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BlackToro Sets Its Sights on Peru and Colombia and Approaches the Chilean Market

(cedida) Gabriel Ruiz, presidente de BlackToro, presenta ante una audiencia en Santiago de Chile

Talking about his goals in Latin America, the president of the wealth management boutique BlackTORO Global Wealth Management, Gabriel Ruiz, wants the Latin American public to have them “among their options.” Based in Miami, with a presence in Argentina, Mexico, and Chile—where they recently held their first event—they are now seeking partners to enter new markets. Their focus is on Peru and Colombia, as well as Venezuelan clients residing in the U.S.

Anchored in an RIA (Registered Investment Advisor), the firm provides advisory services to Latin American clients who want to invest in global assets, whether they reside in their home countries or the U.S. The model they use involves utilizing BlackToro as an offshore platform and establishing strategic alliances in Latin American markets, the executive explains in an interview with Funds Society. The goal, he emphasizes, is not to open their own offices in the region.

“There are already enough and exceptionally good players in the domestic markets in Latin America. What we believe we can be is excellent complementary partners for those players,” he notes, referring to brokerage firms and banks that have not fully developed their offshore advisory capabilities.

After signing an agreement this year with SORO Wealth, a wealth management firm based in Monterrey, Mexico, they are currently looking for strategic partners in Peru and Colombia. They are already exploring both markets and holding meetings with interested parties.

Local Dynamics

In Peru, Ruiz points out that the local market could be a good fit for this system, with firms that could benefit from a window to global investments, much like those in Colombia.

In Venezuela, they also see an opportunity, though not on the local front. “It’s a bit more complicated, obviously, in the domestic market, but the Venezuelan community that has been living in South Florida for 20 years is enormous,” he explains, with a variety of established business clients who still maintain a “Latin root.”

Overall, Ruiz has already set a clear goal: “We want to become a wealth management boutique that is at least in the top three.”

The Latin American Logic

Not all investors are the same, with different contexts influencing decision-making. In this regard, the president of BlackToro highlights the importance of understanding the logic of clients. “Not all products, investment strategies, and portfolios are designed for the idiosyncrasies of Latin Americans,” he comments.

Many financial products are designed with American and European investors in mind, he explains, who face low unemployment rates and institutional risks in their businesses.

“The role that savings play for a Latin American is not the same as for an American. That’s why Americans are much more willing to take on volatility risk,” he adds. Latin Americans tend to experience more volatility in their income and wealth sources, so they see their savings as an anchor.

Approaching Chile

The firm already has Chilean clients, relying on their strategic partner in the Andean country: the law firm Bruzzone & González, a legal office specialized in corporate, tax, and accounting matters. With this, Ruiz explains, they have local support with the necessary expertise for offshore investment structuring.

“We want to be perceived by affluent investors as a good option when deciding whom to turn to for advice on investing in global markets,” says the president of the boutique.

Strengthening ties, the firm held its first event in Santiago, in one of the halls of the Ritz-Carlton hotel, located in the Las Condes district. The event featured presentations by Ruiz and BlackToro’s chief economist, Fernando Marengo.

The keynote speaker at the seminar was economist Vittorio Corbo, former president of the Central Bank of Chile, who described a country that, while facing challenges such as investment and growth, does not have major macroeconomic issues. With a trend growth rate estimated at 1.8% annually for the 2025-2034 period, he called for efforts “to reverse this.” He also urged, “Let’s not sell Chile short,” highlighting the country’s institutional, macroeconomic, and financial stability.

Subsequently, lawyer Osiel González, partner at Bruzzone & González, joined the event, addressing topics related to jurisdiction, asset protection, and tax efficiency.

Azimut Is Seeking an Acquisition to Grow Its Business in Chile

| For Amaya Uriarte | 0 Comentarios

After two years of restructuring, Azimut Investments’ office in Chile is now ready for the next phase. Following the strengthening of operations with the hiring of an Institutional Sales professional, the focus is now on inorganic growth opportunities. Diego Varela, the firm’s CEO, reveals that they are looking for partners with a foothold in the wealth management business, either for an acquisition or a joint venture.

“Historically, Azimut has chosen to establish and grow in its markets mainly through mergers and acquisitions,” the executive explains in an interview with Funds Society, adding that only the Chile office – which also covers Argentina, Colombia, Peru, and Uruguay – focuses solely on distributing the funds of the Italian asset manager.

Up to now, Varela’s attention was focused on making internal changes to align the firm with Azimut’s global and, specifically, Latin American standards. Now that they are moving past that, the priority is finding a company involved in the Chilean wealth management business, a segment that has seen significant growth in recent years.

“My main focus for the rest of the year and the first months of next year, because it is a priority for the Chile office, is to seek some form of partnership with a local player,” says the CEO, describing his growth plans as “ambitious.” This union, he adds, could be done through a minority or majority acquisition, depending on the size of the firm, or through a joint venture.

The goal is to acquire more than 51% of the firm, as Azimut is publicly traded, allowing them to gain control and consolidate assets for the holding company. The plan is to grow the alliance. What does this mean? They plan to offer this partner a six- or seven-year plan – no more than ten, Varela stresses – to gradually increase participation, ideally ending with some form of cash-out for the partners. However, Varela emphasizes that they do not intend to “empty” the firm they choose, but rather that the original partners will continue running the business with Azimut’s support.

One segment they are closely watching for this purpose is independent advisory firms and multi-family offices. “Multi-family offices are a very interesting segment,” he points out, as they have the structure and clients. Thus, an international partnership of Azimut’s scale could take them to the next level, he notes.

In this regard, the executive highlights the potential for Azimut’s acquisition to complement the operations of wealth management companies, providing “the full backing of Azimut.” This includes the capabilities of an international group involved in various businesses, including funds, life insurance, and discretionary portfolio management in Luxembourg.

A New Phase

Since Varela took the helm of Azimut Investments’ Chilean branch in June 2022, his primary focus has been on adjusting operations and strengthening the foundation for growth in the Andean country.

In addition to deepening their relationship with HMC Capital – a distributor of vehicles with whom they have an agreement – the firm worked on improving the internal functioning of the subsidiary, deepening ties with HMC, and enhancing technological platforms and infrastructure.

This process is concluding with a key milestone: the hiring of Cristián Cerda. The executive, who joined as Institutional Sales, comes from Prudential AGF, where he worked as a local fixed income trader, and he holds a master’s degree in Economic Analysis from the University of Chile. The goal of this appointment, Varela explains, is to have “someone much more involved in the field, more engaged with counterparts.”

Looking ahead, the CEO’s direction is clear: “We are now in a position to say that we are entering a more aggressive expansion phase,” with a focus on asset gathering.

This effort coincides with a positive moment for Azimut overall. According to Varela, the international group surpassed $100 billion in assets under management and is projected to achieve its highest net profits in its 32-year history this year.

“Everything converges at one point. We are growing significantly as a group, expanding, aligning many things with international standards, coordinating with HMC, doing interesting things, and now, we’ve added Cristián,” the CEO notes.

Fixed Income Leadership

Another tailwind for Azimut in Chile is the strong performance of their fixed income funds, an asset class that has become much more popular since interest rates increased. This has resulted in various vehicles outperforming their peers, including high yield strategies, their flagship subordinated investment-grade debt fund, the flexible Global Macrobond strategy, and a convertible bond strategy.

“We feel that we are a fixed income powerhouse. We’ve had these returns that have accompanied us,” Varela comments, adding that this strong performance has coincided with increased client demand.

Regarding the market dynamics, the executive has an optimistic outlook. While investors who decided to lengthen their durations when international central banks reached their interest rate peaks saw disappointing results in the first half of the year, this has recently changed. “Things have adjusted a bit, and there is indeed consensus,” he explains, so “it makes a bit more sense to start lengthening those durations.”

The increased interest has inspired a roadshow that the firm organized with Nicolò Bocchin, Azimut’s Head of Fixed Income and portfolio manager, whom Varela describes as a “rockstar” of the Italian parent company. This tour includes stops in Lima, Santiago, and Montevideo, where Bocchin will meet with institutional investors.

“With the strong performance of our fixed income funds and the positioning we can showcase, it makes sense to close the year with his visit, as he is the person everyone wants to meet and listen to,” says the CEO.

Advenir and Azora Partner to Tackle Housing Shortage in the U.S.

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Advenir y Azora contra la escasez de vivienda en EE. UU.

Azora, a global investment firm based in Spain, and Advenir, a U.S.-based real estate investment and management corporation, have announced a new strategic alliance aimed at creating affordable rental housing in key U.S. markets. This partnership, valued at over $3 billion, comes at a pivotal moment when the housing shortage, combined with a challenging capital markets environment, presents an attractive opportunity for investment in both the development and acquisition of properties in the housing sector.

“The agreement establishes a new combined corporation, Advenir Azora, which will be a vertically integrated platform encompassing capabilities in acquisition, development, asset management, property management, and fund services, ensuring a comprehensive approach to creating value for investors and enhancing the well-being of residents,” they explain.

According to Stephen Vecchitto, CEO and founder of Advenir, the housing shortage in the U.S. exceeds 5 million homes, exacerbating the gap between the rising cost of homeownership and the more accessible cost of renting. “Combining the global financial power, residential knowledge, and credibility to attract institutional capital from a company like Azora, with Advenir’s deep expertise and experience in real estate development and management, will help us reach our goal of expanding our current portfolio and our pipeline of 4,700 single-family rental homes to 10,000 units, while also increasing our capacity to acquire existing properties. We believe now is the time to double down on residential housing, and our combined company is well-positioned to capitalize on this market dislocation,” Vecchitto stated.

Azora Advenir is expected to deploy over $3 billion over the next five years, with the aim of developing at least 10,000 new single-family rental homes and acquiring 5,000 existing units. “Investing in and alongside Advenir is a new expression of Azora’s long-term commitment to helping create high-quality multifamily and single-family rental housing in the U.S. Beyond being a good business, this effort will assist countless families. Advenir’s operational excellence, local expertise, and shared values make them the ideal partner as we continue to seek value in investment opportunities across the U.S.,” noted Fernando Pérez-Hickman, Managing Partner and Director of Azora America.

GAM Opens Miami Office and Strengthens Client Team

| For Rocío Martínez | 0 Comentarios

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 Accuses WisdomTree AM of Greenwashing in Three ESG ETFs

| For Beatriz Zúñiga | 0 Comentarios

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 Relaunches Its Emerging Markets ex-China Fund, Focused on Four Key Themes

| For Amaya Uriarte | 0 Comentarios

Relanzamiento del fondo de mercados emergentes de Abrdn

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 Channel Are Controlled by the 25 Largest Firms in Terms of AUM Concentration

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Concentración en el canal de broker dealers

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.”

What Will Be the Priority Topics for the SEC Examinations in 2025?

| For Marcelo Soba | 0 Comentarios

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.

Harris vs Trump: Implications for Foreign Policy and Investment

| For Amaya Uriarte | 0 Comentarios

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 Appoints Patrick Mattar as Global Head of ETP Distribution

| For Amaya Uriarte | 0 Comentarios

Patrick Mattar nuevo director en Allfunds

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.”