French group Natixis Global Asset Management is targeting three key markets in Latin America and focusing its efforts on sub-advisory deals with local asset managers as it looks to expand its presence in the region.
The multi-affiliate firm, which has 23 groups as part of its brand, began its foray into Latin America in 2013 and is now targeting specific areas of the market where it feels it can bring added value.
Speaking to Citywire Americas, Natixis’s Sophie del Campo (pictured), manager for Iberia and head of Latin American business development, said the firm is taking a long-term approach to the region and is looking to set up lasting partnerships.
The three markets the group is focusing on are Mexico, Colombia and Peru and Mexico where it is targeting both wealthy offshore clientele and institutional investors, the Afores in Mexico and AFPs in the latter two. It will continue to cater to its clients in other Latin American countries and remains committed to developing its business across the region.
‘What we find really attractive in Colombia is that the companies we’re targeting are big businesses that have institutional, private banking and also retail units,’ said Del Campo.
The group currently has three offices in Latin America in Mexico, Uruguay and Colombia but does not have plans to open any more at the present time.
‘We are also looking at sub-advisory opportunities,’ said Del Campo. ‘The strategy is to find very simple and transparent strategies to offer solutions to the local market.’
The firm is currently in discussion with large, local private banks in Colombia and Mexico over possible sub-advisory agreements.
As well as offering access to their suite of global funds, Del Campo said Natixis is looking to provide additional support in the areas of portfolio construction and asset allocation to their Latin American partners by drawing from their affiliates' expertise and knowledge.
Within the Mexico the firm sees the most opportunity in the Afores pension funds, the market’s only real international investors, which use mandates to gain access to foreign investments. Over the last month Natixis has been carrying out research for the Afores and offering portfolio construction models, said Del Campo.
She added that among their current fund offering Latin American investors have shown strong interest in the Loomis Sayles Short Term Emerging Market Bond fund, managed by Citywire + rated David Rolley and team.
Funds from their European specialist and latest affiliate addition, French group DNCA Finance, have also been popular. The Paris-based group currently runs the DNCA Value Europe, managed by A-rated Isaac Chebar and Citywire + rated Don Fitzgerald, as well as the DNCA Invest Europe Growth run by Citywire AAA-rated Carl Auffret.
Another fund that has been capturing their attention has been the liquid alternative strategy ASG Managed Futures, a fund run by US group AlphaSimplex which offers exposure to global equity, fixed income and currency markets, she added.