Fitch Ratings has just published a damning report outlining the consequences of the trade war launched by the U.S. government: it will reduce growth in both the U.S. and globally, drive up inflation in the U.S., and delay interest rate cuts by the Federal Reserve.
“We have cut our U.S. growth forecast for 2025 from 2.1% to 1.7% in the December 2024 Global Economic Outlook (GEO), as well as our 2026 forecast from 1.7% to 1.5%. These rates are well below trend and lower than the nearly 3% annual growth seen in 2023 and 2024,” the note states.
Fiscal easing in China and Germany will cushion the impact of increased U.S. import tariffs, but growth in the eurozone this year will still fall well short of what was forecast in December. Mexico and Canada will experience technical recessions given the scale of their trade exposure to the U.S., prompting the ratings agency to cut their 2025 annual forecasts by 1.1 and 0.7 percentage points, respectively.
“We forecast that global growth will slow to 2.3% this year, well below trend and down from 2.9% in 2024. This 0.3 percentage point downward revision reflects widespread reductions across developed and emerging economies. Growth will remain weak at 2.2% in 2026,” Fitch adds.
The magnitude, speed, and breadth of U.S. tariff hike announcements since January are alarming, the firm notes. The effective tariff rate (ETR) in the U.S. has already risen from 2.3% in 2024 to 8.5% and is likely to continue increasing: “Our latest economic forecasts assume an ETR of 15% will be imposed on Europe, Canada, Mexico, and other countries in 2025, and 35% on China. This will raise the U.S. ETR to 18% this year, before moderating to 16% next year, as the ETR for Canada and Mexico falls to 10%. This would be the highest rate in 90 years.”
“There is enormous uncertainty surrounding the extent of U.S. measures, and our assumptions could be too severe. However, there are also risks of a greater tariff shock, including an escalation of the global trade war. In addition, the U.S. government has set an import substitution agenda — aimed at boosting U.S. manufacturing and reducing the trade deficit — which it believes can be achieved through higher tariffs,” the note adds.
The tariff hikes will lead to higher consumer prices in the U.S., lower real wages, and increased business costs, while rising political uncertainty will negatively affect business investment. Retaliation will hit U.S. exporters. Export-oriented global manufacturers in East Asia and Europe will also be affected. Models suggest the tariff increases will reduce GDP by around one percentage point in the U.S., China, and Europe by 2026.
The recent implementation of fiscal stimulus in Germany will greatly help cushion the blow and allow its economy to moderately recover in 2026. More aggressive policy easing will also help offset the impact in China. Since the tariff impact is estimated to add 1 percentage point to short-term inflation in the U.S., Fitch believes the Fed will delay further easing until the fourth quarter of 2025. Currently, it forecasts only one rate cut this year, followed by three more in 2026 as the economy slows and tariff levels stabilize.
UBS Asset Management (UBS AM) has announced the launch of two new UCITS ETFs that offer exposure to the Nasdaq-100 Notional and Nasdaq-100 Sustainable ESG Select Notional indices. According to Clemens Reuter, Head ETF & Index Fund Client Coverage, UBS Asset Management, “these are the first two Nasdaq-100 ETFs we are launching, giving clients the option to choose between the iconic index and the sustainable version of the same benchmark.”
Regarding the funds, they state that the UBS ETF (IE) Nasdaq-100 UCITS ETF passively replicates the Nasdaq-100 Notional Index, which is composed of the 100 largest U.S. and international non-financial companies listed on the Nasdaq Stock Market, based on market capitalization. The index includes companies from various sectors such as computer hardware and software, telecommunications, retail/wholesale, and biotechnology. The manager clarifies that the fund is aligned with Art. 6 under SFDR and is physically replicated.
Meanwhile, the UBS ETF (IE) Nasdaq-100 ESG Enhanced UCITS ETF passively replicates the Nasdaq-100 Sustainable ESG Select Notional Index, which is derived from the Nasdaq-100 Notional Index. Companies are evaluated and weighted based on their business activities, controversies, and ESG risk ratings. Companies identified by Morningstar Sustainalytics as having an ESG risk rating score of 40 or higher, or as involved in specific business activities, are not eligible for inclusion in the index. The ESG risk rating score indicates the company’s total unmanaged risk and is classified into five risk levels: negligible (0–10); low (10–20); medium (20–30); high (30–40); and severe (40+).
In addition, the ESG risk score of the index must be 10% lower than that of the parent index at each semi-annual review. A lower index-weighted ESG risk score means lower ESG risk. The fund is physically replicated and aligned with Art. 8 under SFDR.
According to the manager, the UBS ETF (IE) Nasdaq-100 UCITS ETF will be listed on SIX Swiss Exchange, XETRA, and London Stock Exchange, while the UBS ETF (IE) Nasdaq-100 ESG Enhanced UCITS ETF will be listed on SIX Swiss Exchange and XETRA.
Ocorian, a provider of services to asset managers, has appointed Amy Meza as Director of Fund Accounting, strengthening its Fund Services team in the United States.
Based in Dallas, she will report to Lynne Westbrook, Head of Fund Services, adding further experience and expertise to Ocorian’s expansion in the U.S. following the acquisition of EdgePoint Fund Services in December of last year, according to the company’s statement.
Meza was previously Vice President of Financial Control at Zip Co Limited and CFO at Direct Access Capital, and she brings extensive experience in global financial services, private equity, treasury management, and change management. She began her career at Deloitte and also served at JP Morgan Chase as Fund Accounting Manager and at SS&C Technologies as Associate Director of Fund Accounting.
“The appointment of Amy brings additional experience and knowledge to Ocorian, and she will make a significant contribution as we continue to build our business in the U.S.,” said Lynne Westbrook.
For her part, Amy Meza added: “Ocorian is ambitious in growing its U.S. business, which makes this an exciting time to join, and I’m looking forward to supporting colleagues and clients in helping achieve our expansion plans.”
Ocorian first entered the U.S. market in 2021 with the acquisition of Emphasys Technologies, based in Philadelphia. Since then, the company has been enhancing its onshore capabilities, making key hires, and expanding its service offering to support its growing client base, recently announcing the acquisition of EdgePoint in Dallas, Texas. Through its operations in New York, the company provides fund managers, private clients, and corporates with access to fund structuring and domiciliation hubs around the world—from Europe and the Middle East to the Caribbean, Latin America, Africa, and Asia-Pacific.
For wealth managers, growth has been strong over the past five years, with a global increase of 20% in assets under management (AuM). According to the Wealth Industry Survey by Natixis IM, the pursuit of growth is even greater this year, as firms project an average increase of 13.7% in wealth just in 2025. However, given geopolitical changes, economic uncertainty, and accelerated technological advances, investment leaders know that meeting these expectations will not be an easy task.
Geopolitics and Inflation: Key Concerns
The results show that while 73% are optimistic about market prospects in 2025, macroeconomic volatility remains a major concern. 38% of respondents cite new geopolitical conflicts as their main economic concern, closely followed by inflation, with 37% of respondents fearing that it may resurge under Trump’s policies. Additionally, 66% anticipate only moderate interest rate cuts in their regions.
Despite these concerns, 68% of analysts state that they will not adjust their return expectations for 2025, as wealth managers are implementing strategies for their businesses, the market, and most importantly, their clients’ portfolios, with the aim of delivering results.
In addition to new geopolitical conflicts and inflation, respondents also identified other concerns for 2025. 34% point to the escalation of current wars, and another 34% highlight U.S.-China relations. Lastly, 27% underscore the tech bubble as another factor to consider.
With this in mind, wealth managers are carefully considering how geopolitical turbulence and persistent inflation will impact the macroeconomic environment. Half of the respondents forecast a soft landing for their region’s economy, with the strongest sentiment in Asia (68%) and the U.S. (58%). However, this drops to 46% in Europe and just 37% in the U.K. Additionally, 61% are concerned about stagflation prospects in Europe.
Regarding the specific impacts of the U.S. elections on the economic outlook, two-thirds globally are concerned about the possibility of a trade war. However, wealth managers also see opportunities on the horizon, as 64% believe that the regulatory changes proposed by the Trump administration will drive the development of innovative investment products.
In addition, two-thirds believe that the proposed tax cuts will drive a sustained market rally. Taking all of this into account, 57% globally say that, in light of the U.S. election outcome, clients are more willing to take on risk, with the potential to disrupt the cash accumulation pattern investors have maintained since central banks began raising rates.
The Investment Potential of AI
After witnessing the rapid development of generative AI models, 79% of surveyed wealth managers say that AI has the potential to accelerate profit growth over the next 10 years. With this in mind, firms are looking to leverage the benefits of the new technology in three key areas: tapping into the investment potential of AI, implementing AI to improve their internal investment process, and using AI to optimize business operations and customer service.
69% of respondents say that AI will improve the investment process by helping them uncover hidden opportunities, and another 62% say that AI is becoming an essential tool for assessing market risks. In fact, the potential is so significant that 58% say that companies that do not integrate AI will become obsolete.
With this in mind, 58% say their company has already implemented AI tools in their investment process. The highest concentration of early adopters is found among wealth management firms in Germany (72%), France (69%), and Switzerland (64%).
Beyond investment opportunities and portfolio management applications, wealth managers also anticipate that AI will impact the service side of the business. Overall, 77% say that AI will help them meet their growth goals by integrating a wider range of services. However, the technology can be a double-edged sword, as 52% also fear that AI is helping turn automated advice into a real competitive threat.
“Wealth managers face a wide range of challenges in 2025, from educating their clients on the benefits of holding private investments to finding the best ways to integrate AI into their investment and business processes. However, despite potential obstacles, wealth managers are confident that they can harness disruptive forces to unlock new opportunities and meet the AUM growth goals they need to achieve in 2025,” says Cecile Mariani, Head of Global Financial Institutions at Natixis IM.
Appetite for Private Assets Continues to Grow
Technology may have the potential to transform the industry, but firms face more immediate challenges in meeting clients’ investment preferences and return expectations.
Wealth managers are exploring a wider range of vehicles and asset classes to meet their clients’ needs. Globally, portfolios now consist of 88% public assets and 12% private assets, a ratio that is likely to shift as focus on private assets increases. Additionally, 48% state that meeting the demand for unlisted assets will be a critical factor in their growth plans.
However, private asset allocation is not without its challenges. 26% of respondents consider access to these assets—or lack thereof—a threat to their business. Despite this, new product structures are helping to ease this pressure, with 66% noting that private asset vehicles accessible to retail investors improve diversification.
The next challenge will be financial education, as 42% believe that a lack of understanding about liquidity is a barrier to incorporating private assets into client portfolios. Nevertheless, the lack of liquidity can also work in favor of some investors, given that 75% of wealth managers globally say that the long-term nature of retirement savings makes investment in private assets a sound strategy.
Overall, 92% plan to increase (50%) or maintain (42%) their private credit offerings, and similarly, 91% plan to increase (50%) or maintain (41%) their private equity investments on their platforms. Few among the respondents see this changing, as 63% say that there is still a significant difference in returns between private and public markets. Additionally, 69% say that despite high valuations, they believe private assets offer good long-term value.
The 2025 Wealth Management Industry Survey by Natixis Investment Managers gathers the views of 520 investment professionals responsible for managing investment platforms and client assets across 20 countries.
Paulina Esposito, Head of Sales Uruguay – Argentina at LarrainVial
Paulina Esposito, the newly appointed Head of Sales Uruguay – Argentina at LarrainVial, is a distinguished professional with over 25 years of experience in the sector. She shares her insights with FlexFunds and Funds Society through The Key Trends Watch initiative, reflecting on the challenges and opportunities that have shaped her career.
As Head of Sales, she aims to position the company as a key player in the region by leveraging its multi-manager model to offer investment strategies based on rigorous analysis and strategic vision. To achieve this, she considers it essential to build trust and communicate the company’s value effectively.
In her approach, Esposito underscores the importance of selecting timeless investment strategies that can endure market fluctuations over time. These strategies are based on consistent processes and strong management teams, enabling investors to navigate volatility confidently. Additionally, she emphasizes the need to educate clients, helping them understand what they are investing in and why a particular investment is suitable for their portfolio.
What are the most important trends currently shaping the asset management industry?
Two key areas stand out: technology and alternative assets. Technological innovation is transforming the industry, driven by a new generation with different training and mindsets. Meanwhile, alternative assets such as private credit and direct lending are gaining relevance, offering stability and diversification in emerging markets like Latin America.
How do you think the industry will evolve—toward separately managed accounts (SMAs) or collective investment vehicles?
The industry will likely adopt a hybrid model combining separately managed accounts (SMAs) and collective investment vehicles. The diversity of clients and capital requires flexible solutions. While high-net-worth investors often seek personalized management due to their specific interests and ability to seize unique opportunities, collective investment vehicles are ideal for more diversified, lower-volume portfolios. In this context, both approaches can coexist and complement each other based on client profiles and needs.
What is the biggest challenge in capital raising and client acquisition today?
One of the most significant challenges is understanding each client’s evolving needs deeply. The key lies in active listening. Today’s investors assess more complex factors than before and seek more than just returns—they want trust, consistency, and a personal connection with their advisors.
This approach requires discipline, consistency, and effective communication that prioritizes client expectations over personal preferences. Becoming a trusted advisor means listening actively and adapting communication to ensure clients feel understood.
What factors do clients prioritize when making investment decisions today?
Decision-making dynamics are shifting. While clients still seek returns, they are increasingly focused on managing volatility and understanding how products behave in turbulent markets. Additionally, investors are paying closer attention to managers’ track records and ability to navigate challenging scenarios.
Liquidity has also become a critical factor, particularly for alternative products. Although alternative investments can provide stability and diversification, their illiquid nature must be explained and understood by clients. Designing a well-balanced portfolio is essential—one that combines liquid assets such as bonds, equities, and funds with global diversification to mitigate the risks associated with sector-specific fluctuations.
How is technology transforming the asset management sector?
Technology is forcing all financial sector players to stay constantly updated. This presents a significant challenge for advisors, as younger generations naturally possess strong technological skills.
Integrating these tools is not just necessary for advisors—it is an opportunity to add value in an environment where technology has made investment platforms and options more accessible. Younger clients are already leveraging these advancements to build savings more efficiently. The challenge, therefore, is to understand these new dynamics while maintaining the relevance of human advisors, particularly in direct client interactions and the personalization of investment strategies.
The impact of artificial intelligence on investment management
According to Esposito, artificial intelligence is beginning to play a crucial role in investment analysis. Many investors already use AI-driven platforms that provide specific recommendations for portfolio adjustments. This pushes advisors to be more proactive and adapt quickly to emerging client needs.
In the past, clients tended to hold certain investments for extended periods. However, AI-generated alerts are now driving a trend of continuous portfolio adjustments. “This shift underscores the importance of communication and client proximity. Without these interactions, advisors risk losing their role in portfolio management.”
In her view, the most critical skills investment advisors need to develop are “active listening and effective communication.” Beyond mastering the technical aspects of financial products, an advisor must understand clients’ needs, goals, and concerns. “The ability to tailor strategies to each client and communicate ideas clearly and simply is crucial in an environment where not all clients have the same level of financial sophistication,” Esposito emphasizes.
Trends and challenges in the coming years
The financial sector is undergoing a generational shift over the next 5-10 years. The younger generations, raised in the digital era, will have different expectations and become more familiar with technological tools. This means the biggest challenge for advisors will be finding ways to add value beyond what technology can offer.
Looking ahead, Esposito highlights key themes and strategies essential for a diversified portfolio. Private credit, infrastructure trends, and global equity positions will be crucial. Additionally, opportunities in emerging markets—particularly in Latin America—should be considered. Countries like Argentina present attractive possibilities but have inherent risks, requiring active management.
Finally, reflection and portfolio rebalancing become indispensable in a constantly evolving market. More than ever, Esposito emphasizes, “the ability to listen, communicate, and anticipate will distinguish those who lead the change from those who fall behind.”
The interview was conducted by Emilio Veiga Gil, Executive Vice President of FlexFunds, as part of the Key Trends Watch initiative by FlexFunds and Funds Society.
As he does every year, Larry Fink, CEO of BlackRock, has published his annual letter to investors, in which he analyzes the long-term forces shaping the global economy and how BlackRock is helping its clients navigate these dynamics and seize emerging opportunities.
What stands out is that in the opening lines of his letter, he acknowledges that investors are nervous. “I hear it from nearly every client, nearly every leader, nearly every person I speak with: they’re more worried about the economy than at any time in recent memory. And I get it. But we’ve been through moments like this before. And somehow, over the long term, we find a way through,” he writes.
To explain how the asset manager is approaching today’s environment and its view of the world, the letter opens by highlighting a key principle of BlackRock’s business: that capital markets can help more people experience the growth and prosperity that capitalism can deliver.
“Of all the systems we’ve created, one of the most powerful — and especially suited for moments like this — began over 400 years ago. It’s the system we invented specifically to overcome contradictions like scarcity amid abundance and anxiety amid prosperity. We call this system the capital markets.”
The CEO highlights that investors have benefited from the greatest period of wealth creation in human history, noting that in the last 40 years, global GDP has grown more than in the previous 2,000 years combined. He argues that this extraordinary growth — driven in part by historically low interest rates — has generated exceptional long-term returns. However, he acknowledges that not everyone has shared in this wealth.
Fink concedes that capitalism has clearly not worked equally for everyone, and that markets are not perfect. To change this, he believes the answer is not to abandon the markets, but to expand them: “to complete the democratization of the market that began 400 years ago and enable more people to have meaningful participation in the growth happening around them.” How can investment continue to be democratized? In his view, there are two general ways: helping current investors access parts of the market that were previously out of reach, and enabling more people to become investors from the outset.
“More investment. More investors. That’s the answer. Since BlackRock is a fiduciary and the world’s largest asset manager, some readers might say I’m talking my book. That’s understandable. But it’s also the path we consciously chose, long before it was fashionable. From the beginning, we believed that when people can invest better, they can live better — and that’s exactly why we created BlackRock,” he states.
Unlocking Private Markets
In Fink’s view, the assets that will define the future — such as data centers, ports, power grids, and the world’s fastest-growing private companies — are not available to most investors. “They are in private markets, locked behind high walls, with doors that only open to the largest or wealthiest market participants. The reason for this exclusivity has always been risk. Illiquidity. Complexity. That’s why access is limited to certain investors. But nothing in finance is immutable. Private markets don’t have to be so risky, opaque, or out of reach — not if the investment industry is willing to innovate. And that’s exactly what we’ve been working on at BlackRock over the past year.”
In this vein, over the last fourteen months, BlackRock has acquired Global Infrastructure Partners (GIP) and Preqin, and announced the acquisition of HPS Investment Partners. According to the CEO, these moves enable broader access to private markets for more clients and provide investors with greater choice. “BlackRock is transforming the future of our industry to better serve today’s clients,” he adds.
The Big Retirement Question
For BlackRock, these strategic moves are driven by the mismatch between investment demand and capital available from traditional sources. Capital markets can help fill that gap. In this regard, the CEO explains how democratizing investment can help more people secure their financial future and that of their families.
In the letter, he outlines ideas such as helping people start investing earlier and giving retirees the peace of mind and security needed to spend in retirement. “A good retirement system acts as a safety net that protects people when they face hardship. But a great system also offers a path to build savings, accumulating wealth year after year,” he notes. More than half of the assets managed by BlackRock are for retirement funds. “It’s our core business, and that makes sense: for most people, retirement accounts are their first — and often only — experience with investing. So if we truly want to democratize investing, retirement is where the conversation has to start,” he adds.
Focusing on the U.S., he considers the situation there to be critical: “Public pension systems are facing massive shortfalls. Nationally, data shows they are only 80% funded — and that number is likely too optimistic. Meanwhile, one-third of the country has no retirement savings at all. As money becomes scarce, people are living longer. Today, if you’re married and both partners reach age 65, there’s a 50% chance that at least one of you will live to 90.”
In response, he highlights that last year, BlackRock launched LifePath Paycheck® to address this fear. “It offers people the option to convert 401(k) retirement savings into a steady, reliable monthly income. In just 12 months, LifePath Paycheck® has already attracted six plan sponsors representing 200,000 individual retirement savers,” he explains.
A Look at Europe
On major market trends, Fink also shared his views. Regarding Europe, he believes the continent is waking up and wonders if it’s time to turn bullish on the region. “The policymakers I speak with — and I speak with many — now recognize that regulatory barriers won’t disappear on their own. They must be addressed. And the potential is enormous. According to the IMF, reducing internal trade barriers within the EU to the level that exists among U.S. states could boost productivity by nearly 7%, adding a staggering $1.3 trillion to the economy — the equivalent of creating another Ireland and another Sweden,” he states.
He adds that the biggest economic challenge facing the continent is the aging workforce: “In 22 of the 27 EU member states, the working-age population is already shrinking. And since economic growth largely depends on the size of a country’s labor force, Europe faces the risk of a prolonged economic slowdown.” The letter highlights that BlackRock manages $2.7 trillion for European clients, including around 500 pension plans supporting millions of people.
It also notes that ETFs contribute to developing an investment culture in Europe, making it easier for more individuals to reach their financial goals by using capital markets: “When first-time investors start entering capital markets, they often do so through ETFs — and particularly iShares. We are working with established players, as well as several newcomers to Europe, such as Monzo, N26, Revolut, Scalable Capital, and Trade Republic, to lower investment barriers and build financial literacy in local markets.”
Tokenization: The Great Revolution of Democratization
While expanding access to capital markets requires innovation and effort, Fink believes it’s not an insurmountable challenge. As an example of such innovation, he points to tokenization as a clear step toward democratization. In his view, if SWIFT is like postal mail, then tokenization is email: assets move directly and instantly, bypassing intermediaries.
“What exactly is tokenization? It’s the process of turning real-world assets (stocks, bonds, real estate) into digital tokens that can be traded online. Each token certifies your ownership of a specific asset, much like a digital deed. Unlike traditional paper certificates, these tokens live securely on a blockchain, enabling instant buying, selling, and transferring — without cumbersome paperwork or waiting periods. Every stock, every bond, every fund, every asset can be tokenized. If they are, it will revolutionize investing. Markets would no longer need to close. Transactions that now take days could settle in seconds. And billions of dollars currently trapped by settlement delays could be immediately reinvested into the economy, generating more growth,” he explains.
In his view, perhaps most importantly, tokenization makes investing far more democratic. “It can democratize access, shareholder voting, and returns. One day, I hope tokenized funds become as familiar to investors as ETFs — provided we solve one critical issue: identity verification,” Fink concludes.
On Thursday, March 27, the SEC voted to end its defense of rules requiring the disclosure of climate-related risks and greenhouse gas emissions.
Acting SEC Chair Mark T. Uyeda stated: “The purpose of the Commission’s action and today’s notice to the court is to cease its involvement in defending the costly and unnecessarily intrusive climate change disclosure rules.”
The rules, adopted by the Commission on March 6, 2024, established a special, detailed, and extensive disclosure regime regarding climate risks for reporting and emitting companies.
The rules have been challenged by states and individuals. The litigation was consolidated in the Eighth Circuit (Iowa v. SEC, No. 24-1522 (8th Cir.)), and the Commission had previously stayed the effectiveness of the rules pending the outcome of the case. Briefing in the case was completed before the change in administration.
Following the Commission’s vote, SEC staff sent a letter to the court stating that it was withdrawing its defense of the rules and that Commission attorneys are no longer authorized to present arguments in support of the Commission’s brief. The letter indicates that the Commission defers to the court on the timing of oral arguments.
A new 2025 Key Issues Study from The Hackett Group reveals a seismic shift in enterprise adoption of Gen AI, with 89% of companies advancing AI initiatives – up from just 16% the previous year. As customer experience, market expansion and product innovation emerge as top priorities, Gen AI is playing a crucial role in delivering these business objectives.
The study shows that 50% of organizations plan to leverage Gen AI to improve customer experience, underscoring its growing importance in business transformation. Companies already implementing Gen AI report significant improvements, with some seeing gains of 40% or more in deliverable quality, productivity and customer satisfaction.
While enthusiasm for Gen AI is high, the study highlights ongoing challenges. Data quality, process complexity and workforce readiness remain significant hurdles. About 34% of companies deploy Gen AI through their CIO, while others adopt decentralized models embedding AI teams directly within business functions.
Despite strong executive backing, CIOs face pressure to streamline deployment models, manage budgets effectively and upskill talent to ensure the AI delivers long-term value. As AI adoption accelerates, organizations must move from project-based experimentation to full-scale implementation to stay competitive.
The Hackett Group’s study underscores that businesses that delay adopting AI-driven solutions will be outpaced by those that act faster, positioning them for long-term success in an increasingly AI-driven market.
Under the slogan “Forging the New Frontier of Investing,” more than 2,500 industry professionals from 13 countries flooded Miami Beach last week and experienced Future Proof Citywide, a four-day event that explored new investment paradigms in a dynamic and collaborative environment, aimed at the investment community across both public and private markets.
Financial advisors, RIAs, Family Offices, institutional investors, ultra-high-net-worth (UHNW) investors, wealth management and private equity executives, among other industry members, attended top-tier talks and held both one-on-one and group meetings—plus the added bonus of 24-hour networking opportunities.
Directly in front of the beach, next to Lummus Park, between 6th and 10th Streets, industry professionals took over more than 25 hotels and a significant portion of the city’s iconic South Beach, in the largest event for the wealth and investment management industry.
“We reinvented the concept of wealth management conferences when we launched the Future Proof Festival in Huntington Beach in 2022,” explained Matt Middleton, founder and CEO of Future Proof. With the new edition in Miami, the company expanded the concept into the investment management space and incorporated private markets.
“Conferences usually focus exclusively on specific investor audiences, asset classes, or investment vehicles, which leads to fragmentation. With Future Proof Citywide, we broke down barriers to bring together the entire investment management ecosystem: allocators, wealth managers, fund managers, fintechs, financial service providers, and more,” added.
The thematic agenda included talks — featuring C-level speakers — on the growing integration of public and private markets, emerging market trends and their implications for portfolio construction, the mindset of the modern investor, talent and leadership, and tech-driven transformation, among other topics.
As part of the experiences, Future Proof Citywide offered, for example, the opportunity to join Robert Frank, CNBC Wealth editor, and the Inside Wealth team for an exclusive cocktail at the iconic Villa Casa Casuarina, the former Versace Mansion. Attendees could also enjoy live rock concerts, participate in a Wealthtech executive breakfast, and attend welcome receptions in the evenings or on the beach, among many other options.
$9.6 trillion in assets under management (AUM) were represented at Citywide, according to information shared by the organizing company.
Poppe is responsible for the strategy of the BNY Mellon Brazil Equity Fund, a fund launched in 2017 that invests in shares of the South American giant, with the MSCI Brazil 10/40 NR Index as its benchmark. The strategy manages over $600 million in AUM.
The portfolio manager’s view is that Brazil is once again a “hard topic.” The macroeconomic scenario includes a fiscal deficit, inflation, and slowing growth.
“Brazil is not growing as much as one would like,” he acknowledged. “There is a lack of credibility in the government, the fiscal deficit has increased, inflation is rising, and this year and next, the country’s economy will be affected — but there won’t be a recession,” he described.
Indeed, Brazil’s CPI accelerated in February, climbing five-tenths to 1.3%, reaching 5.06% annually. It was the largest increase in the consumer price index for a February since 2003, and annual inflation stood at its highest level since September 2023. This price surge contrasts with the economic slowdown, and the Central Bank resumed its interest rate hiking cycle to try to control inflation.
Poppe emphasized the importance of being aware of the Brazilian economic context as investors, but encouraged those seeking exposure to the Brazilian equity market to do so through active and disciplined management.
Brazil, as the largest economy in Latin America, offers a dynamic market with leading companies in strategic sectors such as consumer goods, energy, financial services, and technology. The fund’s strategy aims to capture opportunities in companies “with solid fundamentals, sustainable growth, and competitive advantages, combining diversification with rigorous risk control.”
Ahead of the Next Economic Cycle
The PM forecasts that Brazil will grow by 1.5% in 2025, and between 1% and 1.5% in 2026. In 2024, Brazil’s GDP grew by 3.4%. “The scenario is difficult for companies, but at the same time, stocks have dropped so much, are so cheap, that we see an opportunity for international investors,” he said.
Now then… the annual yield on a Brazilian bond investment in local currency is around 14%, so the big question for investors — even posed by Poppe himself during his conversation with Funds Society — is “when” to enter stocks.
“The macro scenario has turned more negative,” he explained. “Many investors are comfortable investing in bonds. However, from here on, we see flows into equities. I’d say that within the next 6 to 9 months, Brazilian equities could experience a rally. We expect interest rates to come down again, which is why we have increased our exposure to discretionary consumption. The fund is already prepared for the next economic cycle,” he assured.
Poppe noted that over the past 2 years, the fund leaned into defensive sectors, such as food producers, which are very strong in Brazil and benefit from the country’s power as a commodity producer.
The fund offers diversified exposure, with an overweight in food producers and exporting companies such as Embraer. It also has exposure to telecom and utilities, since “they offer a lot of yield.”
Balancing Cyclical and Defensive Sectors
With an approach that combines fundamental and quantitative analysis, the strategy seeks to identify undervalued companies with solid business models, prioritizing those with high cash flow generation, sustainable competitive advantages, and a clear long-term growth strategy. The portfolio consists of 25 to 40 stocks, allowing for a detailed focus on each investment without losing diversification. It maintains a balance between cyclical and defensive sectors, combining high-growth industries such as technology and consumer with traditionally more stable sectors such as energy and utilities, which helps reduce volatility.
Regarding Petrobras, Poppe said, “The company is doing very well, but the fund hasn’t invested in its shares for two years. Looking ahead, investors will be entering the cyclical equities sector, where we are already positioned,” he emphasized.
The portfolio manager also mentioned that Brazilian investors are currently at their lowest level of exposure to local equities, but said this dynamic will change in the coming months. “For now, investors are choosing to buy bonds. It’s not that money will move quickly into equities; it will shift gradually. I’m a firm believer that investing long-term and actively pays off more, even when investing in the small and mid-cap sector.”
In 2024, the BNY Mellon Brazil Equity Fund had a negative return of 24.77%; in 2023, the fund returned nearly 25%. As of March 17, 2025, the fund had accumulated a year-to-date return of 10.50%.