The South American country captured $20bn in flows during the first quarter of 2011, representing 10% of worldwide cash contributions. Net flow gains have pushed the country’s regional market share to 90%.
Daniel Enskat, head of global consulting for Strategic Insight, highlighted the increasing set of opportunities in the region.
“There is a growing set of opportunities for cross-border fund managers across Latin America as a whole, especially in smaller countries such as Chile, Peru and Colombia, that are leading the way in cross-border Ucits fund distribution.”
“Large distributors in Brazil and Mexico are showing a greater willingness to work with third-party fund managers of late. Many international fund companies such as Investec, BlackRock and MFS are building up their regional presence, and firms such as Franklin Templeton have already established business south of the border,” he added.
The research also showed a shift in cash flows from fixed income to equity funds, indicating a desire by investors to increase their equity allocations. Cash contributions to equity and mixed funds globally surpassed fixed income for the first time since the financial crisis in the year through April 2011.
Equity funds gathered $110bn through April, mixed funds accumulated $20bn and bond funds $100bn.
