Latin Asset Management, sister firm to Fund Pro Latin America, has published a proprietary research report focused exclusively on the distribution of global investment products in Latin American Offshore, Latin American Onshore, and the US Offshore market.
The report, titled Cross-Border Asset Management in Latin America: Opportunities in Addressable Retail and Institutional Markets, was published on June 1, 2017.
Commenting on the new effort, Thomas V. Ciampi, director of Latin Asset Management, said the report aims to give global asset managers, especially active fund managers and ETF providers, a comprehensive understanding of the Latin American business opportunity both presently and over the long term.
“Over the years, our focus on the cross-border business has intensified, in tandem with Latin-investors’ need to diversify out of local markets,” Ciampi said. “This includes private pension managers (AFPs and Afores) and high-net-worth clients, and, increasingly, mass-affluent investors across the region.”
The report draws heavily on more than 50 face-to-face interviews conducted in the second half of 2016 with regional representatives of global asset managers, i.e. those based in US Offshore financial centers, as well as Latin American capitals. Additionally, Latin Asset Management was briefed by Latin fund selectors and gatekeepers in the same areas, as well as by regulators, offshore financial advisors and third-party distribution firms.
The report emphasizes the dexterity required of global firms in order to build a successful business in Latin America. For example, separate-account mandates and subadvisory agreements are commonplace in some markets, while funds-of-funds work best in others.
Relationship management is also a key focal point, as niche wholesaling and selective human-resource allocation must be employed to efficiently take advantage of emerging distribution opportunities.
Key data points included in the report are Market Sizing (investment in active funds) and 2016 Net New Inflows for the following markets:
- Latam Offshore, by country, fund region and fund style
- US Offshore, by fund region and fund style
- Latam Onshore (also includes investment in cross-border ETFs), by cross-border fund, by country, fund region and fund style
- Private Pension Funds (also includes investment in cross-border ETFs), by cross-border fund, by country, fund region and fund style
List Price: USD 9,000 Reduced Price through December 31, 2017: USD 5,000
Report Length: 135 pp.
Delivery Format: PDF
Available: June 1, 2017
Click here to download the order form for this report. To inquire about specific coverage in the report, please go to our Contact Page and click on Sales or Billing Inquiry from the dropdown list. We will be in touch straightaway.
TABLE OF CONTENTS (View Exhibit List below.)
About This Report 1
Table of Contents 2
Exhibit List 3
Executive Summary 6
Chapter I: The Addressable Latam Distribution Landscape for Cross-Border Asset Managers 9
Market Sizing – Latin American Wealth Sector 11
Chapter II: Cross-Border Distribution in the Latin American Private Pension Sector 19
Addressable Opportunities and Key Challenges 20
The Addressable Private Pension Market for Cross-Border Providers 21
Regional Outlook 21
Chile 23
Felices y Forrados 25
Phantom Fees 26
Private-Equity and REITs Most Impacted 27
Mexico 27
Colombia 29
Peru 29
Market Sizing of the Latin American Private Pension Sector 31
Systemic Trends Affecting Demand for Cross-Border Products 40
Distribution of Cross-Border Products in the Latin American Private Pension System 48
Chile 50
Colombia 60
Peru 68
Mexico 75
Chapter III: Cross-Border Distribution in the Latin American Wealth Sector 77
Addressable Opportunities and Key Challenges 78
The Addressable Latin American Wealth Market for Cross-Border Providers 79
Brave New World of Latin American Wealth Management 79
Market Sizing of the US and Latam Offshore Markets 81
The US Offshore Market 82
Recent Consolidations 83
Smaller Distributors are a Force to Reckon With 84
US Offshore Distribution Landscape: Latin Banks and Brokers Join the Fray 85
US Offshore Market Sizing 86
US Offshore to Benefit from Recent Transparency Push 89
The Common Reporting Standard 91
Tax Amnesties Drive Redemptions from Swiss Banks 92
Potential Impact of US Department of Labor’s “Fiduciary Rule” 92
The Latam Offshore Market 94
Latam Offshore – Mercosur Region 97
Latam Offshore/Mercosur Market Sizing 98
Latam Offshore/Mercosur Distribution Landscape – Argentina and Uruguay 102
Latam Offshore/Mercosur Distribution Landscape – Brazil 103
Asset Manager Positioning – Latam Offshore/Mercosur 104
Latam Offshore – Andean Region 106
Latam Offshore/Andean Market Sizing 108
Andean Amnesty Programs 110
The Latam Offshore/Andean Distribution Landscape 111
Asset Manager Positioning – Latam Offshore/Andean 113
Latam Offshore – Caribbean Region 114
The Latam Onshore Market 116
Latam Onshore – Chile 118
Latam Onshore – Mexico 123
Latam Onshore – Brazil 125
EXHIBIT LIST
Exhibit 1.1 Source of AUMs Gathered by Cross-Border-Fund and ETF Sponsors, Retail Market Only, 2016 (USD Billions)
Exhibit 1.2 Source of US Offshore AUMs Gathered by Cross-BorderFund and ETF sponsors, 2016 (%)
Exhibit 1.3 Source of Latam Offshore AUMs Gathered by Cross-BorderFund and ETF Sponsors, 2016, (%)
Exhibit 1.4 Source of Latam Onshore AUMs Gathered by Cross-BorderFund and ETF Sponsors, 2016 (%)
Exhibit 1.5 Latin American Pension System Investment in Cross-Border Mutual Funds, ETFs and Mandates, 2016 (USD Billions)
Exhibit 2.1A Latin American Currency Performance vs. US Dollar, 2012 vs. 2016
Exhibit 2.1B Latin American Currency Performance vs. US Dollar, 2016
Exhibit 2.2 Annual Net Inflows into AFP/Afore Systems, 2012-2016 (USD Billions)
Exhibit 2.3 Projected Latin American Pension Fund Assets Under Management, 2016-2021E, (USD Billions)
Exhibit 2.4 A Breakdown of Local vs. Cross-Border Investment, Latin American Pension Systems, (USD Billions), 2016
Exhibit 2.4 B Variation in AFP/Afore Investment in Local vs. Cross-Border Instruments, 2015 vs. 2016
Exhibit 2.5 Percentage Breakdown of Local vs. Cross-Border Investment, Latin American Pension Systems, 2016
Exhibit 2.6 Projected Cross-Border Exposure of Latin American Pension Fund Systems, Cross-Border Management, (USD Billions), 2016 vs. 2021E
Exhibit 2.7 Use of Active vs. Passive Cross-Border Investment Strategies, Latin American Pension Systems, 2016 (%)
Exhibit 2.8 Number of AFPs/Afores per Latin American Pension System, 2016
Exhibit 2.9 AUM Marketshare of Top Three AFPs/Afores per Latin American Pension System, 2016
Exhibit 2.10 Latin American Pension System Permitted Equity Exposure Among Multifunds, 2016 (%)
Exhibit 2.11 Latin American Pension System Actual Equity Exposure by Country, 2016 (%)
Exhibit 2.12 Latin American Pension System Permitted Cross-Border Exposure Among Multifunds, 2016 (%)
Exhibit 2.13 Latin American Pension System Actual Cross-Border Exposure by Country, 2016 (%)
Exhibit 2.14 Latin American Pension System Investment in Cross-Border Mutual Funds, ETFs and Mandates, December 2016, (USD Billions)
Exhibit 2.15 A Top 10 Cross-Border Asset Gatherers, Chilean Pension System, 2016 (USD Billions)
Exhibit 2.15 B Top 10 Cross-Border Asset Gatherers, Andean Pension Systems, 2016 (USD Billions)
Exhibit 2.16 Separate-Account Mandates, Mexican Pension System, Announced vs. Funded, 2016 (USD Millions)
Exhibit 2.17 Latin American Private Pension Manager Investment in Cross-Border Vehicles, December 2016 (USD Billions)
Exhibit 2.18 Chilean AFP Investment in Cross-Border Equity Funds and ETFs by Region, December 2016
Exhibit 2.19 Chilean AFP Allocations to Cross-Border Active and Passive Managers, October 2016 (USD Billions)
Exhibit 2.20 Chilean AFP Allocations to Cross-Border Active and Passive Managers by Asset Class, December 2016 (USD Billions)
Exhibit 2.21 Distribution Models and Relationships of Cross-Border Active and Passive Managers, Chilean AFP Market, December 2016 (USD Billions)
Exhibit 2.22 Assets Gathered by Third-Party Distributors, Chilean AFP Market, December 2016 (USD Billions)
Exhibit 2.23 Colombian AFP Exposure to Active vs. Passive Equity Funds, by Regional Focus, December 2016 (USD Billions)
Exhibit 2.24 Colombian AFP Allocations to Cross-Border Active and Passive Managers, December 2016 (USD Billions)
Exhibit 2.25 Colombian AFP Allocations to Cross-Border Active and Passive Managers by Asset Class, December 2016 (USD Billions)
Exhibit 2.26 Distribution Models and Relationships of Cross-Border Active and Passive Managers, Colombian AFP Market, December 2016 (USD Billions)
Exhibit 2.27 Assets Gathered by Third-Party Distributors, Colombian AFP Market, December 2016 (USD Billions)
Exhibit 2.28 Peruvian AFP Investment in Cross-Border Equity Funds and ETFs by Region, December 2016 (USD Billions)
Exhibit 2.29 Peruvian AFP Allocations to Cross-Border Active and Passive Managers, October 2016 (USD Billions)
Exhibit 2.30 Peruvian AFP Allocations to Cross-Border Active and Passive Managers by Asset Class, October 2016 (USD Billions)
Exhibit 2.31 Distribution Models and Relationships of Cross-Border Active and Passive Managers, Peruvian AFP Market, December 2016 (USD Billions)
Exhibit 2.32 Assets Gathered by Third-Party Distributors, Peruvian AFP Market, December 2016 (USD Billions)
Exhibit 3.1 Cross-Border Mutual Fund AUM Sold in US Offshore and Latam Offshore Markets (Retail Only), 2016 (USD Billions)
Exhibit 3.2 Cross-Border Mutual Fund AUM Sold in US Offshore and Latam Offshore Markets (Retail Only), by Asset Class, 2016 (USD Billions)
Exhibit 3.3 Cross-Border Mutual Fund AUM Sold in US Offshore Market (Retail Only), by Asset Class, 2015-2016 (USD Billions)
Exhibit 3.4 Cross-Border Mutual Fund Flows, US Offshore Market (Retail Only), by Asset Class, 2016 (USD Billions)
Exhibit 3.5 Cross-Border Mutual Fund Flows, US Offshore Market (Retail Only), by Investment Category, 2016 (USD Millions)
Exhibit 3.6 Common Reporting Standard, Adherence Status and Sharing Schedule
Exhibit 3.7 Distribution of Cross-Border Mutual Fund AUM Sold in Latam Offshore Markets (Retail Only), 2016 (USD Billions)
Exhibit 3.8 Cross-Border Mutual Fund AUM Sold in Mercosur Offshore Market (Retail Only), by Asset Class, 2015-2016 (USD Billions)
Exhibit 3.9 Cross-Border Mutual Fund Flows, Mercosur Offshore Market (Retail Only), by Asset Class, 2016 (USD Billions)
Exhibit 3.10 Cross-Border Mutual Fund Flows, Mercosur Offshore Market (Retail Only), by Investment Category, 2016 (USD Millions)
Exhibit 3.11 Cross-Border Mutual Fund AUM Sold in Andean Offshore Market (Retail Only), by Asset Class, 2015-2016 (USD Billions)
Exhibit 3.12 Cross-Border Mutual Fund Flows, Andean Offshore Market (Retail Only), by Asset Class, 2016 (USD Billions)
Exhibit 3.13 Cross-Border Mutual Fund Flows, Andean Offshore Market (Retail Only), by Investment Category, 2016 (USD Millions)
Exhibit 3.14 Latin American Mutual Fund Exposure to Domestic Market, 2016 (%)
Exhibit 3.15 Latin American Mutual Fund Investment in Cross-Border Mutual Funds and ETFs, December 2016 (USD Billions)
Exhibit 3.16 Assets Gathered by Cross-Border Fund Managers and ETF Sponsors – Chilean Mutual Fund Market, 2015-2016 (USD Millions)
Exhibit 3.17 Chilean Mutual Fund Exposure to Cross-Border Securities by Security Type, 2012-2016 (USD Billions)
Exhibit 3.18 Cross-Border Funds and ETFs Registered for Public Offering in Chile, 2016
Exhibit 3.19 Assets Gathered by Cross-Border Fund Managers and ETFs Sponsors – Mexican Mutual Fund Market, 2016 (USD Millions)
Exhibit 3.20 Subadvisory Relationships Between Cross-Border Managers and Mexican Fund Managers, 2016 (USD Millions)
Exhibit 3.21 Brazilian Mutual Fund Allocations to Cross-Border Fund Managers and ETF Sponsors, 2016 (USD Millions)
Exhibit 3.22 Brazilian Mutual Fund Manager AUM Derived from Private Client Segment, December 2016 (USD Billions)
Exhibit 3.23 Brazilian Mutual Fund AUM Derived from Private Client + Mass-Affluent Segments, 2010-2016 (USD Billions)
Exhibit 3.24 Wealth Advisors Serving the Brazilian Private-Client and Mass-Affluent Segments, 2016
Exhibit 3.25 AUMs of Brazilian-Domiciled Mutual Funds Sponsored by Global Managers, 2016 (USD Billions)
Exhibit 3.26 Funds of Cross-Border Funds Launched Locally in Brazil by Global Asset Managers, Assets Under Management, 2015-2016 (USD Mill)
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