Afore InverCap surpasses HSBC pension unit in assets at end-June

Tuesday, July 15, 2008

Mexican private pension fund manager Afore InverCap has surpassed its closest rival HSBC Afore in terms of assets under management at the end of June as predicted earlier this year by InverCap's investment director.

Afore InverCap finished June with 33.4bn pesos (US$3.25bn) in assets under management, while the local pension unit of London-based HSBC (NYSE: HBC) managed 31.2bn pesos in assets, industry regulator Consar statistics show.

During the 12-month period ending June 2008, InverCap increased its market share by assets under management 2.3 percentage points to 4.0%. By contrast, HSBC Afore lost 0.3 percentage points, finishing the sixth month of this year with a 3.7% market share.

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A combination of high returns and good client service is behind Afore InverCap's rapid growth, two top executives of Afore InverCap's told BNamericas.

Strong growth in InverCap's assets under management has been propelled by above-market returns on pension assets, company investment director Arturo Hanono said.

The client base growth for its part has been fueled by a client service-focused sales team, which has managed to gain new clients amidst very competitive market conditions, said the firm's commercial director Óscar Morales.

InverCap is one of the few players that has no ties to financial groups or banks.

BBVA (NYSE: BBV), Citi (NYSE: C), HSBC and Banorte control some of Mexico's largest financial services groups, offering banking and pension fund management services, among others.

Afore InverCap ranked ninth in terms of assets under management among the country's 18 private pension fund managers as of June 30, 2008.