Itau Plans Two Funds with Daiwa

Japan’s Daiwa Securities and Itau Securities plan to set up two new mutual funds aimed at LatAm. Itau will advise and manage the funds, each expected to be at least $500m in size, say executives at the Brazilian firm. One fund will be geared towards LatAm equities and the other will be specifically for Brazil fixed income. Itau, which has had an office in Tokyo since 2004, already manages a Brazil fund for Nikko Asset Management, also in Japan, which could reach up to $500m by year-end. Daiwa says it is increasing its reach into global markets with a focus on growth areas. In Korea, Itau manages two equity funds alongside Daewoo Securities and KDB Asset Management. Itau and its subsidiaries also have offices in Hong Kong and Shanghai, and the Brazilian shop is preparing to open in Singapore. The firm also just recently set up shop in Dubai, where it will service Middle Eastern investors interested in Brazil. Fellow Brazilian financial institution Unibanco has also set up funds in Asia and elsewhere in LatAm.