In an increasingly overcrowded market, model providers are vying for shelf space. To succeed, providers will need to consider how their products are differentiated to fit into platform product lineups and whether they can deliver solutions at scale, according to The Cerulli Report—U.S. Asset Allocation Model Portfolios 2023.
81% of model providers indicate the most important criteria for selecting platforms and model marketplaces through which to distribute models are the placement and visibility for their strategies on the platform.
Given that overcrowding is a major issue, strategy placement and visibility are key factors in the success of a model on a platform. However, limited shelf space is overwhelmingly the most substantial barrier to placing models on distribution platforms, according to 48% of model providers.
“Models can be viewed as highly commoditized, particularly in target-risk/target-allocation products,” says Matt Apkarian, associate director. “In general, home offices do not like hosting substantially similar products on platforms and take only as many products on the platform as they can find gaps in the lineup needed to meet the portfolio objectives of their clients.
This creates extreme competition between model suites and a need for differentiation to achieve placement,” he adds.
At the same time, model providers selecting platforms must consider whether have they have the resources to deliver solutions at scale. Ongoing management of models on platforms can be an onerous process for model providers, as processes for model updates across platforms lack uniformity and create operational overhead for providers. For instance, the task of updating tickers and weights for each model is one of the top pain points listed by several model providers that discussed difficulties in working with various platforms.
Cerulli recommends model providers think strategically about the platforms they are considering and whether their solutions are aligned with the needs of advisors. “Even with proper placement, models do not sell themselves, so distribution efforts are essential to grow model assets under management,” says Apkarian. “Model providers should prioritize platforms preferred by advisors as a top priority for product placement.”
U.S. equities were lower in October, with the S&P 500 and Nasdaq dropping more than 10% from their July peaks. While the S&P is still up 10.7% year-to-date, nearly all the return has been driven by the so-called “Magnificent Seven” (NVIDIA, Apple, Microsoft, Meta, Amazon, Tesla, and Alphabet) amid enthusiasm for the prospects for Artificial Intelligence with mega-cap tech stocks being the main perceived beneficiaries.
Despite the encouraging reports of robust retail sales and a strong Q3 GDP growth, the relentless surge in Treasury yields was a notable headwind to equities during the month. Stocks now have more competition as higher returns for risk-free assets make stocks less appealing in the short term as an investment option. This market dynamic reflects the market’s growing acceptance of a more prolonged period of hawkish policies from the Federal Reserve. On November 1, the Federal Reserve made the decision to hold interest rates steady. This determination came against the backdrop of a flourishing economy and a robust labor market. It marked the second consecutive meeting in which the Fed opted to keep rates unchanged, following a series of 11 rate hikes, including four in 2023.
Headline news in Merger Arbitrage was primarily driven by the VMware/Broadcom deal, where the spread has widened as the companies await final signoff by Chinese antitrust regulator, SAMR. Spreads on other deals were volatile and generally wider in sympathy with VMware, as typically happens when there is volatility in widely held arbitrage positions. Deals such as Albertsons, PNM Resources, Capri Holdings, Sovos Brands and Amedisys were notably wider in October as well. Partially offsetting the wider spreads were deals that made significant regulatory progress in October, including Activision, Horizon Therapeutics, National Instrument and New Relic. We believe these mark-to-market declines will be recovered in the coming months as companies make continued progress towards completing their transactions.
The convertible market gave up some of the gains in October that we had seen earlier this year. Convertibles continue to outperform underlying equities in weak markets, but with over 40% of the market now fixed income alternatives, the move in interest rates has weighed on valuations. Market sentiment was quite negative this month as we waited for companies to report. Looking forward, we anticipate a majority of the negative interest rate impact has been priced into convertibles, and we are optimistic that low expectations from investors will set many companies up for positive performance.
Opinion article by Michael Gabelli, managing director at Gabelli & Partners
Portfolio management faces several complex challenges that require the constant attention of industry professionals. The 1st Annual Report of the Asset Securitization Sector, sponsored by FlexFunds, highlights the top 10 challenges facing portfolio managers when raising capital and acquiring clients.
Raising Capital and Acquiring Clients: A Competitive Battleground
Tightening regulations, which can increase costs and create barriers for new investors, is one of the first complications portfolio managers encounter. Intense competition to attract clients and capital adds to this challenge, especially when differentiation between financial products is minimal.
Lack of understanding on the part of investors and clients about investment strategies and financial products can generate fear and indecision, especially in environments of low returns or lack of liquidity.
However, market uncertainty, arising from volatility or structural factors, stands out as the most problematic factor for acquisition.
FlexFunds’ report studies the main trends in asset management, which included the participation of more than 80 companies from 15 countries in LATAM, the United States, and Europe. This report reveals that 68.1% of participants consider uncertainty the most significant challenge, followed by lack of liquidity (15.4%) and financial system insecurity (12.1%). These factors accounted for 95.6% of the responses.
Market volatility undermines investor confidence and increases risk aversion, delaying investment decisions. Overcoming these challenges requires tactics that address uncertainty and improve client understanding of investment strategies.
Difficulties in Client Portfolio Management
According to the FlexFunds’ report, investment portfolio management faces several complex challenges, the top 10 of which stand out:
Client risk tolerance: Each client has a different risk tolerance, requiring careful balance in portfolio composition.
Market volatility: Financial markets are inherently volatile, requiring frequent adjustments to maintain portfolio balance.
Changes in economic conditions: Economic and market conditions impact asset returns, requiring adaptability in investment strategy.
Proper diversification: Achieving optimal diversification can be challenging, requiring in-depth analysis and specialized knowledge.
Asset selection and active management: Identifying strong asset investment strategies and actively managing the portfolio involves constant monitoring and informed decision-making.
Costs and fees: Balancing costs with the quality of services and results is essential to maintaining the client’s net return.
Effective communication: Clear and effective communication is crucial to understanding the client’s changing needs and ensuring trust over time.
Compliance and regulation: Keeping compliant with regulations and ethical standards is essential for asset managers.
Managing client emotions: Handling client emotions during volatility is crucial to avoid impulsive decisions.
Relative performance and expectations: Addressing client expectations and explaining relative performance is vital to maintaining trust.
When industry professionals in more than 15 countries were asked, “What are the main difficulties you face in client portfolio management?” respondents identified reporting (37.4%), back-office (20.9%), front-office (17.6%), the accounting process (11%), and middle-office (7.7%) as the primary challenges in portfolio management.
Dive into a detailed analysis of the difficulties in portfolio management. From risk tolerance to emotional client management, FlexFunds’ 1st Annual Report of the Asset Securitization Sector reveals the daily complexities that portfolio managers face. Discover how industry leaders address market volatility, appropriate diversification, and regulatory challenges.
Download the full report to uncover innovative strategies, practical solutions, and exclusive insights on portfolio management in the competitive financial world 2024. Will the 60/40 model remain relevant? Which collective investment vehicles will be most utilized? What is the expected evolution of ETFs? What factors should be considered when building a portfolio? among others.
Snowden Lane Partners announced that Christian Silva Lima Gherardi, an industry veteran with nearly 30 years of experience, has joined the firm as a Partner and Managing Director.
Gherardi will be joined by Pedro Pelaez, who will serve as a Private Wealth Advisor.
Based in Snowden Lane’s Coral Gables office, they will form the Gherardi Group serving high net-worth international families.
“We’re thrilled to have Christian and Pedro joining us in Coral Gables, as they’ve both built a tremendous track record in the international wealth management space,” said Greg Franks, Managing Partner, President & COO of Snowden Lane Partners. “We remain committed to building our presence in Florida and our approach is grounded by adding industry-leading professionals such as Christian and Pedro. Our shared values made them a natural fit for our team, and we’re confident they will continue their success on behalf of their clients at Snowden Lane.”
Gherardi added: “I’m looking forward to collaborating with Pedro once again at Snowden Lane. We have both spent over 20 years in the international wealth management space, and as the industry continues to evolve, we felt Snowden Lane offered us the best opportunity to continue providing our clients with the flexible, goal-based solutions they have come to expect. The Coral Gables team brings their own international expertise to the table, and we’re excited to collaborate to achieve our clients’ financial goals.”
Prior to joining Snowden Lane, Gherardi and Pelaez both spent nearly eight years at Bulltick Wealth Management, excelling as the firm’s top-producing team. Both Gherardi and Pelaez specialize in servicing Latin American clients, offering specialized investment solutions to high net-worth individuals, families, and institutional clients.
Before joining Bulltick, Gherardi worked for nearly 20 years at Citicorp Investment Services and, subsequently, Citigroup Global Markets. He was the top producer at Citigroup Latin America for 16 consecutive years.
He graduated cum laude with a bachelor’s in international finance and marketing from the University of Miami and went on to graduate summa cum laude from the university’s MBA program. Professional and educational accomplishments aside, Gherardi takes the most pride in serving as a dedicated, committed, and loving father to his four children.
Similarly, Pelaez began his career in the wealth management industry in 2006, serving as both a registered sales associate and financial advisor for the top-performing team at Citigroup Latin America.
Photo courtesyCarlos Hardenberg, socio fundador de Mobius Capital Partners y co gestor.
Since the creation of Mobius Capital Partners in 2018, the landscape of emerging markets has undergone a significant transformation. An evolution that the investment firm itself has also experienced, which now, after announcing the departure of Mark Mobius, takes a further step without losing its essence. Carlos Hardenberg, founding partner of the firm and co-manager, discussed both matters in his latest interview.
Could you give an assessment of the legacy he leaves at the firm?
I have collaborated with Mark for nearly 25 years, and his expertise in emerging markets (EM) is invaluable. Often regarded as a pioneer in the asset class, Mark’s foresight has played a pivotal role in shaping the trajectory of our firm. Over the last five years, his global network and great insights have been instrumental in MCP's success. We extend our sincere gratitude to Mark for his contributions and the legacy he leaves behind.
Mobius’ departure further strengthens your leadership, what plans do you have for the fund manager’s business? Do you plan to launch new funds?
With Mark Mobius’ departure, we see an opportunity to position the company for the future. My plan includes the promotion of select employees to partner roles. This is a reflection of their contributions and performance, aligning the team’s interests more closely with those of our investors.
At MCP, our focus remains on the singe strategy that, over the years, has demonstrated its potential to deliver sustainable long-term returns in emerging markets. Currently, this strategy is accessible through two vehicles—a closed-ended London-listed trust and an open-ended SICAV fund. Additionally, we are exploring the establishment of a private fund catering to the interest we’ve received from U.S. investors in the strategy.
We have a strong leadership and deep bench of talented analysts. The funds will be managed by the same team as over the past years.
Regarding “The Mobius Emerging Markets Funds” and “Mobius Investment Trust”, you have explained that there will be no changes, could you highlight what are the strengths of these vehicles and their attractiveness to investors?
The Mobius Emerging Markets Fund has just achieved its 5-year track record with significant outperformance, returning over 25% (USD) during a period when the index (MSCI EM Index USD) was negative. As mentioned above, we focus on one concentrated, active strategy investing in quality companies in emerging markets. The strategy provides access to lesser known, highly innovative EM companies with improving financial productivity, earnings durability and deep moats. This active approach requires a much more bespoke research process and sets us apart from many of our competitors who invest in the well-known mega caps and largely track the benchmark.
In Latin America we have seen that there is a certain rage for Mexico and Brazil, does this coincide with your view?
The type of companies we’ve identified and the opportunities we see make us particularly excited about Brazil. In fact, we are actively exploring opportunities to further enhance our exposure to the Brazilian market. Our strategic focus on asset light, innovative, quality companies guides our investment decisions, and in this context, Brazil currently stands out as a compelling and promising market for us. At the same time, as inflation and interest rates are coming down consumption is bound to recover.
In the current climate of volatility, geopolitical uncertainties, and a paradigm shift in central bank policies, the question arises: What does emerging market exposure bring to investors’ portfolios?
Forward-looking investors focus on future trends rather than present conditions. With inflation on a downward trajectory, interest rates following suit, the dollar weakening and the global economy poised for mean reversion, emerging markets present a compelling proposition. Anticipated outperformance of emerging market growth over developed markets, coupled with advancements in technological innovation—such as artificial intelligence, autonomous driving, and the Internet of Things—position these markets as hotbeds for highly innovative products.
Furthermore, the current low valuations in emerging markets add another layer of appeal. As a long-term investor, the stars seem to be aligning favourably for emerging markets
In which Latin American countries do you see value? How does the situation in China affect the outlook for these countries?
As mentioned, we are particularly excited about Brazil. China is one of its most important trading partners, so a sluggish recovery in China will obviously have an impact on the country. However, we should not forget that China is still forecast by the IMF to grow by 4.6% and 5.4% in 2023 and 2024 respectively, and in fact the forecast was recently upgraded.
What about other big markets like India, which we always hear about today as a great opportunity? Are they still?
We are currently very bullish on India and have been actively dedicating substantial time on the ground in the country. India has been a crucial allocation for the Mobius Emerging Markets Fund since its inception, with the Indian holdings contributing around 40% to the gross return since then. This notable contribution is primarily attributed to our meticulous stock selection. Our recent visit to India has further affirmed our bullish outlook on the region. The dynamic and exciting companies we’ve encountered during this visit reaffirm our confidence in India’s potential. Additionally, we are particularly encouraged by the business-friendly and supportive policies implemented by the Indian government. We believe that diligent stock pickers can uncover compelling opportunities in the Indian market, and we remain committed to leveraging these prospects for the benefit of our investors
When it comes to thinking about emerging markets in Europe, are the geopolitical risks too heavy right now?
We are not invested in Eastern Europe because of stock selection rather than macro developments. We simply find more exciting companies in other regions, particularly Asia.
What is your approach to investing in emerging markets, are you looking for a particular style, a particular type of company, a particular type of asset?
Our approach to investing in emerging markets is based on a set of criteria. We look for asset-light, highly innovative, high-quality companies with robust moats, positive cash flows and minimal debt, just to name a few factors that play a role in our stock selection. Over time, we have developed a preference for smaller, under-researched and undiscovered companies in emerging markets, particularly in the technology, healthcare and consumer sectors. We find that there are often significant inefficiencies in this space, creating opportunities that align with our investment philosophy and help us find attractive investment prospects that can deliver long-term sustainable returns.
Finally, what is your outlook for 2024 for emerging markets and what will be their main challenges?
No doubt, as we are heading into the new year challenges remain including the sluggish recovery in China, the conflict in the Middle East, the war in the Ukraine and the shaky China-US relations, just to name a few. I think, in volatile times, when asset classes can fall in and out of favour in a matter of weeks, it is important to cut through the noise and focus on fundamentals and the long-term potential of our quality portfolio. The strongest factor in our decision-making process is the information we get from the companies themselves. And what we have heard in our regular interactions with the management teams has strengthened our conviction and given us a positive outlook for FY24 and FY25.
Insigneo announced the addition of Robert Moore as Senior Vice President within the team led by Alfredo Maldonado, Insigneo’s market head for New York and the Northeast.
Moore incorporation brings over three decades of international financial experience, further bolstering Insigneo’s commitment to providing exceptional wealth management services on a global scale, the firm said.
Starting his career as an Investment Advisor at PaineWebber, Robert held key roles at investment firms including Barrett & Co., the Bank of Bermuda, Merrill Lynch, and Morgan Stanley where he assumed the position as Senior Vice President in the Global Wealth Management Group, specializing in meeting unique financial needs for clients in the UK, Australia, New Zealand, Bermuda and the Caribbean.
Throughout his career, Moore has been actively involved in various philanthropic endeavors and cultural organizations, including currently serving on the Boards of the American Friends of the Australian National Maritime Museum, the American Friends of the Royal Museums Greenwich, and the American Friends of the Old Royal Naval College in the UK, Insigneo added.
“I am absolutely delighted to be joining Insigneo. I conducted a thorough investigation into several independent firms, and I am certain that my clients and I will benefit tremendously from Insigneo’s platform, support, and extensive experience and expertise with serving Offshore clients. I am very much looking forward to further assisting my existing clients, and growing my Offshore business, through my affiliation with Insigneo,” mentioned Moore.
On the other hand, Maldonado commented: “We are thrilled to have Robert join our Insigneo family. Not only is he an amazing global advisor and philanthropist, he also has tremendous integrity and embodies our principles and culture. We are lucky to have Robert on the team and look forward to him elevating our enterprise.”
IFC, a member of the World Bank Group, and T. Rowe Price announced plans to create a pioneering global blue bond strategy to increase access to finance for blue projects in emerging markets and help improve market standards for the nascent blue bond market.
The proposed T. Rowe Price Emerging Markets Blue Economy Bond Strategy (T. Rowe Price Blue) is expected to mobilize international capital from eligible investors to support blue labeled investments in emerging markets globally through blue bonds issued by financial institutions and real sector companies.
“The investor capital deployed into blue bonds through T. Rowe Price Blue will make a vital contribution to furthering a blue economy,” said Makhtar Diop, IFC Managing Director. “This first-of-its-kind strategy with a dedicated vehicle for blue investment will also be critical in promoting sustainable capital markets in emerging markets and developing economies.”
Blue investments seek to provide competitive returns while supporting the health, productivity, and resilience of the world’s oceans and water resources, which are vital for sustainable global development, especially in the face of climate change, overfishing, and pollution. Momentum is growing for blue finance, with interest from both investors and issuers in blue bonds and loans that fund ocean-friendly projects and safeguard clean water resources.
“We are proud to partner with IFC to further the blue economy,” said Rob Sharps, CEO and president of T. Rowe Price. “We’re gratified that our emerging markets investment experience can be leveraged in such a meaningful, innovative, and important way, providing opportunities for
positive investment returns while supporting sustainable capital markets and preserving valuable water resources for generations to come.”
The proposed T. Rowe Price Emerging Markets Blue Economy Bond Strategy will draw on IFC’s leadership in the blue bond market. Since 2020, IFC has invested and mobilized more than US$1.4 billion through 12 blue bonds and loans issued by private sector financial institutions and real sector corporates across emerging markets and developing economies.
To bolster the supply of blue bonds issued by real sector borrowers, T. Rowe Price Emerging Markets Blue Economy Bond investment activities will be complemented by a Technical Assistance Facility, or TAF, managed by IFC, designed to increase the quality and quantity of blue bond issuance in emerging markets.
By partnering on this innovative strategy, T. Rowe Price and IFC are sending a clear message to the market on the importance of mobilizing capital needed to make meaningful progress towards achieving the Sustainable Development Goals. Specifically, UN SDG 6 “ensure availability and sustainable management of water and sanitation” and SDG 14 “conserve and sustainably use the oceans, seas and marine resources”.
To ensure that the mobilized resources achieve the desired impact objectives, IFC and T. Rowe Price have jointly developed Blue Impact Investment Guidelines that will be implemented specifically for this strategy. These guidelines are aligned with IFC’s Guidelines for Blue Finance which were published in January 2022 to guide IFC’s own investments in support of a Sustainable Blue Economy.
Fidelity International has announced that Anne Richards, who has been CEO of Fidelity International for the past five years, will be stepping down from her full-time executive position. However, she will remain involved with the company in the capacity of Vice President.
In her new role as Vice Chair, Richards will focus on nurturing key external relationships and strategic partnerships, leveraging her extensive experience and insights. The transition will be managed over the coming months under the guidance of the Fidelity International Board. The organization is yet to announce details regarding her successor as CEO.
Reflecting on Anne’s tenure as CEO, Abby Johnson, Chair of Fidelity International, highlighted her significant contributions. “Anne has been instrumental in driving our organization forward, particularly in expanding our capabilities and services across various markets. Her leadership in sustainability has set a solid foundation for our future endeavors,” said Johnson. She also credited Anne for her efforts in fostering a diverse and inclusive workplace, introducing enhanced parental and carers leave policies, and advocating for dynamic working environments.
Fidelity International stands as a testament to long-term, purpose-driven investment strategies. Serving over 2.9 million customers worldwide, the organization manages $714.3 billion in total assets. With operations in more than 25 locations, its client base ranges from central banks and sovereign wealth funds to private individuals. Fidelity’s dedication to investment solutions and retirement expertise is evident in its comprehensive approach, including investment choices, administration services, and pension guidance.
The organization emphasizes that it offers information on products and services but does not provide investment advice tailored to individual circumstances, except under specific conditions by an authorized firm. Fidelity International operates as a collective of companies outside North America, focusing on delivering quality investment management services globally.
As Anne Richards prepares to transition to her new role, Fidelity International continues its commitment to building better financial futures for its clients, employees, and communities worldwide. The organization upholds its legacy of thinking generationally and investing for the long term, evident in its approach to asset management and solutions for workplace and personal investing.
While cryptocurrency used to make headlines for its radical performance, these days it’s often in the news because of lost fortunes, exchange bankruptcies and business fraud, said a Morgan Stanley report.
As investors monitor the crypto market, now is a good time to search for insights from past cryptocurrency trading cycles to understand what may lie ahead, the wirehouse added.
How “Halving” Affects Crypto Supply
Bitcoin is the leading cryptocurrency, accounting for about 50% of total digital assets by market capitalization, and, in many ways, acts as a proxy for the overall crypto market. One unique aspect of bitcoin is that it is designed to go through a process called “halving” that creates scarcity, so that bitcoins can maintain their value. Specifically, every four years, the number of bitcoins created every 10 minutes is cut in half. Eventually, when there are 21 million bitcoins in existence, no more bitcoins will be mined.
By intentionally limiting the supply of new bitcoin, the shortage caused by the halving can affect the price of bitcoin to potentially spur a bull run. There have been three such runs on bitcoin since its inception in 2011, each lasting 12 to 18 months after the halving.
The four-year cryptocurrency cycle roughly corresponds to the four seasons of the year:
Summer: Historically, most of bitcoin’s gains come directly after the halving. This bull-run period starts with the halving event and ends once the price of bitcoin hits its prior peak.
Fall: Once the price surpasses the old high, it tends to attract interest from the media, new investors and businesses, which can then drive prices even higher. This period represents the time between when bitcoin passes the old high and reaches a new one, which signals that the bull market has run its course.
Winter: In previous cycles, the bear-market decline has come when investors decided to lock in their gains and sell bitcoin, causing prices to drop while scaring off new investment. This period takes place between the new peak and the next trough. There have been three winters since 2011, lasting about 13 months each.
Spring: During this period preceding each halving, the price of bitcoin generally recovers from the cycle’s low point, but investor interest tends to be weak.
Is Crypto Spring Here?
Just as a farmer avoids planting seedlings in the winter or too late in the spring, crypto investors want to know when crypto spring has arrived to maximize their investment “growing season.” Here’s what to consider when trying to determine whether crypto spring is truly here, or if the market is still in the midst of crypto winter:
Time since the last peak: The trough of bitcoin in previous crypto winters has historically occurred 12 to 14 months after the peak.
Magnitude of bitcoin drawdown: Previous troughs were about 83% off their respective highs.
Miner capitulation: When bitcoin has neared the trough of past cycles, many bitcoin miners shut down their operations because they were losing money. When a miner shuts down, it makes it a little easier for the remaining miners. A statistic called “bitcoin difficulty” measures how easy or hard it is to mine bitcoin. When difficulty decreases, it is a sign the trough may be near.
Bitcoin price-to-thermocap multiple: “Thermocap” measures how much money has been invested in bitcoin since its inception. A lower bitcoin price-to-thermocap multiple indicates a trough, while a higher multiple indicates a peak.
Exchange problems: When the price of crypto drops, it tends to impact the viability of some crypto exchanges. Bankruptcies, bad news or new regulations may all indicate a trough.
Price action: A 50% increase in price from bitcoin’s low is typically a good sign that the trough has been achieved, although there have been examples of such a gain being followed by significant declines.
Estimates of when exactly the next halving will occur vary, but history indicates it has the potential to occur sometime around April 2024.1 Based on current data,1 signs indicate that crypto winter may be in the past and that crypto spring is likely on the horizon. However, keep in mind that there have only been three crypto springs to date. In other words, there is still a lot to learn.
One key thing to keep in mind: As with any investment, past performance doesn’t indicate future results. Potential risks such as encryption breaking, software bugs, recession or coordinated government action could emerge before the expected halving and disrupt the cycle.
While no one can tell you if now is the right time to buy or sell cryptocurrency, today is the right time to learn more about the crypto market’s cyclical tendencies so that you can ask questions, monitor trends and determine for yourself if the cycle will repeat a fourth time and whether to invest.
Lunate, a global alternative investment management company with more than $50 billion of assets under management, and BNY Mellon are investing in a new company, Alpheya, that will develop a customized wealth management technology platform for wealth and asset managers in the Middle East and North Africa (MENA).
Based in the Abu Dhabi Global Market (ADGM), Alpheya will be funded with a capital commitment of $300 million and is expected to start serving clients in 2024. BNY Mellon has a minority share in the company, says a statement released by BNY Mellon.
The new financial technology company will meet the growing demand in the Middle East from wealth and asset managers, private banks, and investment houses, for an end-to-end digital solution that delivers a range of services, including client onboarding, financial planning, portfolio construction, trading and rebalancing, risk management reporting, and analytics. Utilizing the latest security and data architecture, the platform will be designed to meet the data privacy and localization requirements for each market in the region, the firm adds.
“We look forward to leveraging our local industry and investment expertise with BNY Mellon’s long history in wealth technology solutions to help wealth managers in the Middle East meet the evolving needs of their clients,” said Seif Fikry, Managing Partner, Lunate. “Not only will this new platform transform wealth capabilities for financial institutions across MENA, it will also strengthen Abu Dhabi’s role as a global hub for wealth and asset management.”
Built on open and modular architecture, the platform will provide the digital tools and solutions for clients to meet the growing challenges of managing complex technology and numerous investment vehicles, so they can focus on engaging with their clients and expanding their business.
“BNY Mellon is one of the largest wealth management technology providers, and the new company will leverage our deep expertise in providing wealth managers and investors digital tools and solutions for enhancing portfolio management, seamlessly connecting to local and global providers, and harnessing world-leading data management capabilities,” said Akash Shah, Chief Growth Officer, BNY Mellon. “We are proud to invest in an organization which recognizes the need for a locally-developed wealth technology solution, and to support the burgeoning wealth management industry in the region.”
“Wealth franchises today are managing complex technology environments and a multitude of investment options, that are all supported by more data and analytics and increasingly sophisticated risk management practices,” said Roger Rouhana, CEO of Alpheya. “The creation of a wealth technology solution that provides digital tools and software solutions in one integrated platform and is customized for the Middle East, will greatly enhance the ability of regional wealth managers to grow in a scalable and client-centric way.”
