Generation Z and Millennials Are the Most Likely to Invest in the U.S.

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Generación Z y Millennials los más propensos a invertir en EE. UU.
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64% of Americans are inclined to invest, and most of the potential investors in 2025 belong to Generation Z and Millennials. They represent 55% compared to 42% from the “Pop Generation,” meaning Generation X and Baby Boomers+, according to a YouGov report on investment trends in the U.S. this year.

The study analyzes what Americans invest in, explores generational differences, and also highlights the most in-demand investment products and trending investment channels. The report reveals clear differences across various age groups.

One interesting finding relates to the crypto world. 83% of investors familiar with cryptocurrencies consider them a risky investment. However, more and more Americans are investing in cryptocurrencies. This is especially true among Generation Z investors, who are nearly four times more likely to own cryptocurrencies than to have a retirement account: 42% of them own crypto compared to 11% who have a retirement account. Despite the perceived risks, 65% of Generation Z plans to invest in cryptocurrencies in 2025.

Millennial investors are also more likely to own cryptocurrencies (36%) than to have a retirement account (34%). In contrast, 64% of Baby Boomers+ have a retirement account, and for Generation X, the percentage is 52%. These two older groups invest 24% (Gen X) and 8% (Baby Boomers) in crypto. Only 8% of Gen Z (aged 18 to 27) invest in mutual funds, compared to 44% of those over 60 (Baby Boomers).

The main reason why American investors do not invest is a lack of money (46%), more than negative experiences (5%). Another key finding from the study is that 15% are paying off debt instead of investing. These percentages rise to 24% and 25% for Generation X and those over 60, respectively.

On the other hand, just over half of Baby Boomer and Silent Generation investors (51%) work with a financial advisor, compared to 32% of Generation Z. Additionally, 66% of investors from this younger generation consider ESG (Environmental, Social, and Governance) criteria important when selecting a financial product. Among Millennials, the percentage is 63%, compared to just 26% of older investors (Baby Boomers+).

44% of American investors use banks or credit unions to acquire their investments, while 35% do so through brokers. However, almost half (48%) of the youngest generation (Z) primarily use cryptocurrency exchanges; banks come in second place, with 40%.

“While different generational life stages naturally correlate with different levels of investment capital and risk appetite, we are seeing this trend materialize around cryptocurrencies. Younger generations are especially eager to invest in a more diversified way,” said Todd Dupey, Senior Vice President of Research at YouGov America, in a statement.

The report also notes that real estate platforms represent the most popular investment channel across all generations, with a projected growth score in 2025 of +10.2 for Generation Z, +5.2 for Millennials, +3.1 for Generation X, and +0.5 for Baby Boomer+ investors.

Schroders Registers Its First Active ETF Icav for the European Market

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Schroders lanza su primer ETF activo ICAV en Europa
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The growth of the European active ETF market continues. This time, Schroders joins other asset managers and takes a further step by registering such a vehicle in Ireland.

It is worth noting that the firm already operates with active ETFs in the U.S. and Australia, and now aims to bring its expertise to the European market.

As explained, this active ETF has been launched as an Irish collective asset management vehicle under the Irish Collective Asset-Management Vehicles Act of 2015.

Regarding the registration of the new active ETF, Schroders states, “As the industry evolves and the range of fund structures expands, we constantly review what our clients demand and which structures are most effective for managing their investments. With the growth of the active ETF market across Europe, we are assessing where offering these new fund structures can add value for our clients.”

Trading Fintech XTB Obtains Securities Agency License in Chile

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XTB obtiene licencia de agencia de valores en Chile
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XTB, a trading fintech for individual investors, is consolidating its operations in Chile through a securities agency license. The firm announced in a statement that it has obtained this authorization from the Comisión para el Mercado Financiero (CMF), the local regulator.

Thanks to this authorization, the company will be able to offer investments in international stocks, ETFs, and derivatives. This will complement an existing lineup of financial instruments, which primarily features CFDs on various underlying assets, such as currencies, commodities, indices, stocks, ETFs, and cryptocurrencies.

The company described this as a “significant milestone”, as it strengthens its foothold in Latin America. The license, they noted, reinforces XTB‘s presence in “a dynamic region that offers multiple market opportunities” for brokerage firms.

Now, they are focusing on operational and technological developments to begin the onboarding process—with XTB’s tools integrated into its app—welcoming their first Chilean clients in the first half of the year.

Looking ahead, their goal is to continue regional expansion in 2025. They confirmed that they are already well advanced in the process of obtaining the necessary licenses to operate in Brazil.

“Looking at the retail brokerage market outside of Europe, we recognize the enormous potential of Latin America. Chile stands out as a key player in XTB’s global growth vision, and I look forward to welcoming the many new clients we will gain under our new license,” said Omar Arnaout, the company’s CEO, in the press release.

Founded in Poland—where its headquarters remain—in 2004, XTB reports 1.4 million clients worldwide. In addition to several offices across Europe, the company also has a location in Dubai. Santiago is currently its only base in Latin America

Emerging Technologies: A Look at the State of Regulation in Latin America

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Tecnologías emergentes y su regulación en América Latina
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The U.S. SEC announced last week a regulation on so-called “emerging technologies” that includes both digital currencies and artificial intelligence. Countries like Brazil, Mexico, or Chile already have advanced legislation on cryptocurrencies, but AI is being addressed separately.

What do cryptocurrencies have to do with AI? If we read the SEC‘s statement, U.S. authorities seem concerned with fraud prevention as well as promoting the technology sector.

Brazil, a Pioneer in Cryptoasset Regulation, in the Midst of AI Debate

The National Congress of Brazil is currently debating AI legislation, seeking to balance innovation and the protection of fundamental rights. In December 2024, a bill was passed that proposes a regulatory framework and whose main mission is to protect the intellectual property of creators. On the other hand, cryptoasset regulation has been in place for several years; the first law was passed in 2022 and defines virtual assets as a regulated category. The Central Bank must take on the role of regulatory body, ensuring greater oversight of exchanges and transactions. However, the market is still waiting for secondary measures to clarify aspects such as regulatory compliance and investor security. Brazil is the country with the highest adoption of cryptoassets in Latin America, a sector growing in e-commerce, remittances, and cross-border payments. Traditional Brazilian banks have started offering digital asset services.

Chile and Its National Center for Artificial Intelligence

The case of Chile is somewhat similar to that of Brazil: cryptocurrency regulation dates back to 2022, and parliament is currently debating artificial intelligence. However, the Andean country already has a slight advantage as since 2021 it has had a National Center for Artificial Intelligence (CENIA). The Chilean regulation on digital assets—or Fintech Law—defines a cryptoasset as “a digital representation of units of value, goods, or services, with the exception of money, whether in national currency or foreign exchange, which can be transferred, stored, or exchanged digitally.” The Comisión para el Mercado Financiero (CMF) is responsible for regulating the sector.

The Chilean government published its first national AI policy in 2021. Since then, the country has created CENIA, promoted AI-focused PhD scholarships through the National Agency for Research and Development (ANID), launched 5G networks, developed the first AI doctorate in Chile and Latin America, and implemented the Ethical Algorithms Project, among other initiatives. This policy remains in effect, and according to the institutional portal of the Chilean Ministry of Science, it is anchored in three pillars: enabling factors, development and adoption, and governance and ethics. These definitions resulted from a participatory process conducted in 2019 and 2020. More recently, in May 2024, the government took another step and presented a bill aimed at regulating and promoting the development of this technology. This initiative is still in its first constitutional process in the Chamber of Deputies at the time of this report.

Mexico Awaits the AI Debate

In Mexico, the Fintech Law recognizes cryptocurrencies as digital assets and allows their use as a payment method within the financial system. It also regulates electronic payments, crowdfunding, and digital assets. There are two types of ITFs (Financial Technology Institutions): crowdfunding institutions and electronic payment fund institutions (digital wallets). The law defines virtual assets (cryptocurrencies) as “the representation of value recorded electronically and used among the public as a means of payment for all types of legal acts, whose transfer can only be carried out through electronic means.” The Bank of Mexico (Banxico) supervises processes, and Banxico must authorize virtual assets before ITFs and other financial entities can use them. Regarding AI, there is no regulation in the Mexican financial system.

The Situation in Uruguay and Argentina

In Uruguay, the first Virtual Assets Law was passed in 2024. The regulation equates cryptoassets with securities, meaning they are now under the regulatory framework of the Central Bank of Uruguay (BCU).

In Argentina, before the Milei scandal, there was great anticipation regarding the regulation of digital assets, with a law expected to be approved this year. The South American country ranks second in the region in stablecoin adoption (cryptocurrencies pegged to a fiat currency, in this case, the U.S. dollar) and has a highly developed industry with major projects ahead. Amid a tense political climate, in the coming months, we will see how the discussion progresses in a country that had aspired to regional leadership in the field.

Thornburg Will Focus on Global Fixed Income Opportunities and Risks in Houston

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Thornburg enfoca su estrategia en renta fija global
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Through Thornburg Investment Management’s flagship multisector fixed income strategy, Benjamin Keating, CFA, Client Portfolio Manager of the firm, will present an unconventional perspective on fixed income markets, emphasizing the opportunities and risks that global fixed income offers in the current context.

This will take place during the V Funds Society Investment Summit in Houston, an event for professional investors from Texas and California, scheduled for March 6 at the Hyatt Regency Houston Galleria.

“In today’s fixed income markets, spreads are tight, but yields are high. Historically, this trend suggests that we are heading toward tensions in credit markets,” Thornburg stated in a press release, which concludes with a question: “Is that the right way to look at things, given the new political leadership and potential changes at the Federal Reserve?”

Through a presentation of the Thornburg Strategic Income Fund, the flagship multisector fixed income strategy of the global investment firm founded in 1982, Keating will clarify the uncertainties posed by the current global landscape and the investment opportunities it presents.

Benjamin Keating

The speaker at the Houston event, Benjamin Keating, is a Client Portfolio Manager at Thornburg Investment Management and serves as a liaison between the firm’s portfolio management teams and key investment decision-makers in the industry. He covers a variety of strategies and asset classes, including domestic and international equities, alternatives, and fixed income.

Keating has over 30 years of experience in investment management and joined Thornburg in 2025. Previously, he spent 13 years as Vice President and Portfolio Advisor at Wellington Management Company and also served as Senior Vice President and Portfolio Strategist at Hartford Investment Management Company, among other professional roles.

Academically, he earned a degree in Finance from Siena College and an MBA from Boston University. He also holds the CFA certification.

Trump Offers Residency to Foreigners in Exchange for 5 Million Dollars

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Donald Trump, presidente de EEUU (Wikipedia)
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President Donald Trump continues to signal a shift in U.S. immigration policy. He has now announced the launch of a new card, a “gold card,” which will grant foreigners the right to live, work, and eventually obtain U.S. citizenship after paying 5 million dollars.

“We are going to sell a gold card,” the president declared to the press gathered in the Oval Office of the White House. “You have a green card. This is a gold card. We are going to put a price on that card, around 5 million dollars, and that will give you green card privileges, in addition to being a pathway to citizenship,” he explained.

The initiative—expected to take effect within the next two weeks—marks a shift in the country’s immigration policy, focusing on attracting high-net-worth foreigners. The measure would replace the EB-5 program, the investor visa created in 1992, which allowed foreign investors to obtain a green card in exchange for bringing capital into job-creating projects in the United States. Staying true to his style, Trump described that program as a system full of “nonsense, loopholes, and fraud.”

The new initiative will also provide resources to reduce the U.S. fiscal deficit, which is at record levels. “Wealthy individuals will come to our country by purchasing this card. They will be successful, spend a lot of money, pay a lot of taxes, and employ many people,” the president assured. During the announcement, he was accompanied by Secretary of Commerce Howard Lutnick.

The president emphasized that gold card holders will be “major taxpayers, major job creators.” He then clarified that those who obtain the card will not be required to pay taxes on income earned outside the United States, as long as they are not citizens. “If they create jobs here, they will pay taxes like everyone else,” he explained. “We may be able to sell a million of these cards, maybe even more than that,” said Trump. “If you add up the numbers, they look pretty good,” he said enthusiastically. “If we sell a million, that’s 5 trillion dollars,” he concluded.

Private Debt, Technology, and Talent: The New DNA of Asset Management

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Private debt and technology in asset management
María Fernanda Magariños, Executive Director of Investment Management at Sura Investments

FlexFunds and Funds Society, through their Key Trends Watch initiative, share the vision of María Fernanda Magariños, the newly appointed Executive Director of Investment Management at Sura Investments, a company within Grupo SURA, an investment management firm with 80 years of experience and a presence in Mexico, Colombia, Peru, and Chile, in addition to investment vehicles in the United States and Luxembourg.

A qualified actuary, Magariños is strongly motivated to channel global resources toward Latin America’s sustainable development, bridging economic and social gaps through investment. In her new role, she is responsible for designing investment solutions for pension fund managers, insurance companies, and family offices.

In a challenging and volatile economic environment, her strategy focuses on building long-term, trust-based relationships and ensuring operational excellence—key aspects for institutional clients who must balance profitability and stability when managing third-party assets.

To achieve this, she considers three essential factors: a straightforward client-focused approach, strong talent management to enhance investment strategy execution, and the ability to operate within strict regulatory frameworks without losing flexibility—crucial in maintaining confidence in diverse Latin American markets.

Trends in portfolio and investment vehicle management

Magariños highlights the increasing inclusion of alternative assets in investment strategies. Alternative assets have become an essential diversification tool for institutional investors, who typically manage portfolios with a long-term investment horizon. Traditional assets in Latin American markets do not always offer the depth or returns needed to meet investors’ objectives.

She mentions infrastructure, private debt, and real estate, among the most popular alternative assets. These assets enable greater diversification and contribute to economic development and regional strengthening, adding extra value for investors. In this sense, alternative assets balance risk and return, which is key to meeting institutional clients’ investment profiles.

Another crucial aspect of asset management is the proper selection of investment vehicles. Magariños emphasizes that each client type requires tailored solutions. While insurers may benefit from direct or structured vehicles that optimize capital and reduce regulatory requirements, pension funds find more value in collective investment funds aligned with their operational structures.

The key is not to apply a one-size-fits-all solution but to design customized strategies that balance profitability and risk for efficient and sustainable investment management.

According to Magariños, success in asset management in Latin America depends on a long-term strategic vision centered on client needs and trust-based relationships. The key lies in portfolio diversification, incorporating alternative assets that provide greater stability and returns. Moreover, investment solutions must be flexible and adaptable, with a strong local presence that ensures compliance with regulations without compromising efficiency.

Thus, capital optimization, effective talent management, and the ability to adapt to a constantly changing environment will be fundamental in strengthening asset management in the region, where alternative assets will play a key role in ensuring the growth and sustainability of institutional portfolios.

Which assets will dominate the future?

Looking ahead, María Fernanda identifies a key financial instrument for investors in 2025: private debt. This instrument diversifies portfolios and offers attractive returns in an environment with a limited supply of traditional options. The growing interest in alternative assets also reinforces their role in risk management and returns optimization.

Separately managed accounts (SMA) vs. collective investment vehicles

According to Magariños, separately managed accounts and collective investment vehicles play a crucial role and must coexist in the market. This flexibility allows investment solutions to be tailored to specific investor needs. Sura Investments, for example, offers a wide range of investment solutions, from Latin American alternative assets to third-party funds investing in global assets, adapting to the demands of insurance companies, pension funds, and family offices alike.

When asked about the most important factors investors prioritize when making decisions, Magariños highlights two key elements: the quality of the manager and operational excellence.

Investors increasingly focus on manager profiles, seeking proven experience and a strong track record in investment strategies. In this regard, a firm’s performance is measured not only by returns but also by its ability to deliver efficient operations and timely reporting, which are essential to meeting institutional investors’ regulatory requirements and expectations.

In this context, Magariños underscores the key skills an advisor should have: active listening, effective communication, and a genuine interest in learning. At Sura Investments, these skills are highly valued, as providing expert advisory services to clients is central to their value proposition and a fundamental way to achieve clients’ financial goals.

However, Magariños adds that one must not overlook the advancement of artificial intelligence, which is becoming the new driving force in asset management. AI’s data analysis capabilities have enhanced the personalization of investment solutions and optimized decision-making, enabling the creation of products tailored to client needs making them more competitive and efficient.

The interview was conducted by Emilio Veiga Gil, Executive Vice President of FlexFunds, as part of the Key Trends Watch initiative by FlexFunds and Funds Society.

Will 2025 Be the Year of Private Equity Reacceleration?

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The recent challenges facing the private equity market could be overcome as rate cuts and lower inflation set the stage for an improvement in multiples. According to Rainer Ender, Global Head of Private Equity at Schroders Capital, although 2024 saw a significant slowdown in deal activity, signs of recovery are emerging, suggesting that the private equity market could be more dynamic in 2025.

“Just like in 2023, we have seen wide bid-ask spreads and reduced liquidity. When interest rates rise, so do the financing costs for acquisitions, which lowers the EV/EBITDA. Buyers pay more to secure fewer loans, reducing the amount they are willing and able to offer for assets,” says Ender.

In his view, rising interest rates have put downward pressure on cash flows, while inflation has increased costs for companies that lack proper pass-through mechanisms. Meanwhile, sellers have tried to exit assets when leverage was cheap and multiples were rising. Ender believes this dynamic has created a mismatch between the price buyers are willing to offer and the price sellers are willing to accept. Even amid these challenges, he sees several developments suggesting that 2025 may bring more favorable conditions.

“Although EV/EBITDA multiples for large acquisitions have declined, the global value of deals is increasing, a trend driven by the preference for larger investments in established companies. Exit prices in the global market have stabilized, and there has been a recent uptick in sponsor-to-sponsor exits (where one PE fund sells to another PE fund). However, a significant valuation gap persists, as small and mid-sized company acquisitions are trading at a steep discount compared to their larger counterparts, a trend that suggests a perceived value discrepancy in the market,” Ender points out.

Secondly, he believes that many of the factors putting downward pressure on multiples will dissipate, and the decline in interest rates and lower inflation should lay the foundation for an improvement in multiples. “We also believe that investors could benefit by following the money and considering GP-led secondary transactions. Nearly half of the record-high secondary transaction volume in the first half of the year came from these vehicles, also known as continuation funds. These funds align the financial incentives of GPs and LPs, creating potential benefits for all stakeholders: the original sponsor, new and existing investors, and the company or companies within the new fund structure,” he emphasizes.

Finally, Ender notes that conditions will also favor a focus on small and mid-cap markets, which are diversifying. “Recent history has demonstrated their potential to perform well in periods of volatility, and the law of large numbers (probability theory) makes it inherently easier to generate higher multiples in smaller companies. Operating in small and mid-cap markets also reduces dependence on the still-stagnant IPO market for exits. Moreover, after successfully helping a small or mid-sized company grow into a large-cap company, exits can be larger in the market, where a significant amount of dry powder—capital already raised and seeking opportunities—remains available. If we combine the recent period of volatility with the dot-com crash, the global financial crisis, the eurozone crisis, and the COVID-19 pandemic, we see that the Global Private Equity Index outperformed the MSCI ACWI Gross Index by an average of 8%,” argues the Schroders Capital expert.

Additionally, he highlights that, structurally, the nature of committed capital allows firms to retain ownership of assets during crises and sell them when market conditions are favorable, avoiding the kind of “fire sales” at low valuations. “The generally more rigid nature of private equity also prevents people from falling into psychological investment traps, such as panic selling at the worst possible moment. From a fundamentals perspective, private equity firms tend to have a different sector mix compared to public markets, focusing on less cyclical industries such as healthcare and technology while maintaining lower exposure to banks and heavy industry. Additionally, private equity tends to favor growth and disruption, seeking companies with high expansion potential. They also prefer business models with recurring cash-generating revenues, as these tend to be less volatile,” he concludes.

Why are ETPs the ace-up asset managers’ sleeves?

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Exchange-traded products (ETPs) have become an essential tool for portfolio managers, as highlighted by FlexFunds, offering flexibility, accessibility, and cost efficiency for asset repackaging and management. These financial instruments enable asset managers to efficiently diversify their portfolios, implement tailored investment strategies, and seamlessly adapt to changing market conditions.

What Is an ETP?

An ETP is a financial instrument traded on a stock exchange, similar to equities. It provides access to a benchmark index or a specific asset class, making it easier for managers to construct diversified portfolios with a single transaction. Most ETPs are passive investments designed to track the performance of an underlying index or asset, generally with lower operating costs than actively managed investment funds or mutual funds.

Characteristics of ETPs

  • Passive management: A cost-efficient and transparent option for gaining exposure to an index or asset without the need for constant active management.
  • Simplified diversification: Enables managers to access a broad range of assets through single trade.
  • Liquidity and ease of trading: Can be bought and sold during market hours, with real-time pricing.
  • Flexibility for managers: Can issue shares or debt securities based on demand, adapting to portfolio needs.
  • Transparency: ETP components are published daily, providing managers with a clear view of portfolio holdings.

The growing ETP market

The ETP industry has experienced significant growth since the launch of the first product in 1993. According to independent research and consulting firm ETFGI, as of January 2025, over $14 trillion was invested globally in ETFs/ETPs. In the United States, the market reached a record $10.73 trillion in January 2025, surpassing the previous peak of $10.59 trillion recorded in November 2024. These figures reflect the growing interest in and adoption of ETPs as a key portfolio management vehicle, as illustrated in the following chart:

 

ETPs vs. traditional investment funds

Today, portfolio managers have a wide range of investment vehicles to optimize their strategies. This article focuses on comparing ETPs with traditional investment funds, highlighting their key differences in the table below.

 

FlexFunds: A global leader in ETP solutions

FlexFunds is an internationally recognized service provider for the issuance and administration of ETPs covering listed assets and alternative investments. These solutions are tailored for investment advisors, hedge fund managers, private fund managers, and real estate fund managers.

FlexFunds’ ETPs stand out for their efficiency and versatility, allowing asset managers to design customized strategies and create exchange-listed products with a unique ISIN code listed on the Vienna Stock Exchange and Bloomberg. Among their key advantages:

  • Efficient subscription via Euroclear
  • Flexible portfolio composition: Enables the securitization of multiple asset classes, both liquid and alternative.
  • Cost-efficient structure: Enhances portfolio profitability and optimizes operational expenses.
  • Global access: Products can be acquired from any brokerage account worldwide, facilitating international distribution.
  • Integrated administration: Supported by renowned institutions such as Interactive Brokers and Bank of New York, ensuring security and trust.
  • Direct reporting and transparency: Pricing is calculated and displayed directly on Bloomberg, Six Financial, and investors’ accounts.

With FlexFunds’ investment vehicles, asset managers can access solutions that securitize multiple asset classes, both liquid and alternative. To learn how these solutions can enhance your investment strategy, feel free to contact one of our experts at info@flexfunds.com.

Vontobel SFA Appoints Billy Obregón as CEO and Head of Private Clients for the Americas

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Photo courtesyBilly Obregon, new Vontobel SFA's CEO

Vontobel has announced the appointment of Billy Obregón as Head of Private Clients Americas and CEO of Vontobel SFA (Swiss Financial Advisers).

His role will be effective as of March 1, 2025.

The company also reported that Peter Romanzina, former CEO of Vontobel SFA, will join the Board of Directors, pending regulatory approval.

A week ago, Obregón bid farewell to Deutsche Bank through a message on his personal LinkedIn account. He had spent 23 years at the bank, where he was responsible for U.S. and Latin American client coverage. “I am looking forward to embarking on my next adventure, where I hope to leverage my knowledge and experience in today’s evolving market landscape,” he shared on the professional network.

“His experience and strategic vision will be key to driving Vontobel SFA’s growth and strengthening its position in the wealth management sector across the Americas,” the firm stated in a release.

Based in New York, Obregón brings over 20 years of experience in the financial industry, with a strong track record in wealth management and advisory services. He also worked at DWS, overseeing the distribution and execution of alternative investment opportunities across the Americas, with a special focus on the Latin American institutional client base.

Vontobel’s wealth management business has teams in New York, Miami, Geneva, and Zurich, serving private clients worldwide. In 2022, the firm acquired UBS’s Swiss Financial Advisers business and established Vontobel SFA, creating the largest Switzerland-based wealth manager for U.S. clients seeking a Swiss account for diversification purposes.