Mellon Financial Corporation of Pittsburgh has formed a partnership in Brazil to produce defined-contribution funds. The partnership, which is being handled by Mellon's joint venture in Brazil, will, in turn, rely on one of the country's leading insurers to market the funds.
The joint venture, Dreyfus Brascan Asset Management, formed the alliance with Vera Cruz Vida e Previdencia of Sao Paulo.
Dreyfus Brascan Asset Management will produce and manage the series of PGBL funds, which are similar to 401(k) funds. Vera Cruz Vida e Providencia, a subsidiary of the MAPFRE group of insurance companies of Madrid, will market the funds under the Mellon name.
"We expect considerable growth opportunities for these funds as Brazil's defined-contribution funds market expands, just as it has in the United States over the last several years," said Jon Groom, president of Mellon Global Investors, in a statement.