Franklin Templeton Investments is thinking about buying an asset manager in Brazil with the aim of entering the country's credit-fund market, Bloomberg News reported, citing Marcus Vinicius Goncalves, the company's CEO for Brazil.
"We have credit funds everywhere else in the world, but not in Brazil," the executive said in an interview with Bloomberg. "We'd be willing to acquire an asset manager, especially one with a credit desk."
The Franklin Resources Inc. unit is predominantly interested in funds backed by receivables, known in Brazil as FIDCs. Goncalves said there is "a huge market for that business, but it's underdeveloped." Franklin Templeton will probably not acquire a minority stake in another manager, but it is open to possible joint ventures with Brazilian firms, the executive added.
According to the report, Brazil's credit-fund market has flourished as record-low benchmark interest rates have pushed investors to search for higher yields outside of government securities.
The company has 30 employees in the South American country and manages roughly 7.4 billion Brazilian reais there.
As of March 25, US$1 was equivalent to 3.87 Brazilian reais.