Scotiabank acquires 50% of BBVA pension fund management business in Peru

As part of this transaction, Scotiabank and SURA Asset Management, a subsidiary of Grupo SURA, who has acquired the other 50% of AFP Horizonte, will jointly manage the company through a transition period.

Upon final regulatory approval, the company will be divided and Scotiabank will integrate its 50% share of this business with its existing pension fund management business in Peru, Profuturo AFP.

The bank sees pension fund management as an area with great potential for future organic growth in Latin America.

“This acquisition will allow us to quickly increase the scale of our existing Profuturo AFP business and become a bigger presence in this growing segment,” said Barb Mason, executive vice president of Global Wealth Management at Scotiabank.

With US$9 billion in Assets Under Management (AUM), AFP Horizonte is the third largest pension fund manager in Peru and serves 1.4 million clients in 17 branches across the country. As a result of this transaction, Scotiabank has acquired 50% of this business.

Profuturo AFP was acquired by Scotiabank in 2008 and is Peru’s fourth largest pension fund manager with 15% market share. The company currently has US$5.8 billion in AUM and serves 1.2 million customers through 14 branches in the country. After the integration of this acquisition, Profuturo AFP will increase AUM to approximately US$10.3 billion bringing its market share to 27% and will serve 1.9 million customers.