Natixis Global Asset Management is expanding its fund offering in Colombia ahead of an expected surge in interest for active fixed-income strategies.
Colombia’s market regulator authorized Natixis to market products by two of its affiliates, London-based H2O Asset Management and Boston-based Loomis Sayles, according to a document by the entity dated October 2.
Investors in Colombia have tended to stuff their fixed-income portfolios with individual bonds, most of them local. However, Natixis country head José Luis León told Citywire Americas that he expects a turn toward international mutual funds as investors hunt for alpha and seek to manage risk.
He’s leveraging the expected change by offering H2O’s full product range, as well as promoting the firm’s portfolio analysis services.
He'll also focus on promoting the H2O MultiAggregate fund, a flexible bond strategy with wide diversification among asset classes, strategies and investment horizons managed by Citywire + rated Pascal Dubreuil.
‘What we’ve seen with these products such as H2O’s MultiBonds and MultiAggregate is that they generate a lot of value in terms of portfolio diversification benefits, which at the end of the day reduces total risk,’ León said.
‘This is a strategy that works well in scenarios of rising interest rates,’ León said. ‘In fact, the correlation this fund has with the [US Federal Reserve] hiking interest rates, for example, is negative. ...In addition to that, these strategies tend to be illiquid, but this fund is totally liquid.’
León, who also represents Natixis in Peru and Panama, had already been marketing the H2O and Loomis Sayles strategies in the two countries.
The approval of the funds in Colombia marks Natixis’ latest expansion step there, where it has so far accrued about $20 million in assets under management. It opened its representative office in 2015 to market Natixis and Mirova funds, and about a year ago it received authorization to sell vehicles by its European specialist affiliate, DNCA Investments.
Asset managers with representative offices in Colombia must have authorization from the market regulator to market their funds to local investors.
Elsewhere in Latin America, Natixis was awarded a $300 million slice in a $700 million US equities mandate for Mexico’s largest pension fund, Afore XXI Banorte. Citywire AA-rated Aziz Hamzaogullari and his team were tasked with managing the large-cap growth strategy.