Axa Investment Managers has signed a deal to make its funds available to the largest brokers active in Latin America as it seeks to expand internationally.
The deal sees BNP Paribas Securities Services providing settlement agency services to the fund manager in the region.
The move is seen as a significant effort to capitalise on the trend for fund managers distributing into Latin America as local investors and regulators open up to international funds.
Joseph Pinto, chief operating officer at Axa Investment Managers, says: “Latin America is a key target market for us as the doors into the region are opening.”
Jean Devambez, head of asset and fund solutions at BNP Paribas Securities Services, says: “European asset managers have their sights fixed on Latin America, but there are several barriers which are causing them to hesitate.”
With the deal, Axa is to extend its “Offer to meet Needs Everywhere” – or ONE client service platform into Latin America. ONE is already available in Asia and Europe.
BNP Paribas Securities Services is a member of the National Securities Clearing Corporation, a regional clearing platform and the deal with Axa is an extension of an existing asset servicing partnership.
The increasing interest by Latin American investors in investing with international fund managers was signaled when Afore Banamex, a pension fund and wholly owned subsidiary of Citigroup in Mexico, launched Mexico’s first international investment mandate with Schroders, a London-listed manager. It was the first mandate to be awarded to an international asset manager in the history of the mandatory pension fund system in Mexico.
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