Columbia Threadneedle Investments has announced that it has entered into an exclusive partnership with Rio Bravo Investimentos, the Brazilian independent money-management firm founded by former central bank head Gustavo Franco, to launch a Brazilian domiciled fund available to Brazilian pension fund clients.
The fund, wholly managed by Rio Bravo and designed as a feeder, is fully invested in Columbia Threadneedle’s European Select strategy, a successful high alpha European equities portfolio.
Due to current regulatory restrictions that prevent Brazilian corporate pension funds from holding more than 25% of total AUM of a fund, the Rio Bravo fund is launching with seed capital of BRL 34 million (approx. USD 8.5 million).
Joseph Sweigart, Senior Institutional Sales Director, Latin America Institutional Distribution at Columbia Threadneedle Investments said: “We are very pleased to partner with Rio Bravo Investimentos, a highly regarded, independent asset manager with long-standing institutional client relationships.
“We believe that Brazilian pension fund clients will be interested in funds that can generate both high alpha and geographic diversification. Columbia Threadneedle’s European equities team has the proven track record and quality focus to deliver long-term outperformance.
“Despite the low growth in European economies, the continent counts some of the world’s leading stocks, making it the perfect hunting ground for investors.”