THE BANKER: São Paulo and Santiago: the David and Goliath of Latin America’s asset management industry

Both Santiago and São Paulo are making significant strides towards becoming Latin America's foremost asset management hub. The Chilean capital has extensive experience, while the Brazilian metropolis already boasts the sixth largest asset management industry in the world. However, both are seeing their progress stunted by regulatory and taxation issues.

São Paulo and Santiago may seem unlikely rivals for position of Latin America's investment management hub. After all, Brazil has a meaty $1000bn mutual fund management industry and a 190 million-strong population, whereas Chile has a respective $33bn and 17 million people. Moreover, São Paulo was the top ranking Latin American international finance centre in The Banker's 2012 survey on asset management centres. But strangely, while Brazil is just waking up to its enormous potential, Santiago’s fund managers have been honing their skills for years.

The Chileans are capitalising on their experience to market themselves as the Luxembourg of Latin America: safer, more open and more experienced than their main rival. Brazil, meanwhile, is witnessing a startlingly fast if not chaotic transition from a sleepy fixed-income market to one where dynamic and international-thinking boutiques are starting to set the pace across multiple asset classes.

This is the start of an article that discusses rivalry between São Paulo and Santiago as centres for asset management. To see the full article, please go to The Banker website (www.thebanker.com). 

About admin

I've been researching and writing on Brazilian financial markets, industry and economy since 2006 for a wide range of specialist media, consultancies and investors. Before that I spent over 10 years in London and New York writing for and editing magazines and journals dedicated to finance, investment and economics in developing markets, mostly for the Euromoney Institutional Investor group and Thomson Financial. Areas of coverage Below are samples of areas that I cover and some of the common themes that I investigate. Capital markets BM&FBovespa markets *capital raising trends: via equities (IPOs and secondary issuance), debt and loans *the asset management industry: legislation and coverage of the key hedge, pension and investment funds * corporate governance: how the regulator is seeking to strengthen best practice and limitations * debt markets: the nascent corporate markets, attempts to boost liquidity and new insturments. * private equity market: why this market has been so successful, who’s involved. *electronic, high frequency trading and alternative trading platforms: what does the future hold? Banking *credit: the growth of consumer and business credit and competition between banks and models *Public versus private: the role and market share of public and private sector banks and the politicization of the industry * internationalization: which Brazilian banks are expanding overseas and where * investment banking: the growth of the domestic market and who’s winning which mandates *regional banks and development banks: what role they play in the industry and how they compete Mining *licensing: the complex process of obtaining environmental, water, land and operating licenses at a state and federal level. * capacity: the feasibility and sustainability of capacity increases * financing: how miners are raising finance in Brazil and abroad *competition: the interplay Vale, MMX and junior miners *logistics: rail, road and port connections Oil and gas: the fund raising issues related to the massive of pre-salt (link) Multilatinas: Who are they and how and where they are expanding Meatpacking: Are debt burdens sustainable, what are the different business models for areas such as branding and distrbution Agriculture: How are farms consolidating, what are environmental risks, how can foreign investors be involved. IT and software: Can Brazil take on India and build a viable long-term IT industry? For more information on clients and work, please see the media and consultancy sections.
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