribusiness represents about 6.5% of Brazil’s GDP on average, it has been a major driver of recent economic growth, further reinforcing the appeal of these instruments. For investors, in addition to the potential for risk-adjusted returns, structured funds such as FIDCs offer the chance to build more diversified portfolios with assets uncorrelated to the urban and industrial economy.

“We are entering a new agricultural financing cycle, in which the capital markets play an increasingly strategic role,” Linhares concluded.

Investors Back UCITS Despite Tariff Uncertainty in the Eurozone

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All UCITS categories attracted capital inflows in the first quarter of 2025, demonstrating investor confidence despite ongoing uncertainty around tariffs, according to the latest statistical report published by the European Fund and Asset Management Association (Efama).

In the view of Bernard Delbecque, Director of Economics and Research at Efama, despite the decline in fund asset values, UCITS recorded strong inflows across all categories throughout the quarter. “The fact that fixed income funds remained the best-selling category indicates that investors were still exercising caution; however, rising concerns over impending U.S. tariff hikes did not deter investors from purchasing equity and multi-asset funds,” he noted.

Key Figures

During the first quarter of 2025, net assets of UCITS and AIFs experienced a slight decline of 1.1%, reaching €23.2 trillion. According to Efama, despite this drop, both fund types attracted net inflows totaling €217 billion, showing a slight decrease from the €238 billion recorded in the fourth quarter of 2024. Of these inflows, UCITS accounted for the vast majority with €213 billion, while AIFs recorded €4 billion—a significant decrease from the €21 billion of the previous quarter.

Long-term funds showed solid performance, posting net inflows of €179 billion. All long-term fund categories recorded net inflows, with bond funds remaining the top sellers at €75 billion, although down from €91 billion the previous quarter. Equity funds also performed well, registering €64 billion in net inflows, an increase from €60 billion at the end of 2024. Multi-asset funds rebounded with €20 billion in net inflows, a significant increase compared to €7 billion in the previous quarter.

ETFs continued their growth trajectory, with UCITS ETFs reaching €100 billion in net inflows. Meanwhile, long-term funds under SFDR Article 9 (Sustainable Finance Disclosure Regulation) marked their sixth consecutive quarter of net outflows, totaling €7.9 billion. In contrast, Article 8 funds, which focus on sustainable investments, attracted €42.6 billion.

Finally, European households showed strong interest in fund purchases, with net acquisitions of €79 billion in the fourth quarter of 2024—up from €62 billion in the previous quarter. This marked the second-highest quarterly level since Q2 2021, driven primarily by households in Germany, Spain, and Italy.

exSat and Ceffu Launch MirrorRSV for Bitcoin Yields

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In a move made to reshape how institutions interact with Bitcoin, digital banking service provider exSat and Ceffu have launched MirrorRSV integration. Offering secure, transparent and high-yield Bitcoin asset deployment across centralized and decentralized finance platforms. 

Institutional clients can now mirror assets from the exSat mainnet directly to the Binance Exchange, unlocking 1:1 liquidity access, on-chain verifiability and cold storage security. These services are all powered by Ceffu, Binance’s exclusive custody partner. 

The new system ensures full traceability of asset flows and yield generation, enabling institutions to participate in Bitcoin-native strategies with the compliance, control and audibility they demand. 

“Through our partnership with exSat, we’re enabling a new paradigm where institutional investors can confidently participate in Bitcoin yield generation, knowing their assets are protected,” said Ian Loh, CEO of Ceffu. 

Additionally, it enables multi-layered yield generation by combining the benefits of DeFi with CeFi. Clients can maximize asset efficiency, leveraging exSat’s infrastructure to engage in hybrid strategies such as staking, real-world asset earning and delta-neutral trading.

The launch marks the first time Mirror RSV supports a Bitcoin-native protocol, reinforcing Ceffu’s leadership in off-exchange asset mirroring and yield deployment for institutional investors.  

“We are now enabling institutions to deploy capital into Bitcoin-native yield strategies with the same level of control, auditability and compliance they expect from any traditional asset class,” said Yves La Rose, Founder of exSat. 

Certified Financial Planner Board of Standards Leads AI Initiative

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The Certified Financial Planner Board of Standards, Inc. hosted an AI Working Group on June 10-11 in Washington, D.C., to explore how artificial intelligence is transforming the financial planning profession and to define the evolving role of human expertise. 

As part of its long-term strategy, the Board is developing actionable recommendations to help ensure AI supports, rather than replaces, the human-centered nature of financial advice. 

“CFP Board is taking the lead to help the profession harness AI’s potential to elevate financial planning and strengthen engagement,” said CFP Board CEO Kevin R. Keller, CAE.

Led by CFP Board COO K. Dane Snowden and developed in partnership with Heidrick & Struggles, the working group examined real-world applications, regulatory considerations and ethical implications of AI financial planning. The agenda included scenario planning and discussions on how to integrate AI into practice responsibly. 

Members of the AI Working Group include: 

  • Andrew Altfest, CFP®, MBA, Founder and CEO, FP Alpha and President, Altfest Personal Wealth Management
  • Joel Bruckenstein, CFP®, CMFC, CFS, President, T3 Technology
  • Alan Davidson, former Assistant Secretary of Commerce and Administrator, National Telecommunications and Information Administration
  • Tristan Fischer, Managing Director, Financial Services Consulting, Ernst & Young LLP
  • Tim Foley, Head of Artificial Intelligence Accelerator, LPL Financial
  • David Goldberg, Senior Vice President, Chief Data and Analytics Officer, Edelman Financial Engines
  • Brooke Juniper, CFA®, CAIA®, Chief Executive Officer, Sage
  • Trent Mumma, Chief Product Officer, Orion Advisor Solutions
  • Celeste Revelli, CFP®, BFA™, CSM®, CSPO®, Vice President of Financial Planning Technology, Fidelity Institutional® (FI)
  • Noah Rosenberg, Chief Financial Officer, Morning Consult
  • Apoorv Saxena, Managing Director, Head of AI/Data Driven Value Creation, Silver Lake
  • Megan Shearer, Ph.D., Senior Data Scientist, Janus Henderson
  • Zar Toolan, General Partner, Head of Data & AI, Edward Jones
  • Brian Walsh, Ph.D., CFP®, Head of Advice & Planning, SoFi