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BlackRock Brazil to Offer ETFs Amid ’Aggressive’ Growth in 2012

Nov. 14 (Bloomberg) -- BlackRock Inc.’s Brazil unit said it plans to offer exchange-traded funds that will invest in government bonds amid “aggressive” growth in the domestic market next year.

“We expect aggressive growth in the business,” BlackRock country head Luiz Felipe Andrade said Nov. 9 in a telephone interview from Sao Paulo. “If the market cooperates, we want to grow next year way more than the 30 percent growth in fund shares we had this year.”

New York-based BlackRock, the world’s biggest provider of ETFs, plans to create the fixed-income funds as soon as Brazil’s securities regulator authorizes the sale of the securities, he said. BlackRock’s Brazilian unit already has more than 1 billion reais ($574 million) of equity ETFs under management, he said.

The regulator, known as CVM, may change regulations to allow financial firms and bourses to create ETFs, which are funds that trade on exchanges like stocks. CVM plans to start a public consultation on the proposal in the first half of 2012, Flavia Mouta Fernandes, head of the CVM’s markets development division, said in an interview on Nov. 7.

Global ETF assets reached $1.3 trillion in October, according to Deutsche Bank. BlackRock manages more than $900 billion in hundreds of mutual funds and exchange-traded funds. The value of the Brazilian unit’s assets increased “little” because the market fell this year, Andrade said.

To contact the reporter on this story: Adriana Chiarini at achiarini4@bloomberg.net

To contact the editor responsible for this story: Helder Marinho at hmarinho@bloomberg.net

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