New Amnesty and Taxes: The Impact of the Framework Law on the Argentine Tax System

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The main legislative initiative of Javier Milei’s administration, the Framework Law, was approved in Congress after six months of processing and negotiations. On the fiscal side, Argentina has launched a new tax amnesty that exempts assets up to 100,000 dollars from costs. Additionally, the Income Tax is reinstated, and the Personal Assets Tax is reformed.

The specialized tax team at KPG Argentina explains the changes regarding capital regularization.

The regime provides the opportunity to regularize undeclared assets in Argentina and abroad, including stocks, real estate, money in accounts, and crypto assets. The amount to be declared is determined based on a progressive scale and specially designed conditions to encourage adherence to the regime. Taxpayers who are considered fiscal residents as of December 31, 2023, and non-residents who were once fiscal residents in Argentina, can adhere to the tax amnesty. As a condition for non-residents who once were residents to enter the regularization, they must regain the status of fiscal resident in Argentina, which implies being taxed on global income and assets.

Adhering to the regime means that tax authorities cannot claim taxes on the declared assets and/or the operations that generated them.

Assets up to 100,000 dollars—considering the family group up to the first degree of kinship—can be declared at no cost (0% rate). Assets exceeding 100,000 dollars are taxed at progressive rates of 5%, 10%, or 15%, depending on the stage of adherence to the regime.

Under special conditions, declared funds exceeding 100,000 dollars will also have no cost (0% rate) if the money is deposited in an Argentine banking institution and kept there until December 31, 2025.

Taxpayers can declare assets in Argentina and abroad under this regime. It is particularly attractive for those who do not intend to repatriate their assets from abroad since the regime allows assets to remain outside the country without an obligation of repatriation.

Impact on Argentine Taxes with the New Law

The Argentine government’s tax reform entails an increase in taxes, with the controversial reinstatement of the Income Tax (salary or income tax) affecting around 800,000 workers. The tax will impact more people but at a lower rate, especially for higher salaries.

Additionally, the minimum threshold for the Personal Assets Tax (wealth tax) has been increased.

The “Country Tax,” which taxes imports and is part of the legal framework needed to lift exchange controls, remains in place.

Summary of Changes by KPG Experts

Personal Assets Tax: The Special Entry Regime for the Personal Assets Tax has been incorporated, allowing for the advance payment of the tax for the years 2023 to 2027 inclusive, at a rate of 0.45% on the assets existing as of December 31, 2023, multiplied by 5, resulting in a rate of 2.25% for that period.

The benefit, in exchange for this advance tax payment, is fiscal stability until 2038 concerning national patrimonial taxes.

Income Tax: With the approval of the “tax package” in Congress, the Cedular Tax that taxed workers’ income for the current fiscal year was repealed, and the general Fourth Category regime was reinstated with retroactive effect to January 1, 2024.

The new “floor” for the Income Tax will be approximately 1,800,000 pesos (about 1,321 dollars at the MEP dollar rate) per month for single workers and 2,300,000 pesos (1,688 dollars) per month for married workers with two dependents. A progressive tax scale will be applied, starting at 5% of net taxable income, reaching a maximum of 35%.

Real Estate Transfer Tax: The 1.5% tax on the sale of properties purchased before December 31, 2017, is repealed.

Monotax: The parameters and amounts of the regime are updated, effective from January 1, 2024, allowing those excluded for exceeding parameters during 2024 to re-enter.

The Framework Law includes a moratorium on the payment of various taxes: “a regime for regularizing tax, customs, and social security obligations due by March 31, 2024, inclusive, with total waiver of fines and substantial interest reductions. The new moratorium explicitly includes the possibility of regularizing the Solidarity and Extraordinary Contribution (“wealth tax”) created during the COVID-19 pandemic. In addition to the possibility of entering the debt into payment plans with the indicated waivers in installments (the number of installments varies according to the type of taxpayer, from 36 to 84), the new law allows for the waiver of non-final fines and interest when the principal is paid before March 31,” explain the KPMG experts.

HMC Capital Will Bring 20 New ETFs From U.S. Asset Manager First Trust to Brazil

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The ETF market in Brazil is set to soon receive more product offerings: 20 new tickers from U.S. asset manager First Trust will arrive in Brazil through HMC Capital. According to April Reppy Suydam, Head of Distribution for First Trust in Latin America, the assets should be available by the end of the year, distributed across three or four fronts.

The manager is targeting the institutional market but will also cater to individuals. “At this moment, we are prioritizing thematic and multi-strategy solutions,” says April. First Trust is the sixth-largest ETF manager in the U.S., with $158.7 billion distributed in this segment, the most representative part of the total $225 billion in assets managed.

“There are disruptive AI strategies; both related and unrelated to clean energy. We have healthcare, ‘green’ buildings not related to ESG, as well as geographic solutions with assets from Japan and India,” says the Head of Distribution in Latam.

HMC: Focusing on Diversification

According to Felipe Durán Amoedo, ETF and cryptocurrency specialist at HMC Capital, the new assets aim to meet the diversification needs of some institutional players, such as local investment funds. “We see many assets, banks, and family offices seeking diversification solutions,” he says, highlighting that the distributor also sees “growing activity among individual investors” for ETFs.

A significant part of the demand, Amoedo says, comes from the technology sector. “The technology theme is hot,” he states. AI, cloud computing, and cybersecurity are present in recent conversations with HMC’s institutional clients. Fixed income remains active in the house’s portfolio, which should incorporate products from the category with actively managed ETFs.

Investor Education as a Fundamental Step

However, it is not enough just to bring new products to the country, according to April Suydam. The Latam Distribution Head at First Trust states that an important step for the manager is to expand knowledge about the potential benefits of ETFs. “Although ETFs have existed in Brazil for 20 years, they are still just beginning to be used,” she says.

“We have a lot of work to do for certain investors, but I am excited because there is an evolution, which we knew would happen and has to do with diversification from an educational perspective,” she says, referring to individual investors. “The institutions we work with already understand it well. But it’s another thing to convey this to the common Brazilian investor, competing against all the biases towards fixed income,” she states.

“However, I already notice a difference in investments, which are gradually expanding to other products. Personally, I have a lot of patience, and we will be here in Brazil for a long time.”

AllianceBernstein Names Its First Director of Artificial Intelligence

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AllianceBernstein (AB) announced Andrew Chin as the firm’s first Director of Artificial Intelligence.

As a member of AB’s Operating Committee with a 27-year career at the firm, Chin previously served as Head of Investment Sciences and Solutions at AB. Throughout his career, he has held various positions, including Head of Quantitative Research and Data Scientist, and served as the firm’s Chief Risk Officer for over a decade.

“The appointment of Andrew to this new position recognizes our company’s progress with AI and its future potential,” said AB’s Chief Operating Officer, Karl Sprules.

In his previous role, he was Head of Investment Sciences and Solutions and a member of the firm’s Operating Committee. Additionally, he has held several leadership positions in quantitative research, risk management, and portfolio management in the firm’s New York and London offices since joining AB in 1997.

Chin holds a Bachelor’s degree in Mathematics and Computer Science, and an MBA in Finance from Cornell University.

As AI continues to play a fundamental and transformative role in enhancing AB’s operational, business, and investment research procedures, and improving efficiency across all corporate functions, “we look forward to having an industry veteran like Andrew lead our company into the future in this newly created role,” added Sprules.

Chin also appreciated the firm’s commitment to the new role.

“This new role signifies the evolution not only of my professional trajectory at AB but also of the increasingly significant role that data science and artificial intelligence are playing across the financial services industry,” said Chin.

BlackRock Acquires Preqin to Expand in Private Markets Data Segment

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BlackRock has reached an agreement to acquire Preqin, an independent provider of private markets data, for $3.2 billion. According to the asset manager, the combination of Preqin’s data and analytics tools with Aladdin’s capabilities will create a “unified platform that will establish a preeminent provider of private markets technology and data.”

Specifically, this operation adds a highly complementary data business to BlackRock’s investment technology, marking a strategic expansion in the rapidly growing private markets data segment. BlackRock highlights that private markets are the fastest-growing asset management segment, with alternative assets expected to reach nearly $40 trillion by the end of the decade. As institutional and wealth investors increase allocations to alternatives, BlackRock has increased its focus on private markets to meet this client demand.

In fact, the asset manager believes there is an even greater need for standardized data, benchmarks, and analytics that enable investors to better incorporate private asset classes into their portfolios and provide fund managers with better data and tools to deliver results to clients. It estimates that private markets data represents a total addressable market of $8 billion and is growing at 12% per year, reaching $18 billion by 2030.

Preqin and Aladdin

Preqin empowers investors to make better decisions by providing data and information that increase transparency and access in the global alternatives market. With a 20-year history, Preqin is a leading independent provider of private markets data solutions with global coverage of 190,000 funds, 60,000 fund managers, and 30,000 private market investors, reaching over 200,000 users, including asset managers, insurers, pensions, wealth managers, banks, and other service providers. In 2024, Preqin is expected to generate approximately $240 million in recurring revenues and has grown at approximately 20% per year over the last three years.

On the other hand, through the Aladdin platform, BlackRock provides technology solutions to over 1,000 clients. The combination of Preqin with eFront, Aladdin’s private markets solution, brings together data, research, and the investment process for fund managers and investors in fundraising, deal sourcing, portfolio management, accounting, and performance. Preqin will also continue to be offered as a standalone solution.

Transaction Terms

According to the asset manager, BlackRock will acquire 100% of Preqin’s business and assets for a total consideration of $3.2 billion in cash. The transaction is expected to close before the end of 2024, as it is still subject to regulatory approvals and other customary closing conditions.

In this transaction, Barclays acted as BlackRock’s lead financial advisor, with Skadden, Arps, Slate, Meagher & Flom acting as legal advisors. Goldman Sachs International acted as sole financial advisor, and Macfarlanes acted as legal advisor to Preqin.

Key Statements

Regarding the transaction, Rob Goldstein, BlackRock’s Chief Operating Officer, stated: “BlackRock’s vision has always been to combine investments, technology, and data to provide solutions that meet our clients’ needs across their entire portfolio. As clients evolve from selecting products to building portfolios, this shift requires technology, data, and analytics that create a ‘common language’ for investing in public and private markets. We see data driving the industry through technology, capital formation, investment, and risk management. Each acquisition has been an opportunity to strengthen our capabilities for clients, and indeed, we have been Preqin clients for many years, and we look forward to welcoming Preqin’s talented team to BlackRock.”

On the other hand, Sudhir Nair, Global Head of Aladdin, added: “Together with Preqin, we can make investing in private markets easier and more accessible, while building a better-connected platform for investors and fund managers. This presents a substantial opportunity for Aladdin to close the transparency gap between public and private markets through data and analytics.”

From Preqin, Mark O’Hare, the firm’s founder, declared: “BlackRock is known for its excellence in both investment management and financial technology, and together we can accelerate our efforts to provide better private markets data and analytics to all our clients at scale. I look forward to joining BlackRock and continuing to play a role in the ongoing growth and success of Preqin and our clients.” Additionally, Preqin’s founder Mark O’Hare will join BlackRock as Vice Chairman after the transaction closes.

Finally, Christoph Knaack, CEO of Preqin, added: “Private markets continue to evolve and so does Preqin. I am incredibly excited about the opportunities this next phase of growth, together with BlackRock, promises to our clients and employees.”

BTG Pactual Announces the Acquisition of M.Y. Safra Bank in the U.S.

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BTG Pactual, one of the largest financial institutions in Brazil, announced the signing of definitive documents for the acquisition of 100% of the share capital of M.Y. Safra Bank, FSB, a financial institution headquartered in New York.

Founded more than a decade ago, M.Y. Safra Bank operates mainly in the private banking and commercial and residential real estate financing markets, in addition to offering general credit products.

At the end of March 2024, the bank had a loan portfolio of $275 million, total assets of $404 million, and net equity of $46 million.

This acquisition is part of BTG Pactual’s global expansion strategy in the Wealth Management and Personal Banking segments in North America, where the bank already has a significant presence.

The completion of the transaction is subject to the verification of certain precedent conditions, including obtaining all necessary regulatory approvals from the Central Bank of Brazil, the Federal Reserve Board (FED), and the Office of the Comptroller of the Currency (OCC).

The Fed Could Afford to Be Patient

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We explained last week that more and more signs point to an acceleration in the cooling of the labor market, which would stimulate savings, discourage consumption, and later, investment.

As an immediate consequence, the nascent recovery in manufacturing activity experienced since the beginning of the year—largely due to the resilience of the U.S. consumer and the fiscal push from the Joe Biden administration—would be threatened.

Although GDP has been slowing since the third quarter of 2023 (4.9% vs. 1.3% for the first quarter of 2024), preliminary data from the S&P PMI indices indicate that the United States remains in the lead in June, despite investors betting on a globally synchronized GDP growth scenario. The composite indicator (manufacturing and services) for the eurozone, the UK, or Japan points in the opposite direction.

In fact, other surveys, both regional and national (ISM, LCMI), anticipate that the U.S. may end up following in the footsteps of those other economies.

Leading indicators of industrial activity, such as confidence in the residential property sector (NAHB), financial conditions and their effect on production costs, or sentiment in the semiconductor sector (measured by stock prices), are showing signs of fatigue. Similarly, the recovery cycle in the new orders subcomponent of the ISM survey takes an average of 18 months to travel from trough to peak, which is the time that has passed since the last valley to the most recent peak.

As we can see in our regression model, U.S. manufacturing momentum could begin to slow over the summer. Likewise, it is worth monitoring the situation in Europe: the German IFO (manufacturing), worse than expected, may be an early sign that the U.S. consumer push and fiscal support are beginning to fade. And although in Europe, unlike on the other side of the Atlantic, households still have a savings cushion, they are also more sensitive (especially in Italy or Spain) to interest rate hikes, which will increase the cost of about a third of the loans they are currently enjoying over the next few months.

The nascent signs of this weakness may explain the optimism of CEOs of large companies regarding the business environment their firms will face over the next 12 months, which would imply an increase in investment. Interestingly, the perspective of SME managers or that reflected by the sub-indices is quite different and points in the opposite direction. The tug-of-war between the restrictive monetary policy implemented by the Fed and the public spending expansion driven by the Democratic Party has an amplified effect on medium and small-sized companies, which are responsible for two-thirds of the new jobs created in the country. Lower-income households, but with a higher propensity to consume, are shown to be the most sensitive in this situation. In fact, recent news and behaviors from companies like NKE (Nike), KRUS (Kura Sushi), WBA (Walgreens), H&M, and L’Oreal suggest that consumers are beginning to suffer.

Meanwhile, Bloomberg’s macro surprise index has dropped to its lowest levels in the past five years, while Citi’s is one standard deviation below its 20-year average. Despite this, expectations for rate cuts remain stable and point to a 0.25% cut by the Fed on November 7 (with the U.S. presidential elections two days later?), and a 76% probability of an additional adjustment in December.

This perspective makes some sense given the Fed’s dependence on the publication of macro data, which sometimes reflect what has happened rather than what may happen, and a macro context—which, in our opinion, is quite uncertain—as evidenced by the distribution of “dots” among central bank members who only foresee one action before the end of the year, those who foresee two, and those who would not act until 2025 (7, 8, and 4 bankers, respectively).

Several governors and presidents of regional Federal Reserve banks have shared a range of scenarios regarding the evolution of the labor market and inflation in the coming months. Christopher Waller, for example, warned months ago of an increase in unemployment once job vacancies exceeded 4.5%. As shown in the graph, it is at 4.7%, and decreasing.

As we can see in the graph of the latest BofA survey among managers (FMS), the consensus remains a soft landing, although looking back, this is the least plausible alternative. Since 1965, the United States has experienced 12 monetary tightening cycles, resulting in 8 recessions and only one true “soft landing.”

With a gradual decline in inflation series but growth close to or slightly above trend, the Fed could afford to be patient in initiating the rate cut cycle.

However, the lack of consensus within the U.S. central bank is similar to that shown by the BofA report and reflects the lack of visibility in the macro environment we have been discussing from this column.

Recent comments from Mary Daly (San Francisco Fed), Patrick Harker (Philadelphia Fed), or Michelle Bowman show the weak conviction of their positioning: “In my view, we should consider possible scenarios that could unfold in determining how monetary policy decisions [of the Federal Open Market Committee] may evolve,” Bowman recently explained.

And although other colleagues of Jerome Powell (Lisa Cook or Alberto Musalem) skew their discourse towards a “no-landing” scenario that would again dust off the possibility of rate hikes, the fact is that the objectives for core inflation (PCE) and the unemployment rate for the end of 2024 outlined in the latest Summary of Economic Projections have already been reached, and the risk is that they will be exceeded in the coming months.

At the time of publishing this comment, we are still awaiting the release of the May figures for personal spending and income and core PCE inflation. The next Fed meeting, where they will update their forecasts, will be on September 17-18. There are three months of employment, inflation, and growth data between now and then, which, if they follow the trajectory of April and May, will undoubtedly result in a “dovish” surprise.

The divergence in the RSI of the weekly graph of the yield on the American bond, the macro surprise index, and the shift in speculative positions may continue to appreciate public debt.

Elections in France: Impact on the Market and Possible Scenarios

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From June 30 to July 7, France faces its early elections. The call for these general elections arises from the high degree of polarization and fragmentation in the country, as shown by the results of the European elections. According to experts, the outcome of this election could limit the French government’s ability to address its most urgent challenges, such as the rehabilitation of public finances.

Since the announcement of the dissolution of the National Assembly on June 9, the French market has experienced a notable decline compared to its European counterparts. “From June 10 to 13, the CAC 40 fell by 3.6%, compared to a 1.4% loss for the Stoxx Europe 600. In fixed income, the spread between the 10-year German bond and its French counterpart widened by almost 50%, rising from around 50 to 75 basis points. This level reflects 2017 conditions, which already included concerns related to the French presidential elections. If the spread between France and Germany surpasses this level, the comparison point would then be the eurozone crisis of 2011-2012, when there were concerns about the union’s survival. At that time, Greece was in default, and the National Front, the former name of the National Rally party, advocated for France’s exit from the common currency,” says Alexis Bienvenu, fund manager at La Financière de l’Echiquier.

However, could this retreat in French financial markets go much further? According to Bienvenu, it is impossible to know, as there are numerous political scenarios, and market surprises are uncontrollable in the short term. “The market could perfectly adapt to a situation where politics is not dictated by the stock exchanges, according to General de Gaulle’s quote. However, the Italian scenario shows that any policy of a heavily indebted state will increasingly depend on the market, despite its efforts to avoid this. Ignoring this reality means ultimately becoming even more dependent on it over time,” he comments.

According to analysts at Edmond de Rothschild AM, the spreads of French public debt with Germany could have widened by approximately 26 basis points in recent days, but a very pessimistic scenario has been ruled out for now. Additionally, spreads widened across Europe, from about 10 basis points in the strongest countries to around 20 basis points in some peripheral ones.

“Other risk assets also fell in recent days. High-yield spreads widened by 28 basis points, and European equity markets also declined, with France being the most affected country. The contrast with a buoyant Wall Street is revealing. The flight to quality supported 10-year German and US public debt, whose yields fell by 24 and 23 basis points respectively, leaving the absolute yields of French OATs virtually unchanged,” added analysts at Edmond Rothschild AM.

A Source of Reassurance

According to La Financière de l’Echiquier (LFDE), markets have already begun to reduce country-specific risk premiums. “Proof of this was the issuance of French public debt on June 20, which garnered reassuring subscription levels and issuance rates. The Paris Stock Exchange has also begun to recover part of the decline accumulated a week after the dissolution. Investors seem to see the horizon clearing gradually, although it remains uncertain,” they argue.

According to the asset manager’s analysis, the most costly measures are progressively disappearing from programs and could do so even more with the exercise of power. While electoral programs aim to seduce voters, the exercise of power may require realism and rigor to maintain it.

“The maxim borrowed by several French politicians, stating that promises only bind those who believe in them, seems not to have completely deceived financial markets. Political uncertainty is very present in France, undoubtedly, but as seen in recent elections in Mexico or India, it could automatically dissipate with a quick resolution starting July 8,” added La Financière de l’Echiquier.

And a Source of Instability

For Thomas Gillet and Brian Marly, analysts of sovereign countries and the public sector at Scope Ratings, “these elections will be crucial in determining President Macron’s ability to drive France’s fiscal agenda and reformist momentum ahead of the 2027 presidential elections.” However, they recognize that it is unclear to what extent French voters’ preferences in parliamentary elections will differ from European elections, “which typically favor protest votes with relatively low participation,” they explain.

Gilles Moëc, chief economist at AXA Investment Managers, believes that the surprise legislative elections called by the French President have affected markets beyond French borders. In his opinion, “the uncertainty about the macro-financial outcome of July 7 is high, as the fiscally extravagant programs of both the far-right and the left-wing alliance compete with the more orthodox offer of the centrist majority in power. According to the limited available polls, the most likely scenario is a divided Parliament. France has much more capacity than the United States to avoid government shutdowns. However, a suitable majority is needed to implement the significant discretionary fiscal correction measures implied by the current French Stability Program.”

Moëc considers a thorny issue to be the role of the European Central Bank (ECB) if pressure on French and possibly peripheral bond markets increases. “At this time, given the absolute level of yields, there is no need for the ECB to intervene, but further widening cannot be ruled out in case of complete fiscal paralysis in Paris or if an administration led by the National Rally decides to adopt a very extravagant stance. The ECB’s tool to re-enter the bond market, the Transmission Protection Instrument, gives the Governing Council enormous leeway to decide whether to act, but the documentation still makes it clear that the recipient country must comply with the EU’s fiscal surveillance framework. This is where the problem could lie. Indeed, although the National Rally no longer questions the existence of the monetary union, it remains a sovereignist party, and its willingness to accept instructions from Brussels in the event of a financing crisis could be limited,” he warns.

Possible Scenarios

In the opinion of analysts at Edmond de Rothschild AM, the President is betting on the disorganization of opposition parties but has taken a significant risk and opened up a period of uncertainty. “The main hypothesis is that the National Rally (RN) only achieves a relative majority, especially after the left-wing parties managed to form a coalition, but the current momentum could still lead to an absolute majority. A Parliament without a majority cannot be ruled out: a non-partisan figure would be needed to lead a technocratic administration, as in Italy. Markets also bet that the RN will introduce significant changes to its program, especially to the most costly ideas. Again, like Georgia Meloni. The party has already indicated that this could happen: Jordan Bardella, from the RN, has said that the cancellation of the recent pension reform would be postponed to a later date to address emergencies,” they note.

Florian Spaete, fixed income strategist at Generali Investments, points out that although it is difficult to predict an outcome given France’s two-round electoral system, there are two main scenarios: “The far-right National Rally (RN) becomes the largest group but without an absolute majority in Parliament (stalemate), or the National Rally achieves an absolute majority (probably with the support of dissident center-right deputies), with Macron remaining President but having to cohabit with the new government.”

Additionally, he mentions other less likely scenarios, such as a majority left-wing coalition, which would probably have a negative impact on French assets, although this would be mitigated by the strong presence of social democrats (PS), who would likely oppose the radical left’s proposals. “Macron, and the markets, would dream of a national centrist coalition, but it is unlikely that the numbers would work, and both the Socialist Party and the Republicans would hesitate to enter such an unnatural alliance,” Spaete clarifies.

Americana Partners Launches Its International Division Focused on Latin American Clients

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Americana Partners, an independent registered investment advisor (RIA) with over $7 billion in assets under management, announced its expansion into the Latin American market with the launch of Americana Partners International, dedicated to providing family office services to ultra-high-net-worth individuals in the region.

Jorge Suárez-Vélez will serve as Executive Director and Founding Partner of Americana Partners International (API). As the former Managing Director of Allen & Company Investment Advisors, the RIA branch of investment bank Allen & Co, Suárez-Vélez brings to the firm over 20 years of industry experience, particularly deep expertise in Mexican political and economic issues.

“While many of the wealthiest Latin American families have ties and business dealings both in Latin America and the United States, especially as they grow into the third and fourth generation, we see an opportunity to offer our services, expertise, and relationships to these families, and we are excited to have Jorge leading this tremendous effort,” said Ason Fertitta, CEO and Partner of Americana Partners.

Americana Partners celebrated its fifth anniversary on April 26, 2024, and has grown rapidly since its launch in 2019. In February 2023, the company hired a $700 million team based in the Permian Basin in Texas.

With the addition of its new international clientele, Americana Partners will add Pershing Advisor Services as a custodian to its current custody relationships with Schwab and Fidelity.

“I look forward to bringing Americana Partners’ technology, portfolio management, and family office approach to the Latam clientele,” said Suárez-Vélez.

“We couldn’t be prouder of how far Americana Partners has come and we are excited and optimistic about our future. In five short years, we have more than tripled the size of our firm in nearly every meaningful metric, and yet we know we are just getting started,” reiterated Ron Thacker.

Americana Partners is a member of the Dynasty Network of independent advisory firms. For over a decade, Dynasty has advocated for the benefits of independent wealth management for high and ultra-high-net-worth clients and has contributed to the movement of assets from traditional brokerage channels to independent wealth management channels.

Dynasty Investment Bank acted as exclusive financial advisor to Americana Partners and provided financing to help support the transaction.

JPMorgan Announces Growth Plan in Miami, Aiming to Capitalize on South Florida’s Wealth

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Miami has become a strategic point for investors from the United States and various parts of the world, to the extent that it has been dubbed the “Wall Street of the South.” In light of this, major financial institutions are keen to establish or consolidate their presence in the area, as demonstrated by JPMorgan Chase.

The largest banking institution in the United States, with financial assets around $2.4 trillion, daily operations of nearly $10 trillion in over 120 currencies and more than 160 countries, and safeguarding more than $32 trillion in assets, according to a letter sent last April by JPMorgan CEO Jamie Dimon, announced that it will increase its presence in Miami and South Florida with the intention of accommodating up to 400 employees in the coming months. With this expansion, the bank’s downtown Miami office will double in size.

According to a company statement, the office currently has over 500 employees across all JPMorgan Chase business lines and functions. This new two-year project will also renovate and expand the firm’s Miami Client Center to create a world-class meeting and function space for hosting client and employee events.

Additionally, the largest U.S. bank announced that it has leased 13,000 square feet for an office in West Palm Beach, while also planning to open three financial centers in South Florida early next year. The goal is to consolidate more than 60 employees from various business lines and functions who are currently spread across different locations in Palm Beach County.

JPMorgan and the Miami Economy: The Messi Factor

A recent independent study revealed that JPMorgan Chase contributes approximately $1.9 billion annually to the Miami economy and generates around 5,200 additional jobs in various local industries.

JPMorgan’s expansion in South Florida is expected to add an average of $151 million in economic activity to the region, as well as 380 construction jobs, according to the bank’s statement.

In his recent annual letter, Jamie Dimon highlighted JPMorgan’s commitment to driving economic growth throughout Florida. The bank has made over $46 million in philanthropic and business investments in South Florida and nearly $65 million statewide to increase homeownership opportunities.

JPMorgan is leaving nothing to chance. Earlier this year, it signed a naming rights agreement for the soccer stadium in Fort Lauderdale where Lionel Messi plays. The iconic Argentine world champion has become a significant attraction and sales and image force in the region by his mere presence.

Including Miami as an essential factor in its U.S. expansion, Dimon’s emphasis on the bank’s investments in this part of the country in his most recent annual report says it all.

Balanz’s Expansion in the U.S. Targets Both International and Resident Clients

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The Buenos Aires-based firm Grupo Balanz continues to grow regionally and aims to strengthen its presence in the USA, targeting both clients for its US Offshore business and residents in the North American giant, its executives told Funds Society.

“We are a company that started 20 years ago in Argentina. More than 5 years ago, we decided to expand the model towards Latam,” commented Julio Merlini, CEO of Balanz Argentina.

The executive reviewed the opening of offices in Panama, the United Kingdom, Uruguay, and the establishment of Balanz US in Miami.

With a new office in Coral Gables and under the leadership of Richard Ganter, the firm features a hybrid system between advisory and broker-dealer for both international and resident clients.

This model, which caters to both US residents and Latin Americans investing in the country who are tax-exempt, presents a “tremendous opportunity” for advisors seeking firms, particularly in Miami, added Ganter, CEO of Balanz US.

The CEO noted that the profile of advisors who best match the Argentine firm’s model are those with 15 to 20 years of experience in the business who want to continue growing.

“We believe it is very important for the advisor to know and feel that they are in an independent firm. Flexibility is a value in our proposal,” Ganter added.

He also emphasized the investment Balanz is making in building research and strategy teams to add value to their proposal.

Finally, Merlini responded that the group does not have a strategy to enter Private Equity because “for that, one must be prepared for both when the fund enters and especially when it exits. And that is something we do not want.”

The group employs more than 1,000 professionals and operates in three main sectors: Wealth Management, Asset Management, and Investment Banking.