State Street/Itaú in Brazil institutional tie-up
BRAZIL/US – State Street has entered into an agreement with Brazil’s second largest private bank, São Paolo based Banco Itaú, in a bid to expand institutional investment services for clients of both companies, including pension funds, investment managers, insurance companies and multinational corporations.
“ Together with State Street, we can bring a tremendous depth of experience in meeting the needs of institutional investors in Brazil and across the world,” says Alfredo Setubal, executive vice president of Banco Itaú.
“ As our institutional marketplace grows, State Street will be a valuable partner for Banco Itaú as investors adapt to the expanding and more complex economic environment,” he adds.
In March, Brazil’s government approved new pension fund rules that will provide greater transparency by requiring portfolio data every month as well as performance data every six months.
According to State Street, the new regulation will set limits on the amount that pension funds will be able to hold in fixed income, variable income and property and how much they can lend and finance their parent organisation.
“ With Banco Itaú we will be well positioned to capitalise on the accelerating growth of Brazil’s institutional marketplace, particularly in light of the important steps the government took in March toward reforming the country’s pension plan structures,” says Robert Williams, executive vice president of State Street Corporation.
Itaú currently handles BRL74.6bn (e37.2bn) of assets and State Street has some US$703bn (e827bn) in assets under management.