SAO PAULO--(BUSINESS WIRE)--According to Fitch Ratings, the recently announced sale of HSBC Bank Brasil S.A. - Banco Multiplo does not change the Brazilian asset management industry's competitive landscape.
On Aug. 3 HSBC Holding Plc (long-term IDR 'AA-'/Outlook Stable) announced that it had reached an agreement to sell its Brazilian operation to Banco Bradesco S.A. (foreign currency long-term IDR 'BBB+'/Outlook Negative). The sale of HSBC Bank Brasil S.A. - Banco Multiplo will include its asset management unit, which offers traditional asset class investment strategies (HSBC Gestao de Recursos - AMR 'Highest Standards'/ Outlook Stable) and fund of funds (HSBC Multimanager - AMR 'Highest Standards'/ Outlook Stable).
HSBC Gestao de Recursos Ltda is the seventh largest asset manager in Brazil with AUM of BRL 86 billion and a 3.1% market share as of June 2015 according to the Brazilian Association of Entities of the Financial and Capital Markets (Anbima).
The transaction, which is still subject to regulators' approval before it is finalized, will result in HSBC's asset management unit being incorporated into Bradesco Asset Management (BRAM). In the coming weeks executives of the two institutions will start to work on the development of an integration plan in order to assure a smooth and transparent transition once the acquisition is finalized, which could take six to nine months. The expected timeframe for the conclusion of the consolidation of both business units is the 2Q16.
Additional information is available at 'www.fitchratings.com'.