Asset managers now know how to navigate their way into the portfolios of Zest and XP, the strategic alliance between two brands aiming to conquer the Latin American Wealth Management client segment. The two firms held their first Investment Committee meeting on Monday, August 12.
According to a statement sent to Funds Society, “the purpose of the Committee is to analyze the global economy to define an investment thesis in line with current conditions. This investment thesis is expressed in model portfolios, according to the different risk profiles defined by the Committee’s policy.”
Jonathan Kleinberg, Asset Management Manager at Zest, emphasized the importance of this alliance and the added value it brings to the analysis and decision-making process.
“This committee is fundamental to our alliance with XP. Incorporating diverse perspectives and knowledge on the global economic situation is crucial to recommending the best positioning to our clients, always aligned with their investment objectives and risk profiles,” Kleinberg stated.
Together, the combined Zest and XP teams have 50 analysts focusing on global trends and the situation in Latin America. The committee meets quarterly and monitors investment theses with a focus on wealth preservation.
During the inaugural Committee meeting, the current and future dynamics of the U.S. monetary situation were analyzed, a crucial factor influencing global markets and, consequently, the economies of Latin America.
It was highlighted during the meeting that, following a very strong economic cycle in the U.S., characterized by a rapid increase in prices, the economy has begun to slow down. The risks of a potential recession have increased, although if it materializes, it is expected to be mild and allow for a subsequent recovery. The Federal Reserve could begin a cycle of rate cuts starting in September, with a possible aggressive decrease of 50 basis points, followed by more cuts in November.
Alberto Bernal, Chief Global Strategist at XP, clarified that “although the slowdown is evident, we do not see structural signs suggesting a deep recession. We expect the Federal Reserve’s monetary policy to act as a necessary relief for the U.S. economy, which will directly impact Latin American markets.”
Zest powered by XP is a financial services platform that provides access to international capital markets. It currently manages over 5,000 clients and 80 financial advisors. The group’s business focus is on financial education and high-tech solutions.
XP Inc. comprises one of Brazil’s largest investment platforms, with a presence in major financial centers around the world. XP owns brands such as XP, Rico, Clear, XP Educação, InfoMoney, among others. XP Inc. has 4.6 million active clients and more than 200 billion dollars in assets under custody. For 23 years, the group has been transforming the Brazilian financial market to improve people’s lives. A pioneer in the market with its network of investment advisors, which is now the largest in the country, with more than 14,000 professionals. For more information, visit the website.
