SAO PAULO--Brazilian financial firm BrasilPrev expects to end
this year with 66 billion reais in assets under management,
representing an increase of 32% from 2011, and a slightly slower
pace than the 35% growth seen in 2011.
"The scenario of macroeconomic stability allows Brazilians to
look for long-term investments, and as a result we are seeing an
increase in the pension industry," BrasilPrev President Ricardo
Flores said Thursday.
The firm is a joint venture of Latin America's largest bank,
government-owned Banco do Brasil SA (BBAS3.BR), and Principal
Financial Group (PFG).
Brazil private sector pension system is divided between the
unrestricted sector, where anyone can invest, and the far larger
but less dynamic closed system, where pension funds are specific to
employees of very large companies.
Still, the unrestricted segment is growing fastest. BrasilPrev
said it maintains its view that the unrestricted pension fund
system in Brazil could see assets jump to BRL1 trillion by 2019, up
from the current level of BRL318 billion.
In 2019 the pension industry is likely to represent 14% of
Brazil's economy, compared with 7.6% this year.
Write to Rogerio Jelmayer at rogerio.jelmayer@dowjones.com