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Latin America To Export More Pension Assets

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NU Online News Service, Dec. 9, 11:18 a.m. – Latin American pension managers and other Latin American institutional money managers will probably be shipping $50 billion more assets to international fund managers by the end of 2007 as a result of the recent turmoil in some of the region’s economies, according to a report by Cerulli Associates, Boston.

The Latin American institutional managers now account for only $5 billion of the $40 billion in Latin American “cross-border” fund assets. The institutional managers have invested a large percentage of their assets in domestic securities. But Cerulli researchers say that approach will probably change because of Argentina’s recent default on its government debt. Argentina institutional money managers suffered, because they had invested 80% of their assets in domestic government debt, and institutional managers in other countries want to avoid similar problems, Cerulli researchers write.