Global Predictions, powering the next generation of economic decision-making, today announced that PortfolioPilot is officially a Registered Investment Advisor regulated by the U.S. Security & Exchange Commission (SEC).
“Securing SEC registration for our AI financial advisor marks a huge milestone for the company and instills a new level of user confidence in our platform,” said Alexander Harmsen, CEO of Global Predictions. “We are committed to empowering self-directed investors to make smarter investment decisions by building hedge fund caliber investment solutions and making them accessible to everyone.”
The company has gone through reviews and implemented a rigorous compliance program with ongoing audits in accordance with the SEC’s stringent compliance guidelines. This compliance, the heightened level of oversight, and fiduciary responsibility strengthen PortfolioPilot’s ability to be a trusted companion for self-directed investors looking for personalized, automated recommendations.
PortfolioPilot distinguishes itself from human financial advisors with its ability to provide genuinely personalized investment advice for self-directed investors. Leveraging AI and the company’s Economic Insight Engine, a proprietary modeling and forecasting system, the platform analyzes the user’s entire net worth to provide automated recommendations, portfolio insights, and an AI assessment to identify critical areas of improvement and highlight economic factors most impacting their portfolio.
PortfolioPilot introduces three new features: Portfolio Overhaul is a one-click, automated, and comprehensive process that reviews and adjusts the user’s existing portfolio based on various factors like risk tolerance level, investment goals, and macroeconomic conditions.
In addition, Fee Optimization provides a clear picture of the annual fees, including expense ratios, transaction costs, and management fees, to help understand the cost of impact on investment returns. In addition, offers cost-saving recommendations, including lower-fee alternatives with similar risk/return and strategies to reduce transaction costs.
Third and finally, AI Equity Search – Assists users in discovering investment opportunities in the market to generate alpha. Based on the user’s search query, the tool will analyze vast amounts of data and generate a shortlist of stocks or ETFs that meet the criteria.
The Securities and Exchange Commission adopted new rules and rule amendments to enhance the regulation of private fund advisers and update the existing compliance rule that applies to all investment advisers. The new rules and amendments are designed to protect private fund investors by increasing transparency, competition, and efficiency in the private funds market, the statement said.
“Private funds and their advisers play an important role in nearly every sector of the capital markets,” said SEC Chair Gary Gensler. “By enhancing advisers’ transparency and integrity, we will help promote greater competition and thereby efficiency. Consistent with our mission and Congressional mandate, we advance today’s rules on behalf of all investors — big or small, institutional or retail, sophisticated or not.”
To enhance transparency, the final rules will require private fund advisers registered with the Commission to provide investors with quarterly statements detailing certain information regarding fund fees, expenses, and performance, the SEC stated.
In addition, the final rules will require a private fund adviser registered with the Commission to obtain and distribute to investors an annual financial statement audit of each private fund it advises and, in connection with an adviser-led secondary transaction, a fairness opinion or valuation opinion.
To better protect investors, the final rules will prohibit all private fund advisers from providing investors with preferential treatment regarding redemptions and information if such treatment would have a material, negative effect on other investors. In all other cases of preferential treatment, the Commission adopted a disclosure-based exception to the proposed prohibition, including a requirement to provide certain specified disclosure regarding preferential terms to all current and prospective investors.
In addition, the final rules will restrict certain other private fund adviser activity that is contrary to the public interest and the protection of investors. Advisers generally will not be prohibited from engaging in certain restricted activities, so long as they provide appropriate specified disclosure and, in some cases, obtain investor consent. The final rules, however, will not permit an adviser to charge or allocate to the private fund certain investigation costs where there is a sanction for a violation of the Investment Advisers Act of 1940 or its rules.
To avoid requiring advisers and investors to renegotiate governing agreements for existing funds, the Commission adopted legacy status provisions applicable to certain of the restricted activities and preferential treatment provisions. Such legacy status will apply to those governing agreements entered into in writing prior to the compliance date and with respect to funds that have commenced operations as of the compliance date.
Insigneo announces that Insigneo Securities, LLC and Insigneo Advisory Services, LLC have entered into a definitive agreement to acquire the Latin American consumer brokerage and investment accounts of PNC Investments, PNC Managed Account Solutions, and PNC Bank.
PNC will retain the deposit and loan accounts of customers with brokerage assets and assets under management moving to Insigneo and will continue to support the U.S. banking needs of their international clients. This strategic move represents a significant milestone for Insigneo as it further solidifies its position as a leader in the independent wealth management industry, the firm said.
With this acquisition, Insigneo will be opening new offices in Texas and expand its capabilities to serve a broader Mexican client base, while adhering to its mission of delivering exceptional client service, enabled by state-of-the-art technology, and driven by continuous innovation, the company added.
“The acquisition of PNC’s Latin American brokerage and investment operations further cements Insigneo’s position in the Americas as a leader in international wealth management,” said Raul Henriquez, Chairman and CEO of Insigneo Financial Group. “We are committed to the region with our strategy of empowering investment professionals to deliver excellent service and compelling investment strategies and solutions to clients globally”.
The acquisition is expected to close in the coming months.
Frederick Shaw, Country Head – United States at Apex Group
Apex Group announces the appointment of Frederick Shaw as Country Head – United States, responsible for overseeing the delivery of Apex Group’s single-source solution to clients in the geography.
Shaw brings two decades of experience in the financial services industry, joining Apex Group from private markets investor, Hamilton Lane, where he held the role of Chief Risk Officer and Global Head of Operations.
During his tenure, Shaw led teams overseeing the company’s domestic and international regulatory compliance and risk management frameworks along with its global operations complex. Prior to joining Hamilton Lane in 2011, Shaw held senior compliance and operational roles in international banks and alternative asset management.
In his new role, Shaw will oversee Apex Group’s rapidly expanding US business, which now employs over 600 people across 15 local offices.
The Group’s domestic US clients, as well as international clients investing into the US, benefit from the efficiency of a single-source solution, including access to a broad range of services including Digital Banking, Depositary, Fund Raising Services, and pioneering ESG Ratings and Advisory Solutions, offered globally and delivered locally, the firm said.
In addition to strong organic growth, Apex Group has also recently completed the integration and rebrand of theacquisition of Greenhough Consulting Group, bolstering its corporate and business services offering for funds and corporates, the company added.
Shaw will work closely Apex Group’s experienced regional leadership team, including recently appointed Group President, Samir Pandiri, Georges Archibald, Chief Innovation Officer and Regional Managing Director, Americas and Elaine Chim, Global Head of Closed Ended Products.
Georges Archibald, Chief Innovation Officer and Regional Managing Director, Americas, comments: “We are thrilled to welcome an executive with Fred’s knowledge and outstanding market reputation to our senior leadership team. His extensive buy side experience will provide valuable insights into the requirements of our current and future clients and enable us to further enhance their operational efficiency and performance. Fred shares our commitment to maintaining regulatory standards while embracing new ideas and approaches as we evolve to become the service provider of the future.”
Frederick Shaw, Country Head – US adds: “I am excited by the opportunity to join Apex Group, drawing on my client-side experience to drive continued service excellence, innovation and growth for clients. Apex Group has successfully disrupted the US market, as an independent provider of a compelling single-source solution which supports the entire value chain of a business. I look forward to playing a part in the business’ continued success, by leveraging Apex Group’s technology and solutions to better address the priorities of our clients.”
Wipfli, a top 20 advisory and accounting firm, published the results of two industry surveys from the wealth management and asset management sectors to gain insights into their current economic challenges and how they’re positioning themselves for long-term market stability.
Ongoing rate hikes, uncertain market performance, geopolitical tensions, and increased competition all contribute to overall cautious economic predictions in both the new State of the wealth management and State of asset management industry reports.
“Our research indicates common themes uniting wealth management and asset management firms’ priorities,” said Anna Kooi, financial services and institutions practice leader at Wipfli. “Employee retention and recruitment, client engagement, and technology integration are all crucial for future success, and firms have to balance budget allocations and investments in each area appropriately.”
Both wealth management and asset management firms anticipate shifting economic times ahead, with 62% of wealth management firms and 72% of asset management firms expecting a U.S. recession in the next 12 months. Accordingly, the majority of survey participants for each industry estimate conservative market growth of five to eight percent over the next 12 months (55% wealth, 65% asset). Less than a third for both industries anticipate standard growth of eight to ten percent.
Recruiting top talent and implementing technology are key concerns for both industries. About two-thirds of both industries (66% wealth, 69% asset) list employee recruitment as one of their top concerns, and asset management firms note that talent management is their most important strategic focus. Also, asset management firms are ahead of the curve in recognizing how technology can assist and automate tasks for employees, while wealth management firms are also focused on new client acquisition and cultivation.
“Wealth management firms need to focus on targeted strategies that will help them foster long-term stability and viability,” said Paul Lally, wealth and asset management industry leader, principal at Wipfli. “In today’s uncertain economy, it’s critical for firms to adapt and constantly reassess their growth strategies.”
For example, most wealth management firms surveyed listed new client demographics as a key priority, but the majority also reported making no changes to their client acquisition strategies. In addition, offering employee flexibility was seen as key to addressing recruiting concerns, yet 64% of wealth respondents also expected employees to work in the office five days a week. Workplace flexibility and increased employee benefits will be key for firms to attract new talent, and wealth management firms should ensure that their growth plans align with their overall goals and initiatives to avoid contradictions in their strategies.
Asset management respondents are experiencing a massive shift in how technology is applied in their day-to-day operations. Three-quarters of asset firms surveyed named “managing and implementing change” as the top factor driving their goal achievement. With the onset of industry-changing technologies like artificial intelligence enhancing their work, asset management firms know they are on the precipice of a new era.
“Asset management firms recognize the important role technology will need to play due to the ever increasing complexity of investment opportunities and client demands.” said Ron Niemaszyk, partner for Wipfli’s wealth and asset management practice. “New and older generations of clients are increasingly comfortable with technology, and expect firms to provide a level of reporting on metrics well beyond that of monthly returns. Investors are now looking for insights into their portfolios’ risks and exposure to ESG initiatives. Firms who begin offering this type of reporting now can establish an edge in client acquisition over less progressive competitors.”
Technological integration is transforming how wealth management and asset management firms do business. In both industries, some firms are already using technology to support more efficient client onboarding and account management processes, as well as using data analytics to inform business decisions. Eighty-three percent of asset management firms are using business analytics to support data-driven decisions, and 58% of wealth management firms have increased their use of analytics in key business strategies.
The wealth management survey was based on responses from 102 wealth management firms across 28 states, and the asset management survey had 99 firms respond across 31 states. Both the State of the asset management report and the State of the wealth management report can be found on Wipfli’s website.
Ocorian has strengthened its financial crime and anti-money laundering support for clients with a key appointment. It has promoted Joe French to Managing Director and Head of its Financial Crime and Consulting Services.
Joe French is promoted to his new role having previously worked for Ocorian’s Newgate Compliance Limited for over six years. His experience includes 13 years with HM Revenue & Customs leading intelligence teams which developed domestic and international criminal and civil cases in relation to money laundering, fraud and cyber-crime. Prior to this he worked for the Financial Conduct Authority, after starting his career with Royal Bank of Scotland.
This comes as recent international research with more than 130 family office professionals, commissioned by Ocorian, said growing regulatory pressures are a key driver behind 91% expecting their outsourcing to grow over the next three years.
Ricky Popat, Director – Regulatory & Compliance at Ocorian said: “Joe’s appointment and our growing financial crime team emphasises our focus on excellence in this area. We know that many clients including family offices struggle to source regulatory support, so we’re delighted to be able to enhance our services to clients with particular emphasis on digital assets.”
Joe French added: “Regulatory demands are increasing rapidly across all jurisdictions and businesses often find it difficult to ensure they remain compliant on a continuous basis and financial crime is a major focus for regulators worldwide. I’m excited to be part of a growing team at Ocorian who can offer clients the very best advice and continue and to supporting clients with pragmatic and flexible solutions building on the wide range of services provided by Ocorian.”
Investors Trust announces the launch of ITA University, its innovative online educational platform. In alliance with IE University and CFA Institute, Investors Trust continues its commitment to provide the financial advisor of the future with the best resources available.
This educational platform will be available only for financial advisors working with Investors Trust and aims to deliver a one-of-a-kind approach to higher education for IFAs looking to expand their skills and professional knowledge.
ITA University will provide tailor-made courses, certifications, and other educational resources in collaboration with Investors Trust’s strategic partners IE University and CFA Institute. By joining efforts with these prestigious institutions, financial advisors working with Investors Trust will have access to top-rated personalized training in order to deliver the best service to their clients.
“We believe education is key to keep growing in an evolving and always changing industry. ITA University is another representation of Investors Trust’s commitment to the development and success of our financial advisors,” said Ariel Amigo, Chief Marketing & Distribution Officer.
Investors Trust is excited for the launch of this powerful educational platform and to work alongside top-rated institutions in order to keep providing excellence in the insurance and investments industry.
The income necessary to buy a starter home has risen most in Florida, according to a new report from Redfin.
In Miami buyers need to earn $79,500 (up 24.8%) to afford the typical $300,000 starter home. Rounding out the top three is Newark, NJ, where buyers need $88,800 (up 21.1%) to afford a $335,000 home. Fort Lauderdale, Miami and Newark also had the biggest starter-home price increases, with prices up 15.8% year over year, 13.2% and 9.8%, respectively.
In addition, Fort Lauderdale buyers need to earn $58,300 per year to purchase a $220,000 home, the typical price for a starter home in that area, up 28% from a year earlier. That’s the biggest uptick of the 50 most populous U.S. metros.
Even though starter-home prices have risen most in Florida, they’re still less expensive than a place like Austin or Phoenix, where home prices skyrocketed during the pandemic and have since come down some.
Prices are rising in Florida because despite increasing climate risks, out-of-town remote workers and retirees are flocking in. That’s largely due to warm weather and relative affordability; even though prices there soared during the pandemic, homes are still typically less expensive than a place like New York, Boston or Los Angeles. Five of the 10 most popular metros for relocating homebuyers are in Florida.
The U.S. Average
A first-time homebuyer must earn roughly $64,500 per year to afford the typical U.S. “starter” home, up 13% ($7,200) from a year ago.
The typical starter home sold for a record $243,000 in June, up 2.1% from a year earlier and up more than 45% from before the pandemic. Average mortgage rates hit 6.7% in June, up from 5.5% the year before and just under 4% before the pandemic.
Prices for starter homes continue to tick up because there are so few homes for sale, often prompting competition and pushing up prices for the ones that do hit the market. New listings of starter homes for sale dropped 23% from a year earlier in June, the biggest drop since the start of the pandemic. The total number of starter homes on the market is down 15%, also the biggest drop since the start of the pandemic. Limited listings and still-rising prices, exacerbated by high mortgage rates, have stifled sales activity. Sales of starter homes dropped 17% year over year in June.
“Buyers searching for starter homes in today’s market are on a wild goose chase because in many parts of the country, there’s no such thing as a starter home anymore,” said Redfin Senior Economist Sheharyar Bokhari. “The most affordable homes for sale are no longer affordable to people with lower budgets due to the combination of rising prices and rising rates. That’s locking many Americans out of the housing market altogether, preventing them from building equity and ultimately building lasting wealth. People who are already homeowners are sitting pretty, comparatively, because most of them have benefited from home values soaring over the last few years. That could lead to the wealth gap in this country becoming even more drastic.”
Home prices shot up during the pandemic due to record-low mortgage rates and remote work, and now rising mortgage rates are exacerbating the affordability crisis, especially for first-time buyers. A person looking to buy today’s typical starter home would have a monthly mortgage payment of $1,610, up 13% from a year ago and nearly double the typical payment just before the pandemic. Average U.S. wages have risen 4.4% from a year ago and roughly 20% from before the pandemic, not nearly enough to make up for the jump in monthly mortgage payments.
Many prospective first-time homebuyers are between a rock and a hard place because rents remain elevated, too. The typical U.S. asking rent is just $24 shy of the $2,053 peak hit in 2022.
Over the last few years, inflation, rising interest rates and high costs for just about everything have impacted nearly everyone – but for Gen Z, the economic environment has had a profound impact, a new U.S. Bank survey found.
Members of this generation, who range in age from 18 to 26, are overwhelmed by recent economic news, are unsure how to start investing, compare their financial progress to others – including their parents, people they see on social media, and people better off than they are – and are highly motivated by experiences and the pursuit of personal interests and opportunities. Members of the Millennial generation, aged 27-42, share many of these same feelings.
“Younger generations are dealing with inflation, high interest rates, and high prices, but they also inherited a much different world than older generations: since 1980, college tuition has increased by 169%; the average price of a home is up 540%; and average student-loan debt now sits at $37,000,” said Gunjan Kedia, vice chair of Wealth, Corporate, Commercial and Institutional Banking at U.S. Bank. “It’s no wonder they are unsure about beginning an investing journey. But despite these headwinds, they are passionate about investing in causes they believe in and are seeking financial guidance.
“We did this survey to better understand the challenges the younger generation is facing, how they are (or aren’t) investing and why, and how we can help them start investing before they lose too much time. Some of the findings that really stood out for me are that financial worries and decision fatigue are impacting young investors’ confidence, they are overwhelmed and unsure how to begin investing, and nearly 80% of investors responded to the economic climate by changing their investment strategies in some way in the past three months.”
Among the highlights of the report are the search for a better quality of life, personal interests and new experiences drive the investment decisions of younger generations.
In addition, Gen Zers view wealth differently than older generations and will sacrifice returns to invest in causes they believe in.
Finally, younger generations compare themselves to others and social networks.
The new data is from a proprietary U.S. Bank survey of 3,000 active investors and 1,000 aspiring investors of all generations. The survey was conducted May 12-24, 2023.
To read the full report, please click on the following link.
The Securities and Exchange Commission charged Richard Heart (aka Richard Schueler) and three unincorporated entities that he controls, Hex, PulseChain, and PulseX, with conducting unregistered offerings of crypto asset securities that raised more than $1 billion in crypto assets from investors. The SEC also charged Heart and PulseChain with fraud for misappropriating at least $12 million of offering proceeds to purchase luxury goods including sports cars, watches, and a 555-carat black diamond known as ‘The Enigma’ – reportedly the largest black diamond in the world.
According to the SEC’s complaint, Heart began marketing Hex in 2018, claiming it was the first high-yield “blockchain certificate of deposit,” and began promoting Hex tokens as an investment designed to make people “rich.”
From at least December 2019 through November 2020, Heart and Hex allegedly offered and sold Hex tokens in an unregistered offering, collecting more than 2.3 million Ethereum (ETH), including through so-called “recycling” transactions that enabled Heart to surreptitiously gain control of more Hex tokens.
The complaint also alleges that, between at least July 2021 and March 2022, Heart orchestrated two additional unregistered crypto asset security offerings that each raised hundreds of millions of dollars more in crypto assets. As alleged, those funds were intended to support development of a supposed crypto asset network, PulseChain, and a claimed crypto asset trading platform, PulseX, through the offerings of their native tokens, respectively, PLS and PLSX.
Heart also allegedly designed and marketed a so-called “staking” feature for Hex tokens, which he claimed would deliver returns as high as 38 percent. The complaint further alleges that Heart attempted to evade securities laws by calling on investors to “sacrifice” (instead of “invest”) their crypto assets in exchange for PLS and PLSX tokens.
“Heart called on investors to buy crypto asset securities in offerings that he failed to register. He then defrauded those investors by spending some of their crypto assets on exorbitant luxury goods,” said Eric Werner, Director of the Fort Worth Regional Office. “This action seeks to protect the investing public and hold Heart accountable for his actions.”
The SEC’s complaint, filed in U.S. District Court for the Eastern District of New York, alleges that Heart, Hex, PulseChain, and PulseX violated the registration provisions of Section 5 of the Securities Act of 1933.
The complaint also alleges that Heart and PulseChain violated the antifraud provisions of the federal securities laws. The complaint seeks injunctive relief, disgorgement of ill-gotten gains plus prejudgment interest, penalties, and other equitable relief.
