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United Kingdom Faces Largest Wealth Exodus in a Decade

Throughout 2025, 142,000 millionaires will change countries. This figure represents the largest global movement of high-net-worth individuals recorded in recent history. According to the Henley Private Wealth Migration Report 2025, the United Kingdom tops the list of countries with the highest net loss of millionaires, with a projected 16,500 departures—far surpassing China, which, for the first time in ten years, falls to second place with 7,800.

This phenomenon, which reflects a profound shift in global elite mobility trends, is driven by tax changes, perceptions of political stability, and new investment opportunities in other destinations. “2025 marks a turning point. For the first time in a decade, a European country leads the millionaire exodus. This is not just about taxes, but about a deeper perception that opportunities, freedom, and stability lie elsewhere in the world,” says Dr. Juerg Steffen, CEO of Henley & Partners.

Key Trends

In addition to the United Kingdom, France, Spain, and Germany will also experience net losses of high-net-worth individuals in 2025, with projected outflows of 800, 500, and 400 millionaires, respectively. Other countries such as Ireland, Norway, and Sweden are beginning to show similar signs. By contrast, Switzerland is solidifying its position as one of the main wealth havens in Europe, with a net inflow of 3,000 millionaires, while Italy, Portugal, and Greece are set to experience record arrivals—driven by favorable tax regimes, high quality of life, and active investment migration programs. Meanwhile, Monaco, with more than 200 new millionaires, continues to attract the ultra-wealthy, particularly from the UK, Africa, and the Middle East.

On the global stage, the United Arab Emirates once again ranks as the most popular destination, with an estimated net inflow of 9,800 millionaires. It is followed by the United States (+7,500) and Saudi Arabia (+2,400), the latter on the rise thanks to the arrival of international investors and the return of nationals.

In Asia, Thailand is beginning to challenge Singapore’s dominance, with Bangkok emerging as a new regional financial hub. Hong Kong and Japan are also showing rebounds, while Taiwan and South Korea are facing significant outflows due to geopolitical tensions and economic factors.

In the Americas, flows to Costa Rica, Panama, and the Cayman Islands stand out, while Brazil leads the wealth exodus in Latin America with a net outflow of 1,200 millionaires, followed by Colombia (–150). The U.S., Portugal, and Costa Rica are among the top destinations for wealthy Latin Americans.

The British Case: From Wealth Magnet to “WEXIT”

Since the Brexit referendum in 2016, the United Kingdom has shifted from being a destination for millionaires to a net exporter of wealth. The projected outflow of 16,500 millionaires in 2025 is largely attributed to tax reforms introduced in the October 2024 budget, which significantly increased taxes on capital gains and inheritances and altered tax benefits for non-domiciled residents.

This mass departure has been dubbed “WEXIT” (wealth exit) and is prompting many affluent individuals to relocate to more favorable jurisdictions such as Dubai, Monaco, Malta, Switzerland, Italy, Greece, and Portugal.

“The UK has been the only country among the world’s top 10 economies to record a decline in millionaires since 2014, with a 9% drop, compared to an average growth of 40% across the rest of the group,” explains Prof. Trevor Williams, former chief economist at Lloyds Bank.

The Future of Wealth: Asia at the Center of the Board

Despite the challenges, Asia remains the world’s economic engine. While China and India continue to show net outflows, they are also showing signs of stabilization, driven by their tech and entertainment sectors. At the same time, Singapore and Japan are solidifying their roles as new wealth hubs, while South Korea and Taiwan illustrate how geopolitical tensions can influence the residency decisions of the ultra-wealthy.

“The wealth landscape in Asia is a mix of ambition and caution. Asia will remain at the heart of global wealth trends in 2025,” concludes Dr. Parag Khanna, author and founder of AlphaGeo.

Amundi and ICG Announce a Long-Term Strategic and Shareholding Alliance

| By Amaya Uriarte | 0 Comentarios

Amundi and ICG, Private Markets Asset Managers in Europe, Establish a Long-Term Strategic Alliance in Distribution, Product Development, and Shareholding

Specifically, Amundi will acquire a 9.9% economic stake in ICG, becoming a strategic shareholder without diluting existing ICG shareholders, thereby strengthening the long-term alliance.

A 10-Year Exclusive Distribution Agreement

Under the terms of the agreement, Amundi will be the exclusive global distributor in the wealth channel for ICG’s evergreen and other specific products for the next ten years. In turn, ICG will be the exclusive provider of these products for Amundi’s distribution business. Both firms have also committed to jointly developing new products specifically designed for and suited to wealth investors.

According to Amundi, “this partnership creates new and exciting opportunities for both parties.” It allows Amundi to benefit from ICG’s investment expertise and track record to accelerate its distribution of private assets, one of the most dynamic areas in asset management. Meanwhile, ICG will benefit from Amundi’s international distribution capabilities in the wealth channel and its structuring expertise in designing investment solutions for wealth clients—a high-growth segment in private markets.

Key Statements

“This alliance with ICG, a recognized and diversified leader in private markets, represents an outstanding opportunity to offer our retail clients and the entities and clients of the Crédit Agricole group access to high-performing strategies with a proven track record, traditionally reserved for institutional investors. This is fully aligned with Amundi’s strategic plan, which aims to reinforce our leadership by expanding our offering in promising segments supported by long-term trends. Such is the case with the private assets market, whose opening to wealth investors responds to their growing need for diversification and long-term retirement savings accumulation. This partnership opens up highly promising new opportunities for both parties and is expected to be a driver of profitable and sustainable growth for the benefit of all stakeholders,” said Valérie Baudson, CEO of Amundi.

Benoît Durteste, CEO and CIO of ICG, added: “Our long-term strategic partnership with Amundi marks a significant step forward in developing ICG’s strategy to access the wealth management channel in a way that is clearly complementary to and additive to our strong existing institutional offering. Combining ICG’s investment expertise and entrepreneurial mindset with Amundi’s structuring capabilities and broad distribution network creates a differentiated partnership with substantial potential and significantly accelerates our ability to access and shape evolving wealth management channels for private markets. At the heart of this relationship is a shared philosophy: that investment performance remains central to our long-term success. We are proud of our reputation for unwavering focus on delivering superior investment performance, and we are excited to work with Amundi to develop more products and strategies tailored to the important and growing wealth management market for private investments.”

First Steps

The firms explain that Amundi and ICG will initially focus on developing, during the first half of 2026, two perpetual European funds: a secondary private equity fund and a private debt fund. Both parties have also committed to developing a broader range of investment strategies and products suited for wealth investors. “This partnership will also allow Amundi to offer Crédit Agricole Assurances opportunities to diversify and expand its allocation to private assets, particularly in private debt,” they add.

The collaboration is expected to deliver significant value to stakeholders of both firms and reinforce their strategic positions and long-term ambitions in private markets.

Amundi’s Equity Investment in ICG

The firms note that Amundi’s equity investment in ICG underlines the strategic and long-term nature of the partnership, as Amundi intends to acquire an economic stake of up to 9.9% that will not dilute the holdings of existing ICG shareholders. Amundi will appoint a non-executive director to ICG’s board, allowing it to actively participate in the group’s strategic decisions. Within Amundi, the investment will be fully accounted for using the equity method.

Two Players With Complementary Expertise

Currently, ICG manages nearly $125 billion (€108 billion) in assets on behalf of primarily institutional clients across various strategies in structured capital, private equity secondaries, private debt, credit, and real assets. Meanwhile, Amundi manages €70 billion in private market assets, primarily built around real estate and multi-management activities, strengthened in 2024 by the acquisition of Alpha Associates.

The companies highlight that the partnership between ICG and Amundi will allow more than 200 million retail investors served through Amundi’s global distribution network to access a range of diversified, high-performing private market strategies from ICG through products specifically aimed at wealth management and retirement planning. “Amundi has recognized expertise in structuring investment vehicles suited for this clientele (including evergreen funds, closed-end funds, blended strategies, and ELTIFs). It serves a network of over 600 distributors, including retail banks, private banks, asset managers, insurers, and digital platforms, as well as the regional banks Crédit Agricole, LCL, and Indosuez Wealth Management,” they state.

6 reasons why securitization could be the new “gold mine” for asset managers

| By Romina López | 0 Comentarios

In an environment of rising prices for precious metals, many asset managers are seeking more efficient mechanisms to channel, finance, and distribute exposure to this segment. As of the end of October 2025, gold and silver posted double-digit gains, fueled by growing economic uncertainty in the United States and rising expectations of a short-term rate cut by the Federal Reserve. According to TradingEconomics data, gold has surpassed the US$4,100 per-ounce threshold, while silver stands at US$51—levels not seen in more than a decade.

At the same time, ETFs backed by physical gold have recorded unprecedented demand. According to the World Gold Council, in October 2025 alone these products attracted US$8.2 billion in net inflows, marking five consecutive months of positive flows. This scenario reinforces the market’s interest in instruments that offer diversified, liquid, and regulated exposure to the metals’ bullish cycle.

Source: World Gold Council. Gold ETF Flows: October 2025

Investment advisors view gold ETFs as a hedge against a wide range of risks, such as the depreciation of the US dollar, rising public debt, persistent inflation, geopolitical tensions, and more recently, concerns regarding the Federal Reserve’s independence.

Meanwhile, precious metals futures remain intrinsically volatile instruments: they expire periodically, require margin, and must be continuously rolled over. For asset managers, trading these contracts directly can be complex and costly, especially when integrating them into broader portfolios or distributing exposure among different types of investors.

In this context, asset securitization emerges as a strategic alternative for managers holding positions in precious metals futures. Through a Special Purpose Vehicle (SPV), the economic flows generated by a derivatives portfolio can be transformed into structured financial instruments—such as notes or tranches (senior, mezzanine, and equity)—simplifying exposure and expanding distribution possibilities.

Strategic advantages for the asset manager

Operational simplification:

Securitization allows managers to offer exposure to precious metals without requiring each investor to open futures accounts or manage margin and rollovers. The SPV handles the day-to-day operations internally, while the portfolio is presented clearly and in a regulated manner through daily NAV and defined collateral rules.

Broader distribution base during price rallies:

In bullish periods like the current one, many institutional clients cannot—or do not wish to—trade derivatives directly. Securitization converts the strategy into an accessible, standardized product (with an ISIN), facilitating distribution through brokers, private banks, platforms, and secondary markets, and enabling its inclusion in portfolios that require securities rather than derivatives.

Risk segmentation and credit isolation:

The futures portfolio is housed within the SPV, ring-fenced from other manager assets. This protects client exposure from manager balance-sheet risks and ensures clear collateral rules, fiduciary oversight, and auditing. Managers can therefore offer a robust, transparent, and predictable solution instead of a complex, operational futures portfolio.

Flexibility for thematic or structured products:

The structure allows the creation of notes with controlled leverage, coupons, metal combinations, or multi-asset strategies. This makes it possible to launch products without creating a new fund, capturing specific demand during price rallies.

Speed of implementation:

Unlike ETFs or funds, securitization vehicles allow swift action to capture flows during periods of high demand. For managers, this means being able to offer immediate exposure to metals while market interest is at its peak.

Lower minimums and democratization:

Trading futures directly requires significant capital and complex operational management. A securitized note can reduce minimum investment tickets, enabling a manager to distribute the strategy among various segments of professional and institutional clients.

Comparison: Direct futures vs. securitized note

Securitizing precious metals futures offers managers a way to monetize, redistribute, and scale their commodities exposure at a time of strong demand—optimizing capital, diversifying funding sources, and attracting new investors without giving up participation in markets with solid fundamentals.

In a cycle in which gold and silver are solidifying their role as safe-haven and yield-generating assets, securitization stands out as an advanced management tool that combines financial innovation, operational efficiency, and strategic vision—exactly what distinguishes the modern asset manager.

At FlexFunds, we designed an asset securitization program through Irish Special Purpose Vehicles (SPVs), supported by top-tier service providers such as BNY, Interactive Brokers, Morningstar, and Bloomberg, enabling efficient distribution of investment strategies across multiple international private banking platforms.

If you would like to learn more, please feel free to contact one of our experts at info@flexfunds.com

Michael Burry, Famous for the Film The Big Short, Shuts Down the Hedge Fund Scion Asset Management

| By Amaya Uriarte | 0 Comentarios

Michael Burry, the investor known for his accurate bets against the U.S. housing market in 2008, has deregistered his hedge fund, Scion Asset Management, from the records of the U.S. Securities and Exchange Commission (SEC). The U.S. market regulator’s database listed Scion’s registration status as “cancelled” as of November 10. The deregistration would mean that the fund is no longer required to file reports with the regulator or any state, according to Reuters.

Scion’s bets, which managed $155 million in assets as of March, have long been analyzed by investors as indicators of potential impending bubbles and signs of market froth. Investment funds managing more than $100 million in capital are required to register with the SEC.

Burry is said to have written a letter to the fund’s investors, which was circulated via the social network X (formerly Twitter), in which he announced “with a heavy heart” the fund’s liquidation and the return of capital to investors by the end of the year. “My estimation of stock values is not now, nor has it been for some time, in tune with the market,” the letter reads.

A few days earlier, Burry wrote on his X profile: “On to much better things on November 25.” Burry, who appeared in the well-known book and film The Big Short, has in recent weeks intensified his criticism of tech giants, including Nvidia and Palantir Technologies, questioning the rise of cloud infrastructure and accusing major providers of using aggressive accounting to inflate profits from their massive hardware investments.

In his post on X, Burry stated that he had spent around $9.2 million on the purchase of approximately 50,000 put options on Palantir, noting that the options would allow him to sell the shares at $50 each in 2027. Put options grant the right to sell shares at a predetermined price in the future and are typically purchased to express a bearish or defensive outlook. Palantir shares were trading at $178.29 on Thursday, giving the company a market value of $422.36 billion.

Bearish Positions on Artificial Intelligence

Last month, Burry posted an image of his character from The Big Short and warned about bubbles, saying that “sometimes, the only winning move is not to play.” In his criticism of tech firms, Burry argues that as companies like Microsoft, Google, Oracle, and Meta invest billions of dollars in Nvidia chips and servers, they are also quietly extending depreciation schedules to make earnings appear smoother. To such an extent that, by his estimates, between 2026 and 2028, these accounting decisions could understate depreciation by around $176 billion, inflating reported profits across the sector.

His X profile, titled Cassandra Unchained, is seen as a nod to the Greek mythological figure cursed by Apollo to utter true prophecies that no one would believe.

The appreciation in shares of companies related to artificial intelligence has accounted for 75% of the S&P 500 index’s performance since November 2022, when OpenAI launched ChatGPT, according to a September analysis by JP Morgan Asset Management.

Scion, Burry’s firm, ended last year holding positions in American Coastal, Bruker, Canada Goose, HCA Healthcare, Magnera, Molina Healthcare, Oscar Health, and VF Corp, but the firm exited those positions earlier this year. During the quarter ending June 30, Scion Asset Management took a more optimistic stance on companies across different sectors and geographies, after previously betting against Chinese companies when President Donald Trump’s administration was considering the imposition of tariffs.

Challenges for Short Sellers

Burry, who founded Scion Asset Management in 2013, joins a group of high-profile investors navigating a market that has become increasingly hostile to bearish views in recent years, fueled by unrestrained optimism surrounding technology and strong interest from retail investors.

In this context, Hindenburg Research shut down earlier this year after a series of high-profile calls, including bets against Indian conglomerate Adani Group and U.S. electric truck maker Nikola.

Veteran short seller Jim Chanos, known for his bets against energy firm Enron months before its collapse, has also clashed with Michael Saylor’s bitcoin-focused company, Strategy. Chanos argued that Strategy’s valuation premium was unjustified—a criticism that prompted a sharp response from Saylor.

What Do We Buy When We Buy Gold?

| By Amaya Uriarte | 0 Comentarios

Friendvesting riesgo geopolítico — Canva

In 1992, a farmer in Suffolk stumbled upon the largest hoard of Roman coins ever found. Unknowingly, he had uncovered a story of crisis and the search for safety, when the Saxons invaded the area and a Roman family buried their gold. This treasure, known as the Hoxne Hoard, would remain undiscovered—but still precious—for 1,600 years. The family never got to use their safe-haven asset.

Today, gold is the subject of intense debate. Warren Buffett dismisses it as an asset that “only increases if the number of fearful people grows.” Ray Dalio counters that gold is “undervalued,” especially at a time when we are losing a monetary regime.

So, is gold a source of real losses, a store of value, or even a generator of value? Of course, the answer is nuanced. To understand gold, we must examine three questions: why investors buy it, why its price behaves so strangely, and whether its scarcity will endure.

Three Classic Reasons to Own Gold

1. Inflation

In the time of Nebuchadnezzar, an ounce of gold could buy 350 loaves of bread at approximately $7.90 each (adjusted to today’s value), roughly the same price as a loaf of bread at an artisanal bakery today. A thousand years later, gold still retains similar purchasing power and acts as a powerful hedge against inflation.

But timeframes matter. Over periods shorter than 20 years, gold proves unreliable, with volatility rivaling that of the S&P 500. Only over long periods has gold historically maintained its purchasing power. Therefore, for investors with very long horizons, it can serve as a hedge—but for shorter timeframes, it’s a risky bet.

2. Diversification

Gold is a safe haven against equities, with a very compelling track record. Historically, it has outperformed many alternatives for portfolio protection, and its average 10-year correlation with stocks is close to zero. But this relationship is not constant. Over time horizons shorter than a decade, correlations can turn positive, and benefits may evaporate when they are most needed.

3. Crisis Hedge

During the last 11 stock market downturns, gold delivered positive returns in eight of them. Even when it declined, the drop was far smaller than that of equities. Unlike costly put options, gold can generate positive returns both in crisis and non-crisis environments.

Inelastic Bands

As suggested above, the long-term price of gold appears inelastic. There is a “golden constant,” meaning gold seems to be a continuous store of value over the long term.

Why? Gold mining is difficult, expensive, and geographically dispersed. Globally, no one controls production, and China, the largest producer, accounts for only 12.5% of output.

Annual production is just 3,300 tons. Thus, the total amount of gold mined to date is tiny compared to other precious commodities like silver. It fits in a 23-meter cube—about the size of an Olympic swimming pool—and supply barely responds to price changes.

However, this inelasticity causes sharp short-term price swings, driven almost entirely by demand. Understanding this should, at the very least, influence the decision to invest in gold in the short and medium term.

The real price of gold is in some ways similar to the price-to-earnings (P/E) ratio. When the P/E is very high, expected returns on stocks are low because we anticipate some mean reversion. Similarly, since the real price of gold has remained relatively constant over the very long term, when the real price of gold is high, we expect some reversion.

Today, gold is also expensive compared to crude oil, silver, and copper. Historical patterns suggest low or even negative real returns over the next decade. While it’s important to remember that structural demand stemming from de-dollarization and possible regulatory changes could sustain prices longer than history suggests, investors buying at current levels are likely paying for safety and optionality—not growth.

The Constant May Not Be Sacred

What’s more, the gold constant is not sacrosanct. In 2004, the introduction of gold ETFs gave retail and institutional investors easier access to gold. This met pent-up demand and caused a structural shift in the price level—or the gold constant.

More recently, this relationship shifted again. The People’s Bank of China now leads global gold purchases, driven by fears over the weaponization of the dollar after the U.S. cut Russian banks off from SWIFT in 2022. China has established bilateral swap lines to reduce dollar dependency. Reserves are being diversified, and gold tops the list.

And more changes may lie ahead. Basel III regulations could be another catalyst. A 3% allocation to gold for banks’ high-quality liquid assets would trigger a demand surge comparable to the one caused by the introduction of gold ETFs.

What About Threats to Gold’s Scarcity?

Two main threats have emerged. Near-Earth asteroid 1986 DA contains approximately 100,000 tons of gold worth $10 trillion (at market prices). It is small (2.3 km) and requires no more fuel to reach than the Moon. Companies like AstroForge are already planning missions, while smaller, closer asteroids like 4660 Nereus offer even easier targets.

Secondly, nuclear alchemy is underway. Scientists transmuted bismuth into gold in 1980, albeit in microscopic amounts. Mercury, gold’s nearest atomic neighbor, is cheap and abundant. As nuclear fusion technology advances, large-scale transmutation may become theoretically possible.

If any of these initiatives succeed, the scarcity premium of gold could diminish.

The Golden Ratio

Gold is expensive today, so it’s unlikely to be a high-performing asset in the coming years. Long-term threats to its scarcity are real. However, in a world with $38 trillion in U.S. debt, weaponized currencies, and declining trust, gold offers something rare: an asset that no government controls and no central bank can print.

Gold’s expected return may be lower in the future, but it could serve as an insurance policy. The Romans who buried the Hoxne Hoard understood this—even if it didn’t save their lives.

Markets Digest the End of the U.S. Government Shutdown With Mixed Sentiment

| By Amaya Uriarte | 0 Comentarios

Joy and caution have been the two dominant sentiments in the market following the end of the longest U.S. government shutdown in history, lasting 43 days. On one hand, in the U.S., Wall Street traders drove most equities higher while bond yields declined. On the other, investors remained mindful that a return to normal will take weeks, and the core agreement only runs until January 31 of next year.

Paul Dalton, Head of Equities at Federated Hermes Limited, commented: “The resolution of the U.S. government shutdown removes some short-term uncertainty and is undoubtedly a positive development. However, we’re aware that this is only a temporary truce. The next deadline will come quickly. It remains to be seen whether this pause will create room for negotiating a more lasting agreement. For global equities, the outcome has been moderately favorable, and the resumption of data collection should give investors better visibility into the state of the U.S. economy. That said, delayed data may create ambiguity around the true economic situation, and key risks remain, such as the strength of the U.S. consumer and the ongoing debate over whether the AI trade is a bubble.”

The Optimism

Benoit Anne, Senior Managing Director of the Strategy and Insights Group at MFS Investment Management, highlighted the good news: “Analysts will once again benefit from the resumption of official data flows. It also means the negative growth impact of the shutdown will be fairly limited. The key question now is what kind of macroeconomic picture will emerge. Labor data seems to be setting the tone, though it may continue to send mixed signals.”

The optimism surrounding the end of the U.S. government shutdown helped U.S. equities extend gains on Tuesday. Historically, such shutdowns have had a limited impact on markets, so the quick shift in investor sentiment should come as no surprise. For Mark Haefele, CIO of UBS Global Wealth Management, “The Federal Reserve’s accommodative monetary policy, strong corporate earnings, and robust AI spending have been the main market drivers and should continue to support the equity rally. We believe U.S. stocks still have upside potential and expect the S&P 500 to reach 7,300 by June 2026.”

The Caution

Anthony Willis, Senior Economist at Columbia Threadneedle Investments, agreed that the reopening will finally provide the Fed with greater clarity on economic data and policy direction—an absence that had stalled legislative activity. But he warned: “Even if the shutdown’s economic impact was limited, flight delays and risks to food stamp disbursement brought the situation to a critical point. Other challenges persist, such as the Supreme Court review of tariffs imposed by President Trump.”

Banca March noted that financial markets are cautiously welcoming the government’s reactivation, aware of its temporary nature. Investors remain focused on delayed macroeconomic publications, and next week’s anticipated Nvidia results add to the ongoing AI debate.

“In the coming days, publication calendars from affected agencies will be updated, and the final decision on the matter will be made. This calendar will be key, as the data will be used by the Federal Reserve Committee in its monetary policy meeting scheduled for December 10. Though the return to normal will be gradual, it comes just in time for the holiday season. The worst economic impact has been avoided, and the Trump Administration is presenting this reopening once again as a victory in a crisis that was, in reality, self-inflicted,” Banca March stated in its daily report.

Muzinich & Co offered a more critical view, suggesting the U.S. is at the center of rising global caution. “Investors are stress-testing the wall of worries—growth, geopolitics, valuations, liquidity, and imbalances—in a financial version of Jenga. In other words, sentiment has deteriorated. Our preferred indicator, the VIX index, recently crossed the 20 level, indicating rising uncertainty. The U.S. is at the heart of this global uncertainty spike, beginning with the partial government shutdown—the longest on record—estimated to have cost the economy about $15 billion per week.”

Assessing the Shutdown’s Impact

Experts believe that much of the economic activity lost in recent weeks will be recovered as federal employees return to work and receive full back pay. “The U.S. GDP for Q4 is expected to be reduced by several tenths of a point due to the shutdown, but much of this should be offset by stronger output in Q1 2026, boosting full-year growth. We forecast 2.4% growth for next year, up from 2.1% this year, despite rising threats to U.S. economic momentum,” analysts noted.

While short shutdowns usually have limited economic effects, this one could leave a lasting mark due to its record length. The Congressional Budget Office recently estimated that around $11 billion in economic activity could be permanently lost, according to Dennis Shen, Chair of the Macroeconomic Council at Scope Ratings.

Finally, Susan Hill, Head of Government Liquidity at Federated Hermes, highlighted the shutdown’s impact on liquidity markets due to the lack of official data and how this may have influenced Fed policy discussions. “We welcome the end of the shutdown and the return of data ahead of the December FOMC meeting. Technically, the Treasury’s elevated operating cash balance—partly a result of delayed outflows during the shutdown—has contributed to higher overnight funding rates at the short end,” Hill concluded.

Jim Caron (Morgan Stanley IM): “Investing Today Requires Looking Beyond Tariffs: Fiscal Policy and Deregulation Are Game Changers”

| By Amaya Uriarte | 0 Comentarios

Equities have risen steadily throughout 2025, even in the face of geopolitical uncertainty and market volatility. In the opinion of Jim Caron, Head of Macro Strategies for Fixed Income and Portfolio Manager at Morgan Stanley IM, and despite his fixed income focus, the standout asset this year has been equities: “Valuations and price levels have continued to rise steadily despite general and geopolitical uncertainty. This asset class has proven resilient to crises, recovering more strongly after each downturn.” With two months left in the year, the manager offered an early assessment of 2025 in his latest interview with Funds Society.

What is your assessment of the performance of the main asset classes so far this year?
We’re in a year where both fiscal and monetary policy appear to be working in tandem, resulting in a revival of both equity and bond assets. Fiscal stimulus and monetary easing can be observed in Germany, Japan, and the United States, which favors equities. In the U.S. and Europe, monetary policy is easing, which benefits bonds. Only the Bank of Japan is gradually raising interest rates, and even then, from very low levels.

The alternatives landscape is mixed. Private credit has been well-valued and has recently entered a phase of stress. Private equity, on the other hand, seems to have stabilized at lower levels, and for those with patience, this may be a good time to gain exposure.

2025 has been marked by Trump, geopolitics, and monetary policy. How has this impacted and changed how managers have approached investment opportunities this year?
Investment managers have learned to analyze policy holistically. Beyond tariffs, which are negative, these are offset by deregulation and fiscal stimulus policies, which are positive. The key lies in considering all three factors and not focusing solely on tariffs in order to have a global view and assess the net effect of tariffs, fiscal policy, and deregulation on asset performance. So far, the net balance is positive for the market.

Looking ahead to 2026: what do you think will be the main themes to watch next year?
The labor market is fundamental. If the labor market weakens significantly, consumption and profit margins will suffer. This will lead to more layoffs and a decline in consumption and GDP. That’s the main focus. Business investment, capital spending, and whether these will not only continue in 2026 but also lead to greater economic productivity supporting potential growth, earnings, and valuations are also being closely watched.

More and more institutional investors are demanding customized solutions over standardized products. What types of tailored structures or strategies are you developing to meet this need?
This is a broad area, but let me highlight one example. Many investors are seeking to incorporate both public and private markets into their portfolios. Return objectives and liquidity needs are not uniform, so customized solutions are essential. Our team has been designing and managing portfolio risk across public and private markets for nearly 20 years. This type of strategy was primarily used for institutions, OCIOs, and high-net-worth investors. However, today we can offer more personalized portfolio solutions in both public and private markets to clients with a much lower minimum investment requirement.

The Portfolio Solutions Group is described as an innovation “laboratory” in asset management. How are you integrating quantitative tools, artificial intelligence, or advanced optimization models into the asset allocation process?
We have incorporated large language models and AI tools to help us identify sectors and individual companies and build equity baskets tied to market trends. Essentially, we’ve developed a thematic investment approach that goes beyond traditional factor-based investing to implement our views and build portfolios. We can quickly absorb a vast amount of information and data and distill it into actionable insights that become thematic expressions of our views. We believe this is the way forward for investing.

Alternative Assets Will Reach $32 Trillion by 2030: Five Key Trends

| By Amaya Uriarte | 0 Comentarios

Looking ahead and considering how private markets will evolve over the second half of the decade, it is important to assess some of the cyclical obstacles currently weighing on the market. According to the Preqin study “Private Markets in 2030,” private equity fund distributions have been relatively low in recent years, which has limited cash flows to Limited Partners (LPs) and, in turn, reduced investors’ willingness to commit capital to new funds. This stands in sharp contrast to the strong growth and accelerating activity in private markets when pandemic-era stimulus measures were in place in 2021.

Since the peak of the cycle in 2021, private markets have remained in a quiet phase, with only tentative signs of recovery in exit volumes. Looking five years ahead, Preqin expects that the recovery in exit volumes will help drive a new cycle within private equity—and private markets more broadly.

To such an extent that alternative assets under management are on track to reach $32.01 trillion globally by 2030, according to the report. The firm forecasts that the sector will recover from the current stagnation in exit volumes, which could mark the beginning of a new cycle in private markets, as detailed by Cameron Joyce, Director and Global Head of Research Insights.

Alternatives AUM expected to exceed $30tn in 2030F
Alternatives assets under management by asset class

Preqin experts identify five key trends in alternative markets for the next five years:

A New Cycle Should Emerge

We expect that the recovery in exit volumes will help drive a new cycle in the field of private equity and private markets more broadly. Scenarios that could trigger this new cycle include a reduction in official interest rates, continued convergence in asset valuations between buyers and sellers, and an ongoing structural shift in allocations from public to private markets.

Infrastructure Moves to the Forefront

Infrastructure as an asset class is expected to accelerate in growth, with assets under management approaching $3 trillion by the end of 2030. Growth in Europe is expected to outpace that of North America in this area.

European infrastructure to grow fastest up to 2030F
Infrastructure AUM by region focus

Private Credit Reaches Maturity

The firm also expects that the introduction of new, more liquid fund structures in private credit will support growth in assets under management within this asset class. At the same time, it anticipates that the continued expansion of private credit will enhance the sector’s ability to compete with the banking industry. Forecasts indicate that private credit will double its assets under management by 2030, with further growth potential driven by greater investor access and banking disintermediation.

Fundraising for distressed debt forecast to grow at faster rate than direct lending
Aggregate fundraising by sub-strategy

AI Momentum for Private Capital

Preqin also expects artificial intelligence to be a key driver of venture capital-backed investment over the next five years, with an increase in the rate of startup creation as AI tools lower barriers and reduce costs. In addition, private equity-backed companies are expected to leverage AI technologies to boost operational efficiency.

The Wealth Channel Will Support Fundraising

As a fifth trend, the firm anticipates that the wealth investor segment will increase its overall share in private market fundraising by 2030. Moreover, it does not rule out this segment becoming an additional source of upside risk to its forecast.

The Three Forces Driving Investment in Nuclear Energy Through ETFs

| By Amaya Uriarte | 0 Comentarios

Nuclear energy is once again drawing attention after years in the background, becoming a subject of debate regarding its long-term viability and whether its potential benefits—reliable and clean energy—outweigh its risks—safety and environmental impact. According to VanEck, three key forces are currently driving investment in the nuclear energy ecosystem.

1. Rising Electricity Demand

The International Energy Agency forecasts a global increase in electricity demand, driven by emerging economies such as China and India.

This trend is also supported by several macro developments, including:

Artificial Intelligence, whose data-intensive usage is rapidly increasing the need for data centers and their associated energy consumption.
Electric vehicles, ranging from cars to a wide variety of battery-powered machinery.
Cryptocurrencies, which also require significant amounts of energy.
Climate-related factors, such as intense heatwaves in multiple regions, have further contributed to heightened electricity demand.

2. A Clean and Reliable Energy Source

Global efforts to reduce greenhouse gas emissions through the expansion of renewable energy capacity have been delayed, according to various studies. As a result, existing nuclear facilities and new projects have become vital components in the global energy transition.

Nuclear energy has significantly lower emissions compared to certain renewable sources and is not subject to generation timing constraints. Unlike wind and solar power—limited by calm winds and dark skies—nuclear power provides consistent and reliable energy.

Additionally, nuclear energy requires a fraction of the land area used by solar and wind installations, making it a compact and efficient source. For example, an average 1,000-megawatt nuclear plant in the U.S. requires around 1.3 square miles of land, compared to 31 times more for solar and 173 times more for wind energy.

3. Growing Regulatory Support

Another major driver is renewed governmental support. After the Fukushima nuclear accident in 2011, many countries deprioritized nuclear energy in favor of alternatives. However, in recent years, many have reversed this stance.

Nations such as the United States, Japan, China, Switzerland, India, and Norway are now demonstrating regulatory support for nuclear power.

ETFs Aligned with This Megatrend

Investors can gain exposure to this long-term trend through exchange-traded funds (ETFs):

VanEck Uranium and Nuclear Technologies UCITS ETF
This fund provides comprehensive exposure to the nuclear energy ecosystem. In addition to uranium mining companies, it includes nuclear energy producers, engineering and construction firms, and suppliers of equipment, technology, and services for the nuclear sector. It has seen a 12-month return of approximately 50%.
Global X Uranium UCITS ETF
Offers access to companies involved in uranium mining and nuclear component production, including firms engaged in exploration, refining, or manufacturing equipment for uranium and nuclear energy industries.
WisdomTree Uranium and Nuclear Energy UCITS ETF
Seeks to replicate the performance of the WisdomTree Uranium and Nuclear Energy Index, which is designed to reflect the performance of companies operating in the uranium and nuclear energy sector.

These ETFs allow investors to participate in a sector that is regaining relevance amid energy transition challenges, technological advances, and growing global power demand.

Albert Saporta (CEO): “Make GAM Great Again”

| By Amaya Uriarte | 0 Comentarios

Photo courtesyAlbert Saporta, CEO of GAM

Although he has held the position for only four months, the path toward achieving this goal began a couple of years ago, when an investor alliance called NewGame—including the Swiss wealth management firm Bruellan and French billionaire Xavier Niel—became majority shareholders and took control of the company.

“It was two years ago when I started to take an interest in GAM and began investing, as its stock had dropped dramatically. I knew the firm from my career in alternative investments and knew that GAM had been a major reference and expert in that field. In fact, it was the leading entity in the hedge fund space during the ’80s, ’90s, and part of the 2000s. But the company had been losing money for four years, which is an anomaly in the industry. When I looked into it, I saw that the managers were still outperforming the market and that the brand’s reputation remained strong, despite the 2018 scandal. It seemed clear that GAM had a serious management problem. At that point, I decided to form a group of investors to acquire a stake in GAM and act as a constructive activist investor to influence the company’s management and strategy. I had the support of Xavier Niel to carry out this plan and raise the capital needed to invest in the company. So we created a structure in Geneva, Switzerland, called NewGame, and under that structure, we started buying shares in the market,” explains Saporta, describing the start of GAM’s new phase.

From Restructuring to the Future

After these first steps came disagreements with the then-management, which led to a takeover bid that enabled them to gain control of the company. “As soon as we took control of the company and management, we launched a restructuring program. In this phase, there were several key priorities. One was to stabilize the asset base, which had fallen from 85 billion to 20 billion, as well as to stabilize the investment management teams and retain some key employees. The offer from Lion Trust generated a lot of uncertainty and turbulence, so we had to calm the situation—and I believe we managed to do that quite successfully,” he recalls.

Another issue they had to deal with was the sharp decline in GAM’s assets under management following the 2018 scandal, which led to decisive action: “We had to reduce the size of the company. One of the first things we did was sell the third-party fund management business in Luxembourg and Switzerland to Carne Group, as it was highly resource-, regulation-, and time-intensive, and had low profitability.”

Saporta believes that the restructuring is now nearly complete, allowing them to focus on restoring the company’s original identity and building a business well-positioned for the future. “The first major strategic decision was to reposition GAM in the alternatives business and to do so quickly. For that, we started by closing deals with relevant partners who wanted to expand and believed in GAM’s narrative. So we completed four or five transactions with major firms. Many of these were people I knew from my professional experience—people I respect and who are extremely well regarded. And as I said, the best class, the best story, the best name in the business,” he affirms.

As a result of this work, over the past two years the firm has consolidated a network of strategic alliances to offer value-added and high-quality UCITS products to institutional investors, distributors, and private banks. These partnerships include firms such as Avenue Capital, Galena, Gramercy, Swiss Re, and Liberty Street Advisors.

To Saporta, the value of these partnerships lies in offering a more specialized product range, backed by sector experts and delivering added value—something he considers essential in an industry where margins are increasingly tight. “We have built these alliances without creating conflicts with our own fund offerings and with a clear commitment to active management strategies, including fixed income and equities, and oriented toward the wealth business,” he adds.

GAM Today and Tomorrow

Up to now, this has been the path GAM has taken. Now, Saporta wants to focus on the future. While he admits it’s difficult to predict where the company will be in five years—or whether it will even return to profitability by 2026—he is confident that it will be significantly larger than it is today.

“Investment in GAM will remain strong, which will allow us to scale up. In the short term, our priority is to ensure the firm becomes profitable again and completes its transformation process. I believe we now have all the necessary elements to achieve that. We’ve restructured the company, stabilized the investment management teams, returned to the alternatives space, and done so in a way that is substantial and different from other managers. The excellence of the firms we’re working with shows that we’re different. I believe we’ve already completed most of the partnerships we want and have done so without becoming a fund supermarket,” the CEO states.

To strengthen their fund offering, Saporta highlights that they’ve also completely revamped the sales teams. “Besides a scalable model, one of GAM’s strengths is its global distribution network. That’s quite unique for a firm of this size. We have offices throughout Europe’s major financial centers, as well as in Asia, Australia, and the United States. We also have a partner in Chile for South America and another in Hong Kong/China for those markets. We have a very significant distribution platform, and we’ve changed almost all the heads of these offices in their respective jurisdictions,” he notes.

While this entire “machinery” and strategy is in motion, Saporta is currently focused on visiting each of the company’s offices and meeting with investors to convince them that the GAM project is alive and worth supporting. “Being part of the investor group and having a significant investment in GAM through NewGame gives me the credibility needed to deliver that message. And I think it’s working very well. We still benefit from having a highly recognized name and we’re seeing a very good reception to our proposal: ‘Help us return GAM to its former position, and we will help you by offering excellent products that enable you to outperform your competitors and satisfy your clients.’ I believe that message is resonating strongly. I think we are already in the final phase to truly turn this firm around,” concludes Saporta during his visit to Madrid.