Generative AI Could Inject $1 Trillion Into U.S. Economy Over 10 Years

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Oxford Economics and Cognizant revealed findings from its new economic impact study New Work, New World, which predicted that 90% of jobs will be disrupted in some way by generative AI (gen AI), setting the stage for a profound shift in how we approach work, productivity and economic growth.

The study also found that the technology’s impact will be influenced by the rate of business adoption and how quickly individuals can adapt to new ways of working.

“Our study aims to lift the curtain on the effects generative AI may have on our global workforce,” said Adrian Cooper, CEO at Oxford Economics. “The research findings showcase just how quickly this technology might disrupt the trajectory of the U.S. economy, offering invaluable insights for leaders to harness its potential and adapt swiftly.”

Generative AI offers the potential to improve operational efficiency, create new revenue streams, innovate products and services, and ultimately redefine businesses.

To quantify generative AI’s potential impact on productivity and the future of work, Cognizant partnered with Oxford Economics to create an economic model that explores three scenarios of U.S. businesses’ generative AI adoption. This model considered 18,000 tasks that drive the U.S. economy, and carefully examines the impact Generative AI may have on the jobs that ladder up to these tasks. While focused on the U.S. workforce, the general themes that emerged from the findings can be applied globally. The research unveiled key insights, including:

  • AI adoption will skyrocket over the next decade before settling into maturity: Businesses are in the experimental phase of adoption for AI capabilities. However, the findings reveal that adoption could leap from 13% to 31% in just four to eight years. After the 15-year mark, the findings predict that adoption may slow but will continue to grow for at least 15 more years.
  • Economic advancement could soar: Generative AI technology could boost U.S. productivity by 1.7-3.5% and grow the U.S. GDP between $477 billion and $1 trillion in annual value over the next 10 years, based on business adoption rates.
  • Simultaneously, the job market could be disrupted: Half of all jobs (52%) are predicted to significantly change as generative AI is integrated to automate job tasks. As a result, approximately 9% of the current U.S. workforce may be displaced, with 1% potentially struggling to find new employment based on historical economic shifts.
  • Jobs with higher levels of knowledge work may be most affected: In the past, technology advances and automation have impacted mainly manual labor and process-centric knowledge work. Generative AI is poised to do the opposite, having a higher disruption on knowledge work. Additionally, jobs involving credit analysis, computer programming, web development, database administration, and graphic design already have a theoretical maximum exposure score of about 50%. By 2032, as technology advances, some jobs’ exposure scores may climb to 80%.
  • Even CEOs will feel an impact: The data found that C-Suite executives – even CEOs – could see a theoretical maximum exposure score (the degree to which a job’s tasks are prone to being automated by generative AI) of more than 25%, as they begin using gen AI for everything from competitive assessments to strategic decision-making.

“Generative AI has already astonished us with its capabilities across industries, but the true impact of its integration in our daily business operations has just scratched the surface,” said Ravi Kumar S, Chief Executive Officer, Cognizant. “To apply the technology’s potential to amplify our productivity, we must understand its full influence on the future of work and come together to create the best opportunities for people to grow alongside it.”

Reskilling The Workforce as AI Advances

While the timeline of this research spans more than a decade, Cognizant believes that leaders across all sectors of society should work together today to establish a new trust compact that will enable businesses, workers, and economies to thrive in the age of generative AI. As this technology becomes commonplace in the workforce, new employee skills will be in demand to support areas including business strategy and AI management. Reskilling programs, once seen as a tactical add-on to an employee’s career path, will become an essential part of the workday, with time allocated for training and education.

To view the complete study and learn more, please visit the following link.

 

Managing Legacy Wealth: Working with the Inheritors and Their Families

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We are currently witnessing one of the most significant transfers of wealth the US has ever experienced. According to Cerulli Associates, $84.4 trillion will transfer from the silent generation and baby boomers between now and 2045. Of that, $72.6 trillion will be transferred to heirs and $11.9 trillion will be donated to charities. In this environment, the winners will be the advisors who can showcase their knowledge and expertise in managing legacy wealth. The losers will be the advisors who fail to make a case for the value of advising the entire family. Thus, advisors must understand how is it working with people from different generations, as they have different needs and beliefs regarding their approach to money and legacy.

Let’s take the Gen X: 65.2 million Americans born between 1965 and 1980. They are independent, flexible, and adaptable, and they distrust the institutions, the government, and authority figures like their parents.

From a financial standpoint, members of the Gen X generation are a study in contrasts. Last year, they held about $100,000 more in wealth per capita of any generation, 18% more than baby boomers at the same life stage, while also carrying the most debt of any generation.

To assist Gen X clients, financial advisors should begin with a comprehensive financial plan that outlines their goals, financial resources, and the potential risks they may encounter along the way. Given that this generation often carries a significant amount of debt, implementing a strategy to pay off that debt can help alleviate financial stress and pave the way towards achieving their financial goals. This may involve creating a budget to allocate funds towards debt repayment that focuses first on paying off the highest interest debt using strategies such as debt consolidation or refinancing, then tackling the lower interest items.

Now let’s talk about the individuals born between 1981 and 1996. With an estimated population of 72.24 million people, on July 1, 2019 Millennials surpassed Baby Boomers as the largest generation of the US.

Millennials are often labelled as the “helmet generation” due to their perception of being pampered and privileged because their parent’s overprotectiveness and safety concerns involved the use of helmets for every activity. This heightened awareness of risks extends to the financial realm as well. Millennials witnessed the impact of events like the collapse of the dot-com bubble in the early 2000s and the 2008 financial crisis, which directly affected their parents’ finances and careers. Additionally, the burden of high student debt has further contributed to their skepticism and lack of trust in the financial services industry.

This generation is looking for a way to make a difference in the world. As digital natives, it’s likely that they will continue using computers and social media to influence others and effect change. The Millennial generation is leading the demand for environmental, social, and corporate governance (ESG) investments.

To attract Millennials, make sure you have a user-friendly website that’s tailored to their needs and interests. Optimizing the website for mobile devices is also essential, as Millennials rely heavily on their smartphones for information. Providing comprehensive information about financial planning, investment strategies and retirement planning is key to capturing Millennials’ attention. They appreciate educational resources like videos, webinars and interactive tools that enable them to model different financial scenarios and assess the potential outcomes of their decisions.  Millennials also have a significant debt problem, amounting to almost $4 trillion. Financial advisors need to be sensitive to the debt burden carried by this generation and offer solutions that help them manage and pay off the debt while making progress toward their financial goals.

So, to tap into this great transfer of wealth, you will need to expand your reach by thinking bigger and broader, moving beyond advising a single generation within a family to advising the entire family. This shift enables you to capture the opportunities presented by intergenerational wealth transfer and position yourself as a trusted advisor for multiple generations within your client families. 5Your expertise and guidance are instrumental in solving complex financial problems, employing effective wealth management strategies, and ensuring the preservation and growth of the family’s wealth for generations to come. Your role as a trusted advisor can make a significant difference in the long-term success and sustainability of the family’s financial legacy.

When your client expresses their intention to pass their financial legacy on to future generations, your task is to assist them in accomplishing this objective. To support you in this endeavor, here are some steps you can take:

  1. Foster open and transparent communication with heirs to discuss the family’s values, financial legacy, and long-term goals. Clients are often uncomfortable sharing the value of their financial legacy with their heirs due to concerns about how this information may affect the heirs’ behaviour. To assist in preparing heirs for this information, it can be highly advantageous for the client to create an ethical will. This document allows the client to share their life story, including the process of building their wealth or growing their inherited assets that now form their financial legacy. This personal narrative can provide valuable context into the family’s financial journey, fostering a deeper understanding and appreciation among the heirs.
  2. Establish regular family meetings where all beneficiaries can come together to discuss and align their visions for the family’s wealth. These meetings provide a platform for sharing ideas, addressing concerns, building trust, and fostering a sense of unity.
  3. While you play a critical role in guiding families through the process of successfully growing and transferring their wealth across multiple generations, it is important to acknowledge that addressing and resolving family relationship issues may require expertise beyond your scope. Collaborating with professionals specializing in family therapy or mediation can be beneficial in addressing and resolving any underlying family relationship issues that may impact the wealth transfer process.
  4. Collaboratively develop a family mission statement that encapsulates the shared values, goals, and aspirations of the family. This statement serves as a guiding principle for decision-making and reinforces a sense of purpose.
  5. The lack of financial knowledge is one of the most significant impediments to the successful growth of a family financial legacy as it passes from generation. To avoid this result, promote financial education among the heirs.
  6. Mentorship between generations, where older family members can pass on their knowledge and experiences to younger heirs is invaluable. Develop a clear succession plan that outlines roles, responsibilities, and expectations for each heir.
  7. Continuously review and adapt the family’s values, goals and strategies as circumstances change. Regularly assess progress, celebrate achievements, and address any conflicts or challenges that may arise.

 

By implementing these steps, your clients can achieve their goals of bringing their heirs together, sharing the intricate details of the family’s financial legacy, fostering a sense of unity, and shared purpose in working toward the family’s common goals. This process will ultimately lead to the successful transfer of family wealth to both current and future generations.

 

 

Opinion article by Jan Blakeley Holman, Director of Advisor Education at Thornburg Investment Management

 

 

Family Office Risk Appetite is Growing as Acquisitions Become More Attractive

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Family office risk appetite is set to expand over the next 12 months as companies focus on acquisition opportunities amid expectations that inflation and interest rates will fall, new research from Ocorian shows.

Ocorian’s international study among family office investment managers shows investment risk appetite this year is much higher than last year. Almost half (46%) senior executives questioned in the international study say their organisation’s investment risk appetite will increase in the year ahead. That compares with just 8% who said their investment risk appetite increased in the past 12 months.

The key reason for the rise in investment risk appetite in the year ahead is the belief that pricing around deals will become more attractive. One in ten (10%) selected that as one of their top three reasons for an increased investment risk appetite, followed by lower interest rates (10%) and developments around artificial intelligence and technology (8%).

However major concerns identified in the study are global political uncertainty, costs in general increasing and worries that inflation may not fall.

Around 36% of firms whose investment risk appetite is falling cited political uncertainty while 22% highlighted costs in general increasing and 18% highlighted inflation as the reason for their declining risk appetite.

Ocorian’s study found family offices worldwide maintained their focus on risk mitigation over the last 12 months with 48% having increased their overall budget for risk management and 46% expanded EIS schemes.  Around 44% have expanded their risk management budget. 

Family offices are still very much focused on risk mitigation. Half (50%) will invest more in new technology in order to mitigate risks while 44% plan to expand their risk management budget and 42% will increase their overall budget for risk management. 

Paul Spendiff, Head of Business Development – Fund Services, at Ocorian, said: “Investment risk appetite is clearly increasing with senior executives and major investors expecting a shift in global macroeconomic conditions as well as more opportunities for acquisitions at more attractive prices.

“The optimism about the year ahead and growing confidence is tempered by a focus on risk management and there is evidence from the study that companies have invested this year in new technology and risk management staff in order to expand in the year ahead.

“That focus is being maintained and we are seeing growing demand for our services as we help our clients solve these complex issues. In addition there are major concerns about the year ahead ranging from global political uncertainty and heightened global tensions in the Middle East and Ukraine as well as the risk of recession in major economies.”

Institutional Channel Assets Gain Slight Edge Over Retail

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Professionally managed assets in the U.S. stand at $60.4 trillion with the retail client channels comprising $30 trillion, while institutional channel assets climbed to $30.9 trillion, according to Cerulli’s research, The State of U.S. Retail and Institutional Asset Management 2023.

The marketshare split between retail and institutional grew closer to parity from 2013 to 2021, but after greater retail channel asset declines in 2022, the trend reversed.

“Retail client channels that tend to have higher equity allocations, experienced a larger asset decline, reversing a longer-term trend where retail client channel assets had been growing faster than institutional client channel assets,” says Brendan Powers, director.

Cerulli expects this reversal to be temporary, as trends including retirement plan rollovers into advisor-managed individual retirement accounts (IRAs) and pension plans freezing and terminating should favor increased growth of retail channels.

Asset managers evaluating addressability in either channel should continue to foster relationships with professional buyers making investment decisions. Investment professionals building product shelves and model portfolios at broker/dealers (B/Ds), banks, or registered investment advisors (RIAs) should be a focus on the retail side.

On the institutional side, consultants and outsourced chief investment officers (OCIOs) as well as the RIA retirement plan aggregators and third-party fiduciaries that work with defined contribution (DC) plan sponsors should be a priority. “Asset managers cannot discount the role that intermediaries hold in distribution and should closely evaluate their sales and marketing resources to ensure coverage,” says Powers.

Additionally, asset managers’ focus on vehicle proliferation remains increasingly important as retail and institutional client segments continue to prefer a vehicle choice. On the retail side of the industry, there is heightened focus on exchange-traded funds (ETFs) and separate accounts. Additionally, firms are focused on optimizing the vehicle wrapper for retail alternative (e.g., private equity, private debt, hedge funds) exposures.

On the institutional side, there is a greater focus on collective investment trusts (CITs), especially among DC plans and their intermediaries.

“Despite the greater focus on other vehicle offerings, managers still need to be diligent about product management efforts for their existing mutual fund strategies, as the mutual fund is not going away. This includes share class/pricing analysis, rationalization exercises, and training/product position for distribution and marketing support,” concludes Powers.

Blackstone Announces New Co-Chief Investment Officers and Co-Head of Real Estate

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Kenneth Caplan & Lionel Assant, LinkedIn Profile

Blackstone announced that Ken Caplan, current Global Co-Head of Real Estate, and Lionel Assant, European Head of Private Equity, have been elevated to newly created roles as Global Co-Chief Investment Officers (CIOs) of Blackstone.

They will enhance the coordination and oversight of the Firm’s already rigorous investment process. Nadeem Meghji, Head of Real Estate Americas, will succeed Mr. Caplan as Global Co-Head of Real Estate alongside current Global Co-Head, Kathleen McCarthy.

These promotions underscore the increasing breadth of the Firm’s investment strategies and continued expansion, having recently surpassed $1 Trillion in Assets Under Management (AUM). The three executives collectively bring more than 60 years of Blackstone investing experience to what is expected to be an extremely active deployment period, with over $200 billion of dry powder.

Steve Schwarzman, Co-Founder, Chairman and CEO of Blackstone, said: “We are delighted to elevate three of our longest-tenured investors into these critical positions, as the firm readies itself for an active investment period. They bring strong track records of delivering for our customers, considerable institutional knowledge, and exceptional investment acumen to these new roles.”

On the other hand, Jon Gray, President & COO of Blackstone, said: “The promotion of these highly talented executives will help the firm better identify compelling global investment themes while also enhancing our disciplined investment process.”

Assant joined Blackstone in 2003 and has run the Firm’s European Private Equity business based in London since 2012. He will continue to serve in that capacity and, as Co-CIO of Blackstone, work in conjunction with the business unit CIOs and Group Heads to provide additional firm-level investment oversight across our Private Equity (PE) complex, including our Corporate PE, Infrastructure, Tactical Opportunities, Growth, and Life Sciences businesses.

Caplan joined Blackstone in 1997, led the Firm’s European Real Estate business from 2012-2015, served as Real Estate CIO from 2015-2017, and has co-headed the global Real Estate business alongside Ms. McCarthy since 2018. As Co-CIO, he will work in conjunction with the business unit CIOs and Group Heads to provide additional firm-level investment oversight, primarily across Real Estate and Credit & Insurance (BXCI).

CIOs across Blackstone will continue to report into their respective business units including Mike Zawadzki, CIO of Credit and Insurance (BXCI); David Ben-Ur, CIO of BAAM Portfolio Solutions (BPS); and Prakash Melwani, CIO of Corporate Private Equity, who will have an expanded role as Chairman of Blackstone Capital Partners (BCP) International.

Meghji joined Blackstone Real Estate in 2008 and since 2017 has overseen our Real Estate business in the Americas. He has helped lead the enormous growth of Blackstone’s U.S. and Canadian Real Estate business across its Opportunistic (BREP), institutional and private wealth Core+ (BPP & BREIT), with over $200 Billion of AUM and total asset value of approximately $400 Billion.

The firm also announced the promotion of Gio Cutaia to be Global Chief Operating Officer of Real Estate. He will continue to lead Global Real Estate Asset Management (a role he has held since 2018), and in that capacity help manage the over 12,000 assets in Blackstone’s real estate portfolio.

Kathleen McCarthy, Global Co-Head, Real Estate, said: “Ken is a remarkable leader who I have loved partnering with. We look forward to his continued impact on our business as Co-CIO of the firm. Nadeem is the perfect leader to succeed Ken, given his tremendous investment acumen and operational experience. I am excited to partner with him in the years ahead. Nadeem and I are thrilled to elevate Gio Cutaia, who will play a critical role helping us oversee this world-class business.”

Amundi US Appoints Head of US Intermediary and International Distribution

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Jason Xanthakis, LinkedIn Profile

Amundi US announced the appointment of Jason Xanthakis as Senior Managing Director, Head of US Intermediary and International Distribution, effective January 1, 2024.

Xanthakis has been a member of the Amundi US Intermediary Distribution team since December 2009, most recently as Senior Managing Director, Head of US Intermediary Strategy, Partnerships & National Accounts.

In his expanded US role, Xanthakis will lead Amundi US’s Intermediary Distribution Team in the US, while continuing to lead the distribution of US-managed investment solutions in the International Retail and US Offshore/Retail Latin American channels. Jason will continue to serve on the Amundi US Executive Committee, the firm said.

Jason Xanthakis

Xanthakis joined Amundi US in December of 2009, and has served in a variety of senior business development and sales positions inside and outside of the US. During a three-year appointment starting in 2019, Xanthakis was based in Paris and led the distribution of US-managed investment solutions across retail channels in EMEA and Asia. Upon his return to the US, he was appointed Senior Managing Director, Head of International Retail Business & US Intermediary Strategy, Partnerships, and National Accounts.

Xanthakis has 24 years of experience in financial services. He launched his career at Fidelity Investments where he was a Research Analyst in the Investment Services Division and held individual contributor and leadership roles across functions. Jason continued his career in Manager Research and Business Development at Ameriprise Financial’s Asset Management arm (RiverSource Investments; now part of Columbia Threadneedle). He has an MBA from Columbia Business School and a B.Sc. in Economics from the University of Piraeus, Greece.

2023 Closed with Signs of Increased Housing Construction and Stable Prices

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For the first time since May 2023 home shoppers are seeing a larger number of unsold homes on the market, according to the Realtor.com® December Monthly Housing Trends Report.

Looking ahead, as mortgage rates have been on a downward trend since the beginning of November, Realtor anticipates a positive impact on home-selling sentiment and the possibility that more new listings will enter the market.

“Across the U.S. we’re seeing improvements in inventory levels, especially in the South, which experienced a 7.7% increase in active listings year-over-year,” said Danielle Hale, chief economist, Realtor.com®

“While the uptick in December inventory levels is encouraging, it is important to note that two-thirds of outstanding mortgages in the U.S. have a rate under 4% and more than 90% have a rate less than 6%. We are optimistic that inventory levels are moving in a positive direction, but the number of homes on the market is still low relative to pre-pandemic levels. Some sellers are clearly motivated already, but other households may hold out for lower rates before selling or moving to new homes,” he added.

On the Up and Up

Homebuyers typically avoid big moves during the December holiday season unless they absolutely must sell or buy, leading to generally different real estate activity than what is experienced in the peak summer season. Though the market is still not where it was pre-pandemic as active inventory sits 34.3% below typical 2017 to 2019 levels, in December 2023 home sellers were active with 9.1% more newly listed homes compared to last year.  When looking at the month-over-month change between November and December, a time when the decline in inventory has historically hovered between 6.8% and 13.2%, this year there was a more modest 5.5% decrease, indicating a much smaller than typical drop for this time of year.

Southern Belles

When examining the 50 largest metros, 23 experienced increased inventory levels year-over-year, with Memphis (+28.5%), New Orleans (25.5%) and San Antonio (20.9%) experiencing the most growth among them. Though this growth is promising, the country is still seeing lower inventory levels as a whole relative to pre-pandemic times with the exception of San Antonio (+12.8%), Austin (+11.7%) and New Orleans (+11.6%), which saw higher levels of inventory in December 2023 compared to typical 2017 to 2019 levels.

Prices Continue to Stabilize and Properties Move Faster

The median price of homes for sale in December remained relatively stable compared to the same time last year, growing by 1.2% with a few standout places experiencing a decrease including the surprising Nor Cal suburb of San Jose, which saw a decrease of 7.1% in median listing price year-over-year, as well as San Antonio (-3.9%) and Memphis (-2.5%).

When it comes to days on market, homes are moving quicker than before. Generally, homes spent 61 days on the market, which is four days shorter than December 2022 and about two weeks shorter than before the COVID-19 pandemic.

To read the full report click on the following link.

 

Asset Managers Should Sharpen Focus on Independent RIAs That Insource Portfolio Construction

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The distinctions between advisor channels make it increasingly difficult for asset managers to break through and establish their products and services. Cerulli recommends asset managers focus their distribution efforts on the channels where home-grown portfolios remain prevalent, according to The Cerulli Edge—U.S. Asset and Wealth Management Edition.

According to the research, nearly two-thirds of financial advisors (60%) say their primary portfolio construction influence comes from within their own practice, while less than one-third (28%) report being influenced primarily by their broker/dealer (B/D) or custodian.

Asset managers should pay close attention to the profile of advisors who say they construct their own portfolios—advisors in the independent registered investment advisor (RIA) channel are the most likely to construct portfolios entirely in-house, followed closely by hybrid RIAs. Conversely, just one-third of advisors in the insurance B/D channel create portfolios within their own practices.

“While the RIA channel is made up of significantly more firms than the B/D channel, and with higher rates of practices that insource the investment management function, the channel has continued to consolidate, presenting an increased opportunity for asset managers to engage with the largest firms through key accounts efforts,” says Stephen Caruso, senior analyst.

Cerulli recommends asset managers aim distribution resources in favor of the channels such as independent and hybrid RIAs where advisors are more likely to select their own investments and can succeed by providing the resources needed to help advisors grow their asset bases and nurture client relationship.

“RIA advisors tell Cerulli they are more likely to respond positively to asset managers that take the time to understand their unique characteristics and needs and those that provide transparent access to key investment decision makers for a given strategy,” says Caruso.

SEC Finally Approves ETPs that Invest in Bitcoin

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The SEC has approved a list of ten exchange-traded products (ETP) that directly invest in the most popular cryptocurrency in the market, bitcoin, as announced by its chairman Gary Gensler in a statement.

“Today, the Commission approved the listing and trading of a number of spot bitcoin exchange-traded product (ETP) shares,” Gensler commented.

The measure is seen as a milestone for the digital asset sector of approximately $1.7 trillion, which will expand access to the cryptocurrency on Wall Street and other markets.

The funds will be able to start trading from this Thursday, January 11th.

The approvals also mark the end of over a decade of opposition from the SEC, since Tyler and Cameron Winklevoss first proposed a bitcoin ETF in 2013.

Last June, BlackRock made a request, which was initially denied but then supported by a ruling from an appeals court that called the denial “arbitrary and capricious.”

“I have often said that the Commission acts within the law and how the courts interpret the law. Beginning under Chair Jay Clayton in 2018 and through March 2023, the Commission disapproved more than 20 exchange rule filings for spot bitcoin ETPs,” added the chairman of the regulatory.

Gensler said that in the face of a new series of applications similar to those the SEC had already disapproved, the circumstances have changed.

“We are now faced with a new set of filings similar to those we have disapproved in the past. Circumstances, however, have changed. The U.S. Court of Appeals for the District of Columbia held that the Commission failed to adequately explain its reasoning in disapproving the listing and trading of Grayscale’s proposed ETP (the Grayscale Order). The court therefore vacated the Grayscale Order and remanded the matter to the Commission. Based on these circumstances and those discussed more fully in the approval order, I feel the most sustainable path forward is to approve the listing and trading of these spot bitcoin ETP shares,” detailed the chairman.

In addition, Gensler clarified that “importantly, today’s Commission action is cabined to ETPs holding one non-security commodity, bitcoin. It should in no way signal the Commission’s willingness to approve listing standards for crypto asset securities.”

On the other hand, he emphasized that “nor does the approval signal anything about the Commission’s views as to the status of other crypto assets under the federal securities laws or about the current state of non-compliance of certain crypto asset market participants with the federal securities laws. As I’ve said in the past, and without prejudging any one crypto asset, the vast majority of crypto assets are investment contracts and thus subject to the federal securities laws.”

Currently, investors can already buy and sell bitcoin in a number of brokerages, through investment funds, on national stock exchanges, through peer-to-peer payment applications, on non-compliant cryptocurrency trading platforms, and of course, through Grayscale Bitcoin Trust, says the SEC.

The commission clarifies that the action approved on January 10th will include certain protections for investors.

First, sponsors of bitcoin ETPs will be required to provide full, fair, and truthful disclosure about the products. Investors in any bitcoin ETP that is listed and traded will benefit from the disclosure included in public registration statements and required periodic filings. While these disclosures are required, it is important to note that today’s action does not endorse the disclosed ETP arrangements, such as custody arrangements.

Second, these products will be listed and traded on registered national securities exchanges. Such regulated exchanges are required to have rules designed to prevent fraud and manipulation, and we will monitor them closely to ensure that they are enforcing those rules. Furthermore, the Commission will fully investigate any fraud or manipulation in the securities markets, including schemes that use social media platforms.[3] Such regulated exchanges also have rules designed to address certain conflicts of interest as well as to protect investors and the public interest.

Further, existing rules and standards of conduct will apply to the purchase and sale of the approved ETPs. This includes, for example, Regulation Best Interest when broker-dealers recommend ETPs to retail investors, as well as a fiduciary duty under the Investment Advisers Act for investment advisers. Today’s action does not approve or endorse crypto trading platforms or intermediaries, which, for the most part, are non-compliant with the federal securities laws and often have conflicts of interest.

Third, Commission staff is separately completing the review of registration statements for 10 spot bitcoin ETPs simultaneously, which will help create a level playing field for issuers and promote fairness and competition, benefiting investors and the broader market.

The decision comes a day after a false post on the SEC’s X account (former Twitter) claimed that the agency had approved ETFs. The regulator later said the account had been compromised, causing a significant fluctuation in the price of Bitcoin.

Voya Financial Announces Leadership Succession Plan for Voya Investment Management

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Photo courtesyMatt Toms, new Voya Investment Management's

Voya Financial announced that Christine Hurtsellers, CEO of Voya Investment Management (IM), has informed the company of her decision to retire later this year.

Matt Toms, CIO of Voya IM, will succeed Hurtsellers as CEO, effective immediately, and Hurtsellers will now serve as a strategic advisor to the company until her retirement.

Toms has also joined Voya Financial’s Executive Committee and will now report to Heather Lavallee, CEO, Voya Financial. Hurtsellers will also continue to report to Lavallee.

Voya also announced that Eric Stein, who most recently served as CIO, fixed income, at Morgan Stanley Investment Management, has joined Voya IM as head of investments and CIO, fixed income. Stein reports to Toms.

“I am grateful to Christine for her amazing leadership and stewardship of our Investment Management business,” said Lavallee.

Lavallee added that over her almost 20-year career with Voya IM, including seven years of service as CEO, “Christine achieved a number of strategic, financial and operational outcomes, including the successful integration of several acquisitions that have expanded our asset management capabilities and global reach.”

I am thankful for having had the benefit of Christine’s insights, drive and passion for our business, and I wish her and her family all the best as she begins her transition to retirement. Also, I am excited to have Matt leading Voya IM as it executes on its growth strategy and continues to build on its strong pipeline across institutional and retail markets in the U.S. and internationally. Matt has been global CIO since 2022, has 30 years of asset management expertise, and has great insights into the needs of our clients. His deep knowledge and experience with our firm, and his passion for our clients, will serve him well as he leads Voya IM into its next stage of growth,” stated Lavallee.

“We have made great progress in evolving Voya IM to become the global firm that we are today,” said Hurtsellers. “The growth and expansion that we have achieved is the result of the hard work of our colleagues, who have always prioritized the needs of our clients. After almost 20 years at Voya, and as I look ahead to retirement and the ability to attend to my family’s needs, I am grateful for and proud of all that the team has accomplished over the years. In the meantime, I look forward to working closely with Matt and Heather — and to engaging with our clients, intermediaries and employees — to ensure a smooth transition.”

As Voya IM’s global CIO, Toms led the firm’s more than 300 investment professionals who are managing approximately $310 billion in assets under management across fixed income, equities, multi-asset solutions and alternative strategies. Previously, Toms served as CIO, fixed income. Prior to joining Voya IM in 2009, Toms worked with Calamos Investments, where he established and grew its fixed income business. He also previously held roles with Northern Trust and Lincoln National.

“It’s an honor to be leading Voya IM, and I am excited about the opportunities ahead,” said Toms. “Over the past several years, we have successfully grown our capabilities and our reach to serve the expanding needs of our clients, and I’m looking forward to working with the many talented professionals across our firm to continue our growth trajectory. I also want to express my tremendous gratitude to Christine for her leadership and guidance. I am grateful to have her insights and perspective as we make a smooth transition.”

Stein, in his new role as head of investments as well as CIO, fixed income, will directly lead the public fixed income investment team as well as oversee the broader equities, income and growth, and multi-asset strategies and solutions investment teams. Chris Lyons, head of private fixed income and alternatives investments, will continue to report to Toms.

As CIO, fixed income at Morgan Stanley IM, Stein was responsible for overseeing 275 professionals and the management of investment strategies for Morgan Stanley’s approximately $200 billion fixed income platform, including agency mortgage-backed securities, emerging markets, floating-rate loans, high-yield, investment grade credit, multi-sector, municipals and securitized strategies.

Prior to Morgan Stanley IM, Stein held several portfolio management roles at Eaton Vance since 2009, including most recently serving as CIO for Eaton Vance’s entire fixed income group, which included investment teams across high-yield, bank loan, municipal investments, emerging market debt/global macro, securitized, investment grade corporate and multi-asset investment disciplines, the firm added.

“I am excited to have Eric on the Voya IM leadership team,” added Toms. “His more than 20 years of investment experience and demonstrated expertise in leading sizable teams throughout his career will no doubt bring great value to our investment teams and our clients. Equally important, Eric’s approach to money management aligns fully with the collaborative approach of our investment professionals at Voya IM. I am looking forward to having his leadership and insights as we execute on our growth plans.”