A delegation of Brazilian pension funds is today visiting Aberdeen Asset Management as part of a series of meetings with UK asset managers to investigate international diversification of their portfolios.
The delegation has met several UK-based asset managers this week, starting with Columbia Threadneedle, in a visit organised by UK Trade & Investment (UKTI) – a government department that assists UK businesses in foreign markets and also works with overseas investors looking to invest in the UK.
Latin American pension funds are set to increase their international investments. Mexico is one example where local pension fund portfolios are becoming more global.
The Brazilian National Pension Fund, a professional association known as ABRAPP, endorsed the week long visit by seven Brazilian pension fund officials and one consultant.
A similar event took place last year and Aberdeen was the sole sponsor. More asset managers are taking part this year.
Earlier this week Columbia Threadneedle hosted the funds at a seminar about European equities as a means of diversification. Two officials from Rio Bravo Investimentos, which recently launched a Brazilian-domiciled institutional fund that invests in Columbia Threadneedle’s European Select strategy, attended.
Joseph Sweigart, senior institutional sales director, Latin America institutional distribution at Columbia Threadneedle, says that Brazilian pension funds currently invest less than 1% of their assets overseas.
“However, over the last couple of years, with Brazil experiencing a sharp slowdown, it has become clear that there is a need to diversify away from the local market,” he adds.
Scheila da Cruz Nassif Lofrano, director and partner at Rio Bravo Investimentos, says there will be discussions involving other Brazilian funds about further opportunities in European equities and multi-asset investments.
Karthik Iyer, head of asset management at UKTI, says the visit is showcasing the breadth and depth of the UK’s investment capabilities.
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