iCapital announced that iCapital Network Canada (“iCapital Canada”) has been appointed Investment Fund Manager in Canada for Prime Quadrant Alternative Investment Access Funds, where iCapital will provide all administrative functions associated with managing these funds, the firm said in a press release.
Prime Quadrant is a leading trusted advisor and consulting firm for ultra-high-net-worth families in both Canada and the U.S.
This partnership, in addition to iCapital Canada’s 40+ Canadian funds and a previously announced partnership with Sterling Global, firmly positions iCapital Canada as a trusted technology partner to deliver a comprehensive digital investing experience for Canada’s leading wealth advisors and asset managers.
This is the first time iCapital has established a strategic partnership with a family office advisory firm to manage the administration of an existing platform. This partnership represents the type of opportunities iCapital can provide for firms in the independent wealth space to more efficiently scale their alternative investing businesses, the release added.
“Prime Quadrant is an innovative industry leader within the high-net-worth community, and iCapital is honored to be entrusted with the investment fund management responsibilities of their Access funds,” said Lawrence Calcano, Chairman and CEO of iCapital. “We believe that the multi-family office, independent RIAs, and the dealer wealth channel represent an outstanding opportunity for us to create industry-leading solutions. Our goal is to provide a single platform that utilizes our market-leading technology and operating system, offering advisors the tools they need to achieve better scale and efficiency for their alternatives business.”
iCapital Canada assumes the administrative functions associated with the running of alternative funds for Prime Quadrant’s clients, while Prime Quadrant remains the portfolio manager handling the selection of the underlying investment managers and strategies. Prime Quadrant has built a world-class platform, which includes top-tier private equity, real estate, private debt, venture capital, and hedge fund Access funds.
iCapital’s technology will be leveraged to streamline and automate the onboarding, subscription processing, and lifecycle operations for Prime Quadrant Access funds while providing support to the firm and its ultra-high-net-worth clients. In addition to managing Prime Quadrant’s existing alternatives Access funds, iCapital Canada will provide administrative support to the firm when launching new alternatives products in the future.
“Our relationship with iCapital will ensure Prime Quadrant can scale its ability to meet and exceed our clients’ expectations by leveraging iCapital’s technology and resources to continue developing creative solutions for our families,” said Mo Lidsky, Chief Executive Officer of Prime Quadrant. “We are excited to benefit from iCapital’s complete end-to-end solution and operating system to help simplify the many post-trade management activities for our families.”
The Committee for Economic Development (CED) offers solutions for business and policy leaders to proactively respond to the AI transformation by equipping workers with the knowledge and tools to adapt and thrive, according to its latest report Future-Proofing the Workforce for the AI Era.
AI is increasingly and rapidly transforming the U.S. economy, with the potential to have a tremendous impact on “how we work, live and innovate,” the paper posits.
The AI revolution can help mitigate lackluster productivity growth and one of the most severe labor shortages in the nation’s history by driving efficiency throughout the economy.
Navigating the transition to an AI-integrated economy will require a comprehensive and collaborative strategy from public policy, business and education leaders, add experts from The. Conference Board.
As the solutions report emphasizes, maximizing AI’s potential while mitigating its risks requires a collaborative and proactive approach from policymakers, business leaders, educators and all those who have a stake in determining how this technology will transform society.
The impact of AI on workers and the economy is simply too large and far-reaching to ignore. The public and private sector must work together to build a future-ready workforce poised for success in the AI era, with the skills and adaptability needed to thrive in a rapidly changing economic landscape.
CED’s solutions report offers key recommendations for preparing the workforce for the future and thriving in the AI era:
Expand future-oriented education and workforce development opportunities.
Streamline the approval process to expand the Registered Apprenticeship Program.
Enhance educational offerings related to science, technology, engineering and mathematics (STEM) and computer science
Foster a growing pool of well-trained technology and STEM educators
Increasing the use and recognition of credentials that can be accumulated
Provide targeted federal and state support for workers displaced by AI disruptions
Allocate federal funding for AI research
Enhance government AI expertise and capabilities.
Business leaders’ role in overhauling organizational structure and workflows.
The article was prepared with information pertaining to The Conference Board report available at the following link.
The future of wealth management will be shaped by scale, productivity, and growth, with a focus on innovation and flexibility in the face of increasing competition. Jim Crowley, Senior Executive VP and Global Head of Pershing emphasized the importance of technology and data, highlighting the potential vulnerability of those who fail to adapt. At the INSITE24 inaugural keynote address in Nashville, the conversation underscored the need for wealth managers to stay ahead of the curve and embrace new technologies to remain competitive and relevant.
This year marks BNY Mellon’s 240 anniversary, and Pershing’s classic yearly INSITE gathering is breaking records hosting more than 2,100 wealth managers from over 21 countries.
Delivering Exceptional Products and Services
Crowley emphasized the importance of delivering the best products and services to clients. This means providing solutions that meet their evolving needs and expectations, and continuously improving the overall client experience. By doing so, BNY Mellon can demonstrate its commitment to delivering value to its clients and build trust in the process.
Emily Schlosser, Chief Operating Officer at BNY Mellon Pershing, highlighted the importance of investing in areas of the business that clients find most valuable. According to Schlosser, technology and data solutions are high priorities for clients, and BNY Mellon should continue to invest in these areas to stay ahead of the curve. This includes leveraging innovative technologies and data solutions to provide more efficient and effective services to clients.
Strengthening Partnerships with Advisors
Crowley also emphasized the importance of working closely with advisors to understand their challenges and customize solutions that meet their needs. By partnering with advisors, BNY Mellon can leverage its combined scale and resources to invest in innovative technologies and data solutions, and collaborate on initiatives that help advisors operate more efficiently and profitably at larger scale.
In addition to technology and data solutions, other areas of the business that clients may find valuable include trading, lending, investments management, and private banking services. By providing a comprehensive range of services through its integrated platform, BNY Mellon can deliver more value to its clients and build trust in the process.
Mexican markets have reacted negatively to the result of the presidential election held last Sunday in Mexico, which reflected a landslide victory for the ruling party. The main local indicators have their worst day since March 2020, when the pandemic began.
The peso depreciated 3.5%, becoming the weakest currency of the global session, trading at 17.64 pesos after reaching a high of 17.75 units; meanwhile, the main index of the Mexican Stock Exchange plummeted 5.26%.
Likewise, in the face of risk aversion, the 10-year M-bond rate rose 11 basis points to 9.89%, a level not seen since mid-2022.
The markets fear that the overwhelming victory of the ruling party could lead to changes in the Constitution contrary to the free market.
For example, in economic terms, there are concerns about the autonomy of the Banco de Mexico (with a unique mandate to keep inflation low and stable), and the credit rating of Mexico’s sovereign debt due to the large fiscal deficit of 5.8% expected for this year, with a necessary adjustment for 2025 that will reduce the expectation of economic growth.
According to the quick count (PREP) after yesterday’s election in Mexico, and with 75.6% of the votes recorded, the official candidate Claudia Sheinbaum was the winner with 58.66% of the votes, far behind was the opposition candidate Xochitl Gálvez with just over 28% of the total vote.
In the Chamber of Deputies, it is expected that the official party, Morena, and allied parties, will obtain a qualified majority (at least two thirds of the seats).
Likewise, in the Senate, it is expected that the official party, Morena and allied parties, will obtain a qualified majority (at least two thirds of the seats), while in the Senate, a simple majority is projected for Morena and its allies (over 50% of the seats, but below the qualified majority).
This opens the door for the new president to make changes to the Constitution, and even to approve the changes proposed by the current president next September when the new legislature takes office.
In economic terms, the autonomy of the Banco de Mexico and the credit rating of Mexico’s sovereign debt are of concern.
It is worth remembering that almost 80% of peso transactions are speculative in nature, so the change in the balance of risks on Mexico affects the exchange rate by making it less attractive as an investment.
Challenges for Sheinbaum
After her victory yesterday, economic analysts have warned that the new president Claudia Sheinbaum will have an adverse scenario at least at the beginning of her term, and will have to face long-term challenges that are structural in the Mexican economy, among them stand out:
Reducing the fiscal deficit, improving water and electric power infrastructure, modifying the business model of the oil company Pemex, increasing GDP per capita, boosting fixed investment of private origin, taking better advantage of the nearshoring opportunity, reducing labor informality and improving the quality of education and health services.
However, given the current government’s proclivity to spend on social programs without worrying about generating investment, economists wonder what room for maneuver the new president will have in the economy to face these challenges.
The Bahnsen Group, a national wealth management firm with $5.5 billion in assets under management, announced plans to open a new office in West Palm Beach, Florida.
The office will open in July 2024 and is located at the One Clearlake Centre at 250 S. Australian Avenue in West Palm Beach.
Jeremy Polon, The Bahnsen Group’s Associate Private Wealth Advisor, will relocate to the West Palm Beach office, from Newport Beach, California, and serve clients in the Palm Beach region. The Bahnsen Group manages upwards of $250 million in client assets based in Florida, with clients throughout the state in a dozen different cities.
Brian Szytel, Co-Chief Investment Officer and Partner, will drive The Bahnsen Group’s expansion in Florida and lead the search for additional financial advisors and operations staff for the new West Palm Beach office.
“The Florida market is already a substantial part of our business, and it has been a priority for us to establish a beachhead in Florida for several years. There are few states in the country governed as well as Florida, and we intend to live up to that high bar in what we bring to the market,” said David Bahnsen, Managing Partner of The Bahnsen Group. “Having a senior leader like Brian drive this expansion and moving next-gen talent like Jeremy to the market is a sign of our seriousness in the endeavor.”
West Palm Beach represents the 8th office location for The Bahnsen Group, with other offices in Newport Beach, California; New York City; Minneapolis, Minnesota; Nashville, Tennessee; Austin, Texas; Phoenix, Arizona; and Bend, Oregon.
“This is going to be a significant undertaking for The Bahnsen Group and provide us the capacity we desire to properly serve clients in Florida,” said Szytel. “We believe the Palm Beach region will over time become one of our largest offices in terms of client and asset stewardship.”
All 63 employees of The Bahnsen Group are in-office five days a week at all office locations.
White Bridge Capital, a cross-border real estate investment firm, is extending its reach to Texas to cater to global family offices, high-net-worth individuals, and overseas entities seeking to benefit from the state’s robust economic expansion and the resulting impact on its flourishing real estate market. The portfolio encompasses multi-family residences, build-to-suit properties, industrial facilities, and commercial developments across the state.
In Texas, White Bridge Capital will be spearheaded by newly appointed Partner Nat Parsons, a third-generation developer by training and leading real estate and construction veteran with nearly two decades of experience, including the banking sector.
Co-founded by Tommy Campbell and Regina Garcia Handal, with headquarters in Miami, Florida and operations in Mexico City, White Bridge Capital sources real estate deals, structures investments, secures financing for underlying assets, and manages client investments throughout the real estate development cycle.
“The expansion to Texas marks a significant step in the firm’s growth and its intent to have a strategic physical presence to look after our clients’ overall interests,” said Campbell who added that “investors are focused on long-term appreciation and greater control, and White Bridge Capital, with our ‘boots on the ground’ approach, stands ready to source real estate investments in Texas that offer clients active management.”
Cross-border family office real-estate investments across the Americas are on the rise, propelled by macroeconomic and geopolitical drivers. White Bridge Capital is bridging this investment opportunity with its unique customized investment platform underpinned by high-touch, local intelligence, and a robust network of experts across the Americas.
“Nat is an outstanding business leader. His extensive experience and strategic vision in managing complex real estate deals, leading construction projects and teams, will be invaluable to our firm and clients,” said Garcia Handal. “In partnership with Nat, we look forward to our Texas office thriving into the future,” she added.
A graduate of Texas A&M University, Nat holds a master’s in business administration and a bachelor’s in construction science, focusing on business, project planning, and construction management of high-quality facilities. A proud and devoted father, Parsons is a U.S. rugby player, the son of architects and grandson of Nathaniel E. Parsons, president of N. E. Parsons Sheet Metal and Roofing Company 1924.
“White Bridge Capital’s leadership, client base, and market reach are unparalleled,” said Parsons. “Together with Tommy, Regina, and Texas’ pro-business and investor-friendly policies, I look forward to serving new and existing clients. The opportunities to grow in Texas are endless.”
Texas is an appealing destination for investors, particularly those from Latin America, given its overall business-friendly environment, infrastructure development, technological advancements, and strong economic growth – accelerated by trade with Mexico – attracting diverse industries to the state, resulting in population growth and an attractive real estate market.
Santander Bank announced the opening of its second Work Café in the United States, located at 3036 Grand Avenue in the heart of Coconut Grove. The Work Café is intended to serve as an innovation hub for local businesses and the broader community, the firm said.
“The South Florida region is an integral component of the Bank’s multiyear strategy to transform into a leading national, digital bank with branches. We’re excited to bring more than just banking to the Coconut Grove community. Our new Work Café provides a relaxed environment where customers, local business owners and entrepreneurs can seek personalized financial guidance or simply work, take meetings or develop their next big project,” said Patrick Smith, Head of Consumer & Business Banking at Santander Bank. “This space is an extension of our commitment to people and businesses throughout the communities we serve. The Work Café offers them the space they need to prosper.”
Open to the public, the Coconut Grove Work Café is an inviting co-working space inclusive of private meeting rooms that are fully equipped with the latest tech capabilities to foster collaboration.
Along with expertise provided by the Santander Bank team, customers and non-customers can enjoy complimentary Wi-Fi, a cup of coffee, latte or espresso from the premium self-serve amenity bar as well as snacks sourced from nonprofit organizations and women-owned businesses. As customers continue to prefer a digital-first experience, Santander Bank will provide enhanced onsite personal engagement by Work Café team members, who can offer side-by-side assistance to customers utilizing mobile and ATM capabilities for everyday deposits and withdrawals.
Coconut Grove is home to the second Santander Work Café in the United States, joining the first location in the Williamsburg neighborhood of Brooklyn, New York. Because of its collaborative nature and seamless connectivity, the Work Café model is popular across the Bank’s global footprint. Since its introduction in Chile in 2016, Santander Work Cafés have spread to more than 200 locations in nine countries including the United Kingdom, United States, Brazil, Mexico, Chile and Spain, the firm added.
“The opening of this Work Café underscores the Bank’s efforts to provide a digital-first customer experience within our retail locations and allows our team members to spend more time providing personal assistance and guidance,” said Yajaira Lopez, Head of Branch Banking at Santander Bank. “Whether it’s a traditional branch, Santander Financial Center or Work Café, we’re tailoring our in-person experience to customer preferences. Combined with our leading digital capabilities, we’re equipped to help customers bank anytime, anywhere.”
Santander Bank will celebrate the opening of the Coconut Grove Work Café on Friday, June 7, 2024. In addition to live music from local band French Horn Collective, Miami-based artist ABSTRK will be working on a project live at the Work Café. Miami food and beverage vendors who have participated in Santander US’ signature Cultivate Small Business program, including Casa Gioia, SmokeHouse Miami, Koffeeology, and Gelato Gourmet, will be onsite to provide sweet treats, small bites, coffee and gelato.
As part of its commitment to small businesses and entrepreneurs, the Bank will present a $100,000 contribution to the Small Business Development Center (SBDC) at Florida International University (FIU) during the grand opening, representing an ongoing commitment to the Cultivate Small Business program in the region to provide Miami-Dade small businesses with the expertise they need to take their company to the next level.
In addition to the opening, Coconut Grove Work Café will host free networking events and programming throughout the year designed to help local businesses and the community.
The SEC’s Office of Investor Education and Advocacy has issued an alert to investors, warning about the increasing use of crypto assets in scams targeting retail investors. Crypto assets, which include cryptocurrencies, coins, and tokens, are being exploited by fraudsters looking to capitalize on their popularity, according to the regulatory body.
Fraudsters often resort to technological innovations to perpetrate their scams, and investments related to crypto asset securities are no exception. “Despite ongoing efforts by federal and state regulators to combat these frauds, recovering stolen money remains a challenge,” the statement says.
Fraudsters use advanced technologies to hide their identity and the trail of funds, often sending them overseas, which makes recovery difficult, the statement adds.
The most common strategies used by fraudsters are (i) contacting through social media and text messages, (ii) exploiting emerging technologies, (iii) impersonating trusted sources, (iv) “pump and dump” schemes, and (v) demanding additional costs. The SEC explains in more detail how they operate in each case.
Contacts on Social Media and Text Messages: Scammers often initiate contact with potential victims on social media platforms, dating sites, and messaging apps, or through unsolicited text messages. They pretend to be friends of the victim or claim to have contacted them by accident, gaining their trust before disappearing with the invested funds. This type of scam, known as “pig butchering,” involves creating a fake friendship or romantic relationship to convince the victim to invest.
Exploitation of Emerging Technologies: The growing popularity of artificial intelligence (AI) is used as a lure to attract investments in crypto assets. Scammers use AI-related terms and claim to use bots to find the best investments, but their real goal is to steal investors’ money. Additionally, they use AI to create realistic websites and marketing materials, as well as deepfakes of celebrities or government officials to deceive investors.
Impersonation of Trusted Sources: Communications that appear to come from government agencies, including the SEC, can be forged by scammers. Using AI technology, scammers can impersonate friends or family members, posting messages from hacked accounts to promote fraudulent investments. It is vital to verify any investment offer, even if it appears to come from a reliable source.
Pump-and-Dump Schemes: In these schemes, scammers promote crypto assets, including “memecoins,” on social media to artificially inflate their price. Once the price rises, the promoters sell their assets for a profit, leaving other investors with significant losses when the price drops abruptly.
Demand for Additional Costs: Scammers may demand the payment of additional costs, fees, or taxes to allow the withdrawal of funds from an investment account. This advance fee fraud tricks investors into paying more money with the false promise of recovering their investment. They may also request refunds of money supposedly deposited by mistake, or deceive investors who have already lost money by promising to help them recover their funds, only to scam them again.
Precautions for Investors
To protect themselves from these frauds, the SEC recommends not making investment decisions based on advice from people known only online or through apps. Do not share financial or personal information, and verify the legitimacy of any investment offer, especially those that require the use of crypto assets to make payments. Staying informed and cautious is key to avoiding falling into the complex strategies of scammers.
Bolton Global Capital, has announced a strategic partnership with Wealth Management GPT, a pioneer in artificial intelligence, to provide Bolton’s advisor network with innovative generative AI tools for highly effective and personalized messaging as well as financial education.
This collaboration combines the expertise of both companies to offer a state-of-the-art AI solutions platform tailored for financial advisors, the release said.
The tool equips advisors with multi-language marketing capabilities, enhanced personalized communications, streamlined workflows, and efficient content generation. The platform enables advisors to generate content in 20 seconds or less, offering features such as case templates and the ability to create 500-word blogs instantly.
Additionally, it can analyze the context and purpose of advisor messaging to deliver a differentiated client value proposition. Bolton’s implementation of Wealth Management GPT has multi-language capabilities, with the ability to create AI-generated content in English, Spanish, and Portuguese – a feature that is exclusive to Bolton, to suit the needs of its international clientele.
“Our partnership with Wealth Management GPT provides financial advisors with unprecedented potential to better serve their clients and achieve a superior outcome. With its advanced capabilities and intuitive interface, this tool is set to be a game-changer” said Matt Beals, Bolton’s Chief Operating Officer.
Wealth Management GPT Founder Marc Butler added “We are ecstatic to be partnering with the Bolton team to deliver the power of Wealth Management GPT to their advisors and help them continue to enhance their industry leadership.”
This partnership marks a significant step forward in leveraging AI to enhance the efficiency and effectiveness of financial advisory services.
Photo courtesyMurat Kalkan, Head of BBVA Global Wealth Advisors
BBVA Group has returned to the US Offshore business by establishing a new entity called BBVA Global Wealth Advisors, and locating an office in Miami due to the high demand from Latin American clients seeking the service, said Murat Kalkan, head of the new office located in the city’s financial center, to Funds Society.
In the office at 501 Brickell Key, which still smells new, Kalkan turns his back on the sun’s reflection through the windows to receive Funds Society and talk about the firm’s new objectives in South Florida.
“The main objective is to serve BBVA group clients in Latin America for their international wealth management needs,” the executive responded, clarifying that this was a short and simple answer.
However, Kalkan elaborated to provide context regarding BBVA’s “strong presence” in Latin America. In this regard, the Spanish bank projected that the US has been the main and largest offshore wealth management center for these clients for a long time.
According to estimates from consulting firms such as McKinsey and Boston Consulting Group (BCG), offshore share of LATAM individuals’ financial wealth ranges between ~30% and ~45%,and the largest booking center for those funds offshore is the US.
In 2021, BBVA Group sold its US banking entity to PNC Bank, and that sale included the US private banking unit, including the investment advisory business in the United States for international clients. However, “strong demand” led BBVA to conclude that “its own investment advisory service in the United States for the group’s high-net-worth clients was a fundamental component of its aspirations.”
Regarding the client profile, Kalkan insisted that the institution is “primarily focused on serving Latin American clients” and currently does not plan to target Spanish clients.
“We project that the US market has been a less prominent offshore option for BBVA Group clients in Spain, and those outside of Latin America. For those clients, other international wealth management service centers like BBVA Switzerland or BBVA Spain play a key role,” he explained.
The executive is an industrial engineer with an MBA from The Wharton School and has been with the firm for five years, having worked in New York and Houston offices.
US Offshore Business
Kalkan analyzed the business from various angles. Firstly, from a market perspective, US Offshore has been “generally attractive, driven by economic stability, the strength of the legal system, the solidity of financial infrastructure, access to opportunities, as well as the strength of the currency, which has recently had more weight,” he commented.
Given that Latin America is believed to be the leading source of US Offshore reserves, and that LATAM clients are believed to maintain a larger percentage of their wealth offshore than clients in all other regions, the US is “a bit different” from other offshore booking centers in the world. In other words, clients who have their wealth in US Offshore accounts allocate a much larger portion of their wealth to these accounts compared to clients from other regions who have their money in other international centers.
In Kalkan’s opinion, “this increases the importance of trust, the importance of stability, the importance of the relationship with the wealth management provider and its professionals.” Additionally, the head of BBVA GWA mentioned a Deloitte study showing that the US Offshore business has been one of the fastest-growing booking centers among offshore centers in the world.
“In my opinion, with the relative risk of geopolitical and economic instability in the LATAM region vs. other parts of the world, it is likely that this growth will continue in the near future,” Kalkan estimated, recalling that historically the offshore business was “highly competitive.” However, he noted that some global players have exited the business or significantly increased the minimum asset thresholds for their accounts.
“Moreover, from a wealth management service standpoint, we see that fee-based advisory share in US offshore is growing fast, but remains well behind US domestic market levels. Hence, I expect that this catch-up game is likely to continue.
Lastly, from an investment perspective, the point to highlight is the increase in client preferences for ETFs and alternative products.
Difference Between Domestic and Offshore Clients
Kalkan, based on his conversations with both U.S. residents investing domestically and Latin American residents investing in US Offshore, highlighted his personal views on the most important differences.
In his opinion, international clients and American clients have similarities but also some fundamental differences in their objectives, their decision-making criteria in selecting their advisors, or even the types of products they seek to have in their portfolios.
Firstly, from the objective of getting wealth management services in the US standpoint, American clients primarily seek to “maximize returns or optimize their life after retirement,” and while international clients also care about these they mainly seek to protect and preserve their wealth: both from political or currency risks they may face in their home countries.
“Therefore, their objectives are similar but also different,” he summarized.
Secondly, if he had to talk about the key factors in their decisions to go with a specific private bank or wealth management provider, American clients seek more product capabilities or institutionalization, professional service, or the track record of the advisors. On the other hand, offshore clients also care a lot about the availability of products and professional service, but “above all, they seek a strong relationship with their financial advisor or cultural synergy, which includes simply speaking their own language and understanding their customs and traditions, as well as attentive service,” he explained.
“In my opinion, there are obviously many similarities but also some significant differences between American clients and LATAM clients; and understanding the intricacies of LATAM clients’ needs and behaviors is critical to serve those clients well. At BBVA, we are proud of how well we understand the complexities of LATAM clients, which is something I believe is a differentiator for us,” Kalkan concluded.
BBVA announced the opening of its Miami office on March 14 to serve high-net-worth Latin American clients. According to the information provided by the company, in this initial stage, it will primarily serve Latin American clients interested in having an international investment advisory solution in the United States. It will mainly be offered to non-resident clients ready to invest more than $500,000.
