Times of change are being experienced in the Latin American operations of Principal Financial Group. In line with its global guidelines, the financial group is carrying out a regional plan to strengthen its institutional business, including reinforcing its team across the continent with high-level professionals in key positions.
The most recent moves have been the recruitment of two heavyweights for sales in two hubs in South America. Jorge Díaz took on the role of Institutional Sales Director for the Andean region, bringing a decade of experience at Vinci Compass, while Rodrigo Pace assumed the same role for Brazil after spending four years in institutional sales at Franklin Templeton.
These hires add to that of a new Managing Director and Head of Institutional Coverage for Latin America, Jesús Martin del Burgo, who joined the company at the beginning of the year following roles at Santander and DWS Group.
“These appointments respond to a strategic decision focused on strengthening the institutional business as one of the main growth drivers of Principal Asset Management in Latin America, leveraging talent with relevant global experience and deep knowledge of local markets,” explains Fernando Torres, Executive Managing Director of Asset Management for the region, to Funds Society.
Within this framework, the company is moving toward building a regional structure with an integrated approach by business segments, rather than one organized by countries.
Torres took over regional leadership of the asset management business in October last year, when Principal established a model with two leadership roles. Horacio Morandé was placed in charge of Wealth and Corporate Solutions and, later, Del Burgo joined, relocating to Mexico and assuming a role created at that time: regional head of the institutional business.
It is under the leadership of this executive, Torres explains, that a network of leaders in key Latin American markets was structured. Ana Lorrabaquio remained in her position as Head of the institutional business in Mexico, Pace took charge in Brazil, and Díaz in the Andean region. “This structure reflects our focus on attracting and consolidating top-tier talent as part of our growth strategy, combining regional strategic direction with local execution in each market,” Torres emphasizes.
Focusing on Institutional Clients
These organizational changes they have been driving are aimed at supporting their commitment to the institutional segment, which the executive describes as “one of the main growth drivers for Principal Asset Management in Latin America.”
The appeal, Torres explains, lies in the segment’s large scale and the deep, long-term relationships between the asset manager and investors. “It is a segment that demands sophisticated investment solutions, tailored mandates, and access to a wide range of assets, including private markets,” he explains.
In addition, the firm sees a structural trend in the region: pension funds, insurers, and other institutional players are increasing their exposure to more diversified, long-term-oriented strategies. “This is raising the level of market sophistication and opens up a significant opportunity for managers with global capabilities and local execution,” says the Executive Managing Director of Asset Management.
Overall, the financial group’s objective is to consolidate a stronger offering in the Latin American market, increasing assets under management and strengthening its positioning in key segments, where the institutional business is “a priority.”
“We are focusing our efforts on strengthening this segment, both in capabilities and talent, with the goal of establishing ourselves as a long-term strategic partner for our institutional clients in the region.”
Platform Design
This is what has inspired the international financial group to pursue a design that leverages its global capabilities—with an investment platform across fixed income, equities, and alternatives—alongside its regional structure and local presence. The goal, according to Torres, is to evolve into a more integrated asset management platform with greater growth capacity. The focus, he explains, is on “strengthening key capabilities in distribution, product, and private assets, and continuing to bring in specialized talent that allows us to scale the business more deeply.”
For this reason, the firm’s recent high-level hires are aimed at strengthening expertise in the institutional segment, with seasoned professionals.
Looking ahead, the team could continue to grow, according to the regional Head of Asset Management. “We will continue to strengthen the team selectively, based on the strategic priorities of the business and the capabilities needed to sustain its growth,” he notes.
Key areas to consolidate include institutional distribution, product development, and private assets, among others.
“Rather than growing in volume, we seek to build a team with the right profile for this new stage, aligned with a long-term vision and the evolution of the business in the region,” Torres concludes.
