The largest pension fund in Latin America, Banco do Brasil SA, would be investing in US and European stocks. This would be conducted through funds of money managers such as BlackRock Inc and JPMorgan Chase & Co.
The purpose of the investments is to diversify its asset holdings. Previ, as the pension fund is know, is currently putting up its first investment vehicle. According to Chief Investment Officer Rene Sanda, it would also invest through funds managed by Schroders Plc and Frank Templeton Investments.
Previ, for its part, would have a 25% shareholdings managed through BB Gestao de Recursos DTVM SA, the asset manager which is also a unit of Banco do Brasil. Other pension funds from Brazil would be participating in the fund as well.
Danda said, "BB DTVM will invest in funds already constituted by these four managers, it's a feeder. The objective is portfolio diversification, not returns."
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