Luis Bermúdez Appointed as the New CEO of Banco Santander International

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Banco Santander announced to its employees the appointment of Luis Bermúdez as the new CEO of Banco Santander International, the division of International Private Banking in the U.S.

According to an internal statement from the company, the change will be made official in the coming weeks.

Bermúdez has over 20 years of experience in private banking, asset management, brokerage, and investment banking.

He joined Santander in 2005 in Madrid as a Fund Manager, where he stayed until 2010, reaching the position of CIO, Chief of Staff in Madrid. In 2010, he moved to Brazil, where he spent a year before arriving in Miami, according to his LinkedIn profile.

Bermúdez currently holds the position of Global Head of Business Development for Santander Private Banking, based in Miami.

Vanguard Reduces the Minimum Amount Required to Access Its Investment Platform, Digital Advisor

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Vanguard has announced a reduction in the minimum investment amount for its automated investment platform, Digital Advisor, lowering it from $3,000 to $1,001. In doing so, the asset manager aims to expand access to its digital advisory service for investors interested in managing their financial goals online.

Vanguard Digital Advisor, launched in 2020, offers a fully digital financial planning and investment advisory service, providing “personalized, convenient, and low-cost” advice. According to the company, the platform helps clients identify their retirement and non-retirement goals, then designs and manages customized, diversified, and tax-efficient investment portfolios to achieve them. As of June 30, 2024, Digital Advisor manages more than $19 billion in assets.

“Lowering the investment minimum for Vanguard Digital Advisor is an important step in our effort to expand investor access to advice and empower them earlier in their financial journey. We believe that advice strengthens investors’ ability to manage their personal finance and investment needs and can lead to better investment outcomes,” explained Brian Concannon, Head of Vanguard Digital Advisor.

This decision follows a period of accelerated growth and innovation for Digital Advisor, as Vanguard has significantly invested in the customer experience on the platform. Specific improvements include personalized coaching to reach financial goals, a wider selection of portfolios, greater tax efficiency, and the ability to create financial plans as a couple.

“Advice is fundamental to our mission of giving investors the best chance of investment success. We understand that our investors’ needs are constantly changing, and we are committed to continuously evolving and innovating our advice offerings to ensure that clients have the tools, guidance, and most importantly, the access they need to achieve their financial goals,” added Doug Mento, Head of Vanguard Advice.

Adcap Grupo Financiero Appoints Ariel Rivero and Juan Martín Longhi as Co-Heads of International Sales & Trading

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Adcap Grupo Financiero has announced the appointment of Ariel Rivero and Juan Martín Longhi, with over 20 years of combined experience in the financial sector, as the new Co-Heads of International Sales & Trading. According to the firm, this new team will aim to boost Adcap’s growth in global markets, with a strong focus on customer service.

Both professionals have extensive careers. Ariel Rivero, who holds an Executive MBA from IAE, has worked at renowned financial institutions and brokerage firms (ALYCs), excelling on the international trading desk. Regarding his new role, he commented, “I’m pleased with this recognition and the opportunity to continue growing. We hope to take Adcap to the next level and guide the next generation. It’s a great pleasure to share this position with Juan, who is not only an excellent professional but also a friend for many years.”

On the other hand, Juan Martín Longhi has an outstanding track record at the PUENTE trading desk and served as Executive Director of the Sales & Trading area at TPCG Valores. “I’m excited about this new challenge and taking on this role with Ariel, who is an excellent professional. We will develop all the tools needed for Adcap’s Sales & Trading business to grow in volume and improve the service for our clients,” Longhi noted.

Regarding both appointments, Agustín Honig, Managing Partner of Adcap Grupo Financiero, highlighted their importance to the company: “We are very proud to announce the promotion of Ariel Rivero and Juan Martín Longhi as Co-Heads of International Sales & Trading. Both have demonstrated exceptional commitment and leadership over the years at Adcap. I am confident that under their joint leadership, we will continue to expand our presence in global markets and provide top-tier service to our international clients.”

The Tax Annual Summit Returns to Uruguay

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Registrations and the agenda for the 2024 Tax Annual Summit are now available.

Titled “Shaping the Future of Taxation and Privacy,” the conference, which will bring together tax experts, will take place on November 21 at the Celebra building in Zonamerica, Uruguay. The event is organized by The 1841 Foundation.

The agenda includes keynote speakers such as Axel Kaiser, lawyer and president of Fundación para el Progreso; Dan Mitchell, president of the Center for Freedom and Prosperity; and María Eugenia Talerico, former vice president of Argentina’s Financial Information Unit.

The link to purchase tickets is:https://www.eventbrite.com/e/2024-tax-annual-summit-by-the-1841-foundation-tickets-998572195317?aff=FundsSociety

The SEC Accuses Six Credit Rating Agencies of Significant Failures in Record-Keeping

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The Securities and Exchange Commission (SEC) has announced charges against six nationally recognized statistical rating organizations for significant failures by the firms and their staff in maintaining and preserving electronic communications. The firms involved in this action include Moody’s Investors Service, S&P Global Ratings, Fitch Ratings, HR Ratings de México, A.M. Best Rating Services, and Demotech, Inc.

According to the U.S. authority, the firms admitted to the facts outlined in the SEC’s respective orders, acknowledged that their conduct violated the record-keeping provisions of federal securities laws, and agreed to pay civil penalties totaling 49 million dollars. Additionally, all the firms have begun implementing improvements in their compliance policies and procedures to address these violations.

The SEC further clarified in its statement that, with the exception of A.M. Best and Demotech, each credit rating agency is also required to hire a compliance consultant. The SEC recognized that A.M. Best and Demotech made significant efforts to comply with record-keeping requirements early on as registered credit rating agencies and cooperated with the SEC’s investigations, thus they are not required to hire a compliance consultant under the terms of their settlements.

“We have repeatedly seen that failures to maintain and preserve required records can hinder staff’s ability to ensure firms meet their obligations and the Commission’s ability to hold those who fail to meet such obligations accountable, often to the detriment of investors. With these actions, the Commission once again makes it clear that there are tangible benefits for firms that make significant efforts to comply and cooperate with staff investigations,” explained Sanjay Wadhwa, Deputy Director of the SEC’s Division of Enforcement.

Political Discord in the U.S. Is the Primary Concern for Investors Over the Next Decade

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Janus Henderson Investors has published the results of its Investor Survey 2024: Insights for a Brighter Future, which reveals that uncertainty surrounding the upcoming presidential elections, the economic situation, and the interest rate environment has led some investors to reduce the risk in their portfolios.

In particular, only 42% of surveyed investors feel very satisfied with their current financial situation, down from 48% a year ago, and two out of three (67%) believe that the cost of living is rising faster than their income. “In times like these, all investors should bear in mind that changes to a portfolio designed to avoid short-term volatility can often jeopardize long-term goals. The news cycle moves at an incredible pace, and headlines can be disconcerting, but U.S. equities have remained remarkably resilient despite high levels of uncertainty,” says Matt Sommer, head of Specialist Consulting Group at Janus Henderson Investors.

According to the report, the presidential elections are a bigger concern than inflation and interest rates. In an election year marked by turmoil, it clearly weighs heavily on the minds of current investors, with 78% of respondents concerned about how the upcoming presidential elections might affect their financial situation in the next 12 months. In fact, more respondents are worried about the elections than about persistent inflation (70%), high interest rates (57%), poor stock market performance (57%), or a potential recession (55%).

Over a longer period, namely the next 10 years, investors’ concerns are related to broader national and global systemic issues. Specifically, in order of relevance, they are worried about the long-term impact of increasing political discord in the U.S. (77%); the rising cost of healthcare (67%); national debt (66%); and U.S.-China relations (64%).

Less equity and more active management

When evaluating the investment implications of this sentiment, the report notes that investors have reduced their exposure to equities. Over the last 12 months, 33% of respondents have moved assets from equities to cash or fixed-income investments, and almost the same number (32%) plan to move equity assets to cash or fixed income over the next 12 months.

“The main reasons for leaving equities or planning to do so include rising interest rates, following advice from their advisor, and feeling safer in cash or fixed income. Although nearly half of the respondents (54%) say they are preparing for a recession, this figure is lower than the 65% seen in 2023,” the asset manager explains.

On the other hand, a notable trend is that active management remains in demand. According to the report’s conclusions, amid high uncertainty, 43% of investors who hold mutual funds or ETFs prefer an even mix of active and passive funds in their portfolios, 26% favor active managers, 18% prefer passive ones, 10% have no preference, and 3% were unsure.

Additionally, the areas that investors consider to represent the best investment opportunities in the coming years are technology (73%), healthcare/biotechnology (62%), and real estate (38%).

The risk of AI

A striking finding is that investors view AI-related fraud as an established threat. Nearly three out of four investors (73%) believe that AI significantly increases the risk of financial exploitation, and 56% are very or somewhat concerned that they or a loved one might fall victim to financial exploitation. Millennials (66%) and Generation X members (63%) are more likely to be concerned about financial fraud than Baby Boomers (48%) or members of the Silent Generation (43%).

Across all generations, 45% of investors who use a financial advisor say their advisor has already provided them with resources to help avoid financial fraud, 29% would like their advisor to provide such resources, and the remaining 26% are not interested in these resources.

However, the sentiment around AI is not entirely negative. Among those who use a financial advisor or are considering hiring one in the next two years, most feel good or neutral about their advisor using AI technology for educational content (85%) or administrative tasks (83%). However, the report points out that 36% would oppose their advisor using AI to make investment recommendations, and 44% would be upset if they knew their advisor used AI to respond to their text or email messages.

Greater satisfaction with financial advisors

Finally, the survey highlights that among investors who work with a financial advisor, 67% are very satisfied and 31% somewhat satisfied with their relationship. Notably, when advisors address emotional needs, client satisfaction improves, as factors associated with higher levels of satisfaction include:

– The advisor gives me peace of mind that I am on the right track to achieve my goals (cited by 79% of “very satisfied” clients)
– They care about me as a person, beyond my financial situation (72%)
– They provide financial education (65%)

It is worth noting that 42% of advised investors say their advisor is 50 years or older, and within this group, 42% said their advisor had addressed succession planning, 25% were unaware of their advisor’s plans but were interested in learning more, and the remaining 32% did not see the need to address this issue.

“Growth-oriented financial advisors should view the challenges investors face in this era of high uncertainty as an opportunity to strengthen their value proposition. It is clear that client satisfaction rates are very high among advised investors. However, with many advisors nearing retirement, those able to build trust and differentiate themselves by offering better experiences to their clients will be rewarded,” says Sommer.

BBVA Mexico Inaugurated a Nearshoring Office in Houston

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BBVA Mexico opened its new Corporate and Government Banking representation office in Houston, Texas, a region of the United States known for its diverse industrial sectors, including aerospace, manufacturing, energy, biotechnology, digital technology, logistics, and transportation, the bank announced in a statement.

The new office offers investment advisory services, financial tools, and access to the supply chain of the financial institution, which has around one million business clients in Mexico.

Víctor Rojas Fernández, director of the Corporate and Government Banking office in Houston, who led the institution’s Automotive Banking division for five years, bringing it to the top position in market share among banks operating in the country, emphasized that “the strategy aims to attract around 65 foreign companies in the first year of the new office’s operations.”

“Our goal is to approach business owners looking to operate in Mexico directly at their place of origin, anticipate their needs, and not wait for them to come to the country. This will allow us to provide them with advice and support them with the procedures and requirements necessary for their operations, ensuring a smooth entry into the country,” he said.

The BBVA Mexico Regional Sectoral Situation report highlights that Texas stands out as the U.S. state with the largest imports from Mexico, reaching $142.7 billion in 2023. Mexico registers a higher annual exchange of goods and services with Texas than with Asia, making the region a significant commercial hub.

The same analysis indicates that from the U.S. perspective, annual imports of goods from Mexico in 2023 reached $475.6 billion, with manufacturing representing 88.7% of the total. The demand for Mexican goods follows a geographical pattern linked to U.S. industrial regions, with Houston as a leader.

Data from the Federal Reserve Economic Data (FRED) of St. Louis reveals that Texas has consolidated itself as one of the fastest-growing states in terms of Gross Domestic Product (GDP), which has grown 30% since 2010. Texas alone would be the eighth-largest economy in the world and is the leading exporting state in the U.S., according to the state’s government office.

“With this new office, BBVA Mexico reaffirms its commitment to promoting foreign investment and facilitating economic growth in both Mexico and the United States, leveraging the nearshoring phenomenon,” the statement concluded.

The Assets Invested in Actively Managed ETFs Listed Worldwide Reached a New Record of 974.29 Billion Dollars

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ETFGI, an independent research and consulting firm focused on global ETF industry trends, revealed that assets invested in actively managed ETFs worldwide reached a new record of $974.29 billion at the end of July. That month, these vehicles registered net inflows of $35.92 billion, bringing year-to-date flows to $189.96 billion, according to the firm.

ETFGI’s July report highlights the following key points:

1. The assets invested in actively managed ETFs worldwide reached a new record of $974.29 billion at the end of July, surpassing the previous all-time high of $923.22 billion set at the end of June 2024.

2. The value of assets has increased by 31.7% year-to-date, rising from $739.87 billion at the end of 2023 to $974.29 billion in July.

3. July saw net investment inflows of $35.92 billion.

4. Year-to-date net inflows have reached $189.96 billion, the highest ever recorded, followed by year-to-date inflows of $86.12 billion in 2023 and contributions of $85.25 billion in 2021.

5. With July’s inflows, the industry has now seen 52 consecutive months of net investment inflows.

“The S&P 500 rose by 1.22% in July and 16.70% throughout 2024. Developed markets, excluding the U.S., gained 3.37% in July and 8.12% in 2024. Ireland (+6.48%) and Belgium (+6.42%) saw the biggest declines among developed markets in July, while Greece (+6.93%) and the UAE (+6.18%) posted the highest gains among emerging markets,” said Deborah Fuhr, managing partner, founder, and owner of ETFGI.

Growth of Assets in Actively Managed ETFs (As of July)

At the end of July, 2,761 actively managed ETFs were listed worldwide, with 3,421 share classes and $974.29 billion in assets, from 461 providers across 37 exchanges in 29 countries.

Actively managed equity-focused ETFs received net investment inflows of $19.37 billion during July, bringing the year-to-date net inflows to $108.52 billion, significantly exceeding the $58.01 billion in flows during the same period in 2023.

Actively managed fixed-income ETFs worldwide attracted $14.57 billion in investment in July, bringing the year-to-date net inflows to $69.12 billion, far surpassing the $27.44 billion in subscriptions during the January-July 2023 period.

These substantial inflows can be attributed to the top 20 actively managed ETFs by new net assets, which collectively gathered $13.42 billion in July. The Magellan Global Fund/Open Class brought in $1.64 billion, marking the largest individual net inflow.

HarbourVest, Kohlberg & Company, Nautic, and PSG Equity Gain Access to Chilean Pension Funds

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AFPs (cedida)

The latest meeting of the Risk Classification Commission (CCR) introduced a series of new managers and funds into the investable universe of Chilean pension funds, including four alternative investment firms: HarbourVest Partners, Kohlberg & Company, Nautic Partners, and PSG Equity.

The approval includes investment vehicles and co-investment operations with these managers for specific asset classes, as detailed in a statement. HarbourVest, a private markets manager with a variety of strategies and more than $127 billion in assets, was approved for infrastructure investments.

The other three managers were approved for private equity investments. Kohlberg & Company is focused on private equity with an emphasis on the middle market segment, similar to Nautic, while PSG Equity specializes in investing in growth-stage software companies.

The CCR also approved two mutual funds domiciled in Ireland: Lazard Japanese Strategic Equity, from Lazard Global Active Funds, and Muzinich Global Market Duration Investment Grade, managed by Muzinich Funds.

In addition, five ETFs were given the green light to enter the pension fund portfolios. One of them is Fidelity UCITS’ Fidelity Global Quality Income, and the others are vehicles from Janus Henderson: the AAA CLO, B-BBB CLO, Mortgage-Backed Securities, and Short Duration Income strategies.

On the other hand, two alternative managers were removed from the list of approved instruments. AEA Investors, a private equity firm, was withdrawn at the manager’s request, while Energy Capital Partners did not renew its application.

Antonio Almirall Joins BlackRock in Miami

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BlackRock has hired Antonio Almirall from Morgan Stanley in Miami.

With over a decade of experience in the industry, Almirall has distinguished himself at various firms such as Santander, UBS, and abrdn, according to his LinkedIn profile.

In his previous roles, he has worked in business development, financial advising, and as a client service associate.

The new sales representative for Miami was officially registered at BlackRock on Tuesday, September 5, according to his BrokerCheck profile.