T. Rowe Price, a global investment management firm, has announced the addition of the T. Rowe Price Securitized Income ETF to its product suite. The new fully transparent, actively managed fixed income exchange-traded fund (ETF) has begun trading on the NYSE Arca.
The T. Rowe Price Securitized Income ETF is designed for investors seeking to enhance periodic portfolio returns while diversifying fixed income exposure beyond traditional corporate and government bonds. Actively managed and backed by the firm’s fundamental research capabilities, TSCZ seeks to generate high current income through a portfolio diversified across U.S. securitized credit sectors, such as asset-backed securities (ABS), commercial mortgage-backed securities (CMBS), collateralized loan obligations (CLO), and non-agency residential mortgage-backed securities (RMBS). TSCZ carries a total expense ratio of 0.20%.
TSCZ is actively co-managed by Jean-Marc Breaux, CFA®, and Ramón de Castro. Breaux is Head of Securitized Products in the Fixed Income division and brings 20 years of investment experience, eight of them at T. Rowe Price. De Castro is a sector portfolio manager in the Fixed Income division with over 30 years of experience, 14 at the firm. He also serves as portfolio manager for the T. Rowe Price GNMA Fund (Ticker: PRGMX) and oversees residential mortgage-backed securities (RMBS) allocations across several multisector fixed income portfolios.
With this addition, T. Rowe Price’s ETF lineup expands to 35 total funds, spanning fixed income, equity, multi-asset, digital assets, and thematic strategies. Each ETF solution brings key advantages such as tax efficiency, competitive expense ratios, and the flexibility to buy and sell shares throughout the trading day. All funds leverage the rigorous fundamental research of T. Rowe Price’s analysts and portfolio managers, focused on asking better questions to deliver better client outcomes.
Separately, T. Rowe Price recently announced an agreement to acquire F/m Investments LLC, a specialized fixed income and ETF asset manager. Expected to close in early 2027, the transaction will increase its fixed income assets under management by nearly 9%, more than double its volume in fixed income ETFs, and expand its separately managed accounts (SMA) business. Alongside today’s launch, this transaction reflects the firm’s ongoing commitment to expanding its fixed income ETF capabilities and diversifying the suite of solutions available to its clients.
Artificial intelligence (AI) has become a recurring topic of discussion with investment firms. When asked whether we have reached the peak of investment in this theme—from both fixed income and equity perspectives—they insist we have not. They argue that there is still room and investment opportunities left within the AI universe, even following warnings from key industry figures—such as Dario Amodei (CEO of Anthropic), Sam Altman (CEO of OpenAI), and Elon Musk (xAI)—regarding the need to slow down development due to safety risks.
The impact of the current wave of investment in artificial intelligence could exceed $20 trillion. According to Capital Group, tech megacap capital expenditure is accelerating at a rate that could eclipse China’s industrialization process, referencing a benchmark of reaching $30 trillion by 2032.
“There is no doubt that artificial intelligence is becoming one of the primary drivers of economic activity. However, it should not be understood solely as a technology theme, but as an investment cycle with broad implications for the economy as a whole. The artificial intelligence ecosystem spans multiple levels, from semiconductor design and software development to power supply, infrastructure construction, and sectors integrating the new technology into their operations, such as media and financial services,” they note.
Debate or Marketing?
This massive investment opportunity has coincided in recent days with suggestions to moderate the pace of technological development, which had a slight impact on semiconductor companies while favoring software firms. “Leading model developers have little incentive to voluntarily slow down a technology they view as strategic, especially when Chinese competitors are just six to eight months behind,” according to Banca March.
This debate, combined with a higher interest rate outlook, could, according to Banca March’s latest analysis, “become the perfect backdrop for a temporary pullback in equity markets.” However, the firm’s experts downplay the concern, noting that “the narrative surrounding a potential slowdown in AI development seems to reflect an institutional marketing strategy ahead of two of the largest IPOs in history rather than an operational reality.”
“Competition in this space is extraordinarily intense, global, and decentralized, making any coordination attempt among primary players extremely difficult. Even more so when the Trump administration has been openly opposed, ruling out government interventions in the sector,” they add.
In the view of Flavien del Pino, Head of BDL Capital Management for Spain, the recent correction in tech companies most exposed to AI is not merely a cyclical market movement, but reflects a fundamental doubt regarding the actual profitability of this technology.
“Hyperscaler spending is accelerating to unprecedented levels and is destroying free cash flow generation, accumulating debt that will approach $2 trillion. To justify the $7 trillion that will be invested in data centers through 2030 with a return on capital employed (ROCE) of just 10%, the sector would need to generate $3.6 trillion annually in new revenues—a figure higher than the entire current global market for software and IT services,” he explains regarding the resulting capital return uncertainty.
Brakes on Investment
So, is there any factor that could genuinely stall AI investment? According to experts, a key issue will be national regulations—specifically, the outlook for AI regulation in the United States and potential restrictions on data center development. In the view of Libby Cantrill, Head of Public Policy at PIMCO, while the U.S. Congress may begin to focus more intensely on AI safety and federal government involvement appears inevitable at some point, “we are unlikely to see a comprehensive federal regulatory framework enacted into law in the near term.” Looking ahead to the next Congress, she notes there will likely be greater scrutiny on the issue, though “for now, AI regulation does not appear imminent.”
In the absence of federal progress, Cantrill believes “states are likely to continue moving forward with AI safety legislation” and taking the lead on data center restrictions. In this domain, municipalities in 32 states have already moved forward with moratoria, and up to 26 states are currently considering statewide moratoria.
Against this backdrop, Cantrill anticipates that “in 2027, given the political landscape, we could see greater friction in AI infrastructure development, with a likely widespread increase in data center construction costs” and, in some cases, states opting to halt them entirely. This would imply, she concludes, “a more complex patchworks for both companies and investors.”
Implications for Investors
From an investor’s perspective, Andrew Heiskell, Equity Strategist at Wellington Management, and Brian Barbetta, Global Industry Analyst at Wellington Management, consider that the debate is no longer centered on whether AI is relevant, but on a more complex question: which links in the ecosystem will capture the value generated?
“In such a dynamic environment, long-term technological progress and short-term public market expectations are unlikely to move at the same pace. Instead, we should expect continued moments where investor sentiment overvalues or undervalues shifting business and technological realities,” hold both Wellington Management experts.
Their position is that investing in the constantly evolving AI universe requires not only stock selection, robust analytical capabilities, and top-tier active management, but also a comprehensive understanding of its ecosystem, which can offer investors greater composure amid market volatility and ambiguity. “Simply diversifying across a basket of AI-exposed stocks is unlikely to capture the full potential of this unique and transformative technology. Conversely, active managers with strong analytical capabilities who recognize that leadership will rotate as technology evolves and market conditions change will be better positioned to generate returns and manage risk in this new AI era,” they argue.
Furthermore, for investors, it is becoming increasingly difficult to avoid tech megacaps altogether, given their weight in global equity benchmarks and their critical role in driving productivity, innovation, and economic growth. However, “investors do not need to concentrate their exposure in a handful of U.S. large-cap companies to participate in long-term digitization and artificial intelligence trends,” warns Yan Taw Boon, Head of Thematic Strategies for Asia at Neuberger.
In his view, one of the most important current developments is that the AI infrastructure boom is broadening beyond technology itself. “Capital is increasingly flowing into sectors such as energy, construction, industrial automation, and the manufacturing of specialized components required to build and operate AI data centers. This creates a broader set of opportunities for investors seeking exposure to AI-driven growth while reducing reliance on a small group of dominant tech stocks,” the Neuberger expert explains.
For Taw, diversifying exposure across geographies, sectors, and market capitalizations will be essential so that “investors can participate in the structural growth of the tech sector while mitigating concentration risk.”
Goldman Sachs Alternatives has announced the final close of West Street Capital Partners IX and its related vehicles. The fund closed with $9.6 billion in total capital to invest in leading companies worldwide to create value. Combined with the more than $1.6 billion raised to date for West Street Asia Equity Partners I, the dedicated private equity strategy for Asia-Pacific, and $500 million allocated to related co-investment vehicles, total capital raised globally reaches $11.7 billion.
According to the asset manager, this represents the ninth generation of Goldman Sachs Alternatives’ flagship buyout platform. Since 1986, the team has invested over $89 billion globally, partnering with companies and management teams to drive growth. The fund’s capital comes from a diverse group of institutional and high-net-worth investors across North America, Europe, and the Middle East, along with significant commitments from Goldman Sachs and its employees. In addition to the capital raised for this fund and its related vehicles, Goldman Sachs Alternatives is independently raising capital for West Street Asia Equity Partners I, its dedicated pan-Asian private equity strategy focused on mid-market control investments and select growth investments across the region. Following its initial aggregate close, WSAEP I has raised over $1.6 billion to date.
The fund will maintain its strategy, predominantly focused on upper-middle-market control investments. Leveraging the team’s deep sector expertise, the fund is expected to target investments in the business services, financial services, technology, healthcare, consumer, and energy transition sectors. In a dynamic investment environment, the team is strategically positioned to identify new opportunities across these sectors, utilizing operating models that have proven resilient across different market cycles.
Brad Gross, Global Co-Head of Private Equity at Goldman Sachs Alternatives, noted: “This capital raise builds on our long-standing track record as a leading private equity platform, leveraging Goldman Sachs’ global scale, network, and expertise to identify differentiated investments and drive value for our portfolio companies. The enthusiasm of our global investor base reflects strong confidence in the strength of our franchise and our ability to deliver attractive returns across market cycles.”
Meanwhile, Michael Bruun, Global Co-Head of Private Equity at Goldman Sachs Alternatives, added: “Against a backdrop of macroeconomic and geopolitical shifts, public market volatility, and rapid technological transformation, our experienced team is well-positioned to identify areas of opportunity and execute resilient investment strategies. Our extensive team of experts and advisors also possesses the tools and resources needed to help portfolio companies navigate the ongoing artificial intelligence transformation and scale their businesses.”
WSCP IX has already invested in several companies across various geographies and sectors, including Schellman, a leading U.S.-based provider of cybersecurity audit and compliance services; Numantec, a leading European developer, manufacturer, and distributor of medical devices and vascular access/infusion consumables; Excel Sports, a premier independent U.S.-based sports agency and representation firm; and Mace, a global program and project management company serving infrastructure and built environment clients, based in Europe.
In Asia, WSAEP I builds on Goldman Sachs Alternatives’ long history as one of the earliest private equity investors in the region, with approximately $17 billion deployed. With over 30 years of investment experience in Asia, the team seeks to collaborate with management teams to drive growth, operational transformation, and long-term value creation.
Portfolio companies of the funds benefit from GS Value Accelerator, a proprietary platform that helps build enduring businesses and generate incremental value. Value Accelerator offers a premier global network of operating advisors and sector experts who can support companies in their technology, data, and artificial intelligence transformation, revenue growth, talent and organizational strategy, operational excellence, finance and strategy, and sustainability optimization. The Private Equity division at Goldman Sachs Alternatives is led by its Global Co-Heads, Brad Gross and Michael Bruun. Stephanie Hui is Head of Private and Growth Equity in Asia-Pacific and Head of Private Investing in Asia-Pacific at Goldman Sachs Asset Management.
Photo courtesyDrew T. Matus, Chief Market Strategist at MetLife Investment Management.
The second edition of the Funds Society Leaders Summit, held in collaboration with CFA Society Spain, featured an analysis by MetLife Investment Management, in which Drew T. Matus, Chief Market Strategist at the firm, focused on how he views the world right now and how he believes it will evolve; its risks and, above all, the impact of artificial intelligence.
Matus stated that growth is being driven primarily by AI: the United States and Korea are experiencing accelerated growth, but the rest of the world is facing some difficulties in recovering from last year’s weakness. All of this occurs within a context of inflation and high yields, “which is not necessarily a bad thing.”
The expert observes that, despite geopolitical volatility and inflation, recession expectations in any of these regions remain quite low. “People feel very comfortable that the status quo will hold indefinitely, which is somewhat strange given that yields are normalizing and there is significant geopolitical risk,” he comments, pointing out that the only country behaving remotely abnormally compared to the recent period is Japan.
Matus explains that artificial intelligence, as it spreads across the globe and is used more frequently in different regions, “could narrow the gap between the United States and the rest of the world in terms of productivity growth, which would imply reducing the differential in potential GDP growth.” This circumstance could provide a solution to issues such as government deficits, because according to the expert, “if you manage to grow out of the deficit, you will be in a fairly favorable position.”
However, according to Matus, the future could bring either a narrowing or a widening of this gap. Ultimately, “it will depend on policymakers, in this case in Europe, although the same applies to parts of Asia,” meaning “it is up to policymakers to determine whether they want to close this gap or not, and how to regulate the emerging technologies that could enable it.”
Risks
One of the main risks Matus sees regarding AI does not lie in the promise of the technology itself. CEOs believe it is enough to simply implement this technology in their companies and that giving everyone access to the tool will solve everything on its own. “But the reality is that you need a company designed to use the new technology,” he notes. From an operational standpoint, leveraging it is far more difficult than at any previous time, and now “CEOs have begun to realize that they have made many promises they cannot keep.”
Matus highlights the lack of evidence suggesting that AI is leaving young people out of work. In fact, in the United States, hiring is happening, but for experienced workers, “which is precisely the opposite of what is intended with AI, because experienced workers are the ones who can be replaced and are usually more expensive.” Ultimately, he observes neither an increase in unemployment or underemployment, nor high productivity levels in the United States. Specifically, the latest quarterly figures align with the average of the last 10 years, and even the last 50 years. “If we look for AI in the data, we haven’t found it yet,” he states. Therefore, he sees an opportunity for the markets, “as we have not yet seen the positive impact of AI on the broader economy, neither in the United States nor, frankly, anywhere else.”
Another aspect Matus finds concerning is that a sector that should benefit from artificial intelligence and all the productivity gains it brings—the financial sector—is not experiencing a strong market run on par with the tech sector or the broader market. “The market has bought into the idea that AI will be a revolutionary technology, but conclusive proof is still lacking,” Matus notes.
Ultimately, the expert concludes that the market is betting on short-term optimism around AI. But the reality is that AI will take time to integrate into the economy. For this reason, he anticipates that as AI spreads throughout the economy, “it will have all the effects that are promised in the short term, but we won’t see them anytime soon.”
The Long Term
How do we expect this to play out in the long term? To understand productivity gains in the United States, Matus points to technology and its optimal utilization. The methodology the country used to achieve this—through employee training—was “the right one, whether due to lower regulation or any other reason.”
Matus puts figures on potential U.S. growth through the application of AI: between 4% and 4.5% over the next 10 years, “something we have never seen before in a developed market economy.” It would only be comparable to what was seen following China’s entry into the WTO. Matus highlights at this point that this is one of the reasons why, when analyzing the U.S. deficit or perceiving that Americans do not care about it, “it is because we really don’t care; we believe we can outgrow it.”
There will also be shifts in the economy, as has happened in other technological revolutions. In fact, Matus does not rule out that some of the largest companies in 2025 will no longer hold those positions in the future, just as occurred with the giants of the 1990s. What became clear then—and what Matus considers a risk when weighing artificial intelligence and all the changes occurring in the global economy—is that the companies that figured out how to use the new technology are precisely the ones that made it into that group.
“One or two of them are directly related to technology, but in general, they simply take a different approach to new technologies. So, when reflecting on what the world will look like in 2035, 2040, and 2050, the winners and losers will not necessarily be the names appearing today on the front pages of the Financial Times and The Wall Street Journal. It is really about companies that are figuring out how to use the technology being offered to them,” he concludes.
State Street Corporation has announced the appointment of new executives to support the next phase of the firm’s growth strategy and its continued focus on driving innovation and transformation to help clients achieve better outcomes in increasingly complex global markets. Specifically, Mostapha Tahiri, previously Chief Operating Officer, will become President of State Street Alpha, assuming responsibility for Alpha, Charles River Development (CRD), and a suite of innovative platform solutions; and Ann Fogarty, previously Chief Operating Officer of Investment Services, has been named Enterprise Chief Operating Officer.
Regarding Tahiri’s appointment, the firm clarifies that Alpha is State Street’s leading end-to-end (front-to-back) integrated platform, combining CRD’s front-office technology with the firm’s servicing, markets, and data capabilities to offer investors a single platform experience across the entire investment lifecycle. Drawing on his deep commercial, client, technological, AI, and operational experience, Tahiri will assume end-to-end responsibility for commercial strategy, product strategy, technology, and client delivery for Alpha and CRD. Leveraging the strength of this platform, Tahiri will focus on accelerating growth, strengthening execution, transforming the operating model, and maximizing the full potential of innovation across the business.
Tahiri will also serve as Chair for Asia-Pacific (APAC). Having spent much of his career serving clients in APAC and following his recent return to Singapore, Tahiri is ideally positioned to oversee State Street’s business relationships in the region with key clients, regulatory bodies, and strategic partners. He will continue to serve on State Street’s Executive Committee. This executive has nearly 30 years of international experience in the asset management, asset servicing, investment platforms, and financial technology sectors. His track record includes leading and transforming complex global businesses and driving initiatives where clients, technology, and operations intersect.
Another announced change affects Ann Fogarty, previously Chief Operating Officer of Investment Services, who has been named Enterprise Chief Operating Officer, succeeding Tahiri. In her new role, she will also report to O’Hanley. As Enterprise Chief Operating Officer, she will lead the firm’s global technology and operations areas and drive State Street’s technological modernization and AI agenda, reflecting the growing convergence of technology, operations, data, resilience, and client service across the industry. She will continue to co-lead the firm’s global transformation program alongside John Woods, Chief Financial Officer (CFO), helping accelerate innovation, build greater scale and efficiency, reduce cycle times, and further strengthen the quality of client outcomes across State Street’s businesses. Fogarty will continue to serve on the firm’s Executive Committee. Fogarty brings nearly four decades of industry experience. She has led key client operations for Investment Services, where she drove operational simplification, resilience, and enterprise-wide global transformation initiatives. Fogarty also chairs the Supervisory Board of State Street Bank International GmbH (SSBI), our principal European bank.
Following these changes, Ron O’Hanley, Chairman and Chief Executive Officer (CEO) of State Street, highlighted: “Our clients face increasingly complex markets and operating environments, and are demanding with increasing frequency that technology and operations function seamlessly together. Mostapha’s focus on Alpha—one of State Street’s most differentiating businesses and a core strategic priority for the firm—and Ann’s leadership in global operations and technology provide dedicated direction in areas that drive how we create value for clients. These appointments reinforce the strength of our leadership team and position us to continue executing for clients while investing in the future of our business.”
Together, these appointments establish dedicated leadership in two key areas critical to client needs and the firm’s long-term strategy. They also reflect State Street’s commitment to leading alongside its clients as technology, AI, data, and operations shape the future of investment and investment infrastructure. Both appointments are effective as of 09/14/2026.
Global wealth creation has surged at an extraordinary pace over the last five years. According to the new Wealth Sizing Model included in The Wealth Report 2026 by Knight Frank, the global population of Ultra-High-Net-Worth Individuals (UHNWIs)—defined as those with net assets exceeding $30 million—has expanded from 551,435 in 2021 to reach 713,626 worldwide.
As detailed in the document, this rapid expansion has been decisively dominated by the United States, which generated 41% of new ultra-high-net-worth individuals thanks to the depth and liquidity of its capital markets, as well as the powerful multiplier effect of the technology sector and artificial intelligence (AI). Meanwhile, Asia-Pacific and India are consolidating their positions as secondary drivers of structural growth.
Figures from the report reveal that, over the past five years, 89 people around the world crossed the $30 million threshold every single day. The strength of U.S. financial infrastructure will drive the country from concentrating 35% of global UHNWIs in 2026 to a projected 41% by the year 2031, adding more than 136,000 new ultra-high-net-worth individuals. To accommodate this relentless U.S. expansion, nearly every other country—including China, which will drop from its current 17% share to 15%—will see its global market share contract.
However, the report highlights clear geographical dispersion looking ahead, driven by rapidly maturing economies. Indonesia leads percentage growth forecasts, with a projected 82% surge in its UHNWI population by 2031. It is followed closely by Saudi Arabia and Poland (both above 60%), as well as Vietnam (nearly 60%), underscoring the speed at which new wealth hubs are forming, particularly in Southeast Asia and the Middle East.
Global UHNWI and Billionaire Charts. Source: Knight Frank, The Wealth Report 2026
The billionaire segment confirms this shift toward global diversification. Although Asia-Pacific holds the highest total count (1,116 compared to North America’s 965), the fastest growth rates over the next five years will be registered in Saudi Arabia (+183%), Poland (+123%), Sweden (+81%), and Australia (+77%).
The Australian case stands out for its economic resilience and depth: its UHNWI population is projected to grow nearly 60% (reaching 26,095 individuals), supported by an ecosystem combining commodities with an increasingly sophisticated financial services and technology sector.
For its part, India represents a story of large-scale consolidation. After seeing its ultra-wealthy population skyrocket 63% between 2021 and 2026, the country is set to add an additional 27% by 2031, surpassing 25,000 UHNWIs. This progress reflects the transformation of its economy toward a model backed by a deeper equity market, greater private equity penetration, and increasingly established global investment networks.
When Moderna and MSD announced that their personalized mRNA melanoma vaccine had met its primary endpoints in Phase 3, the market did not wait for the fine print. Within hours, both companies added tens of billions of dollars in market capitalization, without a peer-reviewed scientific publication or a complete breakdown of efficacy and safety yet available. Funds Society consulted three fund managers with exposure to the healthcare sector—Candriam, BNP Paribas AM, and Groupama AM—to understand exactly what that price is discounting, and what needs to happen for the bet to hold.
“Investors are assigning value to the possibility that this approach could work across multiple tumor types and treatment settings,” summarizes Sara Torrecilla, Senior Biotech Analyst at Candriam, regarding a stock rally that at its peak added roughly $90 billion in combined market value and settled around $60 billion net. It is, in her words, a warning sign as much as a point of enthusiasm: the peak sales estimates already circulating in the market, in the tens of billions of dollars, “should be viewed as market assumptions, not clinical evidence.”
Groupama AM, manager of the Global Disruption fund, reaches a similar diagnosis from a different angle. “The surge in stock prices for Moderna and Merck reflects a de-risking re-rating of both companies thanks to a historic validation of the mRNA platform, considered ‘first-in-class,'” explains Julia Kung, portfolio manager and international equity and convertible bond analyst at the firm. The market, she adds, “is also betting that this could be expanded beyond melanoma to other tumors, such as non-small cell lung cancer, bladder, kidney, and other cancer types,” even though all that has been published so far is “an interim summary of results across two endpoints” without the complete dataset on risk, statistical confidence, and safety. Stock prices, she reminds, “always look forward,” and reacted this way because this represents the first Phase III success for an individualized neoantigen therapy and for any mRNA-based cancer treatment.
From BNP Paribas AM, Senior Portfolio Manager Christian Fay agrees that the reaction is justified, though he emphasizes the underlying medical need: the interim data showed “statistically significant and clinically meaningful” improvements compared to treatment with Keytruda alone, in a type of melanoma—resected high-risk cutaneous—where unmet medical need remains high. “These results reinforce our conviction that targeted, personalized medicine can be a particularly effective strategy to treat specific types of cancer, such as melanoma,” notes Fay.
Merck, Keytruda, and the Defensive Play
There is a second layer to the story that relates specifically to Merck. Kung, from Groupama, observes that by combining the vaccine with Keytruda, “this collaboration generates a narrative of potential market dominance not only in melanoma, but also across other cancer types where Keytruda is used.” She goes further: “the rally in Merck’s stock price can be interpreted as a successful defensive narrative: that Merck can protect and extend the Keytruda franchise through combination therapies, while also signaling confidence in Merck’s ability to grow beyond Keytruda.” In other words, part of what the market is celebrating is not just the vaccine itself, but the possibility that Merck has found a way to extend the commercial lifespan of its flagship product.
Revolution or Intermediate Step?
It is in the scale of the promise where perspectives begin to diverge. Kung admits that, over the long term, this “could prove to be ‘revolutionary’ and, so to speak, mark the true beginning of the ‘cancer vaccine’ market.” But she qualifies: “at present, it is better characterized as a platform-level inflection point, analogous to the first kinase inhibitor that validated targeted therapy, rather than an immediate restructuring of pharmaceutical leadership.” The reason is two-fold: adjuvant melanoma is “a relatively narrow indication,” and large-scale personalized manufacturing—producing a distinct treatment for every single patient—”remains operationally complex and expensive.”
Candriam frames the same caution within its specific oncology mandate: personalized mRNA vaccines must be “evaluated with the same discipline as other treatment modalities,” in an increasingly multimodal therapeutic landscape where other innovations—such as antibody-drug conjugates and targeted therapies—have already found their place depending on the tumor type. Torrecilla expands the radar beyond pharmaceutical companies: the life sciences supply chain—tumor sequencing, mRNA manufacturing, lipid nanoparticles—added roughly $50 billion in market value on the day of the announcement, according to Jefferies estimates. But she clarifies the limits of that thesis: “no third-party vendor has been publicly confirmed as a direct manufacturing or sequencing partner,” so it is best not to get ahead of assigning that value to specific companies just yet.
BNP Paribas, without a dedicated thematic healthcare fund, resolves the dilemma differently: capturing the thesis through diversified portfolios that collectively exceed $5 billion, with exposure to healthcare and biotech companies that, according to Fay, act as “engines of innovation” for big pharma. The backdrop, he explains, is structural: nearly $200 billion in big pharma sales will be exposed to patent expirations in the coming years, which will keep both innovation and M&A activity high, because internal R&D at major companies is insufficient to fill that gap.
The next real test for all of this comes in October, with the European Society for Medical Oncology (ESMO) Congress, taking place from October 23 to 27 in Madrid. It is one of the most influential events on the global oncology calendar, where the full trial dataset will be shared.
According to Kung, “the gap between top-line data and granular details is where short-term valuation risk is concentrated.” Torrecilla speaks in similar terms: “The market will focus on the magnitude of the benefit,” both to confirm the commercial opportunity in melanoma and to build confidence in extending the approach to other tumors.
Meanwhile, each fund manager maintains their own list of catalysts. Groupama monitors the FDA submission and review of the Biologics License Application (BLA) for adjuvant melanoma, results in non-small cell lung cancer—which they view as “the most closely watched expansion opportunity given its significantly larger potential market”—pricing and reimbursement signals—since “custom production for every patient represents a major commercial constraint” and payers “will establish the revenue ceiling”—and BioNTech’s trial in pancreatic cancer with autogene cevumeran, which “will indicate the extent to which the concept can be generalized across different tumor types.” Candriam adds Phase 1 data in pancreatic cancer and expected renal cell carcinoma results by year-end to that list. BNP Paribas, for its part, closely tracks other industry milestones such as the JP Morgan Healthcare Conference, broadening its view to other areas of healthcare innovation where it identifies similar opportunities.
Photo courtesyTom Stephens, Head of ETFs at Schroders.
Active ETFs are leaving behind their status as a niche allocation to become an increasingly relevant element in portfolio construction. The Schroders Global Investor Insights Study 2026 (GIIS) shows that investors are seeking to combine active management with the operational advantages inherent to ETFs, overcoming the perception of these vehicles as a mere lower-cost alternative to mutual funds.
Active ETFs are leaving behind their status as a niche allocation to become an increasingly relevant element in portfolio construction. The Schroders Global Investor Insights Study 2026 (GIIS) shows that investors are seeking to combine active management with the operational advantages inherent to ETFs, overcoming the perception of these vehicles as a mere lower-cost alternative to mutual funds.
Thus, globally, virtually all respondents (98%) recognize that active ETFs have a role to play in portfolios (compared to only 2% who believe otherwise), shifting the debate: it is no longer about whether to use them, but how to get the most out of them.
This shift is especially relevant in the current market environment. In a setting marked by higher volatility and persistent uncertainty, investors need tools that allow them to act quickly, closely monitor their positions, and adjust them with agility, without giving up the added value of active management.
Cost is no longer everything
Regarding the factors investors place the most importance on when evaluating an active ETF, cost is cited without hesitation. Lower costs compared to mutual funds are the main advantage for 70% of respondents. But interest in these products is no longer limited to cheaper access to active management. For more than half of respondents worldwide (51%), intraday liquidity and the ability to trade at market prices, along with higher liquidity in the secondary market (55%) compared to equivalent mutual funds, are other major arguments in favor of this investment vehicle. This is because active ETFs can be bought and sold continuously, often supported by market makers. In contrast, traditional funds are typically valued and settled only once a day, limiting flexibility when rapid intervention is needed.
Greater portfolio transparency is another element particularly valued by investors (51%). Conversely, barely 11% of respondents identified tax efficiency as a benefit.
Chart 1: Top factors when choosing an active ETF
Source: Schroders Global Investor Insights Study 2026. The survey question was: “When considering an active ETF, which of the following advantages are most important to you?”, and respondents were asked to rank their top three reasons.
How do investors use active ETFs?
The survey points out that investors incorporate active ETFs as flexible components within portfolio construction. They allow them to express their investment convictions, access differentiated exposures, and complement their core positions, while maintaining high operational efficiency.
This is structured mainly on two levels. On one hand, investors consider that active ETFs play a relevant role in diversification (68%). On the other hand, they also point to them as a core component in building their investment portfolios (38%).
Tom Stephens, Head of ETFs at Schroders, noted: “The appeal of active ETFs lies in the simplicity of the vehicle and the ease with which they can be integrated, both strategically and tactically. Strategically, they can serve as core equity or fixed income exposure; tactically, they allow positioning in duration, themes, or sectors. And it’s not just a matter of costs: the ability to trade intraday across different platforms facilitates making rapid adjustments, with greater transparency and operational efficiency than many other instruments. This is especially useful when seeking specific goals, such as diversification or risk management.”
Active ETFs for specialized and harder-to-access markets
The survey also shows that demand for active ETFs is not uniform across all investment areas. Investors especially value active management in areas where markets have less coverage, are less efficient, or present greater structural complexity. This is the case for thematic or sector strategies (49%), small- and mid-cap equities (43%), and emerging market equities (40%).
This highlights that investors are looking for active ETFs to combine ease of trading with active management results that make a real difference, especially when index exposure is less precise or when other vehicles are less operational.
Addressing concerns: returns and con fusion with passive ETFs
Despite the strong momentum of active ETFs, the survey shows that some obstacles to adoption remain, which have more to do with the fund manager than with the structure of the vehicle itself. Thus, nearly half of respondents globally (43%) point to uncertainty regarding the performance of this investment solution compared to active mutual funds, a vehicle that remains dominant and has a long tradition in the market, as the main concern. Meanwhile, the second largest concern expressed by investors (40%) is the unclear differentiation between active and passive ETFs.
These elements suggest that the next phase of growth for active ETFs will largely depend on managers’ ability to demonstrate the robustness of their investment process and explain how strategies are implemented and managed within the ETF fund structure, so that investors can understand them and track them over the long term.
Photo courtesyJenny Johnson, CEO of Franklin Templeton.
Franklin Templeton, through its flagship real estate subsidiary Clarion Partners, has announced a definitive agreement to acquire a majority stake in Stoneshield Capital. According to the firm, the transaction will triple Clarion’s assets under management (AUM) in Europe to $13 billion (€11 billion), increase Clarion’s overall AUM by 12% to $82 billion (€72 billion), and boost Franklin Templeton’s total alternative assets under management above $300 billion (€265 billion).
Stoneshield is a leading European manager specializing in sector-specific real assets, with $9 billion (€8 billion) under management. Its thematic investment strategies focus on sectors facing structural supply constraints, including residential and student housing, digital infrastructure, life sciences and innovation, hospitality, and critical infrastructure.
“The addition of Stoneshield represents an important milestone in Clarion’s development of an integrated real assets platform in Europe. Stoneshield’s focus on high-return investments and special situations perfectly complements our existing offering. This transaction expands our global investor relationships, diversifies our product lineup, and reinforces our long-term commitment to delivering strong performance and innovative investment solutions to our clients,” explained David Gilbert, CEO of Clarion Partners.
Expanded Presence in Europe
The manager noted that through the acquisition of Stoneshield, Clarion strengthens its footprint in Europe, complementing its established expertise in institutional logistics assets and net-lease real estate with Stoneshield’s capabilities in digital, residential, and industrial-logistics storage.
Currently, Stoneshield’s investment lineup features a series of diversified closed-end opportunistic funds, as well as an investment platform specifically tailored to the student housing and living sectors. The firm also holds strategic stakes in several of Europe’s leading and fastest-growing real asset platforms.
“We are very excited about the expansion opportunity in Europe, both by scaling Stoneshield’s opportunistic funds business and by developing new strategies around their investment themes. Stoneshield’s strategic stakes in various companies not only have the potential to deliver attractive risk-adjusted returns, but we believe they will also generate new asset-level investment opportunities for current and future investment products,” added Josh Pristaw, President of Clarion Partners.
Stoneshield will serve as Clarion’s specialized platform for opportunistic investments in Europe and will maintain its offices in Spain, Portugal, Ireland, the United Kingdom, and Luxembourg. As part of the transaction, co-founders Juan Pepa and Felipe Morenés remain committed to leading Stoneshield for the long term, retaining responsibility over investment strategy, growth, and the firm’s day-to-day management. Working in close collaboration with Clarion Partners and Franklin Templeton, they will also play a central role in expanding the firm’s European real assets platform, developing new investment strategies across their areas of expertise, and creating innovative products for institutional and private banking clients globally. Together, they will continue to drive strategic growth opportunities through new investment themes, geographical expansion, and selective acquisitions.
Juan Pepa commented: “We are thrilled to join Clarion Partners’ investment management platform and look forward to further scaling the size and scope of our business in supply-constrained growth sectors. The transaction allows us to benefit from the advantages of a global platform while preserving our team, our strategy, and our culture.”
For his part, Felipe Morenés added: “We firmly believe that our partnership with Clarion Partners and Franklin Templeton will accelerate our growth and reinforce our commitment to generating value for our clients, backed by the long-term positive structural fundamentals of real asset investing across Europe.”
Franklin Templeton’s Strategy
According to Jenny Johnson, CEO of Franklin Templeton, Stoneshield has built an extraordinary track record of superior risk-adjusted returns, and its integration into Clarion’s platform will position the team ideally for continued robust growth.
“We are delighted to welcome Stoneshield to Franklin Templeton. This combination strengthens our real asset capabilities in Europe and creates opportunities to extend the strengths of both Stoneshield and Clarion across different geographies. This acquisition represents another important step in our strategy to globalize our real asset capabilities, expand our private markets business, and enhance our offering for clients worldwide,” stated Johnson.
The transaction is expected to close during the fourth calendar quarter of 2026, subject to customary closing conditions, including required regulatory filings.
The world’s 300 largest pension funds reached a record $27.7 trillion in assets under management at the end of 2025, representing a 13.4% growth compared to the previous year and the largest annual increase recorded since 2017, according to the Global Top 300 Pension Funds report prepared by WTW’s Thinking Ahead Institute in collaboration with Pensions & Investments.
According to the report, the increase was particularly significant among the largest funds. “The 20 largest expanded their assets by 14.7%—above the average—reaching $11.9 trillion and now accounting for 42.8% of the assets managed by the world’s 300 largest funds,” they explain. Growth was uneven across different regions. North America remains the largest region in the Top 300, although it lost market share, holding 44.7% of assets in 2025 compared to 47.2% the previous year. However, over the past five years, it registered the highest annualized growth among the major regions at 6.4%.
In Europe, assets managed by the world’s major funds increased their share to 24.6%, highlighted by Norway’s sovereign wealth fund, which surpassed $2 trillion for the first time and consolidated its position as the world’s largest pension fund—12.7% ahead of the second-largest. The United Kingdom and the Netherlands were the only markets to record negative asset growth over the last five years, both in local currency and U.S. dollars, though they remain the two largest pension markets in Europe, with mature systems and a significant presence of defined benefit plans. Europe also continues to hold the lowest proportion of defined contribution assets at 13.2%, compared to 30.7% in Asia-Pacific and 31.6% in North America.
Notably, Asia-Pacific saw its share of assets rise to 26.6%. The region maintains high exposure to equities at 51.4% of its assets—the highest percentage among the primary regions—compared to 36.4% allocated to fixed income and 10.5% to alternative assets. Technology, and especially artificial intelligence, is becoming increasingly relevant for pension funds. Fifty-six percent of study participants expect AI to generate significant benefits for the sector as a whole over the next five to ten years, though ambition outpaces readiness: many funds are still building the necessary processes and infrastructure to harness its full potential. Eighty-one percent identify data quality and standardization as one of the primary barriers to achieving this.
Greater Scale and New Capabilities
The pursuit of scale remains a primary trend in the sector. Major funds are not only increasing their asset volumes, but are also seeking new ways to expand capabilities through strategic alliances and collaborations. In this context, the report introduces the concept of hyperscaling—borrowed from the tech sector—to describe how organizations can leverage scale, data, capabilities, relationships, and governance systems to improve outcomes.
“Large pension funds are growing while simultaneously seeking new ways to enhance their capabilities. Scale remains key, as does the ability to combine knowledge, technology, data, and good governance to make better investment decisions and respond to an increasingly complex environment. Spain needs to continue promoting the development of solid, efficient complementary social welfare pillars that reinforce the sustainability of future retirement income,” explains Oriol Ramírez-Monsonis, Director of Investments at WTW Spain.
The global trends highlighted by the study also point to significant challenges for pension systems, such as the need to improve investment diversification, adapt management to the evolving needs of savers, and leverage new technological capabilities to enhance decision-making.
