Cross-border fund AUM in the retail segments of the US (US Offshore), the Caribbean and Latin America fell 11% in the fourth quarter of 2018, based on consortium data provided to Strategic Insight and analyzed by Latin Asset Management. Outflows were experienced across most asset classes, including equity, money market, fixed income, alternative and multi-asset products.
At the close of the year, consortium members were managing close to USD 150 billion in AUM across the region.
The consortium is made up of 44 leading active managers who voluntarily provide their quarterly AUM and flow data from their offshore fund complexes, along with details on where the money was raised.
Through a special partnership between Latin Asset Management and Strategic Insight, aggregated data cuts from the consortium tracking retail fund sales in the US Offshore and Latam Offshore markets are made available in the quarterly report, Latin America Cross-Border Business Pulse. The continuity of this coverage breaks new ground, as it provides the global asset management community with a consistent view of retail sales trends in the notoriously opaque Latin American wealth segment.
The upcoming 4Q issue of the Pulse report deals with the following topics:
US Offshore
The incredible escalation in compliance burdens has asset managers worried.
Slow-going as Citi restarts US offshore business.
Managers look to differentiate via products, technology and people amid margin compression.
Mercosur
Foreign investors are more enthusiastic than they have been in years about Brazil’s potential.
In Argentina, there is a lot of political uncertainty leading up to October presidential election.
Uruguay is getting crowded with asset managers selling funds to a fragmented local advisor pool.
Andes
Asset managers expect growth in Chile as AFP affiliate contribution levels rise.
Roll out of alternatives funds slow but steady; category not seen as competition for traditional funds.
Caribbean/Central America
Afore pension managers expected to make first investments in active international mutual funds this summer.
Rising compliance burdens, sullied reputation stanch business in Panama.
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