Managers with a local presence in Brazil are finally benefiting from their early-mover status in Brazil, among them Western Asset, PIMCO, JPM and Schroders.

The new measure opens the possibility of a private managers of a new pot of money, similar to the Chilean model.

The measure seeks to lure wealthy AFP affiliates to the public system by subsidizing a more attractive pension payout, says Asofondos's Jorge Llano Salamanca.

If the measure were to pass and another round of redemptions was allowed, AFP AUMs could fall by as much as USD 34 billion.

"Now more than ever, we are concentrated on broadening our distribution partners and prioritizing proximity," said Allianz GI's Alberto D’Avenia.