Assets under management in Argentina, Brazil, Chile and Mexico will double during the next five years, according to a new report on trends in the Latin American fund management marketplace by Cerulli Associates. Those assets currently stand at (US) $302.6 billion.
The report cites deregulation as a major factor for growth in the region, since it will increase international investments. Access to the region has been enhanced by regulatory reforms in both the manufacturing and distribution segments of the industry, according to Cerulli.
Also, fund managers will be able to take advantage of the growing strength of "niche non-bank distribution channels," according to the report. Specifically, in Brazil and Chile, pension funds will be the best target market segment in the region.
Brazil's (US)$174.1 billion represents the largest portion of assets (57.5%) among the four countries. Those assets will more than double by 2007, according to the report. However, Cerulli predicts that Mexico, which currently has (US)$58.17 billion in assets, will undergo the greatest percentage growth. The report anticipates those assets will grow 140% to (US)$140.4 billion by 2007.
Cerulli worked on the 400-page report jointly with Latin Asset Management, which provides research into the retail and institutional asset management industries in Latin America.