State Street has promoted Diana Donk to its team as ETFs sales for the US Offshore business.
Donk brings more than 15 years of experience in the financial services industry, specializing in ETFs, mutual funds, and business relationship management.
In her new role as Experienced ETF Sales VP, she leads the distribution of US ETFs to investors in the Andean Region and Eastern Canada, as well as UCITS ETFs to US Offshore clients.
She is responsible for “developing and executing sales strategies, creating and maintaining strong client relationships, and providing market and product insights,” as described on her LinkedIn profile.
Donk joined State Street in 2019 from J.P. Morgan Wealth Management, where she worked in for the US Offshore business.
Prior to J.P. Morgan, she began her career in her native Peru at CONFIDE as a Portfolio Manager from 2006 to 2010 and then spent nearly six years (2010-2016) at Inteligo, where she was a portfolio manager and Senior Product Manager for mutual funds in Lima.
She holds an MBA from Hult International Business School, a Master’s in Economics from Universidad del Pacífico, and has the CFA Level II certification.
Based in New York, she reports directly to Heinz Volquarts, Managing Director Head of Americas International for Canada and Latam at State Street.
Photo courtesyFred Bates, Managing Director at BECON IM
Barings will showcase the investment opportunities available in credit at the IV Funds Society Investment Summit in Houston.
The event, scheduled for February 29th at the JW Marriott Houston by The Galleria, will feature Fred Bates, Managing Director of BECON IM, presenting the Barings Global Senior Secured Bond Fund and Barings Private Credit Corporation strategies.
Regarding the Barings Global Senior Secured Bond Fund, it is “a developed markets bond fund with daily liquidity that invests exclusively in bonds that are senior in an issuer’s capital structure and are directly secured by collateral,” according to the firm’s description.
On the other hand, the Barings Private Credit Corporation is “a semi-liquid direct lending solution with variable rate managed by one of the sector’s largest private credit managers.”
After the experts’ presentations, guests will be transported to the NRG Stadium to enjoy the Houston’s Livestock Show and Rodeo from the Funds Society’s private suite.
Seats are limited, so Funds Society is asking professional investors from the US Offshore market of Texas and California interested in attending to complete their registration at the following link.
About Fred Bates
Frederick S. Bates is the Managing Director and co-founder of BECON IM, a third-party distribution company specialized in wholesale business development and sales to intermediaries across Latin America and US Offshore. BECON IM represents several world-class global asset managers throughout the Americas, including Barings, Neuberger Berman, Schafer Cullen, and New Capital. Prior to joining BECON IM, Bates amassed nearly 20 years of experience at MFS Investment Management and Fidelity, holding senior positions in the United States, Latin America, and Europe.
According to a new survey by Natixis Investment Managers (Natixis IM), 72% of professional fund selectors from some of the largest wealth management firms in North America agree that active management will be crucial for achieving superior investment returns in 2024.
This comes after 61% reported that actively managed funds on their platforms outperformed their benchmark indices last year, and 67% expect markets to continue favoring active management.
The balance between active and passive investments has been a topic of debate for the past decade, with significant inflows into passively managed index funds across the industry. However, 46% of fund selectors surveyed by Natixis IM attribute the outperformance of passive investments to monetary policy, or a decade of artificially low interest rates and relatively little inflation. The factors that boosted passive investment may no longer hold up. Half (50%) of the selectors believe that investors overly reliant on passive investments like index funds will face some hard lessons in 2024.
Selectors Seeking More Active Funds and ETFs
Natixis IM surveyed 223 North American fund selectors, professionals responsible for evaluating and selecting funds and investment products for their company’s investment platform. These respondents represent private banks, wirehouses, registered investment advisors (RIAs) and RIA aggregators, independent or individual wealth managers, and other investment advisory firms that collectively manage $20.7 trillion in client assets in Canada and the United States.
“Fund selectors expect the investment landscape of 2024 to be anything but normal, not by historical, new, or soon-to-be-normal standards,” said Dave Goodsell, executive director of the Natixis Center for Investor Insights. “They’re looking to manage client investments, experiences, and relationships by adjusting the product and portfolio offerings of their firms to help clients stay invested and armed with protection in uncharted investment territory.”
45% of fund selectors aim to add more actively managed funds to their platforms. 67% say their firms now offer semi-transparent ETFs, and 89% of them plan to maintain or add more of these actively managed ETFs. 69% offer direct indexing options, with 84% planning to maintain or increase access to these direct indexing strategies, which allow investment managers to establish direct ownership of individual securities that make up an index through a separate account.
Active ETFs Gaining Popularity
Active ETF assets have surged in recent years. Active ETFs differ from traditional, passively managed ETFs in that they have a management team behind the portfolio, selecting securities based on a specific underlying investment strategy, rather than simply replicating an index.
The use of active ETFs helps address concerns about price pressures, which have been a promise of passive investing, and the need to generate risk-adjusted returns, which passive funds do not inherently provide. The majority of fund selectors (53%) cite return potential as the primary benefit of active ETFs, while also recognizing other advantages such as tax efficiency (46%), access to innovative strategies (44%), intraday trading (41%), and greater potential alpha (23%).
Model Portfolios and Separately Managed Accounts
Model portfolios and separately managed accounts (SMAs) are also critical components of fund selectors’ product plans for 2024. Three-quarters (75%) say that models provide greater investor confidence in uncertain markets and help keep clients invested during periods of volatility (70%) and offer a more consistent investment experience across the firm (80%). Not surprisingly, 63% say that using models also helps advisors build solid relationships with their clients.
In adittion, 82% of fund selectors say their firms offer some type of model portfolio.
Economic and Market Uncertainty
While most (57%) are optimistic about the market’s performance this year, their outlook is clouded by a high degree of uncertainty and unpredictable risk. The specter of slower growth in the future places a recession atop economic threats (53%), followed by the threat of war and terrorism (51%) and a feared drop in consumer spending (41%). Most fund selectors (68%) believe that valuations still do not reflect company fundamentals, and 60% expect stock market volatility to be even higher this year than last.
If recession fears were to materialize, 61% believe it would further expose the shortcomings of passive investments.
The Natixis Investment Managers Fund Selector Survey is part of a larger survey of 500 professional fund selectors in Asia, Europe/EMEA, North America, and the United Kingdom. The full report on the global survey findings can be found at the following link.
Amundi announces it has signed a binding agreement for the acquisition of Alpha Associates, an independent asset manager offering private markets multi-manager investment solutions.
This acquisition will position Amundi as a leading European player in this space with a team of over 70 experts, a combined $21,5 billions of assets under management, an enhanced multi-manager offering spanning across private debt, infrastructure, private equity and venture capital, and an enlarged client & geographical footprint. It will also reinforce the presence on secondary transactions, which is a relevant capability in the current market.
The transaction increases Amundi’s offering of private markets funds and tailor-made solutions for its existing institutional clients globally. Finally, it accelerates the development of suitable private markets products for individual clients.
Valerie Baudson, Chief Executive Officer of Amundi, commented: “Within the asset management industry, private markets have seen sustained growth in recent years, as investors have increased their allocation to this asset class in their portfolios. This segment should also benefit from the appetite of retail investors for real assets investment solutions. The acquisition of Alpha Associates will thus allow Amundi to significantly broaden its client base, capabilities, and product offering, in a promising market. This move, which is fully in line with our strategic objective to increase our footprint in Alternative and Real Assets in Europe, will allow us to create substantial value for our clients and shareholders.”
Founded in 2004, Alpha Associates is a Zurich-based, founder-led, specialist in private markets multi-manager solutions, which currently manages $9,18 billions of assets. Alpha Associates brings differentiating funds-of-funds capabilities in private debt, infrastructure, and private equity, to over 100 institutional investors, notably pension funds and insurance companies, with a strong footprint in Switzerland, Germany, and Austria.
“We are pleased to join Amundi, a major global player in the asset management industry, and play an important role in Amundi’s plan to accelerate its footprint in the private markets segment. We are excited to work with Amundi’s private markets team, which shares Alpha’s ambition to generate outstanding risk-adjusted performance for clients,” added Peter Derendinger, founding partner and CEO of Alpha Associates, who will head the combined business declared.
These capabilities will be combined with the existing private markets multi-manager set-up of Amundi: a dedicated Paris-based team with over 20 years of experience, currently managing $12,96 billions of assets on behalf of institutional clients, mainly in France, Italy and Spain. As part of the transaction, Amundi’s and Alpha Associates’ multi-manager activities in private markets will be combined into a new business line, the press release said.
An expanded offering in a high growth segment benefiting from long-term trends Private markets have been one of the most dynamic areas of asset management in the past years, as investors are looking to diversify their portfolio with an alternative asset class that has proven to provide attractive returns with moderate volatility over the cycle. Multi-manager offerings are well suited to accompany investors on this path, as they provide access to a broader range of management skills, hence enhanced diversification and improved risk profile. Thereby, multi-manager investment solutions should also allow to offer real assets products to an underinvested retail client segment.
A transaction creating substantial value
This transaction, compliant with Amundi’s financial discipline, and in line with its strategic plan, will be significantly value accretive thanks to revenue synergies and strong growth potential. The return on investment will be above 13% in year 3 including revenue synergies.
Dominique Carrel-Billiard, Head of Alternative and Real Assets at Amundi, commented: “We are looking forward to welcoming and working with the talented teams of Alpha Associates. The multi-manager model is one that offers strong resilience thanks to diversification in terms of asset classes and management companies. In addition to the significant growth potential for the institutional clientele, it is also adapted to address the retail market. The enlarged Amundi Alternative & Real Assets business will be ideally positioned to serve the needs of a growing set of clients and benefit from strong tailwinds in the industry.”
The transaction is expected to be completed by the third quarter of 2024, subject to regulatory approvals.
Photo courtesyJohn Taylor, experto en renta fija europea de AllianceBernstein.
In the opinion of John Taylor, European fixed income expert at AllianceBernstein, it is an interesting time for this asset. With the recent market events and falling levels that we had only seen during the global financial crisis, investors have taken a step back. In this interview, the expert has shared his view on fixed income and which fixed income assets are the most attractive in the current market environment.
Given how we ended and how we started the year in the fixed income market, what role is it destined to play in investors’ portfolios this year?
Fixed Income is an interesting one. With recent market events and drawdown levels many of us have only seen during the global financial crisis, investors have taken a step back. This is perfectly understandable when we consider how strong the exposure in the region has historically been in the asset class. Our European Income portfolio is something that indeed does seem appealing for medium to long term investors. It is often neglected that although the recovery in public markets happens over an extended period, it is individual days or weeks that make up this recovery
What impact will it have on fixed income assets if the ECB does not lower interest rates as fast as the market expects? Which fixed income assets could benefit from this scenario, and which ones would be hurt the most?
When growth forecasts are below trend, it doesn’t take much for a technical recession to occur. Our base case is for a soft landing which does incorporate a chance of a very shallow recession driven by Germany. However, a factor often overlooked is that real wage growth is likely to be positive this year which should underpin some resilience in consumer spending.
Markets are broadly pricing in a soft landing, with the ECB and other central banks likely to lower rates to the perceived “neutral rate” over the next 1-2 years. A so called soft landing is likely good for both duration and risk assets. However, if the probability of recession increases in the coming quarters then duration will continue to perform because central banks would lower rates into easy territory whilst risk assets will start to underperform due to corporate profitability concerns.
Why do you think that this is a good time to enter European fixed income?
Policy easing should help euro and UK sovereign bonds, while fundamental, technical and valuation factors are all supportive for euro credit markets.
From stubbornly high inflation through economic and geopolitical storms, 2023 brought a challenging backdrop for European bond investors. But as we approach 2024, we see attractive opportunities ahead.
In the last year, duration was key to fixed income investing (as there was a clear preference for short durations), but what about durations now? Is it worthwhile to remain positioned for short durations?
With the era of negative rates behind us, euro government 10-year AAA bonds offer positive yields of almost 3%, creating scope for yields to fall and prices to rise meaningfully. If economic growth should disappoint or a shock should cause equity and credit markets to fall, euro and UK sovereign bonds look set to perform well.
The main worries for euro and UK treasury markets are mounting fiscal deficits leading to excess government bond supply and higher inflation risk premiums. These global pressures point to likely steepening at the long end of the euro and UK curves, where such factors tend to have most impact, and where we think investors should be underweight.
Currently both the UK and euro government yield curves are abnormally flat, and their long ends could steepen sharply as they return to more normal levels. The spread between short and very long–dated bond yields is currently around 20 bps in Germany and 43 bps in the UK, compared with 12-year averages of around 105 bps. We prefer UK and Euro government bonds with less than five years to maturity, which will likely be the most responsive to rate cuts and the least sensitive to the longer-term factors driving long-dated treasuries.
Several countries at the EU’s periphery have improved their credit ratings lately. While the recent Moody’s upgrade has boosted Italian government bond prices, we think Italy has more work to do to keep up with peers.
UK gilts look cheap relative to German Bunds, and we expect the yield gap between them will continue to narrow. The twin benefits of higher yields and some spread tightening would give UK gilts scope to perform well over the next six to 12 months.
You mentioned in one of your insights that investment grade credit is a good place to be positioned. What advantages does this asset class offer right now?
We see the sweet spot for euro credit as the crossover zone between investment grade and high yield: BBB and BB-rated bonds. While more risk-averse investors will prefer BBB, our research shows that historically an allocation to BB has generated additional returns through the cycle in all but the worst default scenarios, with euro BBs outperforming BBBs over time by around 2% per year. Of course, euro BBB returns have been more stable. But on a risk-adjusted basis, BB still has an edge. European credit fundamentals look encouraging. Corporate balance sheets started the tightening phase in good shape, and higher rates are feeding through only gradually to corporate costs. We expect euro and UK default rates will rise but stay relatively low at 3%–4% over 2024.
On the other hand, however, many experts are warning about the risks of high yield, what is your view on this asset class? Are defaults expected to increase?
Technical factors are also supportive across European credit markets, particularly for euro high yield. The market has shrunk by almost 15% since 2021, owing to both recent maturities and a net €10 billion of upgraded credits migrating out of high yield to investment grade.
The remaining euro high-yield market is skewed 64% to BB—which is currently the segment investors favor. Around 7% of the market will mature in 2024, but we think strong demand should readily absorb any new higher-quality supply.
In terms of current yields, valuations look supportive too. Euro BBB investment-grade bonds are yielding 5%—the same as the lowest-rated CCC bonds in 2017. And in euro high yield, a starting yield of 7.25% provides a substantial cushion against downside risks. Adjusting for interest-rate sensitivity, yields would need to increase by over 250 bps to wipe out that high income and produce negative returns. And to underperform sovereign bonds, spreads would need to widen from the current 483 bps by over 150 bps.
In your opinion, which sectors or types of companies are the most appropriate to hold a fixed income exposure?
Banks are in a strong position to absorb losses from bad loans and securities, have strong ongoing earnings capacity (as seen in earnings releases) and have created loanloss reserves. Capital ratios remain high, and non-performing loans (NPLs) are near all-time lows. Deposits are more diversified than in regional banks, enabling larger banks to benefit from a “flight to quality” by depositors. We expect credit metrics to weaken somewhat from their highs as growth declines, but not to the extent that would trigger ratings downgrades. We expect capital adequacy ratios to decrease to medium-term targets, and NPLs to move toward “through the cycle” levels. Overall, we see banks as well positioned to absorb credit losses as they come through, given their strong starting position. Also, given these banks’ systemic importance, we believe that regulators would provide support in the event of financial distress, as they did in March.
Outside of financials, our largest industry weights are in consumer cyclicals and communications. We focus on companies with improved balance sheets and liquidity profiles. Within consumer cyclicals, we focus on higher-quality bonds. We prefer businesses that should be more resilient during the current environment (like autos or local leisure issuers that can benefit from increased local versus international travel as growth slows). Additionally, communications companies may be better insulated from the economic slowdown. When looking at new additions, we tend to focus on consumer non-cyclicals and other more defensive sectors.
Within GBP credit, the positioning across sectors is diversified with the largest exposure in communications. We are selective in the names we hold, preferring those where we feel comfortable underwriting through cycles. Our positions are in issuers who have global revenue streams—meaning those in more defensive sectors or those that our research indicates can withstand the current macro backdrop but offer compelling valuations. The GBP credit offers a spread pickup over EUR credit for comparable risk.
US home prices are projected to increase by 5% in 2023, up from the previous forecast of 1.9%, according to Goldman Sachs Research.
This upward revision is based on a number of factors, including the prospect of interest rate cuts and strong momentum in housing prices.
The Federal Reserve has signaled that it may cut interest rates in the first quarter of 2024, which has led to expectations that 30-year fixed mortgage rates will fall to 6.3% by the end of the year. This will make homes slightly more affordable and help to support higher home prices.
Recent home price index releases have shown strong momentum, with the annualized rate running around 8%. This, combined with low inventory and stable demand, is expected to support higher home prices in the coming year.
On the other hand, Goldman Sachs Research’s forecasts are based on different models that incorporate the largest 380 metros, rather than a national model. This allows for a more nuanced view of the housing market, with housing falling into three main buckets: expensive areas that have gotten more expensive, affordable areas that have become somewhat expensive, and relatively cheap areas that are expected to see the strongest growth.
In case of rental, affordability is still a factor for many potential home buyers, particularly those in the largest demographic of 30- to 39-year-olds. With financing costs higher than they have been in recent years, it is still cheaper to rent than to buy in many cases. However, mortgage affordability is expected to improve slightly in the near term under Goldman Sachs Research’s baseline housing and mortgage forecasts.
This article was based on a Goldman Sachs Report which can be found at the following link.
Individual investor interest in sustainable investing is high and rising, according to a new “Sustainable Signals” report by the Morgan Stanley Institute for Sustainable Investing and Morgan Stanley Wealth Management.
“Nearly 80% of individual investors believe that it is possible to balance market rate financial returns with a focus on sustainability,” says Jessica Alsford, Morgan Stanley’s Chief Sustainability Officer and CEO of the Institute for Sustainable Investing. “A majority of individual investors also express a desire for their investments to advance positive environmental and social impact, creating opportunities for finance professionals to meet these needs.”
According to the survey, more than three quarters (77%) of individual investors globally are interested in investing in companies or funds that aim to achieve market-rate financial returns while considering positive social and/or environmental impact. In addition, more than half (57%) say their interest has increased in the last two years, while 54% say they anticipate boosting allocations to sustainable investments in the next year.
The findings also highlight key areas of interest and concern among investors. Climate action emerged as the top sustainable investing theme, with 15% of investors prioritizing it, followed by healthcare, water solutions, and the circular economy. Despite the shift towards sustainability, traditional energy companies remain in consideration for nearly 80% of investors, provided these companies demonstrate serious commitments to reducing their carbon footprint and addressing climate change.
However, challenges such as a lack of transparency and trust in sustainability reporting, alongside fears of greenwashing, are noted as significant barriers preventing investors from committing to sustainable investments. Many investors are also interested in social themes but are uncertain about how to engage effectively.
In addition, survey respondents cite a lack of transparency and trust in sustainability reporting (63%) and the potential for greenwashing (61%) as concerns that prevent them from making sustainable investments. They also express an interest in investing in social themes but uncertainty around where to begin.
The report concludes that investors could benefit from the guidance of investment professionals. More than half (52%) of respondents self-report limited knowledge about how to start investing sustainably, with 47% saying there is a lack of financial products available. These findings indicate increased opportunity for asset managers and investment platforms to help investors meet their sustainability goals; 58% of global investors would be likely to select a financial advisor or investment platform based on sustainable investment offerings.
The Sustainable Signals series was launched in 2015 and measures the views of individual investors, institutional investors and corporates on sustainable investing. The survey polled 2,820 active individual investors across the U.S., Europe and Japan to assess interest in sustainability and understand where investors see the most opportunity and potential risk.
View the full results of the Sustainable Signals survey here.
BlackRock announced two major developments supporting the growth and advancement of defined contribution (DC) advisors.
The firm has appointed Carrie Schroen as Head of US DC Intermediary Business, a newly created role, joining the already established leadership team for the business.
Schroen most recently served as a national sales manager within BlackRock’s U.S. Wealth Advisory team and brings more than 20 years of experience working with financial advisors, including starting her career as an advisor herself. Schroen’s track record and expertise uniquely positions her to lead the growth of BlackRock’s business with retirement plan advisors in an evolving landscape, where the role of intermediaries is expanding, large national firms are consolidating, and demand for personalized investment solutions is increasing.
Moreover, BlackRock launched the Defined Contribution Practice Management Program, providing robust tools and resources for retirement plan advisors of all sizes. It is the latest addition to BlackRock’s growing value-add program, developed to meet the needs of the 62% of retirement specialist advisors who want more support in building their DC business and the 39% of plan advisors who would value support growing their wealth business. The firm sees the convergence of wealth and defined contribution as a new frontier for the DC Advisor channel.
Anne Ackerley, Head of BlackRock’s Retirement Group, said, “As the DC Advisor landscape evolves, BlackRock is at the forefront – committed to anticipating and addressing the needs of this important channel. Through new tools and new leadership, we will help strengthen relationships and position BlackRock as the best partner to our clients.”
These announcements come at a time when advisors are playing an increasingly vital role in helping individuals plan a more secure retirement. The amount of corporate DC assets managed by retirement plan advisors grew by 14% CAGR between 2018 and 2022 versus 6% for the market overall.
“In an increasingly competitive environment, advisors are solving complex workplace and wealth needs for more sophisticated investors, as market and demographic dynamics lead clients to consider active and retirement income solutions,” said Schroen. “BlackRock reduces the complexity, partnering with advisors to deliver best-in-class investment solutions. With our new practice management hub, we are arming advisors with turnkey resources for plans and participants so they can spend more time building relationships that drive business growth.”
At launch, BlackRock’s Defined Contribution Practice Management Program includes digital resources for both seasoned retirement plan advisors as well as those who are newer to the DC space. Looking ahead, the firm plans to spearhead additional research, content, initiatives, and technology solutions to support advisors navigating the complex needs of DC plans and participants.
Blackstone announced Thomas R. Nides, former long-time Vice Chairman of Morgan Stanley, Deputy Secretary of State, and Ambassador to Israel has joined the firm as Vice Chairman, Strategy and Client Relations.
In this new role, Nides will support a variety of strategic firmwide initiatives and special projects, as well as focus on senior client relationships globally.
“We are delighted to welcome Tom Nides to Blackstone. Tom has operated at the highest levels of both the public and private sectors and brings a wealth of relationships across the financial, government and geographic spectrum. We are still in the early innings of our global expansion and believe he will be a tremendous asset to our people and clients,” said Stephen A. Schwarzman, Co-Founder, Chairman and CEO.
Nides has extensive experience in both the public and private sector. He served as the United States’ Ambassador to Israel from 2021 to 2023. Prior to that, he spent over a decade at Morgan Stanley in various capacities including Chief Operating Officer and Vice Chairman.
Nides was appointed Deputy Secretary of State and Chief Operating Officer of the U.S. State Department by President Barack Obama (2009-2017) and was awarded the nation’s highest diplomatic honor by Secretary of State Hillary Clinton for his service.
He has also previously been a senior leader at Credit Suisse, Fannie Mae, the Office of the U.S. Trade Representative, and on Capitol Hill.
Nides currently serves on the boards of the Partnership for Public Service, the International Rescue Committee, the Center for Strategic and International Studies (CSIS), and the Urban Alliance Foundation. He received his B.A. from the University of Minnesota. He formerly served as chairman of the board of the Woodrow Wilson Center.
Nides said: “Blackstone’s world-class people, consistent outperformance, and high-integrity culture have contributed to its stature as a leading global investment platform with considerable wind at its back. I’m excited to join this high-caliber team to help support the firm’s continued growth.”
Photo courtesySteve Preskenis, Bolton Global Capital President
Bolton Global is forecasting 15% to 20% growth in its US Offshore business this year going forward and are confident of achieving these goals through recruiting “top-tier” financial advisors, the firm’s president Steve Preskenis told Funds Society.
“We anticipate that we will grow our business by 15-20% and add at least 6 to 10 new affiliates, primarily from the wire house world,” Preskenis responded when asked what Bolton’s goals were for 2024 in the US Offshore market.
“Over the past decade, Bolton has invested significant resources and focused our efforts on raising our presence in Latin America and other parts of the world where investors seek access to the US financial markets. We are honored to be the Broker-dealer of choice of leading international financial advisors and their clients, ” he added.
In addition, on a more general level, Bolton expects “continued profitable” growth by adding advisors for both domestic US and international business, expanding capabilities to meet market demand, and adopting the ever-evolving technologies required by top-tier advisors, he added.
“Bolton is a uniquely balanced firm with strong domestic and offshore advisory practices. We have built brokerage and advisory platforms to accommodate a wide variety of client engagements for our advisors,” Preskenis noted.
Separately, Bolton will continue its existing management structure, enhanced by the addition of John Cataldo, who arrived from Integrated Partners, as Chief Administrative Officer & Chief Legal Officer. “John brings a wealth of legal, risk management and operational experience to our team.” Preskenis commented.
The firm is in the process of recruiting for the new position of Head of Business Development, following the announcement of Michael Avarett’s departure.
Market Forecasts
In reference to the trends that Bolton expects to resonate in 2024, “technology will continue to dominate the evolution of our space and lead the way in 2024,” summarized Bolton’s president.
He expects that as technology becomes more entrenched in financial services, advisors who learn how to leverage those resources while still providing personal white-glove service to investors, will gain the advantage over those who rely too heavily on technology or shun it altogether. “Technology is a resource. Like any other tool, it requires skill and expertise to use it effectively to the client’s advantage. Bolton provides its advisors with access to industry-leading technology and platforms that they can deploy at their discretion. Independent advisors seek us out specifically for the flexibility that we provide them.”
In addition, Preskenis anticipates that “the ESG frenzy will continue to subside, interest rate fluctuations will impact investment decisions, and markets will continue to look for signs of frothy, overvalued sectors.”
Election year
2024 will also be marked by national elections, and that has the industry on its toes.
“A lot of people make predictions about the impact of elections on the financial markets. In fact, these predictions change faster than the polls,” observed the Bolton president who noted that “in general a republican administration tends to generate a more positive business climate. It is too early to anticipate how the election will impact the US and global financial markets, but, as the Republican party coalesces around one candidate, a picture will come into focus on the strength of Biden against his competitor. One thing that is certain is that it will be a hard-fought campaign.”
