Swiss private bank Edmond de Rothschild is aiming to attract assets from pension funds and private banking clients in Brazil with a new partnership deal in the country.
The company says it will launch Brazil-domiciled feeder funds of the Edmond de Rothschild Europe Synergy fund, which invests in European equities, for pension funds and private bank clients in the country.
It may then collaborate with Brazilian partner BBM Investimentos to launch a Brazilian equity fund managed by BBM Investimentos and offered by Edmond de Rothschild to institutional clients across the world, excluding the United States.
Christophe de Backer, chief executive of the Edmond de Rothschild Group says “BBM’s expertise in Brazilian assets has produced significant and consistent alpha in various market phases”.
Brazil, the largest country in Latin America and the world’s seventh biggest economy by GDP, is a promising destination for asset managers. Pension funds in the country are estimated to control $300 billion (€227 billion) in assets, though some reports suggest they have as much as $450 billion. Brazilian pension funds are authorised to invest up to 10% of their assets abroad but much of this capacity remains unused, claims Edmond de Rothschild.
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