JP Morgan Asset Management is planning to open offices in Mexico and Colombia as it looks to capitalize on the growing pension fund industry in Latin America, according to local reports.
The news, originally reported by the El Economista América website, was confirmed to Citywire Americas by a JP Morgan spokeswoman.
In the article the group’s chief executive of investment management for Latin America, Vital Menezes, said that recent pension reforms in the region, with the exception of Brazil, are helping its pension industry grow by 15-20% per year.
‘We believe this double digit rate will continue for the next 10 years,’ he said to the paper, adding that JP Morgan wanted to offer their services to help these pension funds increase their international allocation.
‘They have no alternative because their local markets are too small.’
While JP Morgan currently has offices in both countries their services focus on private banking and investment banking.
The US group is not planning to launch local funds from its new offices but offer international products to institutional clients such as pension funds, banks, insurers and other corporations.
It plans to hire four relationship managers for each office, with its new Colombian office recruits also catering to clients in Peru and Central America. The Argentine and Uruguayan markets are covered from the group's Chilean asset management office.
Politicians in Brazil are locking horns over pension reform proposals. President Michel Temer is encountering staunch resistance over his ambitious plans, with recent reports stating that even a more watered down version of these reforms would fail to pass through Congress.
The original story can be read here.