The asset management arm of Chilean state bank BancoEstado expects to increase its voluntary pension assets under management (AUM) by 43.9% this year, general manager of BancoEstado Administradora General de Fondos, Pedro Rojas, told BNamericas.
The subsidiary closed last year with 556bn pesos (US$1.18bn) in voluntary pension AUM and expects to finish this year with 800bn, Rojas said.
Chilean authorities introduced voluntary pension savings accounts (APV) in 2002 for people looking to save extra money on top of the mandatory plans offered by the country's private pension fund managers (AFPs).
BancoEstado entered the APV market as part of its effort to offer a broader range of financial services to middle- and low-income individuals. The minimum investment amount for BancoEstado's APV accounts is only 5,000 pesos.
Rojas said BancoEstado's growth in the market will be driven by an increased focus on offering APV accounts at the bank's branches.
BNP Paribas Investment Partners holds 49.99% of BancoEstado Administradora General de Fondos.
The APV industry is dominated by the AFPs, but banks, mutual funds, insurers and brokerages also offers accounts.
BancoEstado had a nationwide distribution network of 343 branches at the end of last year.