GAM USA a part of GAM Investments, has established its second U.S. office in Miami, bringing the firm closer to its growing client base and meeting increasing demand. The goal of this new opening is to provide exceptional service and support both the U.S. and Latin American markets, alongside the coordinated efforts of its New York office and other locations in Montevideo and Santiago de Chile.
The firm’s relationships and commitment to its U.S. business have grown since the initial office was established in New York in 1989, and with the new GAM office in Miami, the firm expects to continue serving its clients.
GAM’s dedication to client service has been consistent for the past 40 years. Founded in 1983, GAM has earned a reputation for excellence in managing equities, fixed income, multi-asset, and alternative investments, and is well-known for offering sophisticated and diverse strategies in global markets.
Alejandro Moreno has relocated to South Florida to establish the Miami office, the second GAM office in the U.S., and lead the firm’s international client distribution team based there. Miami’s vibrant financial district has become a major hub for Latin American, European, and U.S. financial institutions serving international clients.
Charissa Pal, with 20 years of experience in the asset management sector, joins GAM from Alliance Bernstein, bringing extensive knowledge and understanding of international clients and their needs, and has built strong relationships with key distributors in the region. She joins GAM as Business Development Director at the Miami office.
Leveraging the firm’s institutional-grade global investment platform, the goal is to meet clients’ investment needs through strategies that diversify portfolios and outperform standard benchmarks.
Rossen Djounov, Global Head of Client Solutions, expressed his “delight” in announcing the opening of the Miami office, “which reflects our long-term commitment to our clients.” Djounov stated that Miami “is a strategic location for us, allowing us to be closer to our clients and offer tailored solutions and excellent service.”
To this end, “we have a strong and experienced team led by Alejandro Moreno, who has played a crucial role in the growth of our international business in the U.S. We are also pleased to welcome Charissa Pal, who brings great expertise and knowledge to our team. We believe that our unique investment offering, combined with our local presence and global reach, will enable us to deliver value and performance to our clients.”
The SEC has accused New York-based investment advisor WisdomTree Asset Management of “making false statements and compliance failures related to the execution of an investment strategy marketed as ESG.”
According to the SEC order, from March 2020 to November 2022, WisdomTree stated in the prospectuses of three ETFs marketed with ESG criteria, and before the board of trustees overseeing the funds, that they would not invest in companies involved in certain products or activities, including fossil fuels and tobacco.
However, the SEC’s documentation concludes that the funds marketed as ESG invested in companies related to fossil fuels and tobacco, including coal mining and transportation, natural gas extraction and distribution, and retail sales of tobacco products. “WisdomTree used data from external providers that did not exclude all companies involved in activities related to fossil fuels and tobacco,” the SEC order explains, also concluding that the firm lacked policies and procedures for the selection process that would exclude such companies.
As Sanjay Wadhwa, Acting Director of the SEC’s Division of Enforcement, recalls, federal securities laws impose a simple proposition: investment advisors must do what they say and say what they do. “When investment advisors claim they will follow certain investment criteria, whether investing in or refraining from investing in companies engaged in certain activities, they must adhere to those criteria and adequately disclose any limitations or exceptions to those criteria. In contrast, the funds involved in this action made precisely the types of investments that investors would not have expected based on WisdomTree’s disclosures.”
For its part, WisdomTree has accepted the SEC’s order concluding that it violated the antifraud provisions of the Investment Advisers Act of 1940 and the Investment Company Act of 1940, as well as the compliance rule under the Investment Advisers Act. Without admitting or denying the SEC’s findings, WisdomTree agreed to a cease-and-desist order, a censure, and to pay a $4 million civil penalty.
abrdn will relaunch the abrdn SICAV I-Emerging Markets Sustainable Equity Fund under the new name abrdn SICAV I-Emerging Markets Ex China Equity Fund. According to the asset manager, the fund introduces a series of changes for investors seeking to explore more opportunities in emerging markets. abrdn clarifies that the fund is available in Spain and the U.S.
Firstly, the decision to exclude China, as explained by abrdn, is in response to demand from a group of investors seeking active options to manage their exposure to the country. While abrdn continues to offer a wide range of strategies that include China, the firm is responding to client demand for diversifying their options.
Across the industry, the number of firms managing emerging market strategies excluding China has grown from three in 2017 to nearly 50 in 2024, according to Morningstar. abrdn has been managing an emerging markets strategy excluding China since March 2022 for the U.S. market. The change also comes at a time when, according to abrdn, opportunities in emerging markets are increasing, as they are expected to account for nearly 50% of global growth by 2050, according to abrdn’s Global Macro study.
They also note that the managers of the relaunched fund will be the Emerging Markets ex China portfolio construction team based in London and Singapore: Nick Robinson and Devan Kaloo in London, and Xin Yao NG in Singapore, supported by a broader global emerging markets equity team based in five locations outside China, from São Paulo to Singapore.
“China is home to some fantastic companies and is poised to surpass the U.S. as the world’s largest economy around 2035, so this is not a rejection of the Chinese market. However, we recognize that some investors want more flexibility in their approach to China. Ultimately, it’s about choice while embracing some of the key megatrends that we believe will drive emerging markets in the future. We see four powerful themes affecting the ex-China universe: consumption, technology, the green transition, and relocation. The fund invests in many companies that will benefit from these themes. The non-Chinese universe also offers sectoral diversification, as it includes more information technology and financial companies at the index level than the standard emerging markets index. The team believes that the strength of the tech sector will continue to expand beyond the U.S. market and holds a significant active position in companies benefiting from AI investments,” said Nick Robinson, Deputy Head of Global Emerging Markets Equities at abrdn.
The fund will remain classified as Article 8 under the SFDR and will continue to follow the NBIM exclusion list. The benchmark index will switch to the MSCI Emerging Markets ex China 10/40 Index (USD). These changes will not alter the fund’s risk profile. The fund will follow abrdn’s “emerging markets ex-China equity investment approach that promotes ESG aspects.”
By applying this approach, the fund commits to holding a minimum of 10% in sustainable investments, a reduction from the current 20% commitment to sustainable investments. At the index level, the MSCI EM includes 1,328 companies, while the MSCI EM ex China includes only 673. The fund will continue to use a qualitative identification process and avoid investing in companies lagging in ESG performance, incorporating negative screening based on the UN Global Compact, Norges Bank Investment Management (NBIM), controversial weapons, tobacco production, and thermal coal. The fund will also maintain explicit ESG objectives as outlined in its new investment objective and policy.
93% of the assets in the Broker/Dealers (B/D) channel are controlled by the 25 largest firms by assets under management (AUM) concentration, and the top 10 firms have increased their share of advisors to 62%, according to the latest U.S. Broker/Dealer Marketplace 2024 report by Cerulli.
As these companies aim to consolidate and expand their market position, advisory technology will become a strategic imperative and a key differentiator.
Over the past decade, the largest firms have taken advantage of their size, attracting more advisors to their platforms through technological enhancements and aggressive recruitment packages.
The quality of a B/D firm’s technology has proven to be a critical factor for both retaining advisors and attracting experienced advisors from other firms, the consulting firm’s report states.
Cerulli’s study concludes that advisors who switched firms in the past three years most frequently identified the quality of the firm’s technology (55%) as a key factor influencing their decision to join, followed closely by the quality of back-office support (53%) and compensation (49%).
“Investments in technology and administrative support can significantly enhance a firm’s appeal, making it a more conducive environment for advisors to thrive,” says Michael Rose, director.
Rose added that as the appeal of independent channels, which tend to offer greater autonomy and flexibility, looms as a competitive threat, a technology experience that empowers advisors to provide high-quality services and client experiences, while also enabling them to efficiently manage their business, is a powerful defensive and offensive strategy for B/Ds.
Overall, more robust technological infrastructure, better home-office support, and stronger resources for teams working in a collaborative structure are all factors that can enable scale. This allows advisors to work more efficiently, improve the range and quality of services offered to clients, and retain assets, summarizes Cerulli.
“However, scale alone does not guarantee enhanced platform capabilities,” Rose states, concluding that “broker/dealers will need to invest in the right technology to drive advisor growth and ensure a sustained advantage.”
The Securities and Exchange Commission’s Division of Examinations publishes its annual examination priorities to inform investors and registrants of potential risks in the U.S. capital markets and to highlight the examination topics it plans to focus on in the new fiscal year.
This year’s examinations will prioritize both perennial and emerging risk areas, such as fiduciary duty, conduct standards, cybersecurity, and artificial intelligence.
“The 2025 examination priorities of the Division of Examinations enhance confidence in our constantly evolving markets,” stated SEC Chair Gary Gensler.
The Division reviews compliance with federal securities laws by investment advisers, investment companies, broker-dealers, clearing agencies, and self-regulatory organizations, among other SEC-registered entities.
It also prioritizes examinations of practices, products, and services that, based on a risk assessment, pose higher risks to investors or the integrity of the U.S. capital markets.
The annual publication of examination priorities promotes the SEC’s mission and aligns with the Division’s four pillars: promoting and enhancing compliance, preventing fraud, monitoring risk, and informing policy, the Commission’s statement added.
For fiscal year 2025, in addition to conducting examinations in core areas such as disclosure practices and governance standards, the Division will also assess compliance with new regulations, the use of emerging technologies, and the robustness of controls aimed at protecting investor information, records, and assets.
The 2025 examination priorities cover a wide range of potential risks for investors that companies should consider when reviewing and strengthening their compliance programs.
However, this list is not exhaustive regarding all the areas the Division will focus on next year. The scope of any examination may include analysis of other risk factors, such as an entity’s history, operations, and products and services.
“Our 2025 examination priorities identify key areas of potentially higher risks and related harms to investors. We expect registrants to assess their compliance programs in the areas we’ve identified and make necessary changes to protect investors and maintain fair and orderly capital markets,” said Keith Cassidy, Acting Director of the Division of Examinations.
The 2024 U.S. presidential elections have been shaken by a series of political events in recent weeks. Here is a brief overview of how either government would address these challenges and the possible repercussions for geopolitical stability, U.S. national security policy, and the markets. Vice President Kamala Harris has assumed a significant role in the Biden administration’s foreign policy. In almost every area, the vice president’s stance on foreign policy closely aligns with President Biden’s. Therefore, regarding a possible Harris administration’s foreign policy, we should expect “more of the same” with continuity in both approach and personnel.
This means continuing to focus on protecting and promoting strategic sectors in industries critical to great power competition with China, such as artificial intelligence, quantum computing, biotechnology, and others (Harris, in particular, has supported U.S. export controls and restrictions on foreign investment in advanced semiconductors). It also means continuing to deepen relationships with U.S. allies in both economic and national security domains, including ongoing U.S. support for Ukraine and Taiwan, and increasing reliance on NATO and other multilateral organizations or initiatives. Her choice of Tim Walz as her running mate could be a differentiating factor in relations with China, as Walz – though highly critical of the Chinese Communist Party – has a strong personal relationship with the country and its culture.
Trump: His policy would likely reflect a similar approach to his first administration.
In summary, we would expect a more transactional U.S. foreign policy, similar to what we saw during President Donald Trump’s first administration, particularly regarding Ukraine and Russia, and including Taiwan.
Trade would also likely shape U.S. foreign policy in a second Trump administration. The former president’s promise to impose significant trade tariffs on China – as well as on some U.S. allies in Europe and the Indo-Pacific – would likely be a key feature of Trump 2.0’s approach to the world, almost certainly adding new tensions to U.S.-China relations, as well as new frictions with traditional U.S. allies.
Investment Implications: More winners and losers in the “new era” regardless of policy.
Regardless of the outcome in November and the differing policy priorities of Vice President Harris and former President Trump, the global geopolitical environment will remain challenging, likely for the next several years. In such an uncertain national security environment, U.S. leaders and other policymakers around the world will continue to emphasize national security, often at the expense of economic efficiency.
Therefore, investors should prepare for a very different context than in previous periods, including selective protectionism as the new normal, an increasing likelihood of inflation and structurally higher interest rates, more differentiated macroeconomic cycles, and lower global growth than what was seen during the “Goldilocks” period of globalization.
Allfunds has announced the appointment of Patrick Mattar as the new Global Head of Exchange-Traded Products (ETPs) Distribution. This announcement aligns with their intention to launch an ETP platform in 2025, an expansion that will complement their offerings of traditional and alternative funds, establishing a comprehensive three-pillar platform with a full spectrum of exchange-traded products under an integrated solution.
According to the company, in his new role, Patrick will be responsible for leading the development and launch of the ETP platform, guiding the strategy for this segment, and ensuring smooth integration with Allfunds’ existing suite of services. His focus will be on driving innovation, enhancing customer experience, and ensuring the platform’s long-term success in an evolving financial landscape.
“I am excited to join Allfunds and lead this exciting project. The opportunity to develop a comprehensive ETP platform is incredibly stimulating, and I look forward to working with the talented Allfunds team to deliver innovative solutions that meet the evolving needs of our clients,” said Patrick Mattar, Global Head of ETP Distribution.
Allfunds highlights that Patrick brings extensive experience to the role, having held leadership positions in leading financial services organizations. Before joining Allfunds, he was Global Head of ETFs at Aberdeen Standard Investments (now abrdn), and previously served as Managing Director at iShares, BlackRock, where he spent nearly a decade helping to drive the growth of ETFs through new products and uses by investors.
Patrick holds a Master’s degree in Economics from the University of St Andrews and was a fellow at the University of Pennsylvania. He also earned a Master’s in Science from the University of Stirling and attended Trinity College Dublin.
Following this announcement, Juan de Palacios, Head of Strategy and Product at Allfunds, commented: “We are delighted to welcome Patrick to Allfunds. His experience and leadership in the ETP and ETF sectors will be crucial in the next phase of our growth, and we are confident that under his direction, our new platform will deliver significant value to both the ETP ecosystem and our clients.”
The global fintech platform iCapital has announced that it has surpassed 200 billion dollars in alternative investment assets.
“Increased demand for high-quality private market funds from global clients has led to this milestone and accelerated the growth of client assets on the iCapital platform,” the firm announced in a statement.
According to iCapital, the financial professionals and asset managers using its platform doubled the amount of assets from 100 billion dollars in December 2021 to more than 200 billion dollars in September 2024.
Additionally, more than 104,000 financial professionals have conducted transactions on the iCapital platform over the past 12 months, with an average of four visits per month, the statement noted.
Currently, the platform provides access to more than 1,630 funds from over 600 asset managers, marking a more than 77% increase in the number of funds available on its platform since December 2021.
“iCapital is honored to help more financial advisors than ever grow their businesses by using our end-to-end technology and operating platform,” said Lawrence Calcano, Chairman and CEO of iCapital. “Our clients are and will continue to be the cornerstone of everything we do. Together, we’ve surpassed this 200 billion-dollar milestone in assets under management, and together we will innovate and transform the alternative investment experience to create opportunities for the long-term successful outcomes that financial advisors seek for their clients.”
iCapital has offices in Zurich, London, Lisbon, Singapore, Hong Kong, Toronto, and Tokyo this year. The firm will open offices in Australia and the Middle East in the next six months. The platform manages more than 28 billion dollars in assets.
AXA Investment Managers announced the launch of the AXA IM Wave USD Credit 2027 fund, an actively managed, three-year fixed maturity product (FMP) that will invest across a diversified portfolio in US-denominated investment grade and high yield debt.
The fund will have an investment grade average rating. The FMP aims to lock-in yields available in the current market environment and to offer investors an alternative to cash and money market investments over a period when short-term rates are expected to fall, the press release said.
The fund aims to mirror the profile of a single bond through a diversified portfolio that offers investors a combination of both investment grade and high yield investments.
The fund will leverage a dedicated 33-person US corporate credit investment team, with extensive experience managing short-term portfolios in US investment grade and high yield for more than twenty years. This marks the ninth FMP launched by AXA IM since 2015.
Frank Olszewski, CFA, Head of Investment Grade Active US Credit, and Vernard Bond, CFA, US high yield Senior Portfolio Manager will co-manage the fund. Both will be supported by the US Credit Investment teams.
The fund will continue to deploy AXA IM’s fundamental and disciplined bottom-up investment process, centered in selecting companies with robust fundamentals through in-depth credit research and diversification.
The fund is designed to be held until the fixed maturity date of December 15th, 2027, and open to new subscriptions until February 28, 2025.
Charles Schwab has just launched an RIA Roadmap with “a step-by-step approach to help you design, build, and launch your firm.”
The company highlights that transitioning to the independent RIA model “allows you to prioritize your clients and keep more of what you earn.”
According to the firm, those interested will find information and guidance on defining a business strategy, managing risks, setting up the office, converting accounts, and strengthening their practice.
To access the roadmap, please visit the following link.
