Five years have passed since the Colombian giant SURA got into the institutional investors business, complementing its wealth management and corporate clients areas – grouped in the structure SURA Investments– and reaching an AUM of $1.69 billion. Looking forward, The plan is to double the assets within five years. And a fundamental piece of that ambition is Mexico, where they want to launch themselves to attract institutions.
“We are looking for how we can enter that jurisdiction,” he says. Gerardo Ameigenda, Executive Director of Institutional Business of the firmin an interview with Funds Society. The firm has already developed its muscles in the corporate and wealth management businesses in the country – what’s more, Mexico explains half of SURA Investment’s AUM, he adds – but Now they want to attract pension and insurance fundsin addition to other entities that acquire funds, such as family offices, advisors, foundations and brokers, among others.
Although it is a highly competitive place, with a strong presence of North American players, it is a space where they see a lot of potential. “It is a country that is having changes in its pension systems, where the contribution is rising. This shows that the amount that pension funds are going to manage in Mexico is growing. That generates a lot of opportunities”, explains the executive.
The conquest plan is not finalized, but they are exploring their options, including funds with seed capital –to generate traction and track record– or alliances with third parties. “What we are looking at is what is the fastest way to build capabilities,” says Ameigenda, adding that They are currently evaluating their alternatives.
For the executive, this push into the Mexican market does not just remain in conversations, but he is aware that this type of expansion takes time. “It’s not brute force. It’s about seeing what the best strategy is, and we’re working on it.”, he indicates.
In addition to customers, this is a market that is also profiled to grow your alternative asset market, given the wind in favor. In a context of enthusiasm for nearshoring, it is expected that there will be an increase in demand in infrastructure investments, real estate and even private debt.
A new background
On the product side, one of SURA’s priorities is a strategy that they are promoting in Luxembourg. This UCITS vehicle, comments Ameigenda, invests in Latin American corporate debt.
“We are promoting this fund to market it in Latam to institutional and other channels,” says the regional Executive Director of the area, adding that “it has had quite a bit of interest in the world of distribution”.
The firm has been developing the strategy for about three years and is looking to take advantage of the asset class’s tailwinds. “We understand that It is a very opportunity for Latam, with high rates and relatively solid data“, Explain.
For the professional, in addition to representing around 30% of the emerging world, Latin America is attracting attention of investors, as a niche strategy. “Within emerging markets, we are not all the same. Latam is looking at itself with different eyes, with more interest,” he says.
Regardless of the investor segment, Latin Americans are “big demanders” of fixed income assets, he adds. “The worst is over,” according to Ameigenda, which generated a “necessary cleanup” in the category.
Focus on alternatives
Outside of its offshore strategy, the attention of SURA Investments is concentrated in the world of alternativeswhere they see that “the business that consumes the most” is the institutional one.
“This client does not need an advisor to tell him how the rates are going to be,” explains Ameigenda, which is why it is necessary offer them strategies that will really complement their portfolios.
Along these lines, the Colombian parent company has developed its alternatives platform for the segment. This one is especially developed in its home market, but they also have some activity in Peru and Chile. “What we are looking for is to have teams that know how to do that work very well and be able to develop it,” he says.
At the asset class level, they focus on infrastructure, real estate assets and private debt. It is in these categories, according to Ameigenda, where they can complement the investment teams of pension fund managers and provide niche options to complete portfolios.
