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Alternative Latin Investor: Latam Family Office January 2012 Issue Nr 13

The Alternative Latin Investor Issue #13 is focusing on family offices.  With some great content this issue, from maverick economist Doug Casey, estimates on the effect of climate change in the region, and of course with premium focus looking at the needs, attitudes and opinions of family offices in LatAm. Below some of the other content of issue #13.

 Renewable Energy 

  • Electric Energy Storage in Latin America: Smart Grid Technologies.


  • Top Ten LatAm Hedge Funds
  • Mutual Funds in Argentina
  • Latin America fund assets to exceed $3 trillion by 2020

Emerging Markets

  • 2012 Should Be Better: A wasted year for LatAm Stock Markets
  • Investors Beware of Brazilian FIDCs (ABS) Backed by Consumer Credit


  • Gauging the Effects of Climate Change on Brazilian Agri Output
  • 2011 Agribusiness Round Up


  • SPOT-trade’s Facundo Molina on Forex and CDFs
  • Mitigating Currency Risk when investing in LatAm

Private Equity 

  • A Primer on Colombian Taxes for the PE Investor


  • Meso-American Remix
  • LatAm auction recap: Sotheby’s and Christie’s

Issue Focus: LatAm Family Business

 Please view and access Issue 13 in the following formats

Virtual Viewer

For more details and information please view

Source: AlternativeLatinInvestor 23.12.2012

Filed under: Argentina, Brazil, Central America, Chile, Colombia, Energy & Environment, Events, Latin America, Mexico, News, Peru, Services, Wealth Management, , , , , , , , , , , , , , , , , , , , , , , , , ,

Alternative Latin Investor: Premium Launch Issue Nr 11.

Alternative Latin Investor August 2011 – Issue 11 Premium Launch Issue


Political Moves: brought to you by

Emerging Markets

Growing M&A Activity between Asia and Latin America?

Latin American Venture Capital: Lessons Learned from China

Be careful What You Wish For- A Brazilian Cautionary Tale


Cuipo: Saving the Rainforest One Meter at a Time

Nuts: Crops that Grow Well in LatAm

Entering The Brazilian Agribusiness Sector (Premium)


Mezzanine Financing for LatAm’s Infrastructure


Investing in Brazilian Oil (Premium)


Fine Art Funds: Taking the Soul Out of Art Investing?

Hedge Funds

MILA Integration

LatAm Fund Due Diligence: What Managers Need to Know (Premium)

Institutional Investing in LatAm: A Contrarian’s View (Premium)

Attracting US Institutional Investors to LatAm Funds (Premium)

Quant Funds in LatAm (Premium)

How HNWI in LatAm View Alternative Assets (Premium)


Spotting Opportunities in LatAm Forex Trading


Tax Incentives: Software Development in Argentina


Mercatrade: Inter-emerging Market Trade

QuickStart Global: Have an Office Anywhere

Real Estate

Airlift Encourages Latin America to reach for the skies

Read the content  at 

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Please feel free email me directly with comments or questions regarding our current content or with suggestions for future stories. I can be reached at or 202-905-0378.

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Filed under: Argentina, Banking, Brazil, Chile, China, Colombia, Mexico, News, Peru, Risk Management, Wealth Management, , , , , , , , , , , , , , , , , , , , , , ,

Asia Trader & Investor Conference, Singapore 07-08 May 2011

ATIC @Singapore 2011 will feature more than 40 seminars conducted by international and local gurus and experts.  The Asian Trader and Investment Convention – Singapore
Covering topics like:

Futures | Equities | Options | ETF | CFD | Commodities | FOREX | Warrants | Alternative Investment | Property | Insurance | Managed Funds

Event Highlights

  • First in bringing breakthrough and new methods of trading
  • Over 50 investment educational seminars
  • A Specialised Panel of top analysts who will conduct real-time analyses of the same stock
  • Special Trading Focus Workshops on Stocks, Futures, Commodities, Gold, ETFs, Options and Warrants
  • Stock Analysis on Regional Markets by International Traders
  • Investor Clinics that help them improve trading
  • Investment Network Platform with different market segment experts
  • Property Investment Showcase – with property investment education and special panel discussion on Property vs Stock Investments
  • The largest Finance and Investment Book fair

First launched in 2006, Asia Trader and Investor Convention (ATIC) event has travelled to 7 Asian Cities, i.e., Singapore, Kuala Lumpur, Bangkok, Ho Chi Minh City, Mumbai, Shenzhen and Tokyo. With participation by over 300 financial services companies, including securities exchanges, retail and consumer banks, securities brokerage firms, asset/fund management firms, listed companies and other financial services providers, ATIC events have attracted over 100,000 active traders and serious investors across Asia.

Source: The ATIC, 05.05.2011

Filed under: Asia, China, Events, Exchanges, Indonesia, Japan, Malaysia, News, Singapore, Vietnam, , , , , , , , , , , , , , , , , , , , , ,

China: Thanks but no thanks: E Fund declines help on QDII debut

The Chinese fund house’s prospectus for its Asian equities product, slated for launch next week, indicates it will manage the fund without MOU partner State Street.

Guangzhou-based E Fund Management, the second-largest Chinese fund house in asset terms, is poised to launch its first QDII fund, by itself, rather than with a foreign sub-advisor.

The firm is set to launch an Asia-Pacific equities fund under China’s qualified domestic institutional investor programme on Monday, December 7. Despite having signed a memorandum of understanding last year with State Street Global Advisors, E Fund will manage the portfolio itself.

The firm’s investment management team is in Guangzhou but it also has an office in Hong Kong run by Zhang Xiaogang that is expected to play a role. Calls and e-mails to E Fund were not returned by press time.

Executives at investment firms in Hong Kong say Beijing-based Harvest Fund Management’s acquisition of the Asian equities platform of DWS, the retail arm of Deutsche Asset Management, was the watershed event. This proved the determination of China’s fund houses to manage their own overseas investment products.

ICBC Credit Suisse Fund Management has also decided to run its own QDII funds. E Fund is the first firm independent of any foreign partnership to do so.

Foreign executives downplay the notion that these moves are simply about fees, aware of cases such as China Southern Fund Management’s decision to discontinue a sub-advisory agreement with BNY Mellon Asset Management, which was partly based on fees. Rather they reflect the ambition among Chinese firms to build international expertise in house.

“These fund-management companies have been supported by foreign advisors for 10 years, in some cases, and they’ve learned a lot,” says one banking executive in Hong Kong.

A spokesperson at SSgA says the firm does not have a relationship with E Fund. The firm declined to discuss the terms in the MOU.

Peter Alexander, principal at Shanghai consultancy Z-Ben Advisors, says E Fund’s move should not be interpreted as part of a wholesale trend. Although the biggest Chinese firms are keen to control their own products, the majority are probably not ready to follow suit.

Alexander says other QDII funds slated for launch early next year still look as though they will work with appointed foreign partners, including China Universal Fund Management (with Capital International) and Bosera Fund Management (with Singapore’s Fullerton).

But global asset managers that have written confident reports to headquarters regarding the QDII sub-advisory opportunity set may need to review the space, particularly if E Fund’s QDII product is rated a success, he warns.

The State Administration for Foreign Exchange has allocated $1 billion to the E Fund Enhanced Asia Pacific QDII Fund. Safe has also allocated QDII quota to Bosera, China Universal and China Merchants Fund Management, a joint venture involving ING Investment Management.

E Fund’s primary distributor in China is ICBC, which suggests little difficulty in attracting assets. Its QDII product will also be cheaper than its peers, charging 1.5% versus the 1.85% that has been charged for other QDII funds. Although called an Asian equities fund, it actually has a 60% ceiling on stocks, with a minimum 40% in cash or bonds. The Hong Kong market is expected to play a big role in the portfolio.

The QDII launch comes on the heels of E Fund’s successful launch of an exchange-traded fund, which raked in $2.8 billion last week. The firm was ranked 54th in AsianInvestor magazine’s rankings of fund houses by assets sourced from Asia-Pacific clients (based on September figures; see our December edition); its recent exploits suggest it will have climbed a few more rungs.

See also

E-Fund (GF Securities) ETF raises $2.8 billion, as Bosera gets ETF approved

Source:, 04.12.2009

Filed under: Asia, Banking, China, Hong Kong, News, Risk Management, Services, Wealth Management, , , , , , , , , , ,

ETF Landscape: Barclays Global Investors Annual Review Of Institutional Users Of ETFs In 2008

Barclays Global Investors has just published our Annual Review of Institutional Users of ETFs which looks at the use of ETFs by institutional investors globally who have reported holding one or more ETFs in their mutual fund holding disclosures, or in different filing sources including 13F, 13D and 13G, proxy or other declarable stakes during any of the four quarters of 2008 based on data compiled by Thomson Reuters.

Please click here to download the document.

In the four quarters of 2008 a total of 2,926 institutional investors worldwide have reported using one or more ETFs. Over the past 11 years, the number of institutional users has increased 1,673%. This represents a CAGR of 29.9%.

Institutional investors in 42 countries have reported using at least one ETF in 2008. The United States, the United Kingdom, Canada, Spain and Switzerland have the largest number of institutional users and account for 83%.

Over half of the largest institutional investors (those with assets over US$10 Bn) report using one or more ETFs, while less than a quarter of institutions with assets under US$250 Mn report using ETFs. The overall penetration rate is still very low at 6.7% of reporting institutions.

Source: MondoVisione, 24.11.2009

Filed under: Asia, Events, Exchanges, Latin America, News, Services, , , , , , , ,

在2009中国基金论坛与Charles River相会 Invitation to 3rd Fund Forum China on 21st by Charles River

Charles River Development 高兴地宣布我们将参加2009102122日在上海万豪虹桥大酒店举行的2009年第三届中国基金论坛。

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Filed under: China, Events, Services, , , , , , , , ,

BANORTE buys IXE’s Afore (Pension Fund) business and lists ADR’s as part of it’s Global Expansion startegy

BANORTE (the only remaining 100% Mexican owned bank) is continuing with it’s global expansion strategy. After listing it’s shares on the Spanish / Latin American stock exchange LATIBEX on June 9th and ADR listing in the US Pinksheet OTC market, it acquired the pension fund (Afores) portfolio of IXE bank extending it’s Afore portfolio to 3.5 million accounts. In February 2009 it signed an cooperation agreement with China Development Bank,giving both banks access to bank payment and transfer service in México, China and the USA. (Note by FiNETIK, 11.06.2009)

MEXICO CITY, June 10 (Reuters) – Banorte, one of Mexico’s top banks, said on Wednesday it has agreed to buy a pension fund business from a smaller rival and that it listed its stock on the U.S. over-the-counter market.

Banorte’s (GFNORTEO.MX: Quote, Profile, Research) Generali unit will absorb Ixe’s (IXEGFO.MX: Quote, Profile, Research) 312,489 pension clients, whose combined accounts are worth 5.45 billion pesos ($399 million).The transaction is subject to approval from Mexico’s competition agency. In Mexico, workers in the private sector save for their retirements in pension funds known as Afores.

With this acquisition Banorte will be ranked 4th in Mexico’s Afores account holding, managing a total 3.2 million pension account. (El Universal, 11.06.2009)

In a separate announcement, Banorte said it had listed its stock through pink sheets (GBOOY.PK: Quote, Profile, Research) in the U.S. over-the-counter market. Companies sometimes tap this less-regulated market before leaping into a larger exchange.

Banorte sees the over-the-counter market as a possible prelude to listing its ADRS on the New York Stock Exchange, a bank source told Reuters.

Only a handful of Mexican companies, like tycoon Carlos Slim’s telecom giants America Movil (AMX.N: Quote, Profile, Research) or Telefonos de Mexico (TMX.N: Quote, Profile, Research), trade their American Depositary Receipts on big U.S. markets with healthy liquidity.

Some Mexican corporations have withdrawn their shares from U.S. markets in recent years to avoid tighter scrutiny from U.S. securities regulators.

Source: Reuters, 10.06.2009, Banking News (ADR Depository), 11.06.2009

Filed under: Banking, Latin America, Mexico, News, Services, , , , , , , , , , , , , , ,

Mexico pension news fuels gains for peso, stocks

March 16 (LatinFinance) – Mexico’s pension fund were preparing late last week an agreement to buy only local securities for a 12’month period, a decision seen as a sign of confidence that could stimulate markets and cut financing costs. A formal agreemt is expected in coming weeks and would only apply to new funds invested by Afores. The potential inflow to Mexican equities could be $3.3 bn by year end.

Merrill Lynch says in a report, using a conservative estimate where Siefores invest in domestic equity half  the maximum allowable limits, or as much as $9.6 bn.

Source: LatinFinance, 16.03.2009

March 13 (Reuters) – Mexico’s peso firmed sharply and stocks jumped on Friday, helped by news that Mexican pension funds will soon sign an agreement to limit purchases to local assets.

The peso <MXN=>  firmed 1.57 percent to 14.512 per U.S. dollar, marking its fourth straight day of gains, even as the greenback gained against other emerging market currencies.

The BMV Bolsa Mexicana de Valores IPC stock index .MXX closed up 3.03 percent to 19,337.01 points, also rising for the fourth straight session and marking a 14 percent gain during the week.

Mexico’s private pension funds, known as Afores, will sign an accord to buy only local investments in a bid to help boost the shrinking economy, industry regulator Consar said on Thursday.

“It works out best for everyone, we all want Mexican companies to do well. It is a very good strategy and it is working,” said Alfredo Puig, a currency trader at Vector brokerage in Monterrey.

Mexico’s peso has lost nearly a third of its value against the dollar since August due to the impact of the global financial crisis and worries that Mexico is slipping into a recession due to the U.S. downturn.

The peso was also helped by the central bank’s daily sale of $100 million under a new dollar auction system introduced this week to support the battered local currency, said Jaime Ascencio, an analyst at Actinver brokerage in Mexico City.

The central bank previously sold dollars in auctions most often when the peso lost more than 2 percent.

Despite the peso’s gains during the week, where it added nearly 5.0 percent, some traders and analysts doubted that the currency would continue to firm much more and could weaken in the coming weeks.

Next Wednesday, Mexico will report industrial production data for January and analysts expect to see a nearly 10 percent drop, according to a Reuters survey.

“Mexico’s industrial production is going to come out terribly bad, an this could knock down the market,” said Cesar Castro, head of analysis at CAPEM consultancy in Mexico City.

In debt trading, bonds gained following the peso’s appreciation and expectations that the central bank could cut interest rates next week to boost the flagging economy.

The government’s benchmark 10-year peso bond <MX10YT=RR> rose 0.467 of a point in price, pushing its yield down to 8.31 percent.

In the equities market, shares in appliance dealer Elektra (ELEKTRA.MX) climbed 8.52 percent to 395.32 pesos.

Miner Penoles (PENOLES.MX) rose 9.8 percent to 154.24 pesos. The company declared force majeure on Friday saying it would not be able to meet precious metals orders due to a five-week strike that has paralyzed some operations at its MetMex processing plant, the largest in Latin America. For details, see [ID:nN13458606]

Breadmaker Bimbo (BIMBOA.MX) jumped 5.79 percent to 51.33 pesos.

Source: Reuters, 13,03.2009

March 13 (Bloomberg) — Mexico’s stocks had the biggest gain in the Americas and the peso and bonds jumped after the pension fund association said it will have an accord ready within weeks that will obligate managers to invest all new money locally.

The benchmark Bolsa IPC index rose 3 percent to 19,437.01, extending its four-day gain to 15 percent. The peso advanced 1.4 percent to 14.5221 per U.S. dollar. It has gained 6.7 percent in the past four days, trimming its plunge since the global financial crisis deepened in September to 27 percent.

The pension plan “is an act of solidarity at a difficult time for the local markets,” said Luis Garcia Pena, chief executive of Investra Consultores SA, which manages about $750 million in Monterrey, Mexico. “We could see synergies between pension fund money and the flows needed by corporations.”

The pension fund association will have an agreement ready in “coming weeks,” Oscar Franco, president of the association, known as Amafore, said in a telephone interview late yesterday. The agreement won’t affect money already in the funds, Franco said. The pension funds had 968.5 billion pesos ($66.8 billion) in assets as of February, making them Mexico’s biggest institutional investors.

The peso also advanced after the central bank bought $100 million worth of the currency in a daily auction. Banco de Mexico, known as Banxico, has purchased $500 million worth of pesos this week under this mechanism and has spent $20 billion from its foreign reserves since October to shore up the peso.

The currency’s four-day rally has pushed it up from a record low of 15.5892 per dollar on March 9. Its 27 percent plunge over the past six months is the worst performance among the 16 major currencies as the recession in the U.S. curbs dollar flows to Mexico from exports, remittances and tourism.

Source: Bloomberg: 13.03.2009

Filed under: Banking, BMV - Mexico, Latin America, Mexico, News, , , , , , , , ,

Barclays Begins Trading 3 Brazil ETFs to Tap Investor Demand

Barclays Plc began trading of three new Brazilian Exchange Traded Funds in Sao Paulo to respond to investor demand for diverse and more easily tradable funds at a time of market volatility.

The ETFs, the first developed by Barclays in Brazil, replicate the Bovespa Index of the 66 most-traded stocks, the BM&FBovespa MidLarge Cap index and the BM&FBovespa Small Cap index. The first Brazilian ETF, the PIBB Fundo de Indice Brasil- 50 Brasil Tracker, was created in 2004.

“The type of product that we have here brings benefits for the times we’re living in,” Banco Barclays Director Marcelo Allain told reporters in Sao Paulo today. “The fund has the benefit that investors can enter and exit at any time and can better control their investment risk.”

Demand for ETFs in Brazil may follow the trend in Mexico and grow to as much as 20 percent of daily traded volume in five years, said Daniel Gamba, Barclays Global Investors’ chief executive for Latin America. The Bovespa had an average daily volume of about $3 billion during the past three months, more than six times the $440 million average volume of Mexico’s Bolsa.

The iShares MSCI Brazil Index Fund, managed by Barclays, is among the 10 most-traded ETFs in New York, with daily volume of about $1 billion, Gamba said. The MSCI Brazil fund has a market cap of $3.15 billion, according to Bloomberg data.

The three ETFs that began trading today have an original investment of 100 million reais ($42 million) from strategic investors, Allain said.

The Bovespa index gained 1.7 percent to 35,329.87 at 10:14 a.m. New York time. The iShares Ibovespa fund rose 0.7 percent to 35.34 reais after opening at 35.11 reais.

Investor demand for the funds will likely lead to the creation of additional indexes and funds, including two new indexes by the end of this year, said Murilo Robotton, executive director of products at BM&FBovespa, Latin America’s biggest exchange.

“We want to have new indexes so investors can have diverse means to invest” in Brazil, Robotton told reporters. The exchange is currently creating a homebuilders index. Robotton declined to give details about the second index.

To contact the reporter on this story: Paulo Winterstein in Sao Paulo at

Source: Bloomberg, 2.11.2008

Filed under: Banking, BM&FBOVESPA, BMV - Mexico, Brazil, Exchanges, Mexico, News, , , , , , , , , , , , , ,

Global funds industry shifting to Asia

More than ever, fund management companies of all stripes need to build distribution into Asia and the Middle East, says Strategic Insight.

New York-based consultancy Strategic Insight says in a new report that the credit crunch has revealed the essential need for fund management companies to have a distribution into Asia – and predicts many more will build it.

Source: AsianInvestors, 27.10.2008 by Jaime DiBiaso

Funds under management in Asia as well as the Middle East and Latin America will grow much more quickly than those in the United States and Europe over the next five years, says Daniel Enskat, managing director and head of global consulting.

Fund companies that lack an Asian reach have suffered the most in the credit crunch, he suggests – not only because they missed out on last year’s asset-gathering bonanza, but because redemptions in Western countries, particularly Europe, have been most severe.

Such companies with only European clients, even if they have great performance, are nonetheless suffering acute redemption pressure, because investors are panicking and dumping anything to move to cash.

Strategic Insight says mutual funds in Asia have enjoyed net inflows of $60 billion from January to August, versus a net outflow of $360 billion in Europe.

Finally, for fund companies around the world, Asia is the most likely source of business to pull them out of the slump, due to its demographics, its economic growth prospects, the low penetration of investment products and the youth of the domestic fund industries.

Enskat cites China as an example. He compares China’s investors today to European ones in the run-up to the 2000 tech bubble collapse. In both cases, many first-time investors got burned. In Europe, investors generally switched to low-risk savings products and capital guarantees. So far, however, Chinese investors don’t seem to be in full retreat.

“Distributors don’t want to make the same mistake in China,” Enskat says. “They want to educate investors about having a longer-term framework.” He notes that regulators have taken a proactive stance against mis-selling and improving products, which is why the industry hasn’t suffered the kind of mass redemptions that have taken place this year in markets such as Germany and Italy.

Enskat reckons there is also a cultural factor. He says Asian societies, lacking a welfare state, have instilled a sense of self-reliance. First-generation entrepreneurs are relatively young and willing to take risks with their money, while Westerners, already wealthy, are more interested in capital preservation. “Asian investors are proactive, not defensive,” Enskat concludes.

He says the credit crunch, and blow-ups such as the Lehman Minibond fiasco in Hong Kong and Singapore, is an opportunity for the mutual-funds industry to argue its case: that funds are the most transparent, liquid and straightforward investment products that investors will find.

“Distributors want a simple story told with conviction for a transparent product,” he says.

The challenges are how to convey this message to investors (and to distributors’ sales teams). High management fees and front-end loads can be a problem during bear markets, although Enskat believes investors are willing to overlook these when times improve; eventually Asia will need to shift to an American model in which asset managers force their brokers to sell on the basis of advice, rather than commission for pushing products.

Today it seems nearly all the big global names in asset management are already on the ground in Asia. But Enskat observes that there are many small- and mid-sized fund managers in Europe and Asia that have yet to set up a presence in the region. Should this matter?

Consider, Enskat suggests, that two-thirds of today’s top 50 global houses would not have been ranked 10 years ago. Names like AllianceBernstein, BGI, Janus, Pimco, SSgA and T. Rowe Price would not have figured.

Now consider the coming regulation of the hedge fund industry. The biggest hedge funds will find themselves going public and competing for assets from sovereign wealth funds and other institutional investors, rather than rely on family offices and endowments. How many of these will be in the top 50 in another decade’s time? And how many of them have distribution networks in Asia now?

And the traditional funds world will also throw up new winners that are relatively unknown today, Enskat argues. He notes that fund companies can become major players on the back of a single product, citing Kokusai’s income bond fund (sub-advised now by Western Asset), Pimco’s total return bond fund, Pictet’s utilities fund, BlackRock’s global allocation fund and some of Schroders’ global balanced funds for UK pension clients.

There are plenty of mid-sized players in America and Europe with similar products, some of which will become the blockbusters of the future – but these companies have no exposure to the world’s new growth markets. Which means they will be looking to set up distribution arrangements. The pain of the credit crisis is going to accelerate this process.

Filed under: News, , , , , , , , , , , , ,