Latin American investment manager Itau Unibanco Asset Management is planning to enter the Australian market, launching a fund for local institutional investors.
The firm is the largest asset manager in Latin America with US$155 billion in assets.
Head of equity and portfolio management Walter Mendes and head of international funds Ricardo Araujo visited Australia this week to speak with institutional clients.
The firm is represented by third-party marketing firm Teneo Partners.
"We have plans to launch an Australian-domiciled trust for institutional investors," Teneo Partners' Mark Voumard said.
The trust will invest in stocks in Latin American countries, including Brazil, Mexico and Chile, and with some exposure to Peru and Colombia.
The trust's benchmark was the MSCI 10/40, which allowed the managers to invest in the real growth companies in Latin America and not just focus on commodities, Voumard said.
"When you are an Australian investor, you don't really need more exposure to commodities," he said.
The trust will initially be available to institutional investors, however, it will eventually be opened to the retail market.
Araujo said Latin America offered a number of opportunities for investors.
"We are really enthusiastic about the opportunities in Latin America and that is not just because we live in the region," he said.
He said macro-economic factors were sound, particularly as Brazil, Mexico and Chile had healthy fiscal accounts with net debt to gross domestic product (GDP) ratios stable.
Gearing levels for individuals and companies in Latin America were also relatively low compared with the rest of the world, he said.
Domestic consumption was also strong in the region with household consumption now representing more than 60 per cent of GDP, he said.
There is also a growing proportion of low-income earners migrating to the middle class.
Unlike China, Brazil, Chile and Mexico have populations that can support an ageing society.
"In Brazil there are two people generating wealth for every one person consuming wealth. Countries in Latin America are well placed to support an ageing population," Araujo said.
