AXA IM Strengthens Its Core Unit With The Appointment Of Dominic Byrne As Global Head Of Equities

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AXA Investment Managers (AXA IM) has appointed Dominic Byrne as the new Head of Global Equities for AXA IM Core. According to the asset manager, Byrne will report to Jeroen Bos, Global Head of Equities, and will be based in London starting on September 16. This appointment follows recent hires in the team, including Stephanie Li, who will focus on Asian equities, and Koichiro Nanaumi, who will focus on Japanese equities.

In this role, Dominic Byrne will lead the global equities team to achieve its strategic objectives and manage several global equity portfolios at AXA IM, in collaboration with his team. With over 20 years of investment experience, he was previously deputy head of developed markets equities at abrdn and has been managing global equity portfolios since 2009, recently focusing on sustainability. From 2017 until his departure, he managed abrdn’s Global Equity Impact Strategy fund, which was designed to invest in companies with a clear social or environmental impact.

Commenting on this appointment, Jeroen Bos, Global Head of Equities at AXA IM, said: “Equity investing remains of strategic importance at AXA IM, and we are very pleased that Dominic is joining us to further accelerate our growth ambitions. I am confident that, with a larger and more experienced global equities team, we are well-positioned to deliver superior performance to clients and accelerate the growth of our business.”

Why Does the Fed’s 50 Basis Point Cut Make Sense?

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The U.S. Federal Reserve (Fed) met the expectations set by its chairman, Jerome Powell, at the Jackson Hole meeting and announced on September 18 a rate cut of 50 basis points, the first since 2020. The cut was widely expected and discounted by the markets, but the debate centered on whether the Fed would opt for a 25 or 50 basis point cut. In the end, its stance was more aggressive, opting for the latter, which came as a slight surprise. Why?

“It was a closely contested meeting, with markets divided over whether to start the rate cut cycle with 25 or 50 basis points. In the end, the Fed made a bold move with a 50 basis point cut. Certainly, the labor market has cooled in recent months, and inflation has continued to fall. The cut appears to be preventive, and both the accompanying dot plot and comments from the press conference highlight greater caution regarding the pace and extent of future easing. All in all, it’s a somewhat aggressive cut. However, one thing is clear: the ‘doves’ are in control, and any further weakness in the labor market would lead to faster and deeper cuts. And now the markets know this. We maintain our view that a soft landing remains the most likely outcome for this year,” adds Salman Ahmed, Global Head of Macro and Strategic Asset Allocation at Fidelity International.

On the other hand, for Guy Stear, Head of Developed Market Strategy at Amundi Investment Institute, the big news isn’t the 50 basis point cut itself, but rather the downgrade in growth forecasts and the sharp revision of the dot plot. “The Fed seems confident that it has won the battle against inflation and acknowledges that monetary policy is now too restrictive, especially in light of the threats to growth,” Stear emphasizes.

According to Tiffany Wilding and Allison Boxer, economists at PIMCO, “The Fed’s actions suggest that it saw a shift in the balance of risks surrounding inflation and employment, justifying a quicker adjustment toward neutrality than many Fed members had previously thought.” They also note that historically, when examining Fed cycles since the mid-20th century, an initial 50 basis point rate cut often precedes or signals a recessionary easing cycle, meaning a series of deeper, more abrupt, or prolonged cuts aimed at stimulating a struggling economy.

The Labor Market Issue

Several analysts point out that this aggressive cut is due to the labor market. “The reasoning is as follows: the economy is still doing well, but there’s a warning in the labor market. By responding firmly to this change in the labor market, the Fed limits the risk of contagion to the rest of the economy and reduces the probability of a recession in the coming months. The 50 basis point cut carries these qualities,” explains Philippe Waechter, Chief Economist at Ostrum AM (Natixis IM).

In this regard, Christian Scherrmann, U.S. Economist at DWS, adds: “We view yesterday’s policy decision as an insurance policy to protect labor markets from further deterioration, which would be incompatible with achieving a soft landing. During the press conference, the Fed Chairman somewhat confirmed this view, referring to the decision as an ‘appropriate recalibration’ in light of the cooling labor market conditions. However, he reiterated that they are not on a preset course, meaning they could slow or accelerate their efforts. Ultimately, this means that the Fed remains data-dependent, and the dot plot ‘is not a policy plan,’ with 50 basis points not being the new pace.”

Avoiding a Recession

For Donald Ellenberger, Senior Vice President and Portfolio Manager at Federated Hermes, by cutting 50 basis points instead of 25, the Fed signaled its confidence that inflation will continue on a sustainable path toward 2%. “FOMC members reduced their core inflation forecast from 2.2% to 2.3%. But the most important measure seems to show their determination to achieve a soft landing, avoiding the slowing labor market from dragging the economy into a recession,” he clarifies.

Franco Macchiavelli, an independent market analyst, points out that one of the few reasons behind the Fed’s surprising decision may be the U.S. government’s growing debt, which not only rises exponentially but already exceeds military defense spending. “Nonetheless, the Fed has been irresponsible, allowing such a stark narrative between 25 and 50 basis points to remain so prominent in the market, instead of setting a clearer roadmap that would have allowed the market to price in the September move and avoid sharp spikes in volatility, as seen in the options market,” he explains.

The analyst believes that the markets have gone too far in pricing in a recession, primarily driven by labor market weakness, and because they believe the Fed has fallen behind other central banks that have already begun cutting rates. “However, what stands out is the disparity between optimism and pessimism, mainly based on the narrative that the U.S. economy is very weak and on the verge of recession. But… is the U.S. economy really as weak as it is perceived to be?” Macchiavelli reflects.

“We don’t believe the U.S. economy is currently in a recession. Consumer spending remains resilient, and investment growth appears to be accelerating. However, as inflationary pressures ease, the Fed seems focused on ensuring that U.S. growth and labor markets remain strong by aligning monetary policy with the current economy, which now seems much more normal since the series of pandemic-related shocks that drove high inflation has largely subsided,” PIMCO economists add.

The Road Ahead

Experts now focus on when the next rate cut will be and, again, whether it will be 25 or 50 basis points. “The key for the Fed will now be to carefully calibrate the pace of easing as inflation continues to approach the target and the economy slows down. In fact, while Chairman Powell may signal that 50 basis points will be the exception rather than the rule during this easing cycle, the Fed should be prepared to move with these larger steps if it sees new signs of weakness,” notes James McCann, Deputy Chief Economist at abrdn.

PIMCO economists believe the Fed is on track to ease monetary policy with 25 basis point moves at each of its upcoming meetings. “However, the Fed remains data-dependent. If the labor market deteriorates faster than expected, we expect the Fed to make more aggressive cuts,” they clarify.

In the opinion of Ostrum AM (Natixis IM)’s Chief Economist, “The Fed will continue, but the magnitude of future cuts will depend on the pace of the labor market, while inflation will slow with the sharp drop in oil prices. The issue remains with the ECB, whose cut last week already seems ridiculous.”

From DWS’s perspective, starting the rate cut cycle with a larger step is not without risks. “On the one hand, it implies increased confidence by central bankers in the inflation outlook, although the main factor behind the decision was likely uncertainties about labor market prospects. This carries the risk that the Fed will need to recalibrate its reaction function to incoming data, as we have seen in recent times,” explains Scherrmann.

The Broader Picture

With this rate cut, the Fed is following the same path as most developed market central banks, and consequently, global financial conditions will continue to ease in the coming months. “This will allow several emerging market central banks to resume or continue the easing cycles they had initiated before the Fed. The decline in risk-free rates in developed markets will also lower the external borrowing costs for emerging market issuers, reducing refinancing risks and improving debt sustainability. The easing cycle will incentivize asset allocators to increase their exposure to emerging markets, as the appeal of money market instruments and rates in core developed markets will gradually diminish,” observes Carlos de Sousa, Portfolio Manager of Emerging Markets Debt at Vontobel.

Regarding market reactions, Carlos del Campo from Diaphanum’s investment team notes that the stock market response was not overly dramatic since a 50 basis point cut was a very real possibility. However, “In fixed income, we can see a consolidation of the historical yield curve inversion of recent years coming to an end.”

81% of Citizens Worldwide Believe That Funding Their Retirement Is Their Own Responsibility

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Are You Unsure if You Can Retire? Don’t Worry, the Global Retirement Index (GRI) by Natixis IM Shows Stability in Retirement Conditions Worldwide

According to the latest edition of the Global Retirement Index (GRI) from Natixis Investment Managers, retirement conditions remain stable globally. After nearly all developed countries improved their scores last year, the latest findings suggest that retirement remains secure.

Countries that perform best in the GRI tend to show consistent results across all sub-indices, reflecting a stabilization of global retirement prospects. The top 10 ranked countries have remained the same for two consecutive years. However, individuals are feeling the pressure as more people realize that they are increasingly responsible for financing their retirement on their own.

In this year’s index, Switzerland overtook Norway to claim the top spot with an overall score of 82%, relegating Norway (81%) to second place. The top rankings have seen little change, with Iceland (3rd), Ireland (4th), and Australia (7th) maintaining their positions. Germany and Denmark each moved up one spot from last year, securing 8th and 9th places, while the Netherlands overtook Luxembourg to claim 5th place, pushing Luxembourg to 6th. However, New Zealand showed the most significant change among top-performing countries, dropping two spots to 10th.

Created in collaboration with Core Data Research, the GRI serves as a global benchmark that incorporates a wide range of essential factors for ensuring a healthy and secure retirement. These factors include important financial considerations as well as access to healthcare, its costs, climate conditions, governance, and overall population happiness. The GRI’s rankings are relative, not absolute, based on an aggregate of average scores ranging from 0% to 100% for 18 performance measures across four sub-indices (Finances in Retirement, Material Wellbeing, Health, and Quality of Life) that together offer a comprehensive picture of the retirement environment.

“It’s encouraging to see a consistent set of results in this year’s GRI, although there’s still room for improvement in most cases, within a broader environment characterized by rising debt levels, fiscal pressures, and higher interest rates. To prevent a future retirement crisis, a key step is to invest and work with a professional financial advisor to design a resilient, well-diversified portfolio, making the most of savings opportunities that align with individual retirement goals and the current environment. Fortunately, more people are taking responsibility for ensuring their financial security in retirement,” explains Javier García de Vinuesa, head of Natixis Investment Managers for Iberia, in relation to the survey results.

Key Index Movements

Manutara Ventures highlights that Switzerland, which tops this year’s GRI, achieved a perfect score in the unemployment indicator, reflecting the country’s impressive workforce participation rate. Despite declines in most sub-indices, Iceland retains its third position for the second year in a row. “Notably, Iceland dropped seven spots in the Health indicator (from the top 10 to 11th), despite a slight increase in its score,” they note. Meanwhile, Norway saw declines in both the Material Wellbeing sub-index, dropping from 1st to 6th, and in the Finances in Retirement sub-index, where it fell out of the top 10, landing in 12th place due to drops in the fiscal pressure, dependency ratio, and governance indicators.

Luxembourg, however, rose four percentage points to claim the top spot in the Health sub-index, driven by an increase in its life expectancy score, displacing Norway from its previous lead. Slovenia and Belgium also climbed four spots each: Belgium moved from 19th to 15th, and Slovenia just missed the top 10, moving from 15th to 11th.

Ireland leads the Finances in Retirement sub-index, improving its score by one percentage point to 74%, thanks to the continuous reduction of public debt. The United Kingdom also moved up two spots in this year’s GRI, ranking 14th due to improvements in the Health sub-index, while its scores in the other sub-indices remained unchanged.

Citizens Feel Increasingly Alone in Retirement

Despite generally positive global retirement security prospects, the Natixis Global Survey of Individual Investors in 2024 shows that the number of individuals who believe it is increasingly their responsibility to fund their retirement, rather than relying on public or private pensions, has grown from 67% in 2015 to 81% in 2023. Additionally, the number of people who believe a miracle is required to achieve retirement security rose from 40% in 2021 to 45% in 2023. One in five investors (19%) says that even if they could save $1 million, they still wouldn’t be able to afford retirement, including 18% of those who have already accumulated $1 million.

The report also identifies key risks individuals face, highlighting four in particular. First, they point to interest rates. “While low rates had been a key risk for retirees in the more than 15 years following the Global Financial Crisis, today’s higher rate environment presents new risks. Specifically, with more than $6 trillion invested in money market funds, deposits, and similar instruments, investors need to be aware of how the current cash trap could prevent them from meeting their need for a sustainable long-term income source,” they explain.

Second, they highlight inflation. While the worst may be over, as inflation slowly returns to central bank targets, the post-pandemic price surge serves as a stark reminder of how quickly and severely inflation can rise. Now, 83% of investors acknowledge that recent events have reminded them of the great threat inflation poses to their retirement security, and they must act accordingly to ensure they’re prepared for any future inflationary episodes.

Another risk is public debt, which in OECD countries has more than doubled in the first quarter of the 21st century, as policymakers responded first to the Global Financial Crisis and then to the Covid-19 pandemic. While these measures were necessary to avoid short-term economic collapse, policymakers now face the long-term task of paying down this debt. A growing number of people are concerned that they’ll be asked to foot the bill, which could lead to cuts in public retirement benefits—the cornerstone of many retirement plans.

Lastly, they identify “people themselves” as a risk. “A secure retirement is a journey, not a destination. Success requires realistic expectations and significant individual commitment. While many may appreciate this in concept, not all investors set reasonable assumptions or establish realistic goals. GRI survey results show that investors lack a consistent view of what it takes to succeed,” the report concludes.

Is a New Golden Age for Fixed Income Approaching?

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According to the team at Insight Investment (BNY Investment), as markets reach a mid-point in 2024, now is an ideal time to increase allocations to fixed income.

“With bond yields returning to pre-financial crisis levels, investors no longer need to take on the equity-like risks or sacrifice liquidity to meet their investment goals. Simply put, yields are back, and they’re here to stay,” the firm argues.

Their analysis suggests that despite some signs of inflation stabilization and easing rate hikes by mid-year (both the European Central Bank and the Bank of Canada cut rates in June), central banks are expected to operate in higher interest rate ranges over the coming years, which should keep bond yields elevated.

“It’s likely that market participants will take some time to adjust to the idea that extremely low interest rates aren’t coming back. After all, some investors have only known an era dominated by central bank easing and quantitative easing policies. However, we believe that optimism around rate cuts will be tempered by the persistence of inflationary pressures. Globalization, which had exerted significant downward pressure on goods prices, is now giving way to increasingly protectionist rhetoric, and we think this will be one of the factors making it harder for central banks to control inflation sustainably,” Insight Investment adds.

At the longer end of the yield curves, high government debt issuance and the reduced proportion of debt held on central bank balance sheets should keep yields elevated. Over time, this is expected to slowly become ingrained in market psychology, keeping bond yields at levels similar to those seen before the global financial crisis.

In this context, Insight Investment believes that long-term return objectives can be achieved with fixed income alone. Many segments of fixed income markets currently offer yields comparable or even higher than the long-term returns of the MSCI World Index.

“We believe this creates the opportunity to lock in long-term returns similar to equities but in fixed income markets and sectors like global high yield,” they add.

Volatility Check

Insight Investment points out that fixed income markets, largely income-driven, tend to be less volatile and more predictable than other asset classes like equities. In many cases, this can lead to more reliable returns, lower downside risk, and diversification benefits. “An active management strategy can allow a manager to add value above market yields. With low interest rates and quantitative easing behind us, volatility may be structurally higher in the coming years, providing market disruptions that managers can exploit. The more flexibility a manager has, the broader the range of potential opportunities they can explore,” they argue.

Corporate Health

From a corporate perspective, Insight Investment notes that many companies are well-positioned at this stage of the cycle. Corporate balance sheets look healthy, as do debt profiles. Many treasurers took advantage of low interest rates during the pandemic to lock in favorable funding levels for an extended period. This has insulated many companies from rising rates, giving them time to plan for higher financing costs.

“As global investors, we believe an increasingly asymmetric equity world makes a fixed income allocation even more appealing. While the rise of the so-called ‘Magnificent Seven’ reflects a period of exceptional profit growth, their dominance means that many equity investors are now more concentrated than they realize,” Insight Investment experts comment.

Risk Considerations 

Finally, Insight Investment highlights risk as a key consideration. “All markets carry some degree of risk. However, while fixed income markets experience periodic declines, they tend to be shallow and brief. For instance, the long-term returns of global high yield have been similar to those of global equity markets. Overall, this asset class has experienced less severe downturns and has recovered more quickly than equities.”

Income Generation

Lastly, they note that as income generated in fixed income markets offsets price declines, this creates natural protection against losses, provided that yields are high enough and the time horizon is long enough.

They also point out that government debt, and to some extent high-grade credit markets, offer another useful attribute. Economic recessions, when equity markets typically fall and economies contract, tend to be some of the best periods for fixed income returns.

“When central banks ease policy to stimulate growth, longer-term bond yields typically fall, and this drop in yields results in capital appreciation in fixed income markets. The negative correlation between fixed income and equities during severe equity market declines means that high-quality fixed income investments can complement holdings in higher-risk assets like equities,” Insight Investment states.

In this regard, the firm’s experts pose the question: What path should fixed income investors take? Their answer is straightforward: “For the remainder of the year, we believe that rising yields have created an opportunity to secure attractive long-term income streams. With yields returning to pre-crisis levels, income should once again dominate fixed income returns. In this context, more customized and sophisticated fixed income portfolios can be built to meet the specific risk/return objectives of a wide range of investors,” Insight Investment concludes.

The Return to the Office Begins: A Step Back in Workplace Flexibility?

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Over the past 12 months, there has been a significant shift towards in-office work: currently, 47% of companies follow a work model focused on in-person attendance, compared to 36% last year, while 45% follow a hybrid model (down from 53% last year). According to a study by Grant Thornton, if companies push too hard for a return to the office, they may inadvertently undermine gains in female representation in key positions that have been made possible through flexible work practices. The study’s main conclusion is that it is essential to ensure that at least one senior female executive is involved in decision-making on diversity, equity, and inclusion.

“This shift appears to be driven by male CEOs: 50% of companies led by a man follow a predominantly in-person model, compared to 40% of companies led by a woman,” states Grant Thornton’s Women in Business (WiB) study, based on a survey of around 10,000 business leaders from 28 countries. To foster and retain female talent in the workplace, companies must carefully evaluate the work practices they offer. The research suggests that following certain decisions made by male executives, it is necessary to ensure that a senior female executive is involved in diversity, equity, and inclusion decisions. Pushing too hard for a return to the office could unintentionally undo some of the progress made in promoting women to leadership roles, which was achieved through the adoption of flexible work practices.

Regional differences are also notable. In North America, 39% of companies have adopted a primarily in-office work model, compared to 53% in the European Union. Many large companies have begun implementing guidelines and incentives to encourage employees to return to offices, such as Goldman Sachs’ “office-first” approach, which required employees to attend the office five days a week. Amazon, Disney, and Boeing have also enacted return-to-office policies in recent months, according to a report by *Inc.*

Companies where employees predominantly work in offices are the only ones where the percentage of women in senior leadership positions falls below the global benchmark.

The ability to choose where to work offers substantial benefits to women in companies, not just at the leadership level but also for the talent pipeline. “A work model that combines in-person and remote modalities is great for both men and women, as it allows for a much better work-life balance. On the other hand, it’s also important that younger employees don’t feel neglected, so being available in person when needed is crucial,” says Grant Thornton Chile.

Finally, the study emphasizes, “When female employees have taken maternity leave and are ready to return to work, offering a hybrid model is essential to retaining them and helping them advance in their careers.”

The Fed Raises the Stakes and Cuts by 50 Basis Points

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The FOMC concluded its September meeting this Wednesday with the announcement of a 50 basis point interest rate cut.

The monetary authority announced the half-percentage-point cut, thus beginning an easing policy it hadn’t implemented since the early days of the pandemic.

“In light of progress on inflation and the balance of risks, the Committee decided to reduce the target range for the federal funds rate by half a percentage point, bringing it to between 4.75% and 5%,” said the Fed’s statement.

Additionally, FOMC members said that when considering further adjustments to the target range for the federal funds rate, “the Committee will carefully assess incoming data, the evolution of the outlook, and the balance of risks.”

However, the FOMC “will continue reducing its holdings of Treasury securities, agency debt, and agency mortgage-backed securities.”

The Fed’s Monetary Policy Committee members remain “firmly” committed to “supporting maximum employment and bringing inflation back to its 2% target.”

Fed Chairman Jerome Powell announced in August, during his final conference at the Jackson Hole symposium, that the time for monetary policy adjustment had arrived. However, he clarified at the time that the pace would depend on macroeconomic data.

“The time has come to adjust monetary policy. The direction is clear, and the timing and pace of rate cuts will depend on new data, the evolution of the outlook, and the balance of risks,” Powell said, according to the speech published by the Fed.

However, August employment data solidified expectations of a possible cut this Wednesday. The question was whether the cut would be 25 or 50 basis points.

Most analysts expected a minimum cut of 25 basis points, with the prospect of a more gradual monetary policy easing. However, the Fed has been bolder than analysts expected, deciding on a 50 basis point cut.

With this move, the Fed ends the policy it had been following since June 2022, when inflation peaked at 7.1%, forcing the monetary authority into a series of rate hikes throughout 2023 and part of this year.

eToro Reaches an Agreement With the SEC and Will Focus Its Trading Activity on a Limited Set of Crypto Assets

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The U.S. Securities and Exchange Commission (SEC) has announced that eToro USA LLC has agreed to pay $1.5 million to settle charges related to its online trading platform for operating as an unregistered broker and clearing agency. “eToro has agreed to cease and desist from violating applicable federal securities laws and will limit the crypto assets available for trading,” the U.S. authority stated in its release.

The SEC’s order states that, since at least 2020, eToro operated as a broker and clearing agency by providing U.S. customers with the ability, through its online trading platform, to trade crypto assets that were offered and sold as securities. However, “eToro did not comply with the registration provisions of federal securities laws.”

“By removing tokens offered as investment contracts from its platform, eToro has chosen to comply and operate within our established regulatory framework. This resolution not only enhances investor protection but also provides a path forward for other crypto intermediaries. The $1.5 million penalty reflects eToro’s agreement to cease violations of applicable federal securities laws while continuing its operations in the U.S.,” explained Gurbir S. Grewal, Director of the SEC’s Division of Enforcement.

As a result, eToro announced that, from now on and subject to the provisions of the SEC’s order, the only crypto assets U.S. customers will be able to trade on the company’s platform are Bitcoin, Bitcoin Cash, and Ether. eToro publicly stated that it will provide its customers the ability to sell all other crypto assets only for 180 days following the issuance of the SEC’s order.

“This agreement allows us to move forward and focus on delivering innovative and relevant products across our diversified U.S. business. U.S. users can continue trading and investing in stocks, ETFs, options, and the three largest crypto assets,” said Yoni Assia, co-founder and CEO of eToro.

According to the firm’s CEO, the terms of the agreement will have minimal impact on their global business: “Outside of the U.S., eToro users will continue to have access to over 100 crypto assets. As a global, multi-asset trading and investment platform, we continue to see strong growth and remain committed to becoming a public company in the future.”

Assia emphasized that complying with regulations is important for the company, and they work closely with regulators worldwide. “We understand the importance of regulation to protect consumers. We now have a clear regulatory framework for crypto assets in key markets like the UK and Europe, and we believe something similar will soon be established in the U.S. Once that is in place, we will seek to enable the trading of crypto assets that comply with that framework,” the CEO concluded.

BlackRock Expands Its Product Range With a European High Yield Fixed Maturity Fund Maturing in 2027

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BlackRock has announced the launch of the BGF Euro High Yield Fixed Maturity Bond Fund 2027, a fixed maturity bond fund. According to the asset manager, the fund is designed to take advantage of currently elevated yield levels, offering investors a combination of income distribution and capital appreciation. “In the current macroeconomic environment, fixed maturity bond funds can be an option for investors seeking some level of cash flow predictability or looking to stagger their interest rate exposure,” they explain.

The BGF Euro High Yield Fixed Maturity Bond Fund 2027 offers a carefully selected portfolio aimed at providing income and preserving capital until the strategy’s maturity date, which is three years from now. It primarily invests in two types of bonds: high-yield bonds, which the investment team believes will generate income, and high-quality government bonds for risk management. The fund aims to provide income through the European high-yield market, avoiding credit risks over a three-year investment horizon. Its strategy seeks to deliver income and preserve capital for investors holding their units until the Fund’s maturity date.

The asset manager explains that the investment process follows a barbell structure, incorporating high-quality government bonds and carefully selected high-yield bonds (at least 50%). The investment team believes this approach offers the best risk/reward trade-offs within the European sub-investment-grade bond universe. The bond mix is built to optimize yield while minimizing defaults, leveraging the team’s fundamental high-yield research. This investment process seeks to maintain an aggregate BB+ rating and optimize the tax efficiency of any coupon or capital gain, while aiming to sustain a high level of income for investors.

The fund, managed by José Aguilar, Head of European High Yield and Long Short Credit Strategies, is part of BlackRock’s active fixed income platform, which includes $1.1 trillion in assets under management. “As yields remain elevated, the opportunity cost of staying in cash is increasing. In this scenario, fixed maturity bond funds not only offer some visibility in income distribution but also provide investors with the chance to lock in attractive current yields. Moreover, the rise in dispersion in the high-yield bond market may create more opportunities for investors to generate alpha,” noted James Turner, Co-Head of European Fundamental Fixed Income at BlackRock.

Adela Martín Appointed New Head of Business Globalization for WM&I at Grupo Santander

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Banco Santander has internally announced the appointment of Adela Martín as the new Head of Business Globalization for Wealth Management & Insurance (WM&I) at Grupo Santander, as confirmed by *Funds Society*. Martín will work closely with country teams and report directly to Javier García Carranza, Head of Asset Management, Private Banking, and Insurance.

Previously, Martín led Private Banking in Spain and was most recently in charge of the Wealth division in Spain. Her extensive knowledge of the three business areas will enable her to drive the global division by leveraging her deep understanding of how the business operates at a local level. The group’s new model aims to further globalize and coordinate its businesses, according to sources from the bank.

In light of this change, the bank has also confirmed the appointment of Víctor Allende as the new Head of Santander Private Banking Spain. Allende will report to Alfonso Castillo, Global Head of Santander Private Banking, and to the CEO of Santander Spain. His role will take effect at the end of September, and he will play a key role in transforming Spain into a leading private banking hub in Europe.

With nearly 25 years of experience in private banking, Allende brings extensive knowledge of the Spanish market. He spent the last 12 years at Caixabank, where he led a major transformation of the business, focusing on customer-centric strategies. Before that, he held various positions at Morgan Stanley and AB Asesores. Allende holds a degree in Economics and Business from the University of Navarra and an MBA from IESE.

Following these appointments, Nicolás Barquero and Francisco Bosch will report to their global business leaders and the CEO of Santander Spain. Additionally, the bank has made another key appointment: Monika Vivanco will take over as Head of People and Culture, replacing Patricia Álvarez de Ron, who is leaving the company.

Grupo Dunas Capital Appoints Natividad Sierra as Managing Director and Chief of Investor Relations for Alternative Assets

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Grupo Dunas Capital has announced the appointment of Natividad Sierra as Managing Director and Chief of Investor Relations for the firm’s alternative assets division. In her new role, she will be responsible for leading the fundraising processes for the firm’s alternative asset vehicles and managing investor relations. Additionally, she will join the Group’s Executive Committee.

With this appointment, Grupo Dunas Capital is once again focusing on the development and consolidation of its real assets business line. The firm advises several alternative asset vehicles that invest long-term in transport assets, as well as in impact projects, renewable energy, and energy efficiency. “It is an honor to join the team at Grupo Dunas Capital, a company built on strong values that has experienced exceptional growth since its creation, thanks to its unique business model, philosophy, products, and a highly professional team. In this new phase, I will continue to develop strategic, long-term relationships with investors, who will find in our product catalog a unique value offering in Spain,” said Natividad Sierra, the newly appointed Managing Director and Chief of Investor Relations (Alternatives).

Natividad Sierra brings 30 years of experience in the financial sector, primarily in private equity, as well as in mergers and acquisitions and corporate banking. Prior to joining Grupo Dunas Capital, she was Head of Investor Relations & ESG at Corpfin Capital, one of the leading private equity firms in Spain, where she successfully led the fundraising efforts for several funds and oversaw the ESG function. She was a partner at the firm, Director of Investments, and a member of the Board of Directors of several companies. She began her career in corporate banking in the Structured Finance division at BNP Paribas and later worked as an Associate at Apax Partners, executing mergers and acquisitions.

Regarding her education, she holds a degree in Business Administration from Universidad Pontificia de Comillas ICADE and a degree in Law from UNED. Her executive education includes the General Management Program at IESE and the Executive Program in Senior Management, Promociona, at ESADE. Additionally, she is co-President of Level 20 in Spain, a non-profit organization that promotes gender diversity in the European private equity sector.