The AFPs finished April with USD 17.8 billion invested in cross-border funds and ETFs, almost all of which was in equities, after having yanked USD 597 million in the first quarter.
Tracking the Activities of Global Asset Managers in Latin America

The AFPs finished April with USD 17.8 billion invested in cross-border funds and ETFs, almost all of which was in equities, after having yanked USD 597 million in the first quarter.

BlackRock's Diego Mora viewed the government's rule change with optimism, noting that AFP demand for internationally diversified products like ETFs will increase.

"We want to bring the entire line of Robeco funds [to Brazil], with exclusive distribution of BTG Pactual," said Robeco's Jimmy Ly at a recent investor conference in Sao Paulo.

After a record-shattering year in 2017, inflows into Brazilian mutual funds slowed considerably, a reflection of reduced yields on bond products and uncertainty over presidential elections. Equity and mixed funds did enjoy inflows nonetheless.

Moderate-risk portfolios that saw double-digit gains aided by overweight allocations to equities in 2017 suffered grave losses in 2018 due to overexposure to the same asset class, said Natixis's Marina Gross.

Chilean brokerage firm Fynsa has signed on to sell locally-domiciled ETFs created by Singular, a new asset manager made up of ex-Inversiones Security executives.

Long-awaited rules published by the Consar risk committee showed a bias to large managers (USD 50 billion minimum AUM) and stringent fee caps on active funds (65 bps maximum for equity funds).

Led by iShares MSCI Emerging Markets ETF, the emerging-markets-equity category attracted USD 140 million from AFPs in an otherwise poor December for cross-border firms.

Jupiter, Invesco, Pictet, Franklin Templeton (ETF), L&G (ETF), Bain (Alternative) and StepStone (Alternative) were the managers registering products in January 2019.

Building on its own fund lineup and strengthening existing third-party traditional and alternatives relationships are Credicorp Capital's key objectives, says Felipe Sotomayor.
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