Vanguard announced that its Board of Directors has appointed Salim Ramji as the Company’s new Chief Executive Officer and a member of the Board, effective July 8, 2024.
Ramji succeeds Tim Buckley, who, as previously announced, will retire and step down as Chairman and CEO.
Ramji has more than 25 years of experience in investments, capital markets and wealth management, including a decade as a senior leader at BlackRock, leaving in January 2024. Most recently, Ramji was Global Head of iShares & Index Investing, where he was responsible for managing a majority of the firm’s client assets and evolving the iShares platform to provide an even broader set of innovative low-cost products for investors globally.
His contributions led to expanded investment access for tens of millions of investors, a more central role for ETFs in retirement and wealth portfolios and a more efficient bond market with ETFs as an enabling technology. At BlackRock, he led the implementation of a voting choice platform, which democratizes client access to the proxy voting process.
“It’s an honor to join Vanguard, an institution I have long admired and respected. I am drawn to Vanguard because of the firm’s clarity and consistency of purpose and am very excited to get to work and partner with the outstanding leadership team to lead the company into the future. The current investor landscape is changing, and that presents opportunities for Vanguard to further its mission of giving people the best chance for investment success, which is more relevant today than at any time in the firm’s five-decade history. My focus will be to mobilize Vanguard to meet the moment while staying true to that core purpose – remaining the trusted firm that takes a stand for all investors,” commented Ramji.
Prior to leading iShares, Ramji was the Head of U.S. Wealth Advisory and began his BlackRock career as the Global Head of Corporate Strategy. Before joining BlackRock, he was a Senior Partner at McKinsey & Company in charge of the firm’s Asset & Wealth Management Practice. He started his career as a lawyer at Clifford Chance in London and Hong Kong.
Mark Loughridge, Lead Independent Director, said: “The Board welcomes Salim to the leadership team and looks forward to working closely with him as we strengthen and expand our mission and purpose, driven by serving the interests of individual investors. Vanguard’s distinctive structure and culture have helped tens of millions of our investor-owners plan for their future and families. We have significant opportunities for growth ahead, including how technology and the client experience can drive solutions and extend the benefits of wealth management to more investors. Salim is an exceptional leader who is aligned with Vanguard’s mission-driven culture, making him the ideal candidate. Vanguard has an important future, and we believe he is the best person for the job.”
Vanguard also announced that Greg Davis, President and Chief Investment Officer, will be appointed to Vanguard’s Board of Directors and have expanded responsibility for regulatory and government affairs.
Upon the effective date of Ramji’s appointment as CEO, Buckley will step down as Chairman and CEO. Mark Loughridge, Vanguard’s Lead Independent Director, will be appointed nonexecutive Chairman.
In addition, John Murphy, President and Chief Financial Officer of The Coca-Cola Company, will be appointed to the Board of Directors of Vanguard effective June 1, 2024. He brings 40 years of business, financial, and operational leadership experience to Vanguard’s Board, with more than 35 years at The Coca-Cola Company, one of the world’s most iconic organizations. He has served as the company’s CFO since 2019, became president in 2022, and has held a variety of positions during his career, including overseeing global finance operations and business operations in Asia Pacific and parts of Latin America.
Marco Fernández and Diego Castillo have joined Boreal Capital Management in Miami from UBS.
“As part of its ongoing commitment to growth in the wealth management space, Boreal Capital Management LLC, based in Miami, has hired Marco Fernández and Diego Castillo,” reads the statement accessed by Funds Society.
The bankers, with over 20 years of experience, specialize in high-net-worth individuals and families in Mexico.
The team, which joins the firm with offices in Spain and Zurich, has also worked at Citi and J.P. Morgan.
According to the firm’s information, it is expected that this team’s investment advisory relationships “are expected to substantially move the needle of Boreal’s total assets under management and gross revenues during 2024 and beyond.”
Additionally, the statement adds that the arrival of this duo strengthens and deepens the firm’s commercial roots in the Mexican market.
Boreal expects to increase its assets under management by 25% during 2024 and continue with double-digit growth in consolidated net profit, concludes the firm’s statement.
Jimmy Ly has been named the new Senior Vice President Offshore of Amundi US, the fund manager said Thursday in a statement accessed by Funds Society.
Ly has more than 20 years of experience in the financial services industry. Previously, he was CEO of Tigris and spent four years as Executive Director, Head of US Offshore & Latin America at Robeco.
In addition, he also worked for 14 years for Pioneer Investments and nearly four years for Merrill Lynch.
He will be in charge of coverage of certain parts of the Florida offshore market and the entire California offshore market, according to the statement accessed by Funds Society.
The Securities and Exchange Commission announced that Nathaniel H. Benjamin has been appointed the Director of the Office of Minority and Women Inclusion (OMWI). Benjamin will join OMWI from AmeriCorps, where he is the Chief Diversity and Inclusion Officer.
“I welcome Nate to the SEC in the leadership role as Director of the Office of Minority and Women Inclusion. Nate brings deep experience to the Office, having led various workforce development and employee engagement programs throughout two decades in public service,” said SEC Chair Gary Gensler and he thank Allison Wise, OMWI’s Deputy Director, has served as Acting Director of the Office since October 2023.
Benjamin joined AmeriCorps from the Department of Education, where he was deputy chief human capital officer and worked as a change strategist and executive leader for the agency’s operational functions. He was also the managing executive for the department’s diversity, equity, and inclusion program and led the agency’s Diversity and Inclusion Council.
Benjamin previously was the human capital director and deputy chief human capital officer at the Office of Management and Budget, where he directed the human capital strategy, workforce development and employee engagement initiatives, and the diversity and inclusion plan. He was also the deputy human resources officer for the T Family Bureaus at the U.S. Department of State, where he led the civil service staff for three bureaus supporting its arms control and international security missions.
Over a 24-year career, Benjamin has served as a noncommissioned officer in the U.S. Air Force, a civil servant for the Department of Defense, and an adjunct instructor at Trinity Washington University and the Art Institute of Washington. Mr. Benjamin is a certified professional coach and executively trained in strategic diversity, equity, and inclusion management through Georgetown University. He has received several awards for his superior leadership and notable results as a federal human resources change agent in diversity, equity, and inclusion programs. He has an M.B.A. from Johns Hopkins University, an MA from the University of Baltimore, and a B.A. from the University of Maryland Eastern Shore.
“I am honored to join the Securities and Exchange Commission as the Director of the Office of Women and Minority Inclusion,” said Nathaniel Benjamin. “I will use my experience to address challenges and barriers and strategically lead the Office. I look forward to working with the Commission to further equity and opportunities for all SEC stakeholders.”
Wise joined the SEC in June 2021. Before that, she led 60+ federal partners as the Director of Diversity and Inclusion at the U.S. Office of Personnel Management. She also served as the inaugural Director of Diversity and Inclusion at the National Archives and Records Administration. Wise has held several advisory roles on Federal DEI Councils and was the co-founder of the Federal Interagency Diversity Partnership. She holds a Bachelor of Arts in Finance from the University of Maryland Robert H. Smith School of Business and Executive Certifications in Strategic Diversity and Inclusion Management from both Georgetown University and the Harvard Kennedy School.
Higher-for-longer rates and approaching maturity walls will lead to an up-tick in high-yield and leveraged-loan defaults, including distressed debt exchanges and corporate bankruptcies, supporting the need for liability management and restructuring services from advisory firms, Fitch Ratings says.
Restructuring and advisory activity have historically counterbalanced each other, with a rise in restructuring activity often partially offsetting lost M&A revenue during a down cycle. That relationship, however, has broken down several times since the global financial crisis. Bankruptcy levels during the pandemic were abnormally low, as businesses accessed financing and capital at low rates, often paired with government stimulus. Additionally, in 2022-2023 low M&A volume driven by rate hikes, economic uncertainty and wide bid-ask spreads was not accompanied by meaningfully increased default activity.
In response to slow volumes in both M&A and restructuring, advisory firms have sought to broaden product and service offerings to diversify revenues and enhance earnings stability through different market environments. These include expanded financial sponsor coverage, private capital markets and fundraising, shareholder strategic advisory and special purpose acquisition companies (SPACs). Some firms also have wealth management businesses, which provide more stable management fees independent from transaction volumes.
Still, restructuring activity is expected to grow as bankruptcy filings continue to rise toward pre-pandemic levels, as protracted higher-for-longer interest rates and refinance risk from approaching maturities add strain to distressed borrowers. Overall corporate bankruptcy filings surged by 40% to 18,926 in 2023, normalizing from 13,481 filings in 2022, but remain around 18% below the pre-pandemic average from 2016 to 2019.
The trailing twelve-month (TTM) high-yield default rate edged up to 3.8% in March from 3.7% in February, according to Fitch’sU.S. Distressed and Default Monitor: April 2024as eight issuers defaulted on their LL or HY debt. Distressed debt exchanges (DDEs) affected more than $9 billion of loans and $7.9 billion of HY debt, or 82% and 90%, respectively, of total March default volume.
Fitch is estimating 2024 default rates of 3.5%-4.0% for leveraged loans (LL), and 5.0%-5.5% for high yield (HY), up from 2023 default rates of 3.3% for leveraged loans and 2.8% for HY.
The number of announced distressed debt and bankruptcy restructurings rose by 124% to 280 in 2023 from 125 in 2022, suggesting that bankruptcies will continue to rise into 2024. The restructuring value increased from $142 billion in 2022 to $205 billion in 2023. Completed restructurings rose 134% to 164 deals in 2023 from 70 in 2022, but total value fell by 21%.
Fitch’s sector outlook for independent advisory firms is neutral for 2024, as we expect M&A volume to gradually increase with advisory earnings currently at cyclical lows and cash flow leverage at elevated levels. Revenues should improve due to increased restructuring activity, even absent rate cuts, or with the expected resumption of M&A activity.
Tampa, Florida, is the best city to invest in short-term rentals, while San Jose, California, is the riskiest short-term rental market in America, according to a new study from Clever Real Estate, a St. Louis-based real estate company, in collaboration with Rabbu.com, a Charlotte-based short term rental investment platform.
The study analyzed metrics such as median home prices, occupancy rates, and changes in property values to rank Airbnb investment markets across the U.S.
Tampa stands out with a 71.6% property value increase over the past five years — 55% higher than the median city in the study. The metro area boasts 16,020 property listings, triple the median, a 44.8% Airbnb occupancy rate, and $52,705 average annual Airbnb revenue.
The top 10 cities to invest in short-term rentals are:
Tampa, FL
Orlando, FL
Jacksonville, FL
Boston, MA
Miami, FL
Buffalo, NY
Columbus, OH
Chicago, IL
Providence, RI
Kansas City, MO
Meanwhile, San Jose is the worst short-term rental city, with a median home sale price of $1,447,955, more than four times the average. San Jose has just 1,296 listed properties, a whopping 76% less than the median, leading to the lowest Rabbu return on investment score in the nation.
The 10 worst short-term rental markets are:
San Jose, CA
Birmingham, AL
San Antonio, TX
Houston, TX
Sacramento, CA
Raleigh, NC
Riverside, CA
San Francisco, CA
Oklahoma City, OK
Pittsburgh, PA
Additionally, Clever surveyed 1,000 Americans and found that 76% have a positive view of Airbnbs. About 60% say short-term rentals are nicer than hotels, and 67% say they’re more comfortable.
However, nearly all respondents (96%) saw downsides to short-term rentals, including misleading property descriptions, a lack of on-site help, and safety concerns.
Only 44% see Airbnbs as safer than hotels, a concern likely amplified by increasing crime rates.
International wealth advisor Cristina Acosta recently joined Bolton Global Asset Management, the registered investment adviser affiliate of Bolton Global Capital.
With a career spanning more than 25 years managing ultra-high net worth individuals and families from Latin America, and hundreds of millions of assets under advisement, Acosta has developed an exemplary boutique investment advisory practice serving family offices and notable international clients, the firm said.
“Cristina’s experience, dedication to holistic investment advice and client-centered approach, make her a perfect fit for our team of highly successful financial advisors. We look forward to watching Cristina further expand her business on Bolton’s platform.” said Bolton’s CEO Ray Grenier.
Acosta has branded her independent investment advisory practice as 5E Wealth, focused on wealth and investment management services with an integrated service model and unique approach to wealth consulting. Acosta also plans to continue developing more educational programs for women investors under her 5E WealthLab brand, in collaboration with other professionals in the industry.
Prior to joining the Bolton group, Acosta held senior-level positions at prominent international wealth management firms like Crescendo Group from Geneva, Boreal Capital Management in Zurich, served as Senior Private Banker at UBS Wealth Management Geneva, and as Jr. Banker at J.P. Morgan Private Bank, New York. Acosta’s career has taken her to live and work in tier-1 banking and finance communities such as Boston, Luxembourg, New York, Geneva, Zurich, and most recently, Miami.
Acosta holds a Bachelor of Science degree in International Business and Finance from Northeastern University in Boston, Massachusetts, where she graduated Cum-Laude. She further holds a Series-65 license and certificates in Circular Economy and Sustainability Strategies, from University of Cambridge, and Women Leaders Activating Change, from Babson College
Acosta is based at Bolton’s Miami office located at the Four Seasons Tower on Brickell Avenue.
An integral member of Acosta’s team worthy of mention is Daniela Emanuele. Originally from Argentina, Emanuele joins as acting Chief Operating Officer and Director of Client Services for 5E Wealth, bringing with her more than 20 years of experience in wealth management and private banking in the Latin America region. Before joining 5E Wealth, Emanuele worked at investment advisory boutiques located in Miami, where she was instrumental in managing operations and overseeing client relationships. Prior to this, Emanuele worked at EFG International and Credit Agricole as a relationship manager and at Royal Bank of Canada Private Bank (RBC), where she started her career in 1999.
Emanuele holds a Bachelor’s Degree in Business Administration with a minor in International Business from Florida International University (FIU). She holds a Series 65 license and a FLA Health and Life and Annuity insurance license in the state of Florida.
Activest announced the addition of Eduardo Brender to its team of financial professionals. With over twenty years of experience in the field, Brender brings a wealth of expertise and a proven track record of success to the company, the press release said.
“As a seasoned Financial Advisor, Brender has worked in various areas including wealth management, alternative investments, asset management, fixed income, and financial planning. His deep understanding of these sectors will undoubtedly enhance Activest’s ability to meet and exceed the needs of its clients”, the firm added.
Brender has been recognized as one of Forbes’ Best-In State Wealth Advisors for four consecutive years (2021, 2022, 2023 y 2024) underscoring his exceptional achievements and commitment to excellence. He holds an MBA from Babson College.
“We are delighted to welcome Eduardo Brender to the Activest team,” said Isaac Wakszol, Founder at Activest. “His extensive experience and outstanding reputation in the industry make him a valuable addition to our firm. We are confident that Eduardo’s expertise will contribute significantly to our continued success and further strengthen our position as a leader in financial services.”
Eduardo Brender expressed his enthusiasm for joining Activest, stating: “After careful consideration, I chose Activest because it offers a platform where I can provide enhanced service to my clients, supported by an exceptional team. Now, with the ability to work independently with any custodian, we can truly tailor our solutions. I eagerly anticipate collaborating with my colleagues to deliver exceptional Family Office services and innovative solutions to our clients.”
About Activest
Activest is a leading financial services firm dedicated to providing tailored solutions and personalized guidance to help clients achieve their financial goals. With a team of experienced professionals and a commitment to excellence, Activest offers a comprehensive range of services including wealth management, investment advisory, retirement planning, and more.
Activest’s comprehensive portfolio includes an array of open architecture investment products, such as funds, stocks, bonds, and alternative investments. Its robust investment committee leadership is revered for generating top-tier research and delivering premier market insights. In addition, Activest offers strategic financial analysis and comprehensive portfolio analysis, equipping investors with critical tools to make informed decisions.
Activest Wealth Management is a registered investment adviser with the SEC, offering tailored and transparent financial advice through a group of experienced professionals. With over $2.5 billion assets and more than 200 families across 10+ countries, Activest is revolutionizing independent wealth management with its comprehensive and fully integrated platform, according the firm information.
iCapital announces the introduction of iCapital Model Portfolios for more than 100,000 U.S. Financial Advisors.
The advisors who use iCapital’s platform can now access the first model portfolio, iMAP (iCapital Multi-Asset Portfolio), with additional portfolio models set to follow in the coming months. Paired with iCapital’s portfolio construction tool, Architect, advisors will be able to run an analysis to easily evaluate the impact of incorporating alternative investments alongside traditional portfolio holdings.
“We are excited to introduce iCapital Model Portfolios, an innovative application for wealth managers to incorporate alternative investments into their clients’ portfolios,” said Lawrence Calcano, Chairman and CEO of iCapital. “As demand grows, iCapital will continue to work with leading alternative asset managers to design and curate additional outcome-based models.”
The Model Portfolios by iCapital are designed to assist with asset allocation within alternative investments and identify top-tier products that fit those allocations. Developed using quantitative analysis by iCapital’s research and due diligence team, the Model Portfolios suite offers a comprehensive and flexible way for financial advisors to include these investments in their practice. The Multi-Asset Portfolio easily provides a balanced alternative investment allocation across five funds from top-tier managers in private equity, private credit, and real assets, the firm adds.
The first portfolio available, iMAP, is a balanced portfolio “that combines income and growth through private markets investing”, the press release says.
It aims to generate total returns with reduced volatility and fewer drawdowns than traditional asset classes, helping to manage market stress more effectively. The portfolio simplifies the entire process, from due diligence and manager selection to investment, construction, and ongoing monitoring.
Over the past decade, the fastest rate of growth in advisor headcount has occurred among firms in the independent registered investment advisor (RIA) channels, largely at the expense of wirehouse firms. However, the independent broker/dealer (IBD) channel also is facing an exodus to the RIA channels, according to the latest Cerulli Edge—U.S. Advisor Edition.
Cerulli’s research finds nearly one-third of IBD advisors (32%) have considered opening an RIA in the past 12 months. Factors such as a higher payout, the ability to create enterprise value in an independent business, greater autonomy, and a desire to create a more personable culture are fueling their interest.
When it comes to joining an RIA, advisors are mixed on their preferred affiliation model and require education on the logistics involved in various options. More than one-third of IBD advisors who considered establishing an RIA in the past year (36%) may retain affiliation with their current B/D’s RIA platform but still would consider other options. Another 33% are unsure of their RIA affiliation preference and need additional information to understand which model would be the best fit for their practice.
In considering the transition to an independent or hybrid RIA, nearly half of advisors (46%) view the greater operational responsibilities associated with running an RIA as a major concern. Navigating factors such as staffing, technology, and compliance can weigh heavily on IBD advisors making a move to full independence.
The decision for an advisor employed by an independent B/D does not come without careful consideration.
“Departing an employee B/D is a daunting task for advisors who have spent their careers with this type of affiliation,” says Andrew Blake, associate director. “Added accountability and the unfamiliar economics leave many new RIAs feeling spread too thin and unable to grow their practice as they had expected. For asset managers distributing in the RIA and IBD channels, offering business consulting resources that can help advisors work through these challenges will be meaningful for developing a long-term partnership.”
An integral member of Acosta’s team worthy of mention is Daniela Emanuele. Originally from Argentina, Emanuele joins as acting Chief Operating Officer and Director of Client Services for 5E Wealth, bringing with her more than 20 years of experience in wealth management and private banking in the Latin America region. Before joining 5E Wealth, Emanuele worked at investment advisory boutiques located in Miami, where she was instrumental in managing operations and overseeing client relationships. Prior to this, Emanuele worked at EFG International and Credit Agricole as a relationship manager and at Royal Bank of Canada Private Bank (RBC), where she started her career in 1999.
