Edmond de Rothschild aims to grow asset base by 3-4 times in 10 years

Monday, April 25, 2011

Paris-based Edmond de Rothschild Asset Management is looking to become a major asset manager player in Latin America by growing its 1bn-euro (US$1.46bn) asset base in the region by three or four times in 10 years, Eduardo Ruiz-Moreno, the company's director for Latin America and Spain, told BNamericas.

"We aim at becoming a relevant player in Latin America, and to do that we have to penetrate the market and walk, walk and walk. Finally, this [business] is a commodity, and we're investing in building long-term relationships. And that takes time," Ruiz-Moreno noted.

The company launched operations in Santiago in November 2008 - at the height of the global financial crisis - to target institutional investors and the private banking business in Chile, Peru, Colombia, Argentina and Uruguay.

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Edmond de Rothschild Asset Management is currently working with 80% of Chile's institutional investors and 30-40% of family offices, mainly the bigger ones.

Ruiz-Moreno said the company's goal is to reach 100% of Chilean pension fund managers (AFPs), mutual funds and insurers this year.

Edmond de Rothschild also services Colombian and Peruvian AFPs, but growth in those countries has been slower as they use a passive strategy given that most of their funds are allocated locally.

In Argentina and Uruguay, the company mainly works with banks and asset managers, and a year ago it launched operations in Spain, where Ruiz-Moreno sees high potential for synergies given the largest Spanish banks' significant presence in Latin America.

An affiliate of La Compagnie Financière Edmond de Rothschild, Edmond de Rothschild Asset Management specializes in managing equities, convertible bonds and asset allocation for institutional investors, banks and insurers. It had 14.7bn euros under management as of end-February.

The full interview with Ruiz-Moreno will be published in this week's Insurance Perspectives, for subscribers only.