Columbia Threadneedle Investments is launching a Brazilian-domiciled European equity fund for Brazil’s pension scheme market in partnership with Rio Bravo Investimentos, a Brazil-based fund management firm.
The fund is managed by Rio Bravo and serves as a feeder fund for Columbia Threadneedle’s European Select strategy, a high alpha European equities portfolio.
The Rio Bravo fund has seed capital of 34 million reales (€7.7 million). Current regulatory restrictions prevent Brazilian corporate pension funds from holding more than 25% of total assets under management in a fund.
Joseph Sweigart, senior institutional sales director for Latin America in Columbia Threadneele’s institutional distribution business, says Rio Bravo Investimentos has long-standing institutional client relationships.
He also says Brazilian pension plans will be interested in funds that can generate both high alpha and geographic diversification.
“Despite the low growth in European economies, the continent counts some of the world’s leading stocks, making it the perfect hunting ground for investors.”
Rio Bravo was founded by former central bank head Gustavo Franco.
Columbia Threadneedle is the new name of the UK’s former Threadneedle Investments, which merged with America’s Columbia Management and rebranded in January.
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