Florida Innovation Capital Leads Funding for Third Summit’s Content-Creation Platform Alteon.io

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Florida Innovation Capital (FIC), a venture fund committed to supporting economic growth in the Sunshine State, is leading seed funding for tech startup Third Summit.

FIC has committed $2.75M of the $4.5M funding for Third Summit to continue expanding its flagship SaaS platform, Alteon.io, whose recent partnerships and market reception exemplify the type of company FIC wants to support in Florida.

FIC believes this boldly original startup, focused on the burgeoning $100-billion creator economy, is a future unicorn for Florida, the company said. Alteon is an unprecedented, award-winning cloud-based platform that addresses pain points for content creators throughout the entire creative workflow, letting creators more easily upload, share, review, archive and collaborate on media in a single, universal place.

Leveraging high-profile partnerships and integrations with leading creative tech companies, including Apple, Opera, IBM and others, Alteon reduces creators’ reliance on single-purpose apps. Its vast scope includes proprietary cloud-based media transcoding, maximized data upload, AI organization and Web3 integration.

In Q1 2023, Alteon saw an incredible 104% increase in total users, in part thanks to a highly receptive creator community, a successful partnership with the Student Television Network and high-profile integrations with companies such as Apple, whose Final Cut Pro Ecosystem welcomed Alteon last fall, shortly before the company debuted their iOS app, the press release added.

Alteon also partnered with leading web browser Opera to unveil Alteon LaunchPad, a unique tool that simplifies the NFT minting process, underscoring Third Summit’s commitment to bridging the technological gap between creators of all backgrounds on an international scale. That groundbreaking tool was announced during Art Basel Miami onstage with Miami Mayor Francis Suarez, who vocally supported the company’s mission.

“This milestone is only possible because of the hard work of everyone on our team along with our dedicated investors,” said Third Summit co-founder and CEO Matt Cimaglia. “We are united in our vision to build a product on a strong foundation, with core principles that will keep ahead with the rapidly expanding scale of today’s creator economy. We’re proud to be building infrastructure to help steer the future of creativity.”

This success is largely due to Cimaglia’s founding vision and experience building and running an award-winning creative agency for more than 20 years. Long before NFTs, Web3 and the rise of remote work, he knew that the future of content creation would rely on virtual collaboration, cloud-based technologies and new digital platforms. His prediction was proven starkly correct in less than a year, when the pandemic accelerated all these trends.

“Under Matt’s leadership, Third Summit has built unprecedented partnerships with leading technology companies and developed a truly unique platform that is helping thousands of content creators work more efficiently using the power of cloud computing,” said Michael Munz, president of FIC. “Alteon is a future-proof product with a stable roadmap and strategy. We are excited to be the lead investors for Third Summit’s seed round and help power a new creative ecosystem.”

According to a report by Morning Consult, the creator economy is estimated to be worth more than $100 billion, with more than 50 million creators globally. With content consumption trends skyrocketing and streaming giants investing heavily to compete for audiences, the media-technology space has proven largely protected from recent startup troubles, banking collapses and recession fears. Third Summit and Alteon have withstood these market fluctuations by securing reliable capital to build out a comprehensive and successful product that’s currently being used by thousands of content creators worldwide.

Higher Yields Lure Insurers Back to Fixed Income, While Appetite For Private Assets Remains StrongG

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Goldman Sachs Asset Management released the findings of its twelfth annual global insurance investment survey, Balancing with Yield on the Inflationary Tightrope.

The results show that while insurers expect a deterioration of credit quality and upcoming recession in the U.S., they are leaning heavily into fixed income and seeking to increase duration and credit risk. For the first time, insurers ranked increasing yield opportunities in the current environment as the most important factor driving asset allocation decisions (68%), nearly triple the percentage of those who say they are decreasing risk due to concern with equity or credit losses (25%).

“With high inflation, rising geopolitical tensions, and the effects of tightening monetary policy, insurers are looking to take advantage of higher rates while managing their market risk,” notes Matt Armas, Global Head of Insurance Asset Management at Goldman Sachs Asset Management. “As shown in the survey results, the journey to rebuilding yield, is done with a balance of duration and high-quality credit opportunities.”

The survey revealed that more than half of global insurers (51%) plan to increase their allocation to private assets over the next 12 months. Across all asset classes, private corporate debt (41%) is the top asset class that insurers plan to allocate more to over the next year. Twenty-nine percent of respondents plan to allocate more to private equity, and 28% plan to increase their allocation to infrastructure equity and infrastructure debt.  

“Despite uncertain market conditions, we believe there are real opportunities for investors across private and public markets, particularly in credit, where increasingly attractive yields in fixed income have lured back insurance investors,” said Michael Siegel, Global Head of Insurance Asset Management and Liquidity Solutions at Goldman Sachs Asset Management. “We also expect insurers to continue to build positions in private asset classes, including private credit, private equity and infrastructure, as they seek to diversify portfolios and take advantage of expanding illiquidity premiums. ”

The survey incorporates the views of 343 Insurance company CIOs and CFOs representing over $13 trillion in global balance sheet assets. Their responses were collected from February 1 – 17, 2023.

FIBA Announces New AMLCA Courses with Florida International University

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La Financial & International Business Association (FIBA) announced a new call for anti-money laundering certification courses offered in conjunction with the Florida International University.

The courses, which will be taught in both English and Spanish, will begin on May 18 and will be delivered in an online format.

Funds Society readers can access a $200 discount by applying the promotional code FS200.

The online course is an interactive option design for participants interested in completing the certification at their own pace. Through open forums and discussions, participants will have the opportunity to actively engaged with the instructor and classmates to discuss the assigned materials. Participants will have 90 days to complete the reading materials, PowerPoint narratives, 23 practice quizzes and the final certification exam, according to the course description.

The course is led by Ana María de Alba as the instructor, who is a specialized consultant in risk management and administration. She has over 25 years of experience and professional training in the banking industry and consulting.

You can access the following links to register for both the Spanish and English versions, respectively.

Bank of America Names Lindsay Hans and Eric Schimpf Presidents and Co-Heads of Merrill Wealth Management

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Photo courtesyLindsay Hans y Eric Schimpf

Bank of America announced that Lindsay Hans and Eric Schimpf have been appointed presidents and co-heads of Merrill Wealth Management, reporting to Bank of America Chair and Chief Executive Officer Brian Moynihan.

As presidents, Hans and Schimpf will join Bank of America’s executive management team and oversee more than 25,000 Merrill employees.

“Merrill is one of the largest wealth management businesses in the world and an integral part of Bank of America as we serve the unique needs of individuals, families and businesses,” Moynihan said. “Lindsay and Eric have excelled as leaders, delivering outstanding results for our advisors and clients. I’m looking forward to them building on the success and long tradition of Merrill in the years ahead.”

Hans, who most recently served as head of Merrill’s Private Wealth Management, International and Institutional business, joined the company in 2014. Previously, she was a division executive for Merrill for six years, first for the Mid-Atlantic and later for the Northeast.

Schimpf began his career as a Merrill financial advisor in 1994 and has held several leadership positions within the business. He has served for six years as division executive, first for the Southeast and most recently for the Pacific Coast. He also has been serving as co-head of the Enterprise Advisor Development program.

Hans will continue to serve as a member of the company’s Global Diversity and Inclusion Council and as a National Executive sponsor of the Merrill Women’s Exchange. Schimpf will continue to serve as Executive Sponsor for the company’s Black Professionals Group.

Hans and Schimpf succeed Andy Sieg, who is leaving the company. Sieg served as Merrill president since 2017 and led the business through a period of sustained growth and modernization of technology for advisors and clients.

Merrill’s client balances totaled $2.8 trillion as of Dec. 31, 2022.

Leslie Gillin Bohner Appointed Chief Fiduciary Officer of Fiduciary Trust International

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Leslie Gillin Bohner, Chief Fiduciary Officer of Fiduciary Trust International

Fiduciary Trust International, a global wealth manager and wholly-owned subsidiary of Franklin Templeton, announces that Leslie Gillin Bohner has been named chief fiduciary officer.

In this newly created role, Bohner will oversee all trust operations and administration, and will continue to lead the firm’s Delaware business. She will also join the Executive Committee.

“Trust represents a significant portion of our clientele, and Leslie’s appointment is a testament to her many years managing complex fiduciary services,” said John M. Dowd, chief executive officer of Fiduciary Trust International.

“Leslie is an instrumental member of our team, and we are committed to growing our fiduciary business as we deliver services that meet our clients’ evolving needs,” he adds.

Bohner will continue to be based out of the organization’s Radnor, PA office and report to Dowd. She joined Fiduciary Trust International in May 2020 as a result of the company’s acquisition of The Pennsylvania Trust Company.

Prior to this appointment, Bohner served as chief fiduciary officer and general counsel for the Pennsylvania region. In these roles, she managed risk across all areas of the business, overseeing all legal and fiduciary matters, and providing guidance to a team of trust and tax professionals on fiduciary and wealth advisory matters.

“As chief fiduciary officer, I look forward to working with leaders across our organization to deliver the services that meet our clients’ needs,” said Bohner. “At Fiduciary Trust International, we understand our important responsibility in ensuring that our clients’ wishes are fulfilled and their legacy is preserved for generations to come. We feel privileged to have the opportunity to remain their trusted partner in this process.”

Bohner is admitted to practice law in Pennsylvania and is a member of the Probate and Trust Law Section of the Philadelphia Bar Association. She received her J.D. (summa cum laude), Certificate in Estate Planning, and LLM (Taxation) from Villanova University’s Charles Widger School of Law, and her B.A. in English from the University of Virginia.

All North American Clients of Vontobel Wealth Management Are Now Under One Roof

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All clients of the two Switzerland-based Vontobel US entities have been brought together under one roof within Vontobel SFA.

“Vontobel has thus become the largest Swiss-domiciled wealth manager for North American clients who are seeking international diversification for their assets and want them to be booked in Switzerland. The assets under management of the combined unit total around CHF 10 billion”, the statement said.

As a result of the legal merger, all clients of the “new” SEC-registered US entity will be able to access the comprehensive services and global investment expertise offered by Vontobel SFA.

Following the integration, Vontobel SFA has more than 100 employees in Zurich, Geneva, New York and Miami, including 30 client advisors and an expanded Investment Management & Advisory team with around 25 employees. In addition, UBS will continue to refer US clients seeking regional diversification to Vontobel SFA.

The CEO of the “new” Vontobel SFA is Peter Romanzina, with Jürgen Wegner serving as Deputy CEO. The Chairman of the Board of Directors of Vontobel SFA is Georg Schubiger, Head Wealth Management at Vontobel, and Jacqueline Hess is Vice
Chair of the Board of Directors of Vontobel SFA, as already announced at end-2022.

“We are very pleased that we can now offer all our North American clients our global investment expertise and investment
services from a single source. Vontobel has already been active in the US for around 40 years. Our numerous discussions with
clients have shown that they count on Vontobel and on our global expertise, which provides them with additional benefits,” said
Peter Romanzina, CEO Vontobel SFA.

North America counts as one of Vontobel’s focus markets. At its last Investor Day, the investment firm emphasized that in the future, it will place an even stronger focus on large, established markets such as the US with substantial numbers of sophisticated clients whom Vontobel can help to realize their objectives – drawing on its global investment expertise.

“Building on this broader basis, we want to continue to successfully grow and to further consolidate our position as a leading
Swiss wealth manager for US clients, in line with our strategy. The legal merger is an important step on the way towards making
Vontobel SFA one of the partners of choice for discerning US clients who want to diversify their wealth globally,” added Georg
Schubiger, Chairman of the Board of Directors of Vontobel SFA and Head Wealth Management at Vontobel.

Santander, named Best Private Bank in Latin America by Euromoney

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Photo courtesySantander Private Banking team at the Euromoney Private Banking Awards ceremony

Santander Private Banking has been named the Best Private Bank in Latin America by Euromoney. Santander leads in several award categories, which are some of the most prestigious accolades in banking. The financial magazine also named Santander as Latin America’s Best Bank for Family Office Services and for Wealth Transfer/Succession Planning.

Santander has also been recognised for its teams’ work in several geographies including the awards of Best International Private Bank in Mexico, Argentina, Brazil, Peru, Uruguay, Poland, and Portugal; Best Private Bank for Ultra-High-Net-Worth Individuals in Spain and Colombia; Best Private Bank for Wealth Transfer/Succession Planning in Brazil; Best Private Bank for ESG in Chile; and Best Digital Private Bank in Mexico

“The breadth and distribution of these awards across Latin America & Europe demonstrates the value of the Santander Private Banking network combined with our local market expertise”, said the company in a press release.

The Board of Directors of UBS Group AG Announces Sergio P. Ermotti as Its New Group Chief Executive Officer

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Further to the announcement of 19 March 2023 regarding UBS’s acquisition of Credit Suisse, the Board of Directors of UBS have appointed Sergio P. Ermotti as Group Chief Executive Officer and President of the Group Executive Board, effective on 5 April 2023, after the Annual General Meeting.

He will succeed Ralph Hamers, who has agreed to step down to serve the interests of the new combination, the Swiss financial sector and the country. Ralph Hamers will remain at UBS and work alongside Sergio P. Ermotti as an advisor during a transition period to ensure a successful closure of the transaction and a smooth hand-over.

The Board took the decision in light of the new challenges and priorities facing UBS after the announcement of the acquisition.

Sergio P. Ermotti was the Group Chief Executive Officer of UBS for 9 years and successfully repositioned UBS following the severe challenges arising from the Global Financial Crisis. In particular, he built financial strength and improved resilience by putting the firm’s leading global wealth and asset management business, and Swiss universal bank, at its core. He swiftly transformed the investment bank by cutting its footprint and achieved a profound culture change within the bank which allowed it to regain the trust of clients and other stakeholders, while restoring people’s pride in working for UBS.

This unique experience, together with his deep understanding of the financial services industry in Switzerland and globally, make Sergio P. Ermotti ideally placed to pursue the integration of Credit Suisse. Sergio P. Ermotti is currently Chairman of Swiss Re. To facilitate an orderly transition at Swiss Re, Sergio P. Ermotti will stand for re-election at its AGM on 12 April 2023 and intends to step down after the AGM, following a short hand-over period.

Since assuming the role on 1 November 2020, Ralph Hamers, together with the Group Executive Board, has successfully managed UBS through a challenging market environment and has delivered record results in two successive years. He has encouraged a strong focus on clients and on shaping and executing our strategy, while ensuring tight cost management and strong risk discipline. He has driven the digital and sustainability agenda across the firm to make them important differentiators for our clients.

The financial performance and capital strengths of the group have allowed him to achieve record returns for shareholders through dividends and share repurchases, which has benefited the share price. Finally, Ralph was instrumental in delivering the acquisition of Credit Suisse under extreme circumstances, to the benefit of both banks and the stability of the Swiss financial system.

UBS Chairman Colm Kelleher said: “Ralph has been an outstanding CEO of UBS, driving the group to unprecedented success despite a challenging environment. Under his leadership UBS built the strengths that have put us in a position to stabilize Credit Suisse and ensure a successful integration. On behalf of the whole Board, I would like to express my deep respect and gratitude for all that Ralph has achieved over the last two-and-a-half years and for his instrumental role in delivering the Credit Suisse deal, as well as his understanding of the current situation and willingness to step down. While the acquisition will support UBS’s existing strategy, it imposes new priorities on us. With his unique experience, I am very confident that Sergio will deliver the successful integration that is so essential for both banks’ clients, employees and investors, and for Switzerland. I know Sergio will hit the ground running.”

Ralph Hamers said: “Integrating Credit Suisse is UBS’s single most important task and I am confident that Sergio will successfully guide the bank through this next phase. I am of course sorry to leave UBS, but circumstances have changed in ways that none of us expected. I am stepping aside in the interests of the new combined entity and its stakeholders, including Switzerland and its financial sector – it has been a pleasure and privilege to lead this great bank to where it is today. I would like to thank Colm and the Board for their support and guidance, and I wish Sergio every success. I will support him during a transition period and I know he will lead UBS very effectively in the interests of all.”

Sergio P. Ermotti said: “I am honored to be asked to lead this bank at a time that is so important for all its stakeholders and for Switzerland. I would like to express my gratitude to Ralph for steering UBS so successfully. The task at hand is an urgent and challenging one. In order to do it in a sustainable and successful way, and in the interest of all stakeholders involved, we need to thoughtfully and systematically assess all options. I am conscious of the uncertainty many feel and I promise that, together with my colleagues, our full attention will be on delivering the best possible outcome for our clients, our employees, our shareholders and the Swiss government.”

This Macro-Driven Volatility is an Opportunity for Value Investors

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U.S. stocks were lower in February as the market’s repricing of the Federal Reserve’s rate-hike expectations gave back some of January’s gains. It was a year ago this month that the Fed announced its first rate hike since 2018 as it sought to lower inflation. Recent data suggests that the Fed has quelled some of the inflation surge, but the Fed’s credibility remains in question after initially dismissing inflation’s non-transitory warning signs.

Macroeconomic data has driven most of the market’s volatility for the past six months, and February was no different. The Fed is trying to thread a needle to execute a soft landing that beats inflation and avoids a recession. As investors wait for positive momentum, we see this macro-driven volatility as an opportunity. Mr. Market’s panic and euphoria around inflation prints often create greater discounts to intrinsic value, which is exactly what we are looking for.

Growth stocks have substantially outperformed value stocks to start 2023, and we believe this creates an opportunity for us Value Investors. The “January Effect”, in which laggards from the previous year outperform in the first few weeks of the new year, was especially pronounced to start the year. This price movement has had little to do with fundamental value, but rather is based on more short-term trading dynamics. Rising interest rates will put a premium on the near term cash flows, which we prize in our stock selection process. Inversely, this has pressured and will continue to pressure growth stocks that have longer dated cash flow expectations.

The Convertible market followed equities lower in February after a strong start to the year. Companies that reported earnings this month generally reported strong quarters with cautious outlooks for the year as they remain very focused on expense reduction and profitability over growth. With many convertibles trading more like fixed income than equity equivalent, this focus should benefit convertible holders.

Convertible issuance picked up in the month of February, with attractive terms. We expect companies to use convertibles when raising capital this year to manage interest expense and extend maturities in a covenant lite structure. We believe many companies have delayed coming to the market and converts offer an attractive way for companies to add relatively lowcost capital to their balance sheets. Continued issuance allows investors to stay current and by selectively layering new issues into their, they are able to maintain the asymmetrical risk profile we continue to believe in.

Despite a number of positive developments in the Merger Arb space, setbacks in several deals, plus the volatility in the markets and a return to “risk-off” trading, lead to wider spreads on a mark-to-market basis. In Standard General’s acquisition of Tegna, Inc., the FCC issued a surprise Hearing Designation Order (HDO) which could potentially extend the deal’s timeline beyond the merger agreement‘s termination date.  More broadly, the recent elevated market volatility and uncertainty over the Federal Reserve’s trajectory resulted in wider spreads, thereby creating opportunities for us to earn greater absolute returns.

Although markets have gyrated and spreads have widened generally, there were reasons for optimism as a pair of deals that had become the subject of extended antitrust scrutiny won regulatory approval and closed in February. In addition, several notable deals closed including STORE Capital, which was acquired by a consortium led by GIC for $14 billion, KnowBe4 Inc., which was acquired by Vista Equity Partners for $4 billion, and CinCor Pharma Inc., which was acquired by AstraZeneca for $1 billion.

Despite interest rate and market volatility, companies continued to announce new acquisitions in February and March. So far in March SeaGen (SGEN-$200.30-NASDAQ) agreed to be acquired by Pfizer for $41 billion in cash, Univar Solutions (UNVR-$34.68NYSE) agreed to be acquired by Apollo Funds for $8 billion in cash, and Qualtrics (XM-$17.65-NASDAQ) agreed to be acquired by a consortium led by Silver Lake Management for $10 billion.

José Carlos González: “The flexibility of FlexFunds’ solutions is superior to that offered by an AMC”

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Photo courtesyJosé Carlos González, Founder & CEO of FlexFunds

José Carlos González, Founder & CEO of FlexFunds, explains in an interview with Funds Society how FlexPortfolio, an ETP that offers access to the performance of an underlying portfolio managed by an investment advisor, works and what its advantages are over actively managed certificates (AMCs). González, co-founder and former head of Global X, a New York-based ETF provider, also outlines the client profile of this asset class and discusses which ones he considers most attractive in the current market environment.

What is the FlexPortfolio?

The FlexPortfolio is an ETP that offers access to the performance of an underlying portfolio managed by an investment advisor or portfolio manager, where the assets are liquid or listed. To make an analogy, the FlexPortfolio is similar to an ETF in the United States or an investment fund in Europe.

How do you coordinate creating and administering individualized ETPs while keeping management costs contained?

The process of setting up an ETP is a complex one, involving several service providers with different roles, but FlexFunds makes it simple for its clients. Each firm is involved in a specific area of ETP or FlexPortfolio creation and administration, and FlexFunds coordinates all of these service providers. Some of the most prominent are BNYM as issuing and paying agent, APEX, Intertrust as a trustee, and Interactive Brokers as one of the main custodians. We work with world-class service providers.

One of FlexFunds‘ main achievements over the years has been to “industrialize” this ETP issuance process to keep costs competitive for our clients through investments in state-of-the-art technology platforms and a great team of people. This makes the process efficient: we can issue a FlexPortfolio in half the time and at less than half the cost of any alternative investment vehicle.

What are the advantages of the FlexPortfolio over actively managed certificates (AMCs)? 

The FlexPortfolio has aspects in common with actively managed certificates (AMCs). For example, both are funds that allow third-party management. One of the main differences is that AMCs are usually structured and issued by banks, mainly Swiss or European. In contrast, in the case of FlexFunds, the issuer is an Irish SPV (Special Purpose Vehicle), so the credit risk is more easily avoidable. This is especially relevant at certain times, such as the current one, with the recent episode with Credit Suisse.

Could you explain what your greater flexibility and the absence of restrictions on the rebalancing of the underlying account vs. AMCs consist of?

The flexibility of FlexFunds solutions is superior to that offered by an AMC. Let’s take as an example the FlexPortfolio with custody at Interactive Brokers. The portfolio manager has direct access to the trading account of this custodian. They control subscriptions and redemptions of the assets they deem appropriate, according to the investment strategy specified in the prospectus. The variety of products that can be securitized and operated is huge: stocks, bonds of many markets, indexes, futures, options, etc…

Regarding trading hours, our products can be traded practically 24 hours a day without being subject to European trading desk hours.

What does it mean that the FlexPortfolio is “Euroclearable”?

This is one of the fundamental features of the product, and it is also crucial. The fact that our solutions are “Euroclearable” means that financial intermediaries and broker-dealers can buy and sell the product on behalf of their clients. This is essential for investment advisors and clients who want consolidated statements of their positions.

Can I trade the portfolio 24 hours a day?

Yes, as long as the underlying market is open. The investment advisor is free to decide what to buy and what to sell.

Does the presence of leverage in the strategies increase risk?

Many of the strategies that our clients choose when launching ETPs are composed of long/short. In other words, the portfolio manager can be “long” in equities and take short positions. The purpose of many long/short strategies is to reduce volatility.

Our solutions allow our clients access to portfolio margin, providing leverage if the client desires.

For what type of client does FlexFunds recommend this type of product?

Our solutions and ETPs benefit investment advisors with a captive client base who want to repackage their own investment strategy for distribution. One of the advantages offered by the product is that it allows cost reduction through centralized account management and administration instead of separate accounts for each client.

It is also useful when the advisor wants to access private banking and broker-dealers. Our clients can do this through Euroclear and Clearstream.

Is there a particular underlying asset type (or types) that, in the current environment of volatility and uncertainty, is attractive for securitization? Why?

At FlexFunds, we have always had a lot of demand for structuring ETPs from real estate managers. Nowadays, real estate can be interesting because of its inflation hedging capacity, and by definition, it is a product with less volatility than equity markets. At FlexFunds, we are experiencing a lot of demand for repackaging real estate funds, REITs, etc…

José Carlos González’s LinkedIn profile.