US fund giant Invesco is entering the Uruguayan and Argentine markets through a distribution deal with its current partner LarrainVial.
According to LarrainVial’s Argentina and Uruguay country head Sebastián Caronni, who oversees fund distribution along with Matías Paulsen, the $937.6 billion US asset manager is looking to reach the countries' institutional clients, family offices and private banks.
LarrainVial, which for years has represented Invesco in its home market of Chile as well as Peru and Colombia, is looking to replicate that success in Uruguay and Argentina, Caronni said. Invesco declined to comment.
Uruguay has long been a wealth hub in Latin America and Argentina is on the rise after a series of reforms that include allowing local bankers to advise on onshore and offshore assets.
‘We’ll be distributing [Invesco] products linked to European equities, given the market opportunity we’re seeing today in that asset class,' said Caronni.
Invesco’s products in that space include its European Growth Equity fund, run by Citywire + rated managers Clas G. Olsson and Jason T. Holzer. This year, the fund has returned 22.16%, while its Citywire-assigned benchmark, the MSCI Europe Growth TR, has risen 20.6%.
Latin American investors have piled into European equities this year as the sector has outperformed thanks to a solid economic environment and a return to earnings growth.
Invesco already boasts a solid presence in Latin America’s Andean region. It ranks among the top five asset managers Chile’s pension funds allocate to, the AFPs having poured more than $3 billion into Invesco funds.
The US group's growth ambitions are also an opportunity for LarrainVial, which is working to establish itself as a major player in Argentina and Uruguay.
As part of that plan, in 2016 the firm signed an agreement with NN Investment Partners to distribute its funds in both countries with a focus on its emerging market debt vehicles.
LarrainVial is also awaiting regulatory approval to operate as a broker in Argentina.