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July 21, 2022

Brazil’s BTG Pactual and BlackRock form alliance for fund distribution

Brazilian investment bank BTG Pactual has collaborated with BlackRock to distribute the BlackRock FIA ETF BDR Fund, which is designed for institutional investors.

The partnership is set to use BTG Pactual’s third party distribution area, which serves local and international managers, to allocate the fund.

However, funds supervised by BTG Pactual Asset Management are not included in the deal.

In addition, the new collaboration intends to provide investors, who look for steady long-term revenues, with access to equities of developed markets across the world.

It seeks to integrate both passive and active management by allowing investment in Brazilian depositary receipts (BDRs) supported by iShares-branded exchange-traded funds (ETFs) listed on B3 stock exchange in Brazil.

BTG Pactual said that BlackRock FIA ETF BDR Fund aims to offer risk-regulated returns against the MSCI World Net TR index for MSCI World. It can also be utilised as a major provision for global exposure.

BlackRock institutional business director Paula Salamonde said: “BlackRock’s aim is to foster dynamic allocation, always looking for the best strategies for an ever-changing market.

“Globally, ETFs have gained more space due to their attractive attributes, such as liquidity and low cost.

“With the ETF BDR platform, investing in international ETFs is an option for building diversified and resilient portfolios, in an accessible, democratic and simple way.”

Phylipe Corsini, who heads BTG Pactual’s Third Party Distribution area in Brazil for institutional and corporate clients, said that the new collaboration aligned the business’ core strategy.

The policy helps the company in choosing managers and plans as per the requirement of each distribution channel.

Corsini added: “Searching for asset allocation is increasingly necessary when it comes to efficiency, cost reduction and technology transfer.

“In this sense, offering solutions like this one in the partnership signed with BlackRock helps us to solve some challenges faced by Institutional customer segments in Brazil.”

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