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Banco do Brasil asset manager sees up to 12% growth from fund sale expansion

BB Gestão de Recursos-Distribuidora de Títulos e Valores Mobiliários SA plans to sell investment funds outside of its banking network to further grow assets under management, new chief executive Carlos André said in an interview with Valor Econômico.

Through the use of external distributors, the Banco do Brasil SA unit, which currently holds 970 billion reais under management, expects growth of between 7% and 12% this year. Growth within that range would bring its AUM above the 1 trillion reais threshold.

The executive also underscored his strategy to increase market share, which currently stands at about 23%, by selling actively managed funds that take more risk in the hopes of delivering returns above benchmarks.

To help with that growth, André pointed to the compilation of thematic funds for high net worth individuals, such as one launched in September 2018 focused on companies that value gender equality in leadership positions.

The move comes amid speculation that Banco do Brasil will look to divest BB DTVM as part of a broader privatization plan by Brazilian President Jair Bolsonaro's economic team. In response to the speculation, André noted that "there is nothing defined so far."

As of May 16, US$ 1 was equivalent to 4.01 Brazilian reais.