Peru-based firm Credicorp Capital is rolling out its agreement to distribute UK asset manager M&G Investments' funds to institutional clients in Latin America.

The firms reached an agreement at the beginning of the year and held a roadshow in March. Following an onboarding process, Credicorp is now actively selling M&G funds, said Ignacio Montes, head of institutional distribution at the Peruvian firm. M&G confirmed the partnership to Citywire Americas.

Credicorp will sell M&G’s products to clients such as pension funds, insurers, private banks and financial advisors to its network Chile, Peru and Colombia, Montes added.

It is understood M&G signed with Credicorp to reach a more regional market. The UK group previously had an agreement with Chile-centered firm WAC, which merged with another local company.

Credicorp plans to distribute fixed income and equity strategies, rather than alternatives funds, to its clients. Montes highlighted convertibles and Japanese equities as some of the strengths of the $355 billion UK asset manager.

‘M&G’s is a global platform and I think there was a good fit between the two companies as they were thinking of growing their brand in Latin America, given that a team like ours has a presence in those three countries with teams on the ground,’ Montes said.

Credicorp distributes about $7 billion in third-party funds for Allianz Global Investors, Candriam Investors Group and TCW Group, Montes said. On the ETF side, it sells State Street, an agreement that it took over from BTG Pactual in November.

Montes added that Credicorp distributes products for a limited number of asset managers to ensure there’s no overlap among fund offerings and that the firm isn’t actively looking for more partnerships at the moment.

‘We’re not closed off to it but we’re very comfortable with the platform we have now,’ Montes said.

Credicorp's asset management business runs about $8.5 billion in assets, a third of which corresponds to institutional clients. The firm is also looking to boost its own capabilities by launching Ucits funds.