Invesco expands its product range with the launch of the Invesco S&P 500 Equal Weight Swap UCITS ETF, a fund designed to replicate the performance of the S&P 500 Equal Weight Index using a synthetic structure. According to the asset manager, the benchmark index is built from the S&P 500 Index, assigning the same weight to each company in the index instead of the standard method of weighting companies by market capitalization.
“This is the world’s first Equal Weight ETF with synthetic replication. For investors seeking exposure to the S&P 500 Equal Weight Index, Invesco now offers both physical and swap-based ETFs, allowing investors to choose their preferred replication method,” the firm stated.
According to Invesco, demand for Equal Weight strategies has continued to rise since Mega Cap stock prices hit multi-decade highs and began to appear overvalued. This trend has been particularly noticeable in U.S. equities, where S&P 500 Equal Weight ETFs have attracted more than $10 billion in net inflows since July 2024. The top 10 stocks in the S&P 500 Index still represent 37% of market capitalization, keeping concentration at historically high levels.
Unlike existing products in the market, the Invesco S&P 500 Equal Weight Swap UCITS ETF aims to replicate the performance of the S&P 500 Equal Weight Index through swap-based replication. The ETF will hold a basket of high-quality stocks and achieve index returns through swap agreements with major financial institutions. These swap counterparties will pay the ETF the index return, minus an agreed fee, in exchange for the returns of the ETF’s held stock basket.
Following this launch, Laure Peyranne, Head of ETFs Iberia, LatAm & US Offshore at Invesco, stated: “We are excited to start the new year with an ETF that combines two areas of Invesco’s expertise. We are a global leader in equal-weighted equity exposures, a rapidly expanding area whose demand surged significantly in 2024 and which we now offer through our solid and highly efficient swap-based structure, developed over 15 years ago. We have the world’s largest synthetic ETF, and now investors can benefit from the same advantages for their exposure to the S&P 500 Equal Weight.”
Peyranne also noted that when a Europe-domiciled ETF uses synthetic replication on certain core U.S. indices, it is not required to pay taxes on dividends received.
“This allows us to negotiate better terms with our swap counterparties, including receiving the gross return of the index, which is an advantage over a physically replicated ETF that typically pays a 15% to 30% tax on dividends. In the case of the S&P 500 Equal Weight, given current dividend levels, this translates to an approximate 20 basis point improvement,” she explained.
Invesco has committed to the swap-based replication model, maintaining an uninterrupted track record of over 15 years and accumulating more than $65 billion in assets across its swap-based ETF range. Its product lineup includes the Invesco S&P 500 UCITS ETF, which, at $39 billion, is the largest swap-based ETF in the world, according to the company.
This latest launch also expands the firm’s Equal Weight offering by adding the Invesco S&P 500 Equal Weight Swap UCITS ETF to its existing Invesco Nasdaq-100 Equal Weight UCITS ETF and Invesco MSCI World Equal Weight UCITS ETF.
The new U.S. president, Donald Trump, took office on January 20 and has since made his mark with key policy decisions. Among the various orders he has announced and signed is the directive for federal workers to end remote work.
“The heads of all executive branch departments and agencies must, as soon as possible, take all necessary steps to end telework arrangements and require employees to return to in-person work at their designated locations full-time, provided that department and agency heads make exemptions as they deem necessary,” Trump stated in a memorandum published in the local press.
In the fiscal year 2023, 43% of federal civilian workers teleworked “routinely or situationally,” according to the Status of Telework in the Federal Government Report to Congress from December, prepared by the U.S. Office of Personnel Management (OPM).
While Trump‘s directive may take longer than expected to fully implement due to practical or financial reasons, some companies have already begun taking the initiative.
For example, JP Morgan announced to its employees that they must return to the office five days a week starting in March, ending a hybrid work-from-home policy that was implemented during the pandemic.
Some office locations still lack the capacity to accommodate a full return of all employees, and the bank will confirm where it is feasible by the end of the month, according to a memo confirming a Bloomberg News report from mid-January.
“We know that some of you prefer a hybrid schedule, and we respectfully understand that not everyone will agree with this decision,” committee members said in the memo, as cited by AdvisorHub. However, the company argued that they believe “this is the best way to run the business.”
More than half of the bank’s nearly 300,000 employees already work in the office five days a week. For those affected by the new policy, JP Morgan said it would provide at least 30 days’ notice before requiring a full-time return. The option to work from home “based on life events” will remain available, according to the bank’s communication.
Last year, Amazon.com Inc. ordered its employees to return to the office five days a week starting in January, but the company had to delay that timeline for thousands of workers due to space constraints in some cities. Other companies have had to remind employees to comply with in-office requirements.
Elon Musk and Vivek Ramaswamy, who were at the time nominated to lead Trump‘s newly created Department of Government Efficiency, pointed out that having a full-time return-to-office mandate was an invitation for many to resign.
“Requiring federal employees to be in the office five days a week would trigger a wave of voluntary departures that we welcome,” they wrote in The Wall Street Journal, as cited by CNN.
Photo courtesyOfficial photo of the inauguration of the 47th presidency of the United States led by Donald Trump.
U.S. President Donald Trump announced tariffs on China, Canada, and Mexico on Saturday. These announcements reignited fears of a trade war, once again taking center stage and casting uncertainty over the future of global economic activity.
In this context, industry experts in Miami consulted by Funds Society agreed that the tariffs are very bad news for the economy, though they dismissed concerns that they are inflationary. They also pointed out that in such a scenario, everyone loses—although the United States would fare the best.
“Tariffs are bad news for the global economy; they generate retaliation, which essentially means triggering a trade war, and whenever there are trade wars, there is less growth and more complicated markets,” said Alberto Bernal, Global Strategy Director for the institutional area at XP Investments.
Bernal also noted that the U.S. president is a nationalist with a “zero-sum” view of international trade, though he does not extend this perspective to global markets.
“Trump is a fan of markets, a fan of the equity market—he likes to see U.S. stocks rise. As a result, his long-term policies focus on lowering corporate taxes, reducing business regulations, allowing for more mergers and acquisitions, and implementing changes in investment banking. All of this benefits the market,” he said. “And if it benefits the U.S. market, it benefits Latin American clients who have investments in the U.S.,” he added.
Fernando Marengo, Chief Economist at BlackToro Global Investments, pointed out that “since 1950, the world has produced three times the amount of goods and services it had produced throughout all previous human history. This is mainly due to a process of specialization and globalization, where each country focused on producing goods in which it had a competitive advantage while purchasing the rest from the global market. This globalization process led to an unprecedented improvement in the average well-being of the population. The implementation of U.S. tariffs on Mexico and Canada is very bad news.”
For Marengo, who has 30 years of experience in macroeconomic analysis, consulting, and advisory services, the outlook is “not ideal” for emerging economies: “Capital flows may continue to seek high returns in the U.S. rather than in emerging markets in general, or Latin America in particular.”
Both experts highlighted the appreciation of the U.S. dollar, the resulting weakness of other currencies, and the decline in commodity prices, which were already at low levels—factors that make emerging markets, particularly Latin America, less attractive.
According to BlackToro’s Chief Economist, volatility will prevail. The U.S. scenario, he explained, will depend on Trump’s fiscal decisions and the evolution of the trade war.
“Clearly, a trade war benefits no country in the world. When looking at the figures from Trump’s previous presidency, it is evident that import growth rates fell sharply compared to previous trends. However, exports as a percentage of GDP declined year after year during his term, meaning that this trade battle is not good news for anyone,” Marengo stated.
Given this uncertain and volatile environment, the BlackToro expert envisions an investment portfolio “possibly underweight in both fixed income and equities, maximizing returns in the short end of the yield curve. If uncertainty about inflation rates persists, the market is likely pricing in only one policy rate cut by the end of the year, making carry trades in this part of the curve highly attractive.”
If inflation risks accelerate or the trade war escalates, “alternative assets, such as gold, could become extremely attractive. However, this is not a permanent situation—it fluctuates daily based on fiscal policy announcements and, fundamentally, on how the U.S. handles its tariff and international trade policies, as well as its relations with the rest of the world,” Marengo concluded.
Initially, markets reacted negatively to the news. However, as negotiations between the U.S., Mexico, and Canada progressed, the implementation of the new tariffs was postponed.
UBS AG’s Geneva office has added Diego Pivoz, formerly of HSBC.
The banker, with 25 years of industry experience, joins the firm as a Senior Relationship Manager and will cover UHNW clients from Saudi Arabia, Pivoz explained on his LinkedIn account.
“This is an incredible opportunity to join an organization I have long admired for its excellence in wealth management,” the advisor posted.
Throughout his extensive career, Pivoz has worked at firms such as Citco Corporate and Trust and Amicorp before joining HSBC, where he spent 20 years.
At the British bank, he worked in Miami and Switzerland.
Apollo Global Management has appointed Laura González as Managing Director of its globalwealth business for US Offshore and Latin America, sources at the firm confirmed to Funds Society.
González, currently Head of Allfunds for the Americas (U.S. and LatAm), will take on her new role in May. With over 13 years at Allfunds, she initially oversaw Iberia and Latin America before being promoted to Head of the Americas in 2022, according to her LinkedIn profile.
Apollo, a firm specializing in alternative investments, has set “ambitious goals” of reaching $150 billion by 2029, a target announced during its Investor Day in October 2024.
For Apollo, González is a seasoned professional who will play a crucial role in expanding the firm’s ability to serve these markets.
“Expanding our Global Wealth business is a key priority for Apollo as we respond to growing investor demand for private market solutions that offer greater diversification beyond the traditional 60/40 portfolio model. We are committed to providing institutional-quality offerings tailored to the distinct needs of individual and wealth investors,” said Stephanie Drescher, Partner and Chief Client & Product Development Officer at Apollo, in a statement accessed by Funds Society.
Apollo’s Global Wealth unit aims to deliver a comprehensive range of alternative investment solutions across asset classes such as credit, equity, and real assets, structured in ways that prioritize the needs of end investors, the firm added.
Alejandro Rubinstein has joined Insigneo as Senior Vice President. Based in the Brickell office in Miami, he will focus on providing advisory and brokerage services to clients in the United States, Chile, Colombia, and Peru, according to a statement issued by Insigneo,.
Rubinstein, who brings more than 25 years of experience in international markets, comes from Merrill Lynch. His expertise in global financial services and focus on customized solutions for clients aligns with the company’s strategy, the press release said.
“I’m excited to be part of Insigneo’s innovative culture, where expertise and creativity combine to deliver outstanding client experiences,” said Rubinstein.
As Senior Vice President, he will leverage Insigneo’s platform of resources and services to expand his business and develop financial strategies tailored to his clients’ needs, the firm adds.
“We are pleased to have Alex join the Insigneo team,” said Jose Salazar, Market Head of Miami. “His experience in international markets complements our robust platform of services and resources. We look forward to growing together and developing his business.”
Citi will lose its Global Head of Private Banking, Ida Liu, as the executive announced in a LinkedIn post.
“After nearly two decades at Citi, including the privilege of serving as Global Head of Citi Private Bank, I have made the decision to leave the firm and embark on the next chapter of my professional journey,” Liu posted on LinkedIn.
The expert, with more than 25 years of experience, joined Citi in 2007, where she held various positions until her most recent role as Global Head of Private Banking, according to her LinkedIn profile.
“Great careers are defined by embracing new challenges and opportunities, and this is the right time to leverage my global experience, leadership expertise, and passion for growth in bold and exciting new ways,” added the executive of the U.S. bank.
In addition to Citi, Liu worked at Merrill Lynch (1999-2004) and Vivienne Tam (2004-2007).
CC-BY-SA-2.0, FlickrPhoto: ankakay
. Moneda Asset Management Announces US$100 Million Investment from CPPIB Credit Investments Inc.
The ETF industry started 2025 on the right foot. Among the standout news at the beginning of the year is that asset manager BlackRock launched a new Bitcoin exchange-traded fund (ETF) on Cboe Canada, according to information from the Canadian stock exchange released earlier this week. The announcement was confirmed in a statement issued by BlackRock itself.
This Canadian fund, registered as the iShares Bitcoin ETF, will trade under the same symbol, IBIT, as BlackRock’s U.S. product. Additionally, shares denominated in U.S. dollars will trade under the symbol IBIT.U, according to the stock exchange.
“The iShares fund offers Canadian investors a way to gain exposure to Bitcoin while helping eliminate the operational and custodial complexities of holding Bitcoin directly,” said Helen Hayes, Head of iShares Canada at BlackRock.
The ETF is designed to provide Canadian investors access to BlackRock’s primary U.S. spot Bitcoin fund, iShares Bitcoin Trust (IBIT). It will invest all or most of its assets in IBIT, according to a statement from Cboe Canada.
Likewise, this fund will join a dozen other Bitcoin ETFs already trading on Canadian exchanges, according to sources at Nasdaq.
According to figures from BlackRock, its U.S. IBIT ETF has become the world’s most popular Bitcoin fund. Since its launch in January 2024, this fund has recorded over $37 billion in net inflows.
As recently as November, U.S. Bitcoin ETFs surpassed $100 billion in net assets for the first time, according to data from Bloomberg Intelligence. It is expected that Bitcoin ETFs will attract approximately $48 billion in net inflows this year.
The week has begun with the tech sector reeling. On Monday, Nvidia led a market slump—dropping as much as 17%—triggered by the strong performance of the low-cost generative AI assistant developed by Chinese company DeepSeek. According to experts, the emergence of a potentially more efficient approach to AI processing—reducing model training costs by 86%—raises questions about the necessity of the billions of dollars planned for infrastructure and intellectual property investment.
As a result, the S&P 500 index dropped 1.5%, and Nvidia‘s decline—the largest single-day market capitalization loss for the company at $589 billion—dragged the Nasdaq Composite down 3.1%. “The emergence of the new competitor has primarily impacted the entire data center value chain. This includes chip manufacturing equipment makers like ASML (-7.2%), high-performance chip manufacturers (Nvidia and Broadcom (-17.4%)), as well as companies specializing in energy infrastructure like Schneider Electric (-9.6%) or the real estate side of data centers like Digital Realty (-8.7%),” explain analysts at Banca March.
What explains these movements? In recent days, the generative AI assistant developed by DeepSeek has become the most downloaded app for iPhone, surpassing the popular ChatGPT application from OpenAI. Nvidia‘s drop has been the most visible consequence of this shift, driven by fears about the impact DeepSeek could have on the demand for high-end microchips.
“DeepSeek could be a seismic shift for the AI industry. If its advancements hold true, model training costs would drastically decrease, changing the game for everyone,” says Víctor Alvargonzález, founder of Nextep Finance. In his view, one of the main reasons behind Wall Street’s recent sell-off—particularly Nvidia‘s worst-ever trading session in U.S. stock market history—is DeepSeek‘s promise to reduce algorithm training costs. Estimates suggest that training costs could drop from the current $50 million per model to just $7 million or less, thanks to process simplification and a 75% reduction in memory requirements.
Amid these declines, Louise Dudley, portfolio manager of global equities at Federated Hermes Limited, believes there are still many questions left unanswered. “For Nvidia, as a key supplier of premium chips worldwide, the concern is whether companies will need fewer chips in the future. However, the company responded to the news by highlighting ‘excellent progress,’ signaling optimism about ongoing AI model developments, which are still in their relative infancy.
For companies involved in building data centers, the short-term impact is likely to be significant, as demand has been very strong. The new DeepSeek model code will be reviewed for potential performance improvements. Existing projects under development are at risk, and this will be a key focus for investors. This news will likely increase both corporate and consumer appetite for AI tools, given improved accessibility, leveraging this innovation and accelerating AI adoption timelines,” Dudley points out.
Market Reactions and Expert Insights
According to Hyunho Sohn, portfolio manager of the Fidelity Funds Global Technology Fund, Chinese AI startup DeepSeek has introduced AI models that perform comparably to OpenAI’s ChatGPT models while being significantly more cost-effective. “This efficiency advantage has raised a series of questions about the perceived ‘winners’ in the global AI ecosystem, the implications for hyperscaler capital expenditures, and the effectiveness of sanctions and export bans aimed at preventing high-level generative AI progress in China.
This is an evolving situation, and we may see short-term volatility until it becomes clear how much more efficient this technology really is. While broader implications must be assessed on a case-by-case basis, I generally believe this development will be deflationary,” Sohn states.
Despite the shockwaves, Fidelity’s portfolio manager believes this is ultimately beneficial for end-users and service providers, though it could have negative implications for hardware. “This is similar to what we saw in the early days of the internet when people vastly underestimated the scale of innovation, technological adoption, and service-based business potential, while greatly overestimating the total addressable market (TAM) for hardware,” explains Sohn.
In the view of Amadeo Alentorn, manager of the Global Equity Absolute Return fund and head of the systematic equity team at Jupiter AM, DeepSeek’s rise is part of a broader trend that has been developing for months. In recent times, there have been major advances in Small Language Models (SLM), which contrast with the large models used by companies like OpenAI. The central question has been whether it is possible to build more precise, specialized models that focus on specific areas, such as law or medicine, rather than encompassing all knowledge.
“So far, the rise of artificial intelligence has primarily benefited a small group of large companies. However, recent advancements suggest that we may be witnessing a paradigm shift, where smaller companies can also leverage this technology without needing massive infrastructure investments. Identifying which companies will lead this new AI phase is a complex task, but what is clear is that this evolution promotes diversification within the sector. AI could expand beyond tech giants and create new business opportunities across various industries,” Alentorn asserts.
High Valuations Under Scrutiny
In this context, Fidelity’s portfolio manager acknowledges that, as he has been saying for some time, many AI semiconductors are expensive, with sentiment, valuations, and momentum slowing down—“the most interesting opportunities lie within the services ecosystem.”
“It’s still early, but I would add that the rapid developments in generative AI highlight the need for proximity and connection throughout the tech ecosystem—something we are well-positioned for, given the breadth and depth of our research coverage,” Sohn adds.
For Oliver Blackbourn, portfolio manager in the Multi-Asset team at Janus Henderson, AI has long been considered a highly complex area of development, with industry leaders perceived as having technological advantages that would allow them to maintain rapid growth. In his view, the expectation of high earnings growth has been used to justify elevated valuations, making these stocks highly vulnerable to any disappointment.
“Competition always seemed like the biggest threat, but also the hardest to assess for investors. The market’s reaction to a perceived radical shift in the competitive landscape has been fierce. Before U.S. markets opened today, Nasdaq 100 futures had fallen 3.9%, and ASML—one of Europe’s companies most exposed to the AI theme—had dropped more than 10%,” Blackbourn notes.
In his opinion, while it is easy to get ahead of events, it is also important to remember that high expectations have driven up valuations across the U.S. stock market and, consequently, global equities. “If we start to see U.S. stock valuations drop significantly, there is a risk that this will spill over into other high-valuation areas in Europe and Asia.
Similarly, with U.S. consumers more exposed than ever to the stock market, there is a broader risk of negative feedback loops if consumer confidence is shaken. A significant tightening of financial conditions due to stock market losses could quickly change the Federal Reserve’s outlook,” Blackbourn concludes.
Is your strategy prepared for the transformations redefining asset management in 2025? Technological integration, personalization, and the reinvention of operational models are reshaping the industry. Among these trends, asset securitization stands out as an innovative solution to maximize the growth of assets under management (AUM) and respond nimbly to increasing market complexity.
In this article, FlexFunds analyzes the significant trends shaping the future of asset management and how securitization can become a key strategic tool.
Large-scale personalization: the client at the center
Investors no longer seek generic products; they now demand solutions tailored to their objectives, values, and circumstances. By 2025, digitalization, powered by advanced artificial intelligence (AI) tools, will enable asset managers to build portfolios aligned with specific risk tolerances and unique goals. Personalization is becoming the key differentiator in a saturated market.
Digitalization and hybrid asset management
The pandemic accelerated the shift toward digital financial services, and by 2025, hybrid asset management will become the norm. Technological platforms that combine the convenience of digital self-service with human advisory will allow firms to adapt to an increasingly competitive market.
Fee reduction and new pricing models
The rise of automated advisors and investment platforms has driven down fees, forcing traditional portfolio managers to justify their value. Many are adopting alternative pricing models, such as subscriptions or fees based on service complexity.
Generational wealth transfer
As the massive wealth transfer from baby boomers to younger generations unfolds, asset managers face the challenge of maintaining multi-generational relationships. Technological tools simplify this transition by offering attractive investment options tailored to diverse generational profiles—from millennials interested in ESG to traditional investors.
Artificial intelligence: the transformation catalyst
AI is revolutionizing asset management, from portfolio structuring to client interaction. Its most notable applications include:
Predictive analysis: Identifying patterns and anticipating future client needs.
Portfolio optimization: Processing real-time data to detect risks and opportunities.
Risk management: Monitoring real-time transactions and adjusting strategies in response to market volatility.
In the second Asset Securitization Industry Report by FlexFunds and Funds Society, surveying over 100 senior executives from Latin America, the U.S., and Spain, 82% of portfolio managers stated that AI could enhance their investment decision-making process.
Securitization as a strategic tool
Asset securitization is a vital tool for portfolio managers looking to adapt to these trends. It allows them to offer clients personalized investment strategies tailored to risk profiles and time horizons that are cost-efficient and agile compared to other market alternatives.
The benefits of asset securitization for portfolio managers include:
Access to a broader base of international investors.
Enhanced distribution of investment strategies on private banking platforms through a listed security available via Euroclear.
Access to alternative financing sources.
Portfolio diversification offers flexibility in investment strategy composition by securitizing any underlying asset.
Simplified investor onboarding and subscription processes.
Asset management in 2025 will be defined by the ability to integrate technology, personalization, and innovative strategies like securitization. Managers who adopt a holistic approach, combining advanced digital tools with strong human relationships, will be best positioned to thrive in this evolving landscape.
To explore how FlexFunds can help you leverage securitization in your investment strategies, contact us at info@flexfunds.com.
