Vanguard is planning to hire relationship managers and increase its product offering in Mexico after opening its first Latin American office last month.
The next step for the firm is to bring some of their Dublin-domiciled Ucits ETFs to Mexico, focusing on developed market equity ETF products that offer more niche investment opportunities in specific themes and sectors, Hernandez told Citywire Americas.
He said that in the future they might also look at offering some of their index vehicles and mutual funds to local Mexican clients.
Currently Vanguard offers 65 US-domiciled ETFs cross-listed on the Mexican market's international exchange, known as the SIC, and 26 locally approved ETFs available to institutional SIEFORE market.
Over the next couple of months Hernandez will hire three sales and client relationship managers for his new office in order to kick-start their local services.
‘Next year we will be hiring more people, likely in the area of marketing, operations and legal, and we are adopting an incremental approach as we grow and see client demand,’ said Hernandez.
The firm is looking to cover all of Mexico’s investor community, from the Afores to asset managers, intermediaries, banks, private banks and independents, with Hernandez building up his team as their business grows.
‘The main reason for being here in Mexico is to have a local team that is closer to the client, has a relationship with the regulator, to know what the demands are and provide services beyond just our products.’
He said they will also look to increase the services they offer Mexican clients over time, including market analysis and advice on asset allocation, capital markets and trading.
Up until now, Vanguard had relied on third party distributor Compass Group to distribute it funds in Mexico but Hernandez said now they have a local presence in Mexico this relationship is under review.
However, he insisted the Chilean firm remains a strategic partner of Vanguard throughout Latin America.
‘The form that we will work with them in 2018, given that we have opened a local office in Mexico, will change,' said Hernandez. ‘We haven’t defined it yet but we continue to believe that Compass is a great partner that has done a great job distributing our products for many years.’